Prime Minister Narendra Modi met with leading economists on Thursday, less than two weeks before the Union Budget announcement. Fresh off his Russia-Austria tour, the meeting primarily focused on Modi's ambition for India to become the world’s third-largest economy, moving up from its current fifth position. The Prime Minister sought suggestions for the upcoming Budget, emphasizing inclusive growth and substantial job creation during his third term.
Finance Minister Nirmala Sitharaman, along with industry experts and economists, including Niti Aayog Vice-Chairman Suman Bery, discussed critical policy issues, ongoing reforms, and future fiscal strategies. The 2024-25 Budget, scheduled for presentation on July 23, will be the first significant economic document of the Modi 3.0 government, expected to outline the path to making India a developed nation by 2047.
Sitharaman concluded her pre-budget consultations on July 7, gathering inputs from various stakeholders. Experts have urged the government to ease the tax burden to boost consumption. Speculations suggest major tax reforms, including an increased threshold for standard deductions and a possible restructuring of capital gains taxes. Insurance companies have pushed for tax relief to make their products more affordable, thereby increasing market penetration. Small business representatives from the MSME sector suggested relaxing the 45-day payment rule to prevent large corporations from seeking alternative sourcing options.
Besides economists and sectoral experts, all senior officials of Niti Aayog, including Vice Chairman Suman Bery, attended the meeting. Finance Minister Sitharaman, Planning Minister Rao Inderjit Singh, Chief Economic Advisor V Anantha Nageswaran, economists Surjit Bhalla and Ashok Gulati, and veteran banker K V Kamath were also present.
President Droupadi Murmu, in her recent address to Parliament, hinted at historic steps to accelerate reforms, suggesting that the forthcoming Budget will reflect the government’s far-reaching policies and visionary approach. Economists have recommended tax relief for the common man to boost consumption, alongside measures to curb inflation and spur economic growth. The economy recorded a growth rate of 8.2% in 2023-24. Earlier, Sitharaman presented an interim budget for 2024-25 in anticipation of the Lok Sabha elections.