Budget 2024: Hopes for green energy push, railway capex, GST rationalisation continue, says Expert
The forthcoming interim budget will be the sixth in a string of exceptionally progressive and growth-oriented policy initiatives from the current Finance Minister. Pragmatic, inclusive and development driven, the FM’s budgets have a track record of stability in tax policies and sustainable long-term growth at its core. During her term India has emerged as the fifth largest economy in the world, a truly commendable achievement.
Election year is always a challenge for the FM, needing to balance key economic priorities with the expectation of the electorate, matters that seldom converge. There are a few areas where policy and tax laws can be rationalised to spur growth and competitiveness.
Green energy will need to be emphasised and promoted through policy so that the momentum is sustained. We have made a promising start with solar and wind, both of which still need to attain greater viability prospects. Sustainability in general will need to get supported through the budget both in terms of incentives and also tax policy so that companies are encouraged to embrace sustainable practices and also innovate their products and services to meet global standards.
PM Modi’s Green Credits Initiative proposed at the COP 28 summit and also the commitment to balance economic development aspirations with actions on climate change are positive steps that need budget initiatives. With the right framework, India has a good potential to be a generator and exporter of carbon off-sets.
I expect the FM to continue the allocation for railways’ capacity enhancement, rail safety and Mission Raftaar.
Customs duty and GST reduction on solar cells and components need a relook. Introduction of the Green Hydrogen Purchase Obligation for identified industries and reduction in the GST rate for electrolyser manufacturing, along with fiscal incentives aimed at ramping up Green Hydrogen production will give a thrust to this important energy option.
