CII Jharkhand welcomes Union Budget with special focus on East India

Budget aiming towards Rural Development, MSMEs, Public Infrastructure and Enhanced role of Women in Economic Development

Jamshedpur: CII has termed the Union Budget 2024-25 as growth oriented budget. The Budget has touched several sectors including MSME, Agriculture, Infrastructure, Skills, Technology, innovation and Ease of doing business. The industry commends the government for prioritizing MSMEs in the Union Budget 2024-25. These initiatives will fortify the backbone of our economy, driving innovation, job creation, and sustainable growth.

CII hails Government for formulation of plan for all round development of Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh. The Four expressway and bridge projects worth ₹ 26,000 crores for Bihar will give the necessary boost to the region. CII also welcomes FM’s announcement in prioritizing tourism as a sector and development of Vishwanath and Mahabodhi temple in Gaya. Development of Nalanda as a tourist destination beside reviving Nalanda University is a positive step. Tourism in the Eastern Region will benefit from development of Temples, Monuments , beaches and cultural heritage of Orissa and Comprehensive development of Rajgir .

Abolition of Angel tax and major rationalisation proposals for taxation of charitable organisations, TDS, Reassessment and Search cases and Capital Gains Tax Regime has been a strong call from CII. The 3 schemes for ‘Employment Linked Incentive’, as part of the Prime Minister’s package which will be based on enrolment in the EPFO, and focus on recognition of first-time employees, and support to employees and employers has been a long standing ask of CII.

Reconstruction and Rehabilitation support to states affected by extreme-weather events such as floods, cloudbursts, landslides etc. is much appreciated by Industry members. CII also welcomes the Critical Minerals Mission, which focuses on boosting domestic production and recycling of critical minerals. CII further welcomes the announcement of a new initiative to provide internship opportunities for 1 crore youth over the next five years, with placements in 500 leading companies. This scheme will enhance skill development, employability, and nurturing future talent in the manufacturing sector.

S K Behera Chairman CII Eastern Region and Vice Chairman and MD RSB Transmission Pvt Ltd hailed Government’s initiative for formulation of plan for Purvodaya for all round development of Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh. He also applauded Government’s focus on tourism development of heritage sites of the eastern region. Behera further mentioned that the allocation of ₹1.48 lakh crore for education, employment, and skill development will significantly enhance opportunities for the youth, improve workforce capabilities and support Eastern and North Eastern States to provide skilled workforce to the entire country. The budget focus on 4 major areas, namely ‘Garib’ (Poor), ‘Mahilayen’ (Women), ‘Yuva’ (Youth) and ‘Annadata’ (Farmer) is particularly laudable. The provision of 2.66 lakh crore for rural development including rural infrastructure will have a multiplier effect on the economy.

Ranjot Singh, Chairman of CII Jharkhand State Council & Managing Director of Emdet Jamshedpur Pvt Ltd, hailed the Union Government’s focus on the Eastern Region under the Purvodaya Scheme. He emphasized the positive impact this initiative will have on regional development and growth. He further added that the limit of Mudra loans increased from 10 lakh to 20 lakhs will support micro enterprises for growth. The Credit Guarantee Scheme of the MSMEs with guarantee cover of up to 100 crores and the loans can be taken without collateral or third-party guarantee will be a major pillar in strengthening the MSME ecosystem. Industrial Node at Gaya for Industrial development of eastern side will open new avenues. All these will fortify the backbone of our economy, driving innovation, job creation, and sustainable growth.

Arun Prakash, Convenor of CII Jharkhand Economic Affairs, Finance & Taxation Panel and Senior General Manager (Finance) at Tata Cummins Pvt Ltd, said the budget speech reflected the growth-led vision of the government with a specific focus on key pillars. He emphasized that the reduction of the fiscal deficit from 5.1% to 4.9%, with a target to further lower it to 4.5%, demonstrates a firm commitment to the growth vision. He welcomed the attention to the Eastern part of India, highlighting it as a positive step for states like Jharkhand.

Prakash acknowledged the focus on MSMEs, describing them as the backbone of the economy. He praised the additional financing arrangements, including limit increases and capital support with additional guarantees. The extension of Mudra loan limits to ₹20 lakh from ₹10 lakh for those who have availed and repaid previous loans is seen as a significant boost for small businesses. Furthermore, the introduction of a new scheme to facilitate term loans for MSMEs for the purchase of machinery and equipment without collateral and guarantee, with a guarantee fund providing guarantees of up to ₹100 crore, reflects a robust strategy to support advanced manufacturing processes and address the talent gap.

The employment-based incentives are expected to create a positive job market across India. The budget’s allocation of over ₹11 lakh crore for infrastructure projects is considered timely and necessary, contributing to overall economic growth. Mr. Prakash also appreciated the tax proposals, including the review of the Customs Act to rationalize tax rates, which will ease the process of doing business. The announced rate cuts are expected to support the reduction of tax inversions and disputes.

He highlighted the announcement of an amnesty scheme in direct taxes and the reduction of the time period for reopening and reassessments, which will further reduce the compliance burden and promote business activities. On the personal income tax front, the enhancement of the standard deduction to ₹75,000 and changes in slab rates provide relief to the masses, amounting to approximately ₹17,500 in savings.

Prakash concluded by stating that this budget reinforces confidence in the government’s dedication to driving economic growth, technological innovation, and sustainable development.