In a recent address to Indian industry leaders, Prime Minister Narendra Modi highlighted his government’s achievements over the past decade. He noted that India is now the fastest-growing major economy globally and emphasized that the national budget has grown from Rs 16 lakh crore in 2013-14 to Rs 48 lakh crore under his administration.
Reflecting on past progress, Modi pointed out that when the UPA government took office in 2004, its initial budget had a capital expenditure of Rs 90,000 crore. By the end of their term in 2014, this figure had only doubled to Rs 2 lakh crore. In contrast, during the current administration, capital expenditure has surged to over Rs 11 lakh crore, a more than fivefold increase compared to the previous decade.
Modi also highlighted significant increases in budget allocations across various sectors. The railway budget has grown eightfold, the highway budget has also increased eightfold, the agriculture budget has more than quadrupled, and the defence budget has more than doubled.
For the MSME sector, Modi noted improvements in tax regulations: MSMEs earning up to Rs 3 crore now benefit from presumptive taxation, compared to the Rs 1 crore threshold in 2014. Additionally, the tax rate for MSMEs earning up to Rs 50 crore has been reduced from 30% to 22%. Corporate taxes have also been lowered from 30% to 25% for companies with incomes up to Rs 400 crore.
Modi emphasized the government’s focus on “speed and scale,” citing India’s unique position of high growth coupled with low inflation. He attributed this success to the government’s focus on skill development, employment creation, and resilience against challenges such as pandemics and geopolitical tensions.
The Prime Minister reiterated his commitment to the goals of a developed India, emphasizing the country’s progress towards becoming a Viksit Bharat (Developed India) by 2047. He urged the industry to match the government’s efforts in job creation and investment, reinforcing the motto of a Viksit Bharat.
The conference, titled “Journey Towards Viksit Bharat: A Post Union Budget 2024-25 Conference,” was attended by over 1,000 participants, including industry leaders, government officials, diplomats, and think tanks, both in person and virtually. Earlier, in his post-budget message, Modi had described the budget as a step towards inclusive growth, benefiting all segments of society and contributing to a developed India.