The Finance Minister Of India Presented The Union Budget Of 2024 – 25

The Union Budget 2024-25 was presented in the Parliament on July 23, 2024 which focused on promoting clean energy, employment and skill development, securing critical mineral supply chains and creation of clean energy finance taxonomy among other changes. Following are some of the highlights:

• the budget highlighted 5 (five) key schemes for employment and upskilling:
  • first timers scheme: under this subsidy scheme 1 (one) month wage will be provided to all persons newly entering the workforce in all formal sectors. First-time employees registered with the Employees' Provident Fund Organisation ("EPFO") will receive up to INR 15,000 (Indian Rupees fifteen thousand) through direct benefit transfer in 3 (three) instalments;
  • job creation in manufacturing: this scheme is aimed at incentivising additional employment in manufacturing sector, linked to employment of first timers. Incentive will be given to both employee and employer for EPFO contributions in the specified scales for the first 4 (four) years;
  • support to employers: employers who increase employment as per the threshold prescribed will be eligible for reimbursement up to INR 3,000 (Indian Rupees three thousand) per month for 2 (two) years towards EPFO contribution of employers, for each additional employee hired in the previous year;
  • skilling programme: a centrally sponsored initiative in collaboration with state governments and industry for skilling 20,00,000 (twenty lakh) youth over 5 (five) years. This programme includes upgrading existing industrial training institutes and establishing additional ones; and
  • internship in top companies: the Government plans to launch a comprehensive scheme for providing internship opportunities in top companies to 1,00,00,000 (one crore) youth over 5 (five) years;
• in a consistent effort to tackle climate change, the PM Surya Ghar Muft Bijli Yojana, which aims to install rooftop solar panels in 1,00,00,000 (one crore) homes and provide up to 300 (three hundred) units of free electricity per month, stands out as a significant initiative. This initiative is instrumental in the significant increase of allocation for the solar energy sector which has translated to a 110% rise from the previous year's budget;
• the Government will also develop a 'taxonomy for climate finance' to improve access to capital for climate adaptation and mitigation, supporting India's climate goals and green transition. To boost climate action, funding from public, private and international sources is necessary and a home-grown taxonomy will ensure that only genuine climate finance is categorised as such;
• a total of 109 (one hundred and nine) new high-yield and climate-resilient varieties of 32 (thirty-two) field and horticulture crops will soon be available for farmers to cultivate. Over the next 2 (two) years, 10,000,000 (ten million) farmers will be introduced to natural farming, with support including certification and branding. These government initiatives represent a broad strategy to revolutionise agriculture by emphasising climate resilience, increasing productivity and improving efficiency;
• to bolster domestic manufacturing and decrease dependence on imports, the budget removes basic customs duties on 25 (twenty-five) essential minerals crucial for renewable energy, nuclear energy, and high-tech industries. This measure aims to strengthen the domestic supply chain and expand manufacturing capabilities;
• the budget envisages to provide financial support to help micro and small industries transition to cleaner energy and improve their energy efficiency. The government will also conduct investment-grade energy audits for these industries in 60 (sixty) clusters, including brass and ceramic. The scheme will expand to 100 (hundred) more clusters in the next phase; and
• to enhance electricity storage and facilitate seamless integration of increasing share of renewable energy in the overall energy mix, a pumped storage policy will be introduced. Highlighting the importance of energy transition in combating climate change, the budget also expanded the list of exempted capital goods for manufacturing solar panels and cells. However, the budget proposed ending customs duty exemptions for solar glass and tinted copper interconnects, citing adequate domestic manufacturing capability.

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