Welfare of the Poor is the Welfare of the Nation for a Viksit Bharat by 2047, DBT has led to savings of ₹2.7 lakh crore in Budget 2024 >It has plugged leakages and better targeting of genuine beneficiaries, suggesting a responsible approach to public finances.
25 crore people moved out of Multidimensional poverty> Increased consumer spending, a push towards financial inclusion, boost to investor’s confidence.
Credit assistance to 78 lakh street vendors under PM SVANidhi> Bringing informal sector participants into the formal financial system facilitated a direct injection of funds into the formal economy.
Budget 2024 Enabling Youth-1.4 crore youth trained under Skill India Mission
Fostering entrepreneurial aspirations of Youth-43 crore loans sanctioned under PM Mudra Yojana
The increased demand for financial services, with more young entrepreneurs seeking loans and other products under Mudra Yojana, creates opportunities for banks and financial institutions.
The growth of MSMEs resulting from this initiative further opens avenues for financial entities to cater to the specific needs of these businesses.
Additionally, these initiatives contribute to financial inclusion by bringing more young individuals into the formal financial system, fostering economic participation and stability.
Budget 2024: Rs 1 Lakh Crore Fund Launched for Emerging Industries Support
This initiative has the potential to stimulate entrepreneurship in emerging technologies like artificial intelligence, 5G, quantum computing, and health and aggrotech sectors.
The government’s provision of 50-year interest-free loans to financial institutions aims to support projects with extended tenors and favorable interest rates. This move is anticipated to shift India’s economic focus from a service-oriented model to a destination driven by intellectual property.
The funding will empower small businesses to diminish their reliance on natural resources and Rare-Earth minerals through innovative technological solutions.
Budget 2024: Propelling Electric Mobility Growth
The finance minister’s declaration to foster the creation of an electric mobility ecosystem is anticipated to stimulate the manufacturing of electric vehicles and tackle a major hurdle in the widespread adoption of EVs – the scarcity of easily accessible battery charging stations.
The government is actively engaged in the nationwide expansion of the electric vehicle (EV) charging infrastructure. In the previous year, the Ministry of Heavy Industries allocated a capital subsidy of Rs 800 crore to three state-owned oil marketing companies for the establishment of 7,432 public EV charging stations by March 2024. Additionally, approval was granted for the installation of 148 charging stations by other entities under the same initiative.
Budget 2024 Sees Major Boost for Rooftop Solar with 10 Million Households Set to Benefit
The interim budget has advocated significant support for the rooftop solar sector, specifying that 10 million households will be empowered to receive up to 300 units of complimentary electricity monthly through the Pradhan Mantri Suryodaya Yojana, backed by a budget allocation of Rs 10,000 crore.
This initiative is expected to result in an annual saving of Rs 15,000 – 18,000 per household through the provision of free solar electricity and selling surplus power under the program. Additionally, the adoption of rooftop solar will ease the charging of electric vehicles.
The provision of viability gap funding (VGF) for 1 GW of offshore wind energy is set to provide a stimulus to the sector, addressing the need for supporting the deployment of technologies that currently lack economic viability.
Micro Finance
The government is poised to elevate the Lakhpati Didi Scheme target from the existing 20 million to 30 million. This modification is anticipated to yield favorable outcomes for the rural economy, fostering an upsurge in credit demand for microfinance entities. This empowerment program not only boosts economic development in rural regions but also augments the demand for credit in microfinance institutions.
Some stocks like ESA Small Finance, CreditAccess Grameen, Ujjvan Financial Services, Equitas Small Finance, and Fusion Micro could see positive impacts in the medium term.
Housing
The government plans to launch a housing scheme tailored for the middle class, aiming to enhance their capacity to buy or build homes. The focus on the rural housing program is anticipated to generate multiple favorable impacts on the economy, considering the interdependence of various related industries with the housing sector.
This initiative is expected to contribute to the growth of the nation’s housing sector and the home loan market. Companies such as HUDCO, LIC Housing Finance, PNB Housing, Aptus Value Housing, and NBCC are likely to benefit from this program.
Tourism
The budget places emphasis on promoting tourism by offering incentives to states for the development of tourist destinations, thereby generating local opportunities. States will receive interest-free loans to support the promotion of tourism in their respective regions.
These measures could potentially benefit companies in the travel, tourism, and hospitality sectors. Companies like Hotels, IRCTC, EaseMyTrip, Yatra Online, and Mahindra Holidays may be considered potential beneficiaries of these initiatives.
Railways
The railway sector has gained significant support through the introduction of three new corridors: the energy, mineral & cement corridor, port connectivity corridor, and high-traffic density corridor.
The finance minister announced plans to convert 40,000 regular bogies into Vande Bharat trains, which is expected to positively impact the sector. Companies like Texmaco Rail, Jupiter Wagons, Titagrah Rail, Siemens, and Rail Vikas Nigam, among others, are positioned to benefit from these initiatives.
Energy
The Finance Minister unveiled a plan to offer 300 units of complimentary electricity to approximately 10 million households via a rooftop solar scheme. Moreover, state-run power sector entities like NTPC, NHPC, Power Grid, and SJVN are anticipated to aid in promoting this initiative, bolstering efforts to encourage rooftop solar adoption. Companies like Tata Power, Borosil Renewable, Waaree Renewables, Websol Energy System, IREDA, and Sterling & Wilson stand to gain from these advancements.
Defense
In the interim budget, allocations for the defense sector saw an increase, underscoring the government’s dedication to bolstering national security forces and encouraging local procurement. Out of the total capital outlay of 11.11 lakh crore rupees, the defense sector received 6.2 lakh crore rupees, marking a 4.4% rise from the budgeted allocation in FY24.
Companies such as HAL, Bharat Dynamics, Bharat Forge, Bharat Electronics, Data Patterns, and Astra Microwave are poised to benefit from these augmented allocations in the defense sector.
Disclaimer: The opinions expressed in this post are solely those of the author, and neither the company nor its employees can be held responsible for any outcomes. It’s important to note that this post does not constitute financial advice. Readers are encouraged to seek guidance from a qualified financial advisor and perform their own due diligence before making any investment decisions.