Strategic Insights for Global Investors: Unpacking Tax Proposals in India's Union Budget 2024

Anshu Khanna

Anshu Khanna is a partner with Nangia Andersen LLP in San Francisco.

In this article, Khanna reviews India’s Union Budget 2024 and explains the importance of some key proposals and the effect they could have on the Indian economy and international investors looking to invest in the Indian market.

Copyright 2024 Nangia Andersen LLP.
All rights reserved.

India’s Union Budget is traditionally announced on February 1 every year. 2024, being an election year, resulted in an interim budget in February, followed by a full budget presentation by Finance Minister Nirmala Sitharaman on July 23. The Indian budget is typically a matter of significant curiosity, not just within the country but also on the global stage, where it is closely scrutinized by international observers for its broader economic implications.

For the financial year 2024-25, the budget underscores a balanced approach to fiscal federalism and economic stability, with a projected deficit of 4.9 percent of GDP and a goal to reduce it to below 4.5 percent by the next fiscal year. Capital expenditure growth has been moderated at 11.1 percent, reflecting the government’s commitment to fiscal consolidation. In alignment with the vision of a “Developed India” (Viksit Bharat) by 2047, the budget places a strong emphasis on enhancing agricultural productivity, fostering employment and skill development, and driving regional growth, particularly in eastern India. Further, it introduces significant measures to boost renewable energy production, expand infrastructure, and streamline foreign direct investment (FDI) regulations, all aimed at attracting international investments.

These initiatives set the stage for important tax and regulatory changes that are crucial for understanding the budget’s wider economic effect, both within India and globally. The following analysis explores these changes and what they mean for the international community.

Direct Taxation

Foreign Corporations Operating in India: Tax Reduction

The government has reduced the corporate tax rate for foreign companies operating in India from 40 percent to 35 percent. The reduction is designed to enhance India’s appeal as an investment destination and is expected to attract more foreign investment. The reduced corporate tax rate lessens the overall tax burden on foreign companies, boosting profitability and encouraging additional investment. It is especially advantageous for sectors like manufacturing, technology, and start-ups, which often depend on substantial foreign capital.

Slight Change for Individual Taxation

The Income Tax Act (ITA) offers taxpayers two tax regime options: the old regime, which allows for certain deductions and exemptions; and the new regime, which features lower tax rates but restricts most deductions and exemptions. The new regime was previously established as the default tax regime.

For assessment year (AY) 2024-25 (fiscal 2023-24), the tax rates specified in section 115BAC will remain unchanged. However, for AY 2025-26 (fiscal 2024-25), the slab rates under the new regime have been revised, potentially leading to a small additional annual tax savings of up to $210.

Capital Gains Tax Reforms in India’s 2024 Budget

Capital gains in India are classified by the holding period of the asset, as outlined in section 2(42A) of the ITA. The tax treatment depends on whether the gains are short term or long term.

Pre-Budget Regulations

Long-term capital assets were divided into two distinctly taxed categories. Under section 112A, listed equity shares, units of equity-oriented funds, and business trusts held for at least 12 months were taxed at 10 percent, after a basic exemption of around $1,200. For assets like unlisted shares and real estate (under section 112), a 24-month holding period was required for long-term classification, with residents enjoying indexation benefits and a 20 percent tax rate, while nonresidents faced a flat 10 percent tax without indexation.

Short-term capital gains for listed assets were taxed at 15 percent under section 111A, while other short-term gains were taxed at applicable slab rates.

Proposals in the 2024 Budget

Standardizing the Tax Rates

The new budget proposals simplify and streamline the process by standardizing the tax rates on capital gains for transfers occurring on or after July 23, 2024. The proposed rate for long-term capital gains is 12.5 percent for both listed assets under section 112A and unlisted assets under section 112. This rate applies regardless of the residential status of the taxpayer, making the tax system more straightforward and uniform.

For short-term capital gains covered under section 111A on listed equity shares, units of equity-oriented funds, and business trusts, the bill proposes increasing the tax rate from 15 percent to 20 percent while the short-term capital gains other than those covered under section 111A continue to be taxed at applicable slab and income tax rates.

Removal of the 36-Month Holding Period Rule

Capital assets that were previously subject to the 36-month holding period, such as debt-oriented mutual funds, jewelry, and other assets not covered under the 12- or 24-month criteria, are now proposed to fall under the 24-month holding period. This change reduces the required holding duration for these assets by 12 months.

Change in Asset Holding Period

The holding period of an asset is a key factor in determining how capital gains are taxed. In the new budget, the 36-month holding period threshold has been eliminated. As a result, debt-oriented mutual funds and other securities previously classified under this category will be reclassified under the 24-month threshold. Consequently, these assets will be considered long term if held for at least 24 months and will be taxed at long-term capital gains rates.

The table below summarizes the amendments.

Indexation Redacted

The Finance Bill 2024 proposes the elimination of indexation benefits — a mechanism that adjusts the original purchase price of an asset for inflation, thereby reducing the taxable long-term capital gains on its sale. Indexation was introduced in 1981 to ensure that taxpayers are not taxed on gains, which do not account for the eroding effect of inflation. It allows the original purchase price to be adjusted using the cost inflation index, reducing the taxable capital gain to reflect only the real gain after inflation.

Over time, indexation has become a key component of tax planning for both individuals and businesses, viewed as an equitable way to align tax liabilities with economic realities. The 2024 budget proposals include the complete withdrawal of indexation benefits for long-term capital gains on assets with a holding period of 24 or 36 months. This change represents a significant shift in the approach to capital gains taxation.

In response to public outcry following the announcement of this change, the government introduced an amendment to the Finance Bill (No. 2) 2024, offering some relief. Under the revised provisions, for transfers of long-term capital assets (such as land or buildings) acquired before July 23, 2024, taxpayers can choose between the new tax scheme (12.5 percent without indexation) and the existing scheme (20 percent with indexation), paying the lower of the amounts. In other words, the proposed changes will not create any extra tax burden. Instead of rolling back or restoring the indexation benefit, the aim is to ensure that no additional tax is incurred.

If there is a net loss resulting from the modification of indexation, it is unclear whether it will be allowed to be set off and carried forward. In essence, the effect of modification of the indexation benefit will vary depending on individual circumstances and need analysis.

The increase in the short-term capital gains tax rate is another bold move aimed at curbing market volatility by discouraging short-term speculative trading. Also, shortening the holding period requirements may help sustain interest in long-term investments.

These changes reflect the government’s broader effort to streamline capital gains taxation, simplify compliance, and encourage long-term investments. International investors will need to reassess their strategies in light of these changes, considering the tenure of their holdings and the effect on their portfolios.

Angel Tax Exemption: Help for Start-Ups and SMEs

Pre-Budget Regulations

“Angel tax” refers to the income tax levied on capital raised by unlisted companies through the issuance of shares to Indian investors when the share price exceeds the company’s fair market value. The excess amount is treated as income and taxed accordingly. This tax was introduced in the Finance Act of 2012 with the addition of clause (viib) to subsection (2) of section 56. The clause specifies that if an unlisted company receives any consideration for issuing shares that exceed the face value, the excess amount over the FMV is taxable under the category “income from other sources.” The tax rate was about 30 percent on the difference between the amount raised and the FMV.

Troubled Exemption

In the 2019 Union Budget, the government provided some relief by relaxing angel tax rules for start-ups registered with the Department for Promotion of Industry and Internal Trade. These start-ups were exempt from the tax if they met certain criteria, including having a paid-up capital of less than INR 25 crore (INR 250 million, about $3.05 million), a FMV assessed by a merchant banker, and an annual turnover under INR 100 crore (INR 1 billion, about $12 million). Also, investments from venture capital firms, nonresident Indians, and certain other entities were excluded from angel tax calculations. However, the stringent requirements and mandatory Department for Promotion of Industry and Internal Trade registration limited the benefits to just 25,618 start-ups by 2019.

Proposals in the 2024 Budget

The 2024 budget proposes the complete removal of the section 56(2)(viib) angel tax provision. This renders previously required valuation methods such as discounted cash flow, the comparable company method, and other prescribed methods obsolete from an Indian tax perspective. However, the change is not retroactive, and any ongoing litigations may still continue.

This initiative is a game changer for Indian start-ups, addressing a long-standing issue that has burdened young ventures and incubators. The angel tax, which has posed significant financial and compliance challenges — especially in fast-growing sectors in which investments often exceed FMV — will now be abolished. The change is expected to ignite a surge in investment, increase funding opportunities, and boost investor confidence. With the removal of this tax, start-ups will face fewer administrative hurdles and gain greater financial flexibility for job creation and expansion. The reform not only enhances India’s reputation as a leading global start-up hub but also provides a powerful boost to the entire start-up ecosystem.

Securities Transaction Tax: Slowing Derivatives

Pre-Budget Regulations

The securities transaction tax (STT) is applied to stock market transactions and is based on a percentage of the transaction value. It includes both the purchase and sale of securities. STT rates are as follows:

• 0.0625 percent on the premium for selling an option;

• 0.0125 percent on futures contracts; and

• 0.1 percent for both buying and selling equity shares in delivery trades.

When an option is exercised, the tax is 0.125 percent of the intrinsic value and is borne by the purchaser.

Proposals in the 2024 Budget

In response to the substantial growth in the derivatives market, there are proposals to revise these rates. The 2024 budget proposes increasing STT rates effective October 1. The STT on option sales will rise from 0.0625 percent to 0.1 percent of the option premium, and the STT on futures contracts will increase from 0.0125 percent to 0.02 percent of the trading price.

International investors should consider how these changes affect their overall tax situation. Higher transaction costs might affect market liquidity, potentially altering investment strategies and experiences in Indian markets. The revised rates address the rapid expansion of futures and options trading, in which over 90 percent of trades have resulted in losses. Combined with prior recommendations to increase minimum lot sizes, this move reflects a government effort to mitigate speculative trading and reduce excessive losses by casual retail investors. The goal is to curb market volatility and foster more informed trading practices, thereby strengthening the stability of India’s financial markets.

Buyback of Shares — A Change of Hands

Pre-Budget Regulations

The buyback of shares, as governed by section 68 of the Companies Act 2013, is a mechanism through which a company repurchases its own shares from shareholders at a predetermined price, thereby absorbing excess capital. The Finance Act 2013 introduced section 115QA under the ITA to address the tax implications of these transactions.

Initially applicable only to unlisted companies, section 115QA was extended to listed companies in 2019. The provision imposes a buyback tax of 20 percent on the distributed income from the buyback of shares, plus an applicable surcharge, and cess (a supplemental tax for raising revenue earmarked for a specific purpose), making the effective tax rate 23.296 percent. The tax is borne by the company, with shareholders exempt from tax on buyback proceeds. It must be paid within 14 days of the date of payment of any consideration to the shareholder on buyback of shares.

Buybacks are not considered “deemed dividends” under the ITA; shareholders are exempt from paying tax on any income they receive from the buyback of shares.

In summary, the buyback tax simplifies compliance for shareholders because the company bears the tax burden, leaving income from buybacks more tax efficient relative to dividend income. The Finance Act 2020 eliminated the dividend distribution tax. However, no corresponding changes were made to the taxation of buyback transactions.

Budget Proposals

Historically, both dividends and buybacks have served as mechanisms for companies to distribute accumulated reserves to shareholders. Recognizing the similarity of their economic effects, the 2024 budget harmonizes their tax treatment. The proposed bill introduces an amendment to the ITA, effective October 1, adding subclause (f) to the definition of dividends. This amendment will classify the consideration paid on the buyback of shares as dividends in the hands of shareholders and aligns the tax treatment of buybacks partially with that of capital reduction transactions. The amendment also clarifies that no deduction for interest expenses will be available against the dividend income, while determining the income from other sources.

Also, the cost of acquiring buyback shares will now be recognized as a capital loss because the shares have been extinguished. The loss can be offset against other capital gains or carried forward to subsequent financial years, providing for tax relief. Further, shareholders are precluded from deducting the acquisition cost of the shares from the consideration received during the buyback process. This ensures that the entire buyback consideration is subject to taxation, aligning with the broader objective of equitable tax treatment across different income distribution methods. The bill also proposes corresponding amendments to section 194 to impose withholding taxes on buyback payments by domestic companies.

The proposed reclassification aligns buyback payments with dividend tax treatment, enabling the application of tax treaty benefits, including reduced rates on dividend income. Previously, buybacks were considered a tax-efficient alternative to dividends because of their lower ETR. The change addresses loopholes and standardizes tax treatment across different profit distribution methods, enhancing fairness and compliance.

GIFT IFSC — Broadening of Horizons

The union budget introduces new tax benefits for the Gujarat International Finance Tec-City (GIFT) International Financial Services Centre (IFSC), enhancing its appeal as a financial hub.

The proposals aim to amend the definition of specified fund under the ITA to encompass funds established or incorporated in India as a trust, company, limited liability partnership, or body corporate, provided they have received certification as a retail scheme and are regulated under the IFSC Authority (Fund Management) Regulations, 2022.

The tax treatment of IFSC retail funds varies based on whether they are organized as companies or trusts. The proposed amendment seeks to standardize the tax treatment of these retail funds, aligning them with Category III alternative investment funds set up in GIFT City, irrespective of their organizational structure.

Key tax benefits that will now be extended to IFSC retail funds include exemptions for income derived from:

• the transfer of specified securities listed on an IFSC exchange, such as rupee-denominated bonds of an Indian company, derivatives, foreign-currency-denominated bonds, and equity shares of a company;

• the transfer of securities, excluding shares of a company resident in India;

• securities issued by a nonresident, provided the income does not accrue or arise in India and the nonresident is not a permanent establishment in India; and

• income from a securitization trust, taxable under “profits and gains of business or profession.”

Also, income received by nonresident investors from investments in the IFSC retail fund or from the transfer of IFSC retail fund units will be tax exempt. These nonresident investors will not need to obtain a permanent account number, tax registration number, or file income tax returns.

The bill also proposes to include exchange-traded funds within the definition of specified funds. To qualify for these tax benefits, all units of the IFSC retail fund, except those held by the manager or sponsor, must be owned by nonresidents.

Exemption for IFSC Clearing Corporations

The proposed amendment to section 10(23EE) of the ITA will extend tax exemptions to core settlement guarantee funds established by clearing corporations registered with the IFSC Authority. This change aligns IFSC clearing corporations with those already exempt under the Securities and Exchange Board of India (SEBI) regulations.

Relief for Venture Capital Funds

Section 68 of the ITA requires taxpayers to explain the source of any unexplained credits or liabilities. The budget proposes to extend the relaxation for this proof burden to venture capital funds registered with the IFSC Authority, matching the existing provision for SEBI-registered venture capital funds.

Rationalization of Deductible Interest for Nonbanking Financial Companies

Section 94B of the ITA limits the deduction of interest expenses for Indian companies and foreign PEs on debt from nonresident associated enterprises to 30 percent of earnings before interest, taxes, depreciation, and amortization if the interest exceeds INR 1 crore (INR 10 million). This measure is designed to prevent thin capitalization.

These restrictions do not apply to Indian companies or PEs engaged in banking or insurance or to specific nonbanking financial companies, as notified by the central government. The new amendment proposes to exempt nonbanking financial companies located in the IFSC at GIFT City and registered under IFSC Authority (Finance Company) Regulations, 2021, from the interest deduction limits.

This amendment will bolster the IFSC’s growth and appeal. It also includes a notable change in the tax treatment of IFSC retail funds. Previously taxed based on their corporate structure, leading to potential tax disparities and double taxation, IFSC retail funds will now be classified as specified funds under the ITA. This reform seeks to standardize tax treatment, eliminating ambiguities and enhancing investment attractiveness. By aligning the tax treatment of IFSC retail funds with other financial entities, and reducing tax uncertainties, the amendment is expected to encourage greater nonresident investment and reinforce GIFT City’s status as a leading global financial hub.

Equalization Levy: Aligning With Global Standards

Background

The rapid evolution of information technology has shifted businesses away from traditional models, significantly affecting the global economy. Valued at around $3 trillion, the digital economy drives job creation, infrastructure development, and crucial tax revenue for governments. To address concerns about digital taxation, G20 nations, in collaboration with the OECD, introduced the base erosion and profit-shifting project and released an action plan in July 2013. The BEPS initiative introduced 15 key action items to comprehensively address issues of base erosion and profit shifting.

The report for BEPS action plan 1, developed by a task force on the digital economy, was published in 2015. It was subsequently endorsed by G20 countries and other nations in November 2015. The report proposed three interim options to address challenges arising from digital transactions: significant economic presence, withholding tax on certain types of digital transactions, and an equalization levy.

India’s approach to taxing the digital economy began in earnest in 1999, when the Central Board of Direct Taxes formed a high-powered committee that emphasized the need for uniform taxation across both traditional and e-commerce sectors. The committee argued that e-commerce should not be exempt from direct taxes and recommended adopting a base erosion approach through withholding tax, aligned with global standards.

Chapter VIII of the Finance Act 2016 introduced the equalization levy to India. This measure was designed to address the unique challenges posed by the digital economy, reflecting a global trend toward more equitable digital taxation. The equalization levy aligns with the OECD’s two-pillar solution, formalized in 2019, of which pillar 1 would redistribute taxing rights to jurisdictions in which significant economic value is created, even without a physical presence, and pillar 2 would establish a global minimum tax rate to curb harmful tax competition among countries.

India has two types of equalization levies. In 2016 the equalization levy was introduced to tax nonresidents, providing specified online advertising services at a 6 percent rate (advertisement equalization levees). In 2020 it expanded through Finance Act 2020, introducing a 2 percent levy on revenue of nonresident ecommerce operators for digital transactions, including sales of goods and services facilitated by these operators. Basically, it targets revenue of overseas companies participating in India’s market without having a physical presence, marking a significant step in the global effort to address the taxation of the digital economy.

The introduction of the expanded equalization levy affected U.S. digital companies, leading the United States to consider imposing 25 percent retaliatory import tariffs on Indian products in response to the about $55 million in taxes from the expanded levy. However, the tariffs were not implemented. In November 2021 the United States and India, along with 136 other members of the OECD/G20 inclusive framework, agreed on a transitional approach toward a global two-pillar solution to address tax challenges arising from the digitalization of the economy.

Amendments Proposed in the Budget

The budget proposes abolition of the expanded equalization tax to align India with global initiatives like pillar 2 and to reduce compliance burdens. The government proposes abolishing the 2 percent levy on e-commerce supplies or services starting August 1, while leaving the advertisement equalization levy unchanged. Further, income from e-commerce supplies or services earned between April 1, 2020, and July 31, 2024, will continue to be exempt under section 10(50) of the ITA, provided certain conditions are met.

The abolition of the expanded equalization levy is expected to have several significant effects. First, by removing it, India is likely to become more appealing to global e-commerce giants, which could lead to increased investment. Also, with the reduction in operational costs because of the elimination of the 2 percent levy, consumer prices may decrease, and market competition could improve. This change may also encourage more foreign e-commerce players to enter the Indian market, fostering innovation and growth in the sector because of the availability of increased working capital. While the 6 percent equalization levy on digital advertising remains in place, the removal of the levy on e-commerce operators marks a notable shift, potentially benefiting both businesses and consumers.

WHT for E-Commerce Participants: A Sigh of Relief

A notable change is proposed for section 194-O of the ITA. This section mandates a 1 percent withholding tax on gross income from transactions facilitated by e-commerce platforms involving the sale of goods or the provision of services. This deduction is applied at the time of crediting the amount or making the payment to the participant, whichever occurs first.

The government proposes reducing this tax rate from 1 percent to 0.1 percent. This adjustment will streamline the tax process and reduce the administrative burden on e-commerce platforms and sellers. It is expected to simplify compliance, enhancing operational efficiency. It might drive small and medium-size businesses to e-commerce platforms, potentially broadening their market reach and boosting revenue. Also, the lower tax burden may reduce operational costs for sellers, leading to lower prices for consumers and a wider variety of products available online.

Indirect Taxation Reforms

The union budget unveils substantial reforms in indirect taxation, focusing on the goods and services tax framework and customs duties. These modifications are designed primarily for domestic businesses but also carry important implications for international companies and investors involved in the Indian market.

Rationalization of the GST Framework

The latest budget brings several noteworthy modifications to the GST framework, focusing on enhancing fairness and simplicity in the domestic tax system.

A significant amendment to section 9 excludes from GST the undenatured extra neutral alcohol or rectified spirit used in the production of liquor for human consumption.

Section 11A is newly introduced, giving the government the authority to waive the recovery of GST not charged or undercharged because of widely accepted trade practices. This provision regularizes past practices and offers relief to businesses that followed industry norms, even if those norms were not entirely compliant with tax laws.

Amendments to section 13 clarify the time of supply or service in reverse-charge situations, in which the recipient must issue the invoice. This change specifies the invoice issue date by the recipient as the relevant date, providing clearer guidelines for reverse-charge mechanisms.

To simplify tax credit claims and reduce compliance burdens, the amendment to section 16 improves the input tax credit mechanism. New subsections (5) and (6) permit registered persons to claim input tax credits for past financial years (2017-18 to 2020-21) under certain conditions, offering significant relief.

Section 128A introduces a conditional waiver of interest and penalties for demands raised under section 73 for the financial years 2017-18 to 2019-20, provided the taxpayer pays the full amount of tax owed. This measure offers taxpayers a valuable opportunity to resolve past disputes without additional financial penalties.

The budget also proposes adjustments to GST rates, with some goods and services experiencing rate cuts and others seeing increases. These changes could affect cost structures and supply chains for international businesses operating in India.

Also, enhancements to the input tax credit mechanism will simplify tax credit claims and reduce compliance burdens, potentially creating a more efficient tax environment for foreign companies.

Stricter anti-evasion measures are also introduced, leveraging advanced data analytics and technology for better tracking and compliance. These measures aim to improve tax administration efficiency, which could affect how international businesses report and manage their tax obligations in India.

Adjustments in Customs Duties

The union budget introduces several changes to customs duties, targeting local manufacturing enhancement and addressing sector-specific needs. The finance minister proposed reducing or eliminating customs duties on items including gold, silver, mobile phones, chargers, medicines, medical equipment, critical minerals, and inputs for the leather and textiles industries.

Over the next six months, a comprehensive review of the customs duty rate structure will take place to simplify it, remove duty inversion, and reduce disputes. This review will ease trade operations and ensure a more straightforward customs framework.

For the chemicals and telecom equipment sectors, customs duties have been increased or exemptions withdrawn to encourage domestic production. This is part of a broader strategy to boost local manufacturing capabilities and reduce dependency on imports.

In the electronics industry, the basic customs duty on mobile phones, printed circuit board assemblies, and chargers has been reduced from 20 percent to 15 percent. This reduction is expected to lower prices and potentially increase the competitiveness of mobile devices manufactured in India. Also, exemptions for oxygen-free copper used in resistor manufacturing and specific parts for connector production have been extended, enhancing value added in the electronics sector. The basic customs duty on ferronickel and blister copper — essential for steel and copper production — has been removed.

In the precious metals and jewelry sector, customs duties on gold and silver have been reduced from 15 percent to 6 percent, and on platinum from 15.5 percent to 6.4 percent. These reductions make these metals more affordable, which should boost sales.

For critical goods, duty exemptions have been announced on 25 minerals used in strategic sectors such as nuclear energy, renewable energy, space, defense, telecommunications, and high-tech electronics. This move supports the import of vital raw materials needed for these sectors’ development.

In the medical industry, customs duties on three additional cancer medicines — trastuzumab deruxtecan, osimertinib, and durvalumab — have been exempted. Duties on x-ray tubes and flat-panel detectors for medical x-ray machines have also been reduced under the phased manufacturing program, promoting domestic manufacturing of medical x-ray machines and allied subassemblies.

The leather and textiles industry will benefit from reduced basic customs duties on real down filling material from ducks or geese and lower duties on methylene diphenyl diisocyanate for spandex yarn production. These exemptions aim to make Indian products more competitive in the international market.

Also, the basic customs duty on nonbiodegradable and hazardous polyvinyl chloride flex banners has been raised from 10 percent to 25 percent to discourage their import.

Overall, the Union Budget 2024-25 introduces a variety of measures to stimulate local manufacturing, reduce import dependency, and foster growth across multiple sectors. While these measures look promising, industry experts emphasize the need for further simplification of the customs duty structure and reduction of bureaucratic hurdles to fully realize the intended benefits.

Conclusion

India’s Union Budget 2024 marks a transformative move toward streamlining and rationalizing the taxation framework, with a clear focus on both domestic and international investors. The government’s efforts to simplify tax laws and increase transparency, the reduction in taxes for foreign corporations, and new exemptions for entities in GIFT City highlight India’s ambition for being a global hub for business and finance. Targeted incentives and tax reliefs for micro, small, and medium enterprises are designed to strengthen the sector, which is crucial for boosting employment and innovation.

This budget is a forward-looking blueprint that aligns with the nation’s aspirations for a Viksit Bharat, balancing immediate fiscal needs with long-term economic sustainability. By reducing barriers for foreign investors and providing targeted support for key sectors, this budget lays a robust foundation for India’s growth trajectory, focusing on empowering micro, small, and medium enterprises; enhancing employment opportunities; and cementing India’s position as a global financial center. Union Budget 2024 is the right step in the right direction!