Highlights of India’s Union Budget 2023-24: Promoting Green Growth and Infrastructure Development

The encouragement of green growth and the expansion of infrastructure are key components of the Indian Union Budget for 2023–2024.The budget intends to hasten the creation of conditions that will foster green growth, increase the number of jobs in the clean and sustainable energy sector, and catalyze climate action. During the financial period of 2023-2024, the administration is putting forth a budget plan of INR 10 trillion for capital investments, accounting for 3.3 percent of the nation’s GDP. This displays a significant 33 percent growth compared to the previous year.


The Union Budget for 2023-2024 is a roadmap for an empowered and inclusive economy that is intended to lead the nation towards “Amrit Kaal”. The seven priorities, referred to as Saptarishi, are financial sector, infrastructure and investment, young power, unleashing potential, green growth, and reaching the last mile. The budget seeks to strike a balance between inclusion, sustainability, and growth.

The budget’s emphasis on infrastructure development is also noteworthy. The Indian government is committed to upgrading the country’s infrastructure, with emphasis on advancing road networks, rail systems, aviation facilities, and harbor ports. The government has suggested establishing a National Asset Monetization Pipeline to monetize brownfield infrastructure assets and raise funds for new infrastructure development. The budget encompasses numerous initiatives designed to bolster the manufacturing industry, such as the creation of a National Technical Textiles Mission. This ambitious project seeks to establish India as a dominant force in the world of technical textiles.

Green Growth Initiatives

The Indian Union Budget for 2023-24 prioritizes green growth and sustainability. The budget provisions aim to create more clean and sustainable energy jobs while also catalyzing climate action. Green Growth is one of the seven Saptarishi goals announced in the Union Budget for FY 2023-24 to drive the country towards ‘Amrit Kaal,’ thus offering a roadmap for an empowered and inclusive economy.

Renewable Energy

The budget reinforced the focus on the National Green Hydrogen Mission, which was established earlier this year, with an outlay of INR 19,700 crores to attain 5 MMT annual production by 2030—enough to meet approximately 40% of India’s hydrogen consumption. The Centre’s direct capital investment is supplemented by a provision for the production of capital assets through Grants-in-Aid to States. This will render it easier to build new infrastructure and expand existing infrastructure across the country, particularly renewable energy infrastructure.

Additionally, the administration recommends prolonging the five-year tax relief for businesses involved in producing and distributing renewable energy sources. This is intended to promote the renewable energy sector and attract additional investment. The government has also suggested establishing a National renewable Energy Fund to support renewable energy research and development.

Electric Vehicles

The administration has proposed a reduction in the GST rate for electric vehicles, decreasing it from 12% to 5%, and for electric vehicle chargers, bringing it down from 18% to 5%.In addition, the government has proposed INR 1,500 crore for the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) scheme to promote EVs. The government has also proposed establishing giant production factories in the country for EVs and sophisticated batteries. It is anticipated that these measures will fortify the electric vehicle sector and reduce the nation’s dependence on non-renewable energy sources.

Infrastructure Development

The Indian Union Budget 2023-24 places a high priority on infrastructure development in the country. The government has dedicated substantial sums to several industries in order to encourage green growth and sustainable development. The budget’s infrastructure development segment is divided into three parts: transportation, urban development, and rural development.

Transportation

The Union Budget 2023-24 allotted a total of INR 2.24 lakh crore to the transport industry. The administration aims to promote the growth of a robust, eco-friendly, and effective transport network. This includes allocating financial resources for building roads, rail systems, and air travel facilities nationwide. Furthermore, the government suggests establishing an integrated transport system that combines various means of transportation, including railways, roadways, and waterways.

Urban Development

The Union Budget 2023-24 allotted INR 1.41 lakh crore to the urban development sector. The government wants to encourage the construction of smart, sustainable, and livable cities. The budget includes funds for the development of urban affordable housing, sanitation, and waste management systems. To improve sustainable travel, the government has also proposed the creation of a mass rapid transit system in select cities.

Rural Development

The Union Budget 2023-24 allotted INR 1.68 lakh crore to the rural development sector. The administration intends to support the development of sustainable and inclusive rural infrastructure. Allocated within the budget are resources for developing rural infrastructure, such as road networks, water distribution systems, and hygiene amenities. The administration has also recommended the construction of renewable energy-based rural electrification networks.

Economic Impact

The Union Budget 2023-24 intends to stimulate green growth and infrastructure development, which will benefit the Indian economy. To promote sustainable economic growth, the budget emphasizes infrastructure construction, consumption enhancement, and fiscal policy regulation.

Job Creation

The budget proposes an augmentation of expenditures in multiple sectors, such as green energy, healthcare, and education. The administration plans to finance new infrastructure initiatives like highways, rail systems, and air travel facilities, creating fresh investment prospects for local and international enterprises.

Additionally, the budget suggests offering tax incentives to companies investing in research and development, fostering innovation and accelerating economic expansion. The government envisions building new R&D hubs across various sectors like healthcare and sustainable energy, presenting more investment opportunities for businesses.

Moreover, the budget suggests enhancing monetary backing for the National Rural Employment Guarantee Act (NREGA), leading to a greater number of job opportunities in countryside regions. Furthermore, the budget commits to providing tax benefits to companies generating new jobs, motivating them to grow and employ additional workforce. This approach will not only create employment but also enhance consumer expenditure and stimulate economic development.

Conclusion

In conclusion, the Union Budget of India for 2023-24 establishes a strong groundwork for enduring progress and advancement, focusing on areas such as infrastructure, technology, and an eco-friendly economy. The administration is committed to realizing long-lasting sustainable growth that harmonizes economic expansion, societal welfare, and environmental conservation through initiatives designed to steer India toward a sustainable future. With successful implementation, India will reap the rewards of a cleaner environment, increased employment, and a circular economy. The budget delineates a distinct roadmap for the government to pursue, with the objective of transforming India into a $5 trillion economy in the upcoming years.
 

“With our innovative green technologies, Bootes’ mission is to deliver world-class Net-Zero infrastructure. We aim to create Lighthouse Project for our country that are truly Aatmanirbhar (आत्मानिर्भर) & promote a circular economy”

Manab Rakshit | Chief Executive Officer – BOOTES

 

At BOOTES, we recognize the importance of implementing sustainable & Net-Zero infrastructure to transition India towards a healthy & green future. These Net-Zero Infrastructures can:

·  Reduce operating Costs

·  Reduce dependency on fossil fuels

·  Reduce Carbon footprint

and provide:

·  Greater Energy Security

·  Better air quality

·  Enhanced Experience


Get in touch with us to know more:

info@bootes.in

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