Interim Budget 2024

Consumer

• New Production Linked Incentives (PLI) are

recommended (by way of allocating token provision
amount) with an outlay of INR 3,489 crore (FY2024−25
to FY2031−32) for the toy industry and INR 2,600 crore
(FY2023–24 to FY2031–32) for the leather/footwear
industry.

• Substantial increase in FY2024–25 expenditure budget

for disbursements under PLI schemes (covering EVs,
auto components, and air conditioners) indicates
successful grounding of investment proposals.

© 2024 Deloitte Touche Tohmatsu India LLP.

 Interim Budget 2024
Energy,
Resources
and Industrials

• Capital outlay for the next year on infrastructure

development is increased by 11.1 percent, which will
be 3.4 percent of the GDP.

• The benefit of a lower tax rate of 15 percent, which is

available for new manufacturing/power generation
entities commencing production on or before
31 March 2024, is not extended.

• Income tax exemption on specified incomes on

investments made by Sovereign wealth funds/pension
funds on or before 31 March 2024 is extended for
investments made up to 31 March 2025.

• To meet commitment towards “net-zero” by 2070, the

following measures will be taken:
- Provide viability gap funding for harnessing
offshore wind energy potential for the initial
capacity of one gigawatt.
- Set up coal gasification and liquefaction capacity of
100 million tonnes by 2030. This will reduce
imports of natural gas, methanol, and ammonia.
- Mandate phased blending of Compressed Biogas
(CBG) in Compressed Natural Gas (CNG) for
transport and Piped Natural Gas (PNG) for
domestic purposes.
- Provide financial assistance for the procurement of
biomass aggregation machinery.

• About 10 million households will receive free

electricity for up to 300 units every month under the
rooftop solarisation and free electricity scheme.

• Launch a new scheme of biomanufacturing and

bio-foundry to support environment-friendly
alternatives.

• Expand and strengthen the e-vehicle ecosystem by

supporting the manufacturing and charging
infrastructure. Encourage greater adoption of e-buses
for public transport networks through payment
security mechanisms.

• Below are three major economic railway corridor

programmes identified under PM Gati Shakti for
enabling multi-modal connectivity. These will improve
logistics efficiency and reduce costs:
1. energy, mineral, and cement corridors;
2. port connectivity corridors; and
3. high-traffic density corridors.

• The aviation sector has been galvanised in the past

10 years. Expansion of existing airports and
development of new airports will continue.

© 2024 Deloitte Touche Tohmatsu India LLP.

 Interim Budget 2024
Financial
services

Key tax proposals

International Financial Services Centre (IFSC)
• Time limit extended by one year
(from 31 March 2024 to 31 March 2025):
- For foreign banks looking to set up an investment
division in an offshore banking unit that will be
established in IFSC-GIFT City. This will augment the
creation of a robust gateway for global capital and
financial services for the Indian economy and
enable such units to qualify for the prescribed
income-tax exemptions.
- To establish leasing business operations in
IFSC-GIFT City. This will encourage aircraft and ship
leasing businesses in IFSC-GIFT City and enable
such entities and their overseas financiers/lessors
to qualify for the prescribed income-tax deductions
and exemptions, respectively.

Sovereign Wealth Fund (SWFs) and Foreign Pension

Fund (FPFs)
• Sunset clause for making investments into eligible
avenues extended by one year (from 31 March 2024 to
31 March 2025). This will provide the continuity of
income-tax exemption to notified SWFs/FPFs investing
in qualifying infrastructure projects in India.

Rationalisation of TCS provisions

• Provisions related to the applicability of TCS on
Liberalised Remittance Scheme remittances and
overseas tour packages amended to streamline them
with the CBDT vide its Circular no. 10 of 2023.

Key policy proposals

Rationalisation of TCS provisions
• The Government’s push for insurance penetration
continues with the announcement to extend health
cover under the Ayushman Bharat scheme to all ASHA
and Anganwadi workers and helpers.

© 2024 Deloitte Touche Tohmatsu India LLP.

 Interim Budget 2024
Government
and public
sector

Education
• Establish new medical colleges
The Government will set up more medical colleges
using existing hospital infrastructure and continue its
commitment to focus on improving health care
outcomes. A committee would be set up to examine
this initiative’s feasibility.

• Strengthen research and innovation ecosystem

A corpus of INR 1,000 billion will be created with a
50-year interest-free loan to encourage private sector
participation (including educational institutions), to
scale up research and innovation significantly in
sunrise domains.

• Enhance early childhood care

Upgrading of Anganwadi centres under the “Saksham
Anganwadi and Poshan 2.0” will be expedited for
improved nutrition delivery, early childhood care, and
development.

Healthcare
• Cervical cancer vaccination
The Government will encourage the vaccination of
girls in the age group of 9–14 for the prevention of
cervical cancer.

• Maternal health and childcare

Maternal and childcare schemes will be brought under
one comprehensive programme to achieve synergy in
their implementation.

• Ayushman Bharat
Health care coverage under the Ayushman Bharat
scheme will be extended to ASHA and Anganwadi
workers, and helpers.

Other key socio-economic announcements

• Aspirational Districts Programme
The central government will assist states in developing
aspirational districts and blocks, including generating
economic opportunities.

• Development of tourist centres

States with matching funding from the central
government will take up the development and
branding of iconic tourist centres together with
a rating framework.

© 2024 Deloitte Touche Tohmatsu India LLP.

 Interim Budget 2024
Life Sciences
and Health Care

• Set up more medical colleges using existing hospital

infrastructure; a committee is being set up to make
recommendations.

• Promote vaccination for girls (aged 9 to 14) to prevent

cervical cancer.

• Launch one comprehensive programme for

maternal and child healthcare to achieve synergy.

• Reform Anganwadi centres to improve nutrition

delivery, early childhood care, and development.

• Focus on immunisation throughout the country by

adopting the newly designed U-WIN platform and
intensified efforts on Mission Indradhanush.

• Extend healthcare coverage under the Ayushman

Bharat scheme to caregivers, viz. ASHA workers,
Anganwadi workers and helpers.

• Launch a new scheme of bio-manufacturing and

bio-foundry to promote green growth, including
biopharmaceuticals.

© 2024 Deloitte Touche Tohmatsu India LLP.

 Interim Budget 2024
Technology,
Media and
Telecommunications

• Establish a corpus of INR 1 trillion for financing at low

or nil interest rates to encourage research and
innovation by the private sector in sunrise domains.

• Introduce a new scheme to further promote the

mantra of ‘atmanirbharta’ in the field of deep-tech
technologies for defence purposes.

• A timeline to incorporate start-ups to avail income tax

exemption is extended from 31 March 2024 to
31 March 2025.

© 2024 Deloitte Touche Tohmatsu India LLP.