India's finance minister Nirmala Sitharaman presented the country's budget for the financial year 2024-25. Beyond the numbers, let’s focus on the middle class. &nbsp;

Should the middle class be happy?&nbsp;

In the backdrop of budget 2024, India's income tax landscape underwent some adjustments aimed at reshaping fiscal policies affecting middle-class taxpayers.&nbsp;

While finance minister Nirmala Sitharaman introduced revised income tax slabs under the new regime, she also announced marginal benefits like an increased standard deduction from Rs 50,000 to Rs 75,000, but expectations for a more substantial rise to Rs 1 lakh were unmet. This decision, alongside unchanged tax slabs in the old regime, has sparked mixed reactions among taxpayers and financial experts alike.&nbsp;

Despite these adjustments, a significant portion of taxpayers opted for the new income tax regime in FY24, reflecting a preference for lower tax rates despite fewer deductions and exemptions. But when it comes to taxes, there really is no relief.&nbsp;

While the middle class may benefit from a higher standard deduction limit, changes in capital gains taxation is bad news for investors sitting on profits. Short-term capital gains on certain assets will be taxed at 20 per cent and long-term capital gains will increase to 12.5 per cent, while exempting gains up to Rs 1.25 lakh annually. Mutual funds investors will also be taxed at a higher rate when they sell their holdings.&nbsp;

The measures aim to simplify tax compliance and boost government revenue. But concerns linger over the impact on taxpayers with substantial gains from asset holdings and the shortfall of relief measures for the middle class. The corporate tax rate reduction from 40 per cent to 35 per cent aims to stimulate business growth, yet the absence of broader tax relief for the middle class remains a focal point of discussion among economists and taxpayers.&nbsp;

Let us now look at some other hits and misses that concern the middle class.&nbsp;

Education, job creation, and investments in precious metals like gold and silver are highlighted as wins, along with improved rail connectivity and support for religious tourism.&nbsp;

However, there's disappointment over the absence of substantial consumption incentives and the drying up of indexation benefits for property sales.&nbsp;

Indexation benefits in the context of property sales refer to adjusting the purchase price of an asset for inflation before calculating capital gains tax, which raises the question if investment in property is still lucrative for the middle class. Funds for promoting mobile payments have also been reduced, and allocations for enhancing air connectivity have been trimmed.&nbsp;

Overall, while there are strides in certain areas like housing under PMAY(U), the budget leaves gaps in boosting consumer spending.&nbsp;

India's finance minister Nirmala Sitharaman presented the country's budget for the financial year 2024-25. Beyond the numbers, let’s focus on the middle class. Should the middle class be happy?

India's finance minister Nirmala Sitharaman presented the country's budget for the financial year 2024-25. Beyond the numbers, let’s focus on the middle class. Should the middle class be happy? In the backdrop of budget 2024, India's income tax landscape underwent some adjustments aimed at reshaping fiscal policies affecting middle-class taxpayers. While finance minister Nirmala Sitharaman introduced revised income tax slabs under the new regime, she also announced marginal benefits like an increased standard deduction from Rs 50,000 to Rs 75,000, but expectations for a more substantial rise to Rs 1 lakh were unmet. This decision, alongside unchanged tax slabs in the old regime, has sparked mixed reactions among taxpayers and financial experts alike. Despite these adjustments, a significant portion of taxpayers opted for the new income tax regime in FY24, reflecting a preference for lower tax rates despite fewer deductions and exemptions. But when it comes to taxes, there really is no relief. While the middle class may benefit from a higher standard deduction limit, changes in capital gains taxation is bad news for investors sitting on profits. Short-term capital gains on certain assets will be taxed at 20 per cent and long-term capital gains will increase to 12.5 per cent, while exempting gains up to Rs 1.25 lakh annually. Mutual funds investors will also be taxed at a higher rate when they sell their holdings. The measures aim to simplify tax compliance and boost government revenue. But concerns linger over the impact on taxpayers with substantial gains from asset holdings and the shortfall of relief measures for the middle class. The corporate tax rate reduction from 40 per cent to 35 per cent aims to stimulate business growth, yet the absence of broader tax relief for the middle class remains a focal point of discussion among economists and taxpayers. Let us now look at some other hits and misses that concern the middle class. Education, job creation, and investments in precious metals like gold and silver are highlighted as wins, along with improved rail connectivity and support for religious tourism. However, there's disappointment over the absence of substantial consumption incentives and the drying up of indexation benefits for property sales. Indexation benefits in the context of property sales refer to adjusting the purchase price of an asset for inflation before calculating capital gains tax, which raises the question if investment in property is still lucrative for the middle class. Funds for promoting mobile payments have also been reduced, and allocations for enhancing air connectivity have been trimmed. Overall, while there are strides in certain areas like housing under PMAY(U), the budget leaves gaps in boosting consumer spending.

What India's budget means for the middle class

Indian stocks were volatile, and the rupee fell to a new record low against a burgeoning dollar, as finance minister Nirmala Sitharaman unveiled the budget 2024-25. Watch in for more details!

India Budget 2024: Indian Rupee declines to record low after government raises tax on capital gains

The Indian government has recently announced significant changes to the income tax regime, providing substantial relief to salaried individuals and pensioners. With the revised tax slabs and increased standard deductions, many taxpayers are set to benefit from significant savings.

India Budget 2024: Pay 30% tax on income above INR 15 lakh per year

The long-awaited Budget of India, for FY 2024-25, comes with significant overhauls across consumer goods and the industrial sectors. To balance between growth and affordability, through strategic development, the customs duties and taxes have been revised on the following products.

What's Cheaper?

The budget holds cheer for the buyers of the following products: the customs duty on gold and silver has been reduced from 12 per cent to 6 per cent, which will make the precious metals cheaper for consumers and jewellers. Tariffs were slashed on several goods like X-ray machines, medicines used in treating cancer, mobiles and their charging equipment, solar panels, electric vehicles, leather goods, certain jewellery imported into India, etc. This reduction is going to spur consumption and affordability across healthcare, technology, renewable energy, and automotive industries.

What's Costlier?

On the other hand, some products are slapped with higher tariffs. A key agricultural and industrial input, ammonium nitrate, will become more expensive, making activities that rely on this chemical more expensive. Plastic products and telecom equipment will also attract higher duties, which could mean more costs for manufacturers and consumers.

The overall approach of the 2024-25 Budget would, therefore, be to strike a balance between cost implications and broader economic objectives. Revision in taxes and tariffs is towards growth in strategic sectors, with emphasis on the reining in of inflationary pressures and furtherance of equitable development. Changes in the rate of long-term capital gains tax and standard deductions under income tax may impact investors and taxpayers differently, thereby impacting financial decisions and spending patterns.

The budget under Modi's Government 3.0 spells a strategy for rebalancing the economy that is having heavy increases in tax burdens by initiatives aimed at stimulating resilience and inclusivity. How far these measures succeed in bringing in sustained growth and social welfare would be moot as the fiscal progresses.

The long-awaited Budget of India, for FY 2024-25, comes with significant overhauls across consumer goods and the industrial sectors. To balance between growth and affordability, through strategic development, the customs duties and taxes have been revised on the following products.

The long-awaited Budget of India, for FY 2024-25, comes with significant overhauls across consumer goods and the industrial sectors. To balance between growth and affordability, through strategic development, the customs duties and taxes have been revised on the following products. What's Cheaper? The budget holds cheer for the buyers of the following products: the customs duty on gold and silver has been reduced from 12 per cent to 6 per cent, which will make the precious metals cheaper for consumers and jewellers. Tariffs were slashed on several goods like X-ray machines, medicines used in treating cancer, mobiles and their charging equipment, solar panels, electric vehicles, leather goods, certain jewellery imported into India, etc. This reduction is going to spur consumption and affordability across healthcare, technology, renewable energy, and automotive industries. What's Costlier? On the other hand, some products are slapped with higher tariffs. A key agricultural and industrial input, ammonium nitrate, will become more expensive, making activities that rely on this chemical more expensive. Plastic products and telecom equipment will also attract higher duties, which could mean more costs for manufacturers and consumers. The overall approach of the 2024-25 Budget would, therefore, be to strike a balance between cost implications and broader economic objectives. Revision in taxes and tariffs is towards growth in strategic sectors, with emphasis on the reining in of inflationary pressures and furtherance of equitable development. Changes in the rate of long-term capital gains tax and standard deductions under income tax may impact investors and taxpayers differently, thereby impacting financial decisions and spending patterns. The budget under Modi's Government 3.0 spells a strategy for rebalancing the economy that is having heavy increases in tax burdens by initiatives aimed at stimulating resilience and inclusivity. How far these measures succeed in bringing in sustained growth and social welfare would be moot as the fiscal progresses.

India budget 2024: Steering across cost shifts and economic priorities

The Budget 2024 has made significant changes to the tax slabs in the New Regime, offering taxpayers an additional chance to reduce their tax liability by up to Rs. 17,500. Watch in for more details!

India Budget 2024: Save up to INR 17,500 under new tax regime

Indian Finance Minister Nirmala Sitharaman is currently presenting the Union Budget in Lok Sabha. The Budget is being considered the action plan for the Modi 3.0 govt to outline a roadmap towards India's development in the next five years.

Budget 2024: 3.4% GDP to be spent on infrastructure, strong fiscal support for it: FM Sitharaman

India Budget 2024: Global ecoomy under pressure, India's economy a shining exception: Sitharaman

Indian Finance Minister Nirmala Sitharaman presented the Union Budget to Lok Sabha. The budget is considered the action plan for the Modi 3.0 govt to outline a roadmap towards India's development in the next five years.

Budget 2024: Govt announces new schemes to develop jobs; focus on taxes & consumer products too

Budget 2024: Religious tourism gets transformative promise from govt

Nirmala Sitharaman while presenting the Budget 2024 focussed on women development and said, 'Government will set up working women hostels to promote women participation in workforce. Government will allocate over Rs 3 lakh crore for schemes benefiting women, girls.'

Budget 2024: FM Sitharaman says 'govt to set up women hostels to promote participation in workforce'

As India gets ready for its Union Budget 2024 on the July 23, the defence sector is expecting a big boost. WION decodes India's defence budget in this report. Watch in...

India Budget 2024: India's big defence indigenisation push

The Indian economy continues to demonstrate resilience and stability despite global geopolitical challenges, according to the Economic Survey 2023-24. Presenting the 476-page Economic Survey in the Indian Parliament on Monday (July 22), Union Finance Minister Nirmala Sitharaman said that the Indian economy has successfully consolidated its post-Covid recovery.&nbsp;

As per the survey, both fiscal and monetary policymakers have played pivotal roles in ensuring economic and financial stability and have led to continued economic expansion.&nbsp;

However, the survey said that global market volatility means that for a country with high growth aspirations, change is the only constant.

Also read |&nbsp;<a href="https://www.wionews.com/india-news/budget-session-of-indian-parliament-modi-asks-all-political-parties-to-rise-above-party-lines-742974">Budget session of Indian Parliament: Modi urges political parties to rise above party lines</a>

<h2>Investment momentum</h2>

As per the Survey document, for a sustained recovery, "there has to be heavy lifting".

"For the recovery to be sustained, there has to be heavy lifting on the domestic front because the environment has become extraordinarily difficult to reach agreements on key global issues such as trade, investment and climate," read the Survey.

"Public investment has sustained capital formation in the last several years even as the private sector shed its balance sheet blues and began investing in FY22. Now, it has to receive the baton from the public sector and sustain the investment momentum in the economy," it added.

Also read |&nbsp;<a href="https://www.wionews.com/india-news/indias-economic-survey-to-be-tabled-in-parliament-today-742963">India's Economic Survey to be tabled in Parliament today</a>

"The signs are encouraging," the survey notes, citing the robust economic growth rates of 9.7 per cent and 7.0 per cent in the previous two financial years leading up to FY24.

The survey report adds that the headline inflation rate remains largely under control, even as specific food items have seen elevated inflation rates. The trade deficit in FY24 was lower compared to FY23, and the current account deficit stands at approximately 0.7 per cent of GDP. Additionally, the current account registered a surplus in the last quarter of the financial year, and foreign exchange reserves have been deemed ample.

(With inputs from agencies)

The Indian economy continues to demonstrate resilience and stability despite global geopolitical challenges, according to the Economic Survey 2023-24. Presenting the 476-page Economic Survey in the Indian Parliament on Monday (July 22), Union Finance Minister Nirmala Sitharaman said that the Indian economy has successfully consolidated its post-Covid recovery.

The Indian economy continues to demonstrate resilience and stability despite global geopolitical challenges, according to the Economic Survey 2023-24. Presenting the 476-page Economic Survey in the Indian Parliament on Monday (July 22), Union Finance Minister Nirmala Sitharaman said that the Indian economy has successfully consolidated its post-Covid recovery. As per the survey, both fiscal and monetary policymakers have played pivotal roles in ensuring economic and financial stability and have led to continued economic expansion. However, the survey said that global market volatility means that for a country with high growth aspirations, change is the only constant. Also read | Budget session of Indian Parliament: Modi urges political parties to rise above party lines Investment momentum As per the Survey document, for a sustained recovery, "there has to be heavy lifting". "For the recovery to be sustained, there has to be heavy lifting on the domestic front because the environment has become extraordinarily difficult to reach agreements on key global issues such as trade, investment and climate," read the Survey. "Public investment has sustained capital formation in the last several years even as the private sector shed its balance sheet blues and began investing in FY22. Now, it has to receive the baton from the public sector and sustain the investment momentum in the economy," it added. Also read | India's Economic Survey to be tabled in Parliament today "The signs are encouraging," the survey notes, citing the robust economic growth rates of 9.7 per cent and 7.0 per cent in the previous two financial years leading up to FY24. The survey report adds that the headline inflation rate remains largely under control, even as specific food items have seen elevated inflation rates. The trade deficit in FY24 was lower compared to FY23, and the current account deficit stands at approximately 0.7 per cent of GDP. Additionally, the current account registered a surplus in the last quarter of the financial year, and foreign exchange reserves have been deemed ample. (With inputs from agencies)

Economic Survey 2023-24: Indian economy demonstrates resilience and stability amid global challenges

We focus on the changing economic landscape in India ahead of the budget. Traditionally, urban-driven manufacturing is decentralising, with rural areas now contributing over half the value addition in the sector. However, farmer income has not risen as fast as promised. Can the budget fix that? Take a look at this next report for more….

India Budget: India's consumption growth outpaced by nominal GDP growth

All eyes are pinned on the budget announcements. Agriculture sector contributes over 16 per cent to India's GDP. WION tells you what agriculture sector is expecting from the budget 2024.

India Budget 2024: Expectations for agriculture sector

All eyes are pinned on the budget announcements. As the countdown begins, WION tells you what are India's youth expecting from the budget 2024.

India Budget 2024: What are India's youth expecting?

All eyes are pinned on the budget announcements. What will be the biggest focus areas for India's foreign minister ? As the countdown begins, what are small-scale business expecting?

Budget Talks: What business owners expect from upcoming budget announcements

India's upcoming Budget&nbsp;is all set to have certain&nbsp;implications for the insurance sector, most notably from a consumer point of view.

Experts and industry leaders are looking at a few&nbsp;reforms that are likely to render insurance within reach and affordable for most people across the nation.

The top wish list is tax reforms.

The current tax structure, which recently waived off life insurance product exemptions, can be improved further.&nbsp;

Experts believe that the&nbsp;attractiveness of life insurance as an investment avenue will increase even further.&nbsp;

This would align it more with other financial instruments that receive beneficial tax treatment.

In addition, many sections, such as 80c and 80d sections of the Income Tax Act, request to raise the tax exemption limits. This change is required&nbsp;because more people will be inclined to invest in insurance-related policy matters.

This will, in turn, lead to a surge in the adoption of insurance policies between the different demographics. 
For consumers, the changes brought forth will make insurance products simple and less costly.

It could help to ease the financial burden for policyholders by lowering the GST, for instance, on health insurance premiums.

The burden, especially on middle-income and senior citizens, has been quite heavy with rising healthcare costs.

Even for individual tax benefits, this could be extended for various categories: cyber insurance and insurance against electric vehicles, for example.

Overall, the union budget 2024 presents an opportunity for the government to address longstanding demands of the insurance sector, aiming to broaden coverage and improve financial security for all citizens.&nbsp;

These potential reforms are poised to create a more favourable environment for insurers and consumers. They will also foster growth and resilience in India's insurance industry. But, will Finance Minister Nirmala Sitharaman address the wishlist from the insurance sector?

These questions shall be answered in the budget on July 23.

India's upcoming Budget is all set to have certain implications for the insurance sector, most notably from a consumer point of view. Experts and industry leaders are looking at a few reforms that are likely to render insurance within reach and affordable for most people across the nation.

India's upcoming Budget is all set to have certain implications for the insurance sector, most notably from a consumer point of view. Experts and industry leaders are looking at a few reforms that are likely to render insurance within reach and affordable for most people across the nation. The top wish list is tax reforms. The current tax structure, which recently waived off life insurance product exemptions, can be improved further. Experts believe that the attractiveness of life insurance as an investment avenue will increase even further. This would align it more with other financial instruments that receive beneficial tax treatment. In addition, many sections, such as 80c and 80d sections of the Income Tax Act, request to raise the tax exemption limits. This change is required because more people will be inclined to invest in insurance-related policy matters. This will, in turn, lead to a surge in the adoption of insurance policies between the different demographics. For consumers, the changes brought forth will make insurance products simple and less costly. It could help to ease the financial burden for policyholders by lowering the GST, for instance, on health insurance premiums. The burden, especially on middle-income and senior citizens, has been quite heavy with rising healthcare costs. Even for individual tax benefits, this could be extended for various categories: cyber insurance and insurance against electric vehicles, for example. Overall, the union budget 2024 presents an opportunity for the government to address longstanding demands of the insurance sector, aiming to broaden coverage and improve financial security for all citizens. These potential reforms are poised to create a more favourable environment for insurers and consumers. They will also foster growth and resilience in India's insurance industry. But, will Finance Minister Nirmala Sitharaman address the wishlist from the insurance sector? These questions shall be answered in the budget on July 23.

India budget 2024: wishlist of the insurance sector

Reports are swirling about a possible tax hike on futures &amp; options, or F&amp;O, trading. This comes as discussions are ripe about protecting investors and promoting long-term investment strategies.

What is F&amp;O trading?

F&amp;O contracts allow speculation on the future price of assets. This opens avenues for big&nbsp;profits, but also opens doors for significant losses. This is why the government is trying to protect investors, especially retail, since they are more exposed to these risks.

Ansh Kachhara, an F&amp;O trader from Mumbai, spoke to WION regarding risks involved in F&amp;O trading. 'You can make unlimited money, but the bigger problem is, you won't,' he said.

Why the need for regulation?

India boasts of the biggest derivative exchange in the world, despite being 1/10th of US' market capitalisation. This is potentially raising alarm bells for the government that is now looking for more regulations.

What are the proposed rules?

The government is considering two key changes. First is reclassifying F&amp;O income &nbsp;as 'speculative income' rather than 'business income.' This would attract a flat &nbsp;30 per cent tax rate similar to lottery winnings. This can potentially eliminate the benefit of offsetting F&amp;O losses with other business profits.

The second proposal aims to introduce TDS, or Tax deducted at source. This would help in boosting tax compliance and encourage retail investors to shift towards more stable investment options like Mutual funds and stocks. This can potentially lead to a lower market volatility caused by F&amp;O trading.

Securities and Exchange Board of India (SEBI) recently announced new rules effective October 2024. The rules include a uniform transaction fees to replace slab-wise fees, higher margins for bigger lots, and no day trading for individual investors.

Are traders satisfied with the proposed changes?

Will higher taxes discourage F&amp;O traders? Experts believe it won't have that big of an effect. 'SEBI says 95 per cent of the traders&nbsp;don't make money,' said Ansh. He added that India is the most expensive market in the world. All the transactions costs are anyways in the higher bracket compared to the rest of the world.

'Market volatility and unregulated foreign inflows are the biggest issue that traders are facing.' he added.

Reports are swirling about a possible tax hike on futures & options, or F&O, trading. This comes as discussions are ripe about protecting investors and promoting long-term investment strategies.

Reports are swirling about a possible tax hike on futures & options, or F&O, trading. This comes as discussions are ripe about protecting investors and promoting long-term investment strategies. What is F&O trading? F&O contracts allow speculation on the future price of assets. This opens avenues for big profits, but also opens doors for significant losses. This is why the government is trying to protect investors, especially retail, since they are more exposed to these risks. Ansh Kachhara, an F&O trader from Mumbai, spoke to WION regarding risks involved in F&O trading. 'You can make unlimited money, but the bigger problem is, you won't,' he said. Why the need for regulation? India boasts of the biggest derivative exchange in the world, despite being 1/10th of US' market capitalisation. This is potentially raising alarm bells for the government that is now looking for more regulations. What are the proposed rules? The government is considering two key changes. First is reclassifying F&O income as 'speculative income' rather than 'business income.' This would attract a flat 30 per cent tax rate similar to lottery winnings. This can potentially eliminate the benefit of offsetting F&O losses with other business profits. The second proposal aims to introduce TDS, or Tax deducted at source. This would help in boosting tax compliance and encourage retail investors to shift towards more stable investment options like Mutual funds and stocks. This can potentially lead to a lower market volatility caused by F&O trading. Securities and Exchange Board of India (SEBI) recently announced new rules effective October 2024. The rules include a uniform transaction fees to replace slab-wise fees, higher margins for bigger lots, and no day trading for individual investors. Are traders satisfied with the proposed changes? Will higher taxes discourage F&O traders? Experts believe it won't have that big of an effect. 'SEBI says 95 per cent of the traders don't make money,' said Ansh. He added that India is the most expensive market in the world. All the transactions costs are anyways in the higher bracket compared to the rest of the world. 'Market volatility and unregulated foreign inflows are the biggest issue that traders are facing.' he added.

India budget 2024: Futures & options (F&O) trading in focus

On July 9, 2024, India's market capitalisation of listed companies exceeded $5.0 trillion, reaching about 145 per cent of nominal GDP—almost near the 146 per cent recorded in December 2007. Several nations have market caps ranging from 100-337 per cent of GDP during CY 2020-23. However, questions arise about how long this can be sustained, how the booming market cap can swap fiscal debt and support the Indian economy, and how Budget 2024 can facilitate this.&nbsp;

To sustain a booming market, India must ensure consistent higher GDP growth, driven by an investment-led and export-led growth model. For higher investment rates in productive assets and supporting infrastructure, domestic financial savings are inadequate. Therefore, India needs global investments, such as FDI or FPI.&nbsp;

The ratio of cumulative investment in FPI to nominal GDP as of March 2004, March 2014, and December 2023 was 4.3 per cent, 7.66 per cent, and 5.48 per cent, respectively. According to CDSL, cumulative investment by FPIs in equity, debt, and hybrid instruments until March 2004 was barely Rs. 1.19 trillion ($260 billion). By the end of FY 2004-14 and FY 2014-2024 (up to Q3), it had reached about Rs. 8.61 trillion ($1423 billion) and Rs. 16.16 trillion ($1955 billion), respectively. Thus, in the past two decades, the growth was about 724 per cent and 188 per cent &nbsp;on a rupee basis, and 547 per cent and 137 per cent on a USD basis, respectively.&nbsp;

This data reveals that rupee stability is a prerequisite for consistent global capital inflow, providing higher returns on a USD basis to global investors. To achieve this, India must improve its economic efficiency by announcing multiple policy tools in the forthcoming Budget 2024, enabling India to become export-competitive and eliminate the past legacy of trade deficits (goods &amp; services). During the interim period, Budget 2024 should provide incentives for incremental exports in a calibrated manner.&nbsp;

Also, long-term capital gains tax may be exempted or reduced for global investors if the sale proceeds of equity/bonds are reinvested into the Indian capital market within the same year. This will reduce repatriation of forex and support the economy. Budget 2024 is the opportune time for giving such incentives.&nbsp;

Out of the total market cap, the share of the top 100 listed companies is about 75-80 per cent, while the remaining 6700 companies hold a 20-25 per cent share. Ideally, it should be broad-based for inclusive growth. Among the top 100 listed companies, about 18 PSU companies have a market cap share below 10 per cent; this must increase through new listings.&nbsp;

There might be more than 400 unlisted public sector enterprises (PSEs) owned by state and central governments in various fields such as railways, NHAI, power generation and transmission, ports, airports, mining, insurance, finance, and many others. These may be corporatized and listed with stock exchanges, as recently done with LIC. Through this, governments can raise funds by selling shares to the public in tranches while retaining ownership. This will be a better choice compared to total disinvestment and/or leasing out. Part of the fiscal debt may be swapped with equity in this way.&nbsp;

These PSUs may invest in their core competence areas and allied fields by raising debt in their balance sheets, which will not be part of the fiscal debt. Particularly, railways have significant potential to invest in increasing goods traffic and earning substantial profits. This will reduce logistics costs, benefiting the economy and kick-starting the private investment cycle.&nbsp;

The balance sales proceeds of shares may be invested in niche sectors such as the manufacturing of defence and aviation equipment, exploration of oil and critical minerals, and research and innovation in various fields, mostly in new unlisted corporates. These may be listed in due course after making profits. Private corporates hesitate to invest in such niche areas due to associated risks. However, these are crucial for India in meeting its future economic needs and cutting down imports.&nbsp;

For infrastructure spending, new PSUs may be incorporated and listed in joint ventures with states and/or reputed corporates by infusing part equity from the budget and balance from the capital market. Such listed PSUs shall raise debt from the bond market against sovereign guarantees. Obviously, this debt will not be part of the fiscal debt. However, such PSUs shall undertake only commercially viable infrastructures. By this, budgetary resources shall be leveraged 3-5 times, and the benefits of a booming capital market may be availed.&nbsp;

Currently, the share of the bond market is very small compared to other major economies. Ways and means must be designed for its promotion. For PSUs, sovereign guarantees may be provided. The recent inclusion of Indian bonds in the JP Morgan index will certainly facilitate this. However, a stable rupee is a prerequisite. By this, the bond market shall grow, facilitating higher growth of investment in the productive sector and GDP in future years. Banks shall have surplus funds for financing unlisted small companies.&nbsp;

By and large, a booming market cap must be used for partly swapping fiscal debts and floating new PSU corporates for infrastructure spending. This will support the long-term GDP growth of India. Reduction of fiscal debt will upgrade the sovereign rating and facilitate higher inflow of global funds. Thus, the benefits of a booming market cap can deliver multiple benefits for the nation and the general public by adopting appropriate strategies and wise policy tools, which may be announced in the forthcoming budget.&nbsp;

On July 9, 2024, India's market capitalisation of listed companies exceeded $5.0 trillion, reaching about 145 per cent of nominal GDP—almost near the 146 per cent recorded in December 2007.

On July 9, 2024, India's market capitalisation of listed companies exceeded $5.0 trillion, reaching about 145 per cent of nominal GDP—almost near the 146 per cent recorded in December 2007. Several nations have market caps ranging from 100-337 per cent of GDP during CY 2020-23. However, questions arise about how long this can be sustained, how the booming market cap can swap fiscal debt and support the Indian economy, and how Budget 2024 can facilitate this. To sustain a booming market, India must ensure consistent higher GDP growth, driven by an investment-led and export-led growth model. For higher investment rates in productive assets and supporting infrastructure, domestic financial savings are inadequate. Therefore, India needs global investments, such as FDI or FPI. The ratio of cumulative investment in FPI to nominal GDP as of March 2004, March 2014, and December 2023 was 4.3 per cent, 7.66 per cent, and 5.48 per cent, respectively. According to CDSL, cumulative investment by FPIs in equity, debt, and hybrid instruments until March 2004 was barely Rs. 1.19 trillion ($260 billion). By the end of FY 2004-14 and FY 2014-2024 (up to Q3), it had reached about Rs. 8.61 trillion ($1423 billion) and Rs. 16.16 trillion ($1955 billion), respectively. Thus, in the past two decades, the growth was about 724 per cent and 188 per cent on a rupee basis, and 547 per cent and 137 per cent on a USD basis, respectively. This data reveals that rupee stability is a prerequisite for consistent global capital inflow, providing higher returns on a USD basis to global investors. To achieve this, India must improve its economic efficiency by announcing multiple policy tools in the forthcoming Budget 2024, enabling India to become export-competitive and eliminate the past legacy of trade deficits (goods & services). During the interim period, Budget 2024 should provide incentives for incremental exports in a calibrated manner. Also, long-term capital gains tax may be exempted or reduced for global investors if the sale proceeds of equity/bonds are reinvested into the Indian capital market within the same year. This will reduce repatriation of forex and support the economy. Budget 2024 is the opportune time for giving such incentives. Out of the total market cap, the share of the top 100 listed companies is about 75-80 per cent, while the remaining 6700 companies hold a 20-25 per cent share. Ideally, it should be broad-based for inclusive growth. Among the top 100 listed companies, about 18 PSU companies have a market cap share below 10 per cent; this must increase through new listings. There might be more than 400 unlisted public sector enterprises (PSEs) owned by state and central governments in various fields such as railways, NHAI, power generation and transmission, ports, airports, mining, insurance, finance, and many others. These may be corporatized and listed with stock exchanges, as recently done with LIC. Through this, governments can raise funds by selling shares to the public in tranches while retaining ownership. This will be a better choice compared to total disinvestment and/or leasing out. Part of the fiscal debt may be swapped with equity in this way. These PSUs may invest in their core competence areas and allied fields by raising debt in their balance sheets, which will not be part of the fiscal debt. Particularly, railways have significant potential to invest in increasing goods traffic and earning substantial profits. This will reduce logistics costs, benefiting the economy and kick-starting the private investment cycle. The balance sales proceeds of shares may be invested in niche sectors such as the manufacturing of defence and aviation equipment, exploration of oil and critical minerals, and research and innovation in various fields, mostly in new unlisted corporates. These may be listed in due course after making profits. Private corporates hesitate to invest in such niche areas due to associated risks. However, these are crucial for India in meeting its future economic needs and cutting down imports. For infrastructure spending, new PSUs may be incorporated and listed in joint ventures with states and/or reputed corporates by infusing part equity from the budget and balance from the capital market. Such listed PSUs shall raise debt from the bond market against sovereign guarantees. Obviously, this debt will not be part of the fiscal debt. However, such PSUs shall undertake only commercially viable infrastructures. By this, budgetary resources shall be leveraged 3-5 times, and the benefits of a booming capital market may be availed. Currently, the share of the bond market is very small compared to other major economies. Ways and means must be designed for its promotion. For PSUs, sovereign guarantees may be provided. The recent inclusion of Indian bonds in the JP Morgan index will certainly facilitate this. However, a stable rupee is a prerequisite. By this, the bond market shall grow, facilitating higher growth of investment in the productive sector and GDP in future years. Banks shall have surplus funds for financing unlisted small companies. By and large, a booming market cap must be used for partly swapping fiscal debts and floating new PSU corporates for infrastructure spending. This will support the long-term GDP growth of India. Reduction of fiscal debt will upgrade the sovereign rating and facilitate higher inflow of global funds. Thus, the benefits of a booming market cap can deliver multiple benefits for the nation and the general public by adopting appropriate strategies and wise policy tools, which may be announced in the forthcoming budget.

Budget-2024: How can Capital-Market swap fiscal debt and support the Economy?

As we eagerly await the Union Budget 2024, we can reflect upon the profound impact that recent advancements in technology have had on the recruitment and startup ecosystem. The integration of AI and technology into the hiring process has&nbsp;revolutionised our industry, making recruitment more efficient, inclusive, and accessible.

However, the upcoming budget must strike a crucial balance between skill development and job creation to sustain and amplify these advancements. Reflecting on last year’s budget, it is clear that a solid foundation was laid for digital transformation.

The allocation of about ₹3,000 crores for AI research, technology advancements and the promotion of start-up ecosystems were commendable steps. Additionally, the establishment of the&nbsp;National Digital University (NDU) aimed to bridge the skill gap by offering world-class education in emerging technologies. However, while these initiatives have set the stage for a tech-driven future, there remains a significant gap that must be addressed—upgrading the technology and infrastructure of skill providers.&nbsp;

Many colleges, universities and other skill-providing institutions continue to struggle with outdated computer labs, limited access to high-speed internet, and insufficient training programs for both students and faculty. This lack of resources severely hampers the ability of these institutions to prepare students for a job market that increasingly demands digital proficiency. Without substantial improvements in educational infrastructure, the potential of our future workforce remains underutilised.

For the upcoming budget to truly make a difference, it must prioritise substantial investments in technology and infrastructure for skill-providing institutions. We need to see a concerted effort to upgrade computer labs, ensure widespread access to high-speed internet, and provide robust training programs for digital skills. By doing so, we can better prepare our future workforce to meet the demands of a rapidly evolving job market.

Furthermore, it is crucial not only to enhance infrastructure but also to ensure that skill development initiatives are closely aligned with industry needs. The rapid pace of technological change means that the skills required today may not be the same as those needed tomorrow. Therefore, ongoing collaboration between skill-providing institutions and industry players is essential to keep curricula relevant and impactful.

Meanwhile, job creation remains a critical aspect that the budget must address. While skill development is paramount, these skills must translate into actual employment opportunities for the workforce. The government has made commendable strides in promoting start-ups and entrepreneurship. For instance, the budget 2023 introduced tax incentives for start-ups, including a three-year tax holiday for new companies and the extension of the period of incorporation for eligible start-ups by one year.

Despite these efforts, more can be done to create a conducive environment for job creation. This includes providing additional incentives for businesses to expand and hire, supporting small and medium-sized enterprises (SMEs) with easier access to credit, and fostering innovation hubs that can incubate new ideas and ventures.

An integrated approach is essential for balancing skill development and job creation. Investments in digital infrastructure and educational technology will yield dividends in the form of a more skilled workforce. However, we must also ensure that there are ample opportunities for these skilled individuals to apply their talents. This requires a holistic strategy that supports both the supply and demand sides of the labour market.

In conclusion, the Union Budget 2024 presents a unique opportunity to address some of the most pressing challenges in the recruitment and start-up ecosystem. By prioritising investments in educational technology and infrastructure, and aligning skill development initiatives with industry needs, we can create a future-ready workforce. Simultaneously, fostering a favourable environment for job creation will ensure that these skills are effectively utilised, driving economic growth and innovation. Striking this balance is crucial for the sustained development of our economy and the realisation of our collective potential.

(Disclaimer: The views of the writer do not represent the views of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer.)&nbsp;

As we eagerly await the Union Budget 2024, we can reflect upon the profound impact that recent advancements in technology have had on the recruitment and startup ecosystem.

As we eagerly await the Union Budget 2024, we can reflect upon the profound impact that recent advancements in technology have had on the recruitment and startup ecosystem. The integration of AI and technology into the hiring process has revolutionised our industry, making recruitment more efficient, inclusive, and accessible. However, the upcoming budget must strike a crucial balance between skill development and job creation to sustain and amplify these advancements. Reflecting on last year’s budget, it is clear that a solid foundation was laid for digital transformation. The allocation of about ₹3,000 crores for AI research, technology advancements and the promotion of start-up ecosystems were commendable steps. Additionally, the establishment of the National Digital University (NDU) aimed to bridge the skill gap by offering world-class education in emerging technologies. However, while these initiatives have set the stage for a tech-driven future, there remains a significant gap that must be addressed—upgrading the technology and infrastructure of skill providers. Many colleges, universities and other skill-providing institutions continue to struggle with outdated computer labs, limited access to high-speed internet, and insufficient training programs for both students and faculty. This lack of resources severely hampers the ability of these institutions to prepare students for a job market that increasingly demands digital proficiency. Without substantial improvements in educational infrastructure, the potential of our future workforce remains underutilised. For the upcoming budget to truly make a difference, it must prioritise substantial investments in technology and infrastructure for skill-providing institutions. We need to see a concerted effort to upgrade computer labs, ensure widespread access to high-speed internet, and provide robust training programs for digital skills. By doing so, we can better prepare our future workforce to meet the demands of a rapidly evolving job market. Furthermore, it is crucial not only to enhance infrastructure but also to ensure that skill development initiatives are closely aligned with industry needs. The rapid pace of technological change means that the skills required today may not be the same as those needed tomorrow. Therefore, ongoing collaboration between skill-providing institutions and industry players is essential to keep curricula relevant and impactful. Meanwhile, job creation remains a critical aspect that the budget must address. While skill development is paramount, these skills must translate into actual employment opportunities for the workforce. The government has made commendable strides in promoting start-ups and entrepreneurship. For instance, the budget 2023 introduced tax incentives for start-ups, including a three-year tax holiday for new companies and the extension of the period of incorporation for eligible start-ups by one year. Despite these efforts, more can be done to create a conducive environment for job creation. This includes providing additional incentives for businesses to expand and hire, supporting small and medium-sized enterprises (SMEs) with easier access to credit, and fostering innovation hubs that can incubate new ideas and ventures. An integrated approach is essential for balancing skill development and job creation. Investments in digital infrastructure and educational technology will yield dividends in the form of a more skilled workforce. However, we must also ensure that there are ample opportunities for these skilled individuals to apply their talents. This requires a holistic strategy that supports both the supply and demand sides of the labour market. In conclusion, the Union Budget 2024 presents a unique opportunity to address some of the most pressing challenges in the recruitment and start-up ecosystem. By prioritising investments in educational technology and infrastructure, and aligning skill development initiatives with industry needs, we can create a future-ready workforce. Simultaneously, fostering a favourable environment for job creation will ensure that these skills are effectively utilised, driving economic growth and innovation. Striking this balance is crucial for the sustained development of our economy and the realisation of our collective potential. (Disclaimer: The views of the writer do not represent the views of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer.)

India Budget: Striking a balance - skill development vs job creation

The Halwa ceremony, marking the final stage of the budget preparation process for full Budget of 2024-25, was held in North Block on Tuesday in the presence of Union Finance Minister Nirmala Sitharaman, Minister of State Pankaj Chaudhary, and secretaries.&nbsp;

Officers and staff involved in the budget preparation and compilation process were also present on the occasion.

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<a href="https://twitter.com/hashtag/WATCH?src=hash&amp;ref_src=twsrc%5Etfw">#WATCH</a> | Delhi: The Halwa ceremony, marking the final stage of the Budget preparation process for Union Budget 2024, was held in North Block, today, in the presence of Union Finance &amp; Corporate Affairs Minister Nirmala Sitharaman. 
 
A customary Halwa ceremony is performed… <a href="https://t.co/mVScsFHun9">pic.twitter.com/mVScsFHun9</a>
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A customary Halwa ceremony is performed every year before the "lock-in" process of the budget preparation begins. The Halwa Ceremony is a preparation of the Indian sweet dish in a large 'kadhai' at the North Block.

The Finance Minister ceremoniously stirs the 'kadhai' and serves the halwa to everyone involved in the Budget-making process. This tradition is also a way to acknowledge the hard work of all the finance ministry officials.&nbsp;

Also read:&nbsp;<a data-ved="2ahUKEwib0Zq-26uHAxWZi68BHcmJBtcQxfQBKAB6BAgPEAE" href="https://www.wionews.com/business-economy/nirmala-sitharaman-gets-good-news-for-hostel-goers-railway-services-top-points-of-gst-council-meet-734230" jsname="YKoRaf" ping="/url?sa=t&amp;source=web&amp;rct=j&amp;opi=89978449&amp;url=https://www.wionews.com/business-economy/nirmala-sitharaman-gets-good-news-for-hostel-goers-railway-services-top-points-of-gst-council-meet-734230&amp;ved=2ahUKEwib0Zq-26uHAxWZi68BHcmJBtcQxfQBKAB6BAgPEAE">Nirmala Sitharaman gets good news for hostel goers, railway services: Top points of GST council meet</a>

The halwa ceremony used to herald&nbsp;the process of printing all the budget documents ahead of the presentation in Parliament, but now the process is digitised. The halwa ceremony is a significant event as it also marks the beginning of lockdown at the finance ministry.&nbsp;

This means no official is allowed to leave the ministry premises until the budget presentation. Everyone part of the Budget team is allowed to leave only after the financial document is presented in Parliament. The printing of the Union Budget inside the basement located at the North Block had become a permanent feature since 1980.

The budget session of parliament will begin on July 22 and, according to schedule, will end on August 12.

With this upcoming Budget Presentation, Sitharaman will surpass the record set by former Prime Minister Morarji Desai, who presented five annual budgets and one interim budget between 1959 and 1964 as finance minister. Sitharaman's upcoming Budget speech would be her sixth.

Like the previous few full Union Budgets, the Budget 2024 will also be delivered in paperless form. An Interim Union Budget 2024 was presented on February 1, as the country was due for general elections. The interim budget, tabled on February 1, took care of the financial needs of the intervening period until a government was formed after the Lok Sabha polls, after which a full budget was supposed to be presented by the new government in July.

All the Union Budget documents, including the Annual Financial Statement (commonly known as Budget), Demand for Grants (DG), Finance Bill, as prescribed by the Constitution, will be available on the "Union Budget Mobile App" for hassle-free access of budget documents by Members of Parliament (MPs) and people. The app is bilingual (English and Hindi) and is available on both Android and iOS platforms. The App can also be downloaded from the Union Budget Web Portal (www.indiabudget.gov.in).

The Halwa ceremony, marking the final stage of the budget preparation process for full Budget of 2024-25, was held in North Block on Tuesday in the presence of Union Finance Minister Nirmala Sitharaman, Minister of State Pankaj Chaudhary, and secretaries.

The Halwa ceremony, marking the final stage of the budget preparation process for full Budget of 2024-25, was held in North Block on Tuesday in the presence of Union Finance Minister Nirmala Sitharaman, Minister of State Pankaj Chaudhary, and secretaries. Officers and staff involved in the budget preparation and compilation process were also present on the occasion. #WATCH | Delhi: The Halwa ceremony, marking the final stage of the Budget preparation process for Union Budget 2024, was held in North Block, today, in the presence of Union Finance & Corporate Affairs Minister Nirmala Sitharaman. A customary Halwa ceremony is performed… pic.twitter.com/mVScsFHun9 — ANI (@ANI) July 16, 2024 × A customary Halwa ceremony is performed every year before the "lock-in" process of the budget preparation begins. The Halwa Ceremony is a preparation of the Indian sweet dish in a large 'kadhai' at the North Block. The Finance Minister ceremoniously stirs the 'kadhai' and serves the halwa to everyone involved in the Budget-making process. This tradition is also a way to acknowledge the hard work of all the finance ministry officials. Also read: Nirmala Sitharaman gets good news for hostel goers, railway services: Top points of GST council meet The halwa ceremony used to herald the process of printing all the budget documents ahead of the presentation in Parliament, but now the process is digitised. The halwa ceremony is a significant event as it also marks the beginning of lockdown at the finance ministry. This means no official is allowed to leave the ministry premises until the budget presentation. Everyone part of the Budget team is allowed to leave only after the financial document is presented in Parliament. The printing of the Union Budget inside the basement located at the North Block had become a permanent feature since 1980. The budget session of parliament will begin on July 22 and, according to schedule, will end on August 12. With this upcoming Budget Presentation, Sitharaman will surpass the record set by former Prime Minister Morarji Desai, who presented five annual budgets and one interim budget between 1959 and 1964 as finance minister. Sitharaman's upcoming Budget speech would be her sixth. Like the previous few full Union Budgets, the Budget 2024 will also be delivered in paperless form. An Interim Union Budget 2024 was presented on February 1, as the country was due for general elections. The interim budget, tabled on February 1, took care of the financial needs of the intervening period until a government was formed after the Lok Sabha polls, after which a full budget was supposed to be presented by the new government in July. All the Union Budget documents, including the Annual Financial Statement (commonly known as Budget), Demand for Grants (DG), Finance Bill, as prescribed by the Constitution, will be available on the "Union Budget Mobile App" for hassle-free access of budget documents by Members of Parliament (MPs) and people. The app is bilingual (English and Hindi) and is available on both Android and iOS platforms. The App can also be downloaded from the Union Budget Web Portal (www.indiabudget.gov.in).

Watch: Indian Finance Minister Nirmala Sitharaman takes part in customary pre-budget ‘Halwa’ ceremony

Investors globally eagerly anticipate India's upcoming budget, with expectations centered on reforms that could enhance the investment climate. So, how can the world's fastest-growing major economy become a more attractive investment destination? Take a look to find out...

India budget 2024-25: Will government cancel privatisation plans?

Let's turn our attention to the expectations from the budget. India's new budget is poised to significantly impact india's real estate industry, particularly in the realm of affordable housing.

India budget 2024-25: Real estate's wishlist for budget

As India gears up for its upcoming budget, a key sector – the Auto industry – is buzzing with anticipation. Let's take a look at what the budget might hold for automakers and most importantly, for you, the consumer.

India budget 2024: What's in the budget for the auto sector?

India's benchmark indices closed at new all-time highs, with the Sensex and Nifty closing early 1 per cent higher.&nbsp;

The blue-chip Sensex index rose over 700 points to end over 78,000 points for the first time ever.&nbsp;

The index started the day in the green before jumping to an intra-day life high of about 78165.&nbsp;

The broader Nifty index closed at a new record high of 23,721.&nbsp;

The Nifty, too, started the day with gains and rose to an all-time high of around 23,754.&nbsp;

With the life highs hit on Tuesday, the nifty index has marked some kind of a record in 11 of the 12 sessions since June 7. Monday was the only exception in the record-high runs for the index.&nbsp;

The index now eyes the 24,000 mark, with analysts calling for that level to be reached this week itself. The bull run in Indian stocks is being driven by expectations of pro-growth policies in the budget.&nbsp;

India's benchmark indices closed at new all-time highs, with the Sensex and Nifty closing early 1 per cent higher. The blue-chip Sensex index rose over 700 points to end over 78,000 points for the first time ever.

India's benchmark indices closed at new all-time highs, with the Sensex and Nifty closing early 1 per cent higher. The blue-chip Sensex index rose over 700 points to end over 78,000 points for the first time ever. The index started the day in the green before jumping to an intra-day life high of about 78165. The broader Nifty index closed at a new record high of 23,721. The Nifty, too, started the day with gains and rose to an all-time high of around 23,754. With the life highs hit on Tuesday, the nifty index has marked some kind of a record in 11 of the 12 sessions since June 7. Monday was the only exception in the record-high runs for the index. The index now eyes the 24,000 mark, with analysts calling for that level to be reached this week itself. The bull run in Indian stocks is being driven by expectations of pro-growth policies in the budget.

India’s Sensex breaches 78,000 for the first time ever

India's economy grows at a faster-than-expected 8% in the fiscal year ended in March. Gross domestic product has risen 8.2% from a year ago. That is above the 7.9% forecast by economists in a Bloomberg survey. For the January-March quarter, gdp grew 7.8% from a year ago.

India grows faster-than-expected

India's growth story has been powered by a number of factors. In Pollnomics today, we look at some of the key economic strengths. We also look at some weaknesses that india needs to tackle for greater economic success.

Indian economy's pros & cons

The election fever has gripped political parties, even before the first votes are cast. But we take a step back and look at how the economy performs around India's elections. We break down whether good economics is good politics. This is our special segment: Poll-nomics.

Unravelling performance of Indian economy before and after polls

India's economic growth story is largely consumption-driven. But how much do households spend on an average every month? A survey released on sunday answers this question. The household consumption expenditure survey has revealed a sharp rise in rural consumption.

Average monthly expenses in India rise 5-6 folds in last two decades

As India's interim Budget announced allocation of&nbsp;₹770 Crore to Maldives, cash-strapped Pakistan on Thursday (Feb 1) also assured the South Asian archipelago that it will address the "pressing development needs" of the island nation.&nbsp;

During a telephone conversation with Maldives President Mohamed Muizzu, Pakistan's caretaker Prime Minister Anwaar-ul Haq Kakar reportedly discussed ways to fortify the bilateral ties between the two nations, the President's Office said in a press release.

Muizzu has also "been assured of the support of the Pakistani government to address the pressing development needs of the Maldives," it said.

The Pakistani caretaker prime minister also conveyed his support and assistance to the Maldives' efforts to mitigate the effects of climate change, the release said.

The Maldives established diplomatic relations with Pakistan on July 26, 1966.

<h2>India-Maldives ties: The increase in aid and talks in New Delhi</h2>

A high-level delegation from the Maldives has arrived in New Delhi amid the ongoing discussions between the two nations over the presence of Indian military personnel in the island nation.

Also read |&nbsp;<a href="https://www.wionews.com/india-news/indian-interim-budget-figures-show-increased-allocation-to-maldives-at-rs-770-crore-685899">Indian interim Budget figures show increased allocation to Maldives at ₹770 crore</a>

The core group was formed following Maldives President Muizzu's demand for the removal of Indian military personnel stationed in the country. The pro-China president recently came to power over an 'India Out' plank.

Also read |&nbsp;<a href="https://www.wionews.com/india-news/maldives-delegation-in-delhi-ahead-of-core-group-meeting-today-686128">Maldives delegation in Delhi ahead of core group meeting today</a>

The Indian military personnel are present in Maldives to maintain Indian platforms for humanitarian purposes.

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"Both sides also agreed on a set of mutually workable solutions", says Indian Readout on 2nd India Maldives core group meeting in Delhi on presence of Indian military presence in Maldives. <a href="https://t.co/Xfq38ibEKU">https://t.co/Xfq38ibEKU</a> <a href="https://t.co/St5X5WUWEK">pic.twitter.com/St5X5WUWEK</a>
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Meanwhile, the increased allocation in India's interim Budget reaffirms New Delhi's commitment to expand major infrastructure initiatives and development projects in the Maldives.&nbsp;

India is supporting the country's biggest infrastructure project, the Greater Malé Connectivity Project (GMCP).&nbsp;

Also watch |&nbsp;Maldives delegation in India for second core group meeting

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New Delhi has kept ₹600 Crore for Maldives&nbsp;for the financial year 2024-2025, indicating that the support will continue.

From being the top country&nbsp;for the tourism sector in Maldives last year, India dropped to fifth position this January in the aftermath of the diplomatic spat between the two countries.

(With inputs from agencies)

As India's interim Budget announced allocation of ₹770 Crore to Maldives, cash-strapped Pakistan on Thursday (Feb 1) also assured the South Asian archipelago that it will address the "pressing development needs" of the island nation.

As India's interim Budget announced allocation of ₹770 Crore to Maldives, cash-strapped Pakistan on Thursday (Feb 1) also assured the South Asian archipelago that it will address the "pressing development needs" of the island nation. During a telephone conversation with Maldives President Mohamed Muizzu, Pakistan's caretaker Prime Minister Anwaar-ul Haq Kakar reportedly discussed ways to fortify the bilateral ties between the two nations, the President's Office said in a press release. Muizzu has also "been assured of the support of the Pakistani government to address the pressing development needs of the Maldives," it said. The Pakistani caretaker prime minister also conveyed his support and assistance to the Maldives' efforts to mitigate the effects of climate change, the release said. The Maldives established diplomatic relations with Pakistan on July 26, 1966. India-Maldives ties: The increase in aid and talks in New Delhi A high-level delegation from the Maldives has arrived in New Delhi amid the ongoing discussions between the two nations over the presence of Indian military personnel in the island nation. Also read | Indian interim Budget figures show increased allocation to Maldives at ₹770 crore The core group was formed following Maldives President Muizzu's demand for the removal of Indian military personnel stationed in the country. The pro-China president recently came to power over an 'India Out' plank. Also read | Maldives delegation in Delhi ahead of core group meeting today The Indian military personnel are present in Maldives to maintain Indian platforms for humanitarian purposes. "Both sides also agreed on a set of mutually workable solutions", says Indian Readout on 2nd India Maldives core group meeting in Delhi on presence of Indian military presence in Maldives. https://t.co/Xfq38ibEKU pic.twitter.com/St5X5WUWEK — Sidhant Sibal (@sidhant) February 2, 2024 × Meanwhile, the increased allocation in India's interim Budget reaffirms New Delhi's commitment to expand major infrastructure initiatives and development projects in the Maldives. India is supporting the country's biggest infrastructure project, the Greater Malé Connectivity Project (GMCP). Also watch | Maldives delegation in India for second core group meeting × New Delhi has kept ₹600 Crore for Maldives for the financial year 2024-2025, indicating that the support will continue. From being the top country for the tourism sector in Maldives last year, India dropped to fifth position this January in the aftermath of the diplomatic spat between the two countries. (With inputs from agencies)

Cash-strapped Pakistan assures 'support' to Maldives after India's increased budgetary allocations

India's Narendra Modi government will be delivering the interim Budget for the country on Thursday (Feb 1) ahead of the Lok Sabha elections. Union Finance Minister Nirmala Sitharaman will present the budget in front of the Lower House.

In other news, the US on Wednesday (Jan 31) struck Houthi missiles as well as Iranian drones as the terror outfit upped its aggression in the region.&nbsp;

Click on headlines to read more:

<a href="https://www.wionews.com/business-economy/budget-2024-live-fm-nirmala-sitharaman-presents-the-interim-budget-in-parliament-income-tax-expectations-news-685548">Budget 2024 LIVE updates: Nirmala Sitharaman reaches Ministry of Finance</a>

The Narendra Modi government will be presenting its final budget of its second tenure on Thursday (February 1). Union Finance Minister Nirmala Sitharaman will deliver the interim Budget which&nbsp;typically takes care of the fiscal needs of the intervening period until a government is formed after the Lok Sabha polls.&nbsp;

<img alt="main img" src="https://cdn.wionews.com/sites/default/files/styles/story_page/public/2024/01/31/409164-nirmala-sitharaman-2.png?imwidth=500" />

<a href="https://www.wionews.com/world/us-destroys-houthi-missiles-targeting-warship-blames-iran-backed-militia-for-jordan-attack-685675">US destroys Houthi missiles targeting warship, blames Iran-backed militia for Jordan attack</a>

American forces on Wednesday (Jan 31) claimed they had destroyed a missile belonging to Yemen's Iran-backed Houthi rebels that posed an "imminent threat" to US aircraft.&nbsp;A few hours later, another anti-ship ballistic missile and Iranian drones were shot down in the Gulf of Aden.

<img alt="main img" src="https://cdn.wionews.com/sites/default/files/styles/story_page/public/2024/01/20/406955-succession-2024-01-20t232607129.jpg?imwidth=500" />

<a href="https://www.wionews.com/world/no-one-should-go-through-zuckerberg-issues-apology-over-harm-caused-to-children-due-to-social-media-685688">Meta's Zuckerberg faces accusation of having 'blood on his hands', apologises to families</a>

Meta CEO Mark Zuckerberg, while testifying in an ongoing hearing on online child safety before the Senate Judiciary Committee on Capitol Hill, apologised to the families who claimed that their children have suffered harm from social media platforms.

<img alt="main img" src="https://cdn.wionews.com/sites/default/files/styles/story_page/public/2024/02/01/409225-untitled-design-30.png?imwidth=500" />

<a href="https://www.wionews.com/world/they-can-do-that-nikki-haley-bats-for-texas-to-secede-from-the-us-685692">'They can do that': Nikki Haley bats for Texas to secede from the US</a>

Republican presidential nomination seeker Nikki Haley has said the Lone Star state of Texas has the right to secede from the US if its citizens decide to do so.&nbsp;

<img alt="main img" src="https://cdn.wionews.com/sites/default/files/styles/story_page/public/2024/01/24/407628-untitled-design-8.png?imwidth=500" />

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India's Narendra Modi government will be delivering the interim Budget for the country on Thursday (Feb 1) ahead of the Lok Sabha elections. Union Finance Minister Nirmala Sitharaman will present the budget in front of the Lower House.

India's Narendra Modi government will be delivering the interim Budget for the country on Thursday (Feb 1) ahead of the Lok Sabha elections. Union Finance Minister Nirmala Sitharaman will present the budget in front of the Lower House. In other news, the US on Wednesday (Jan 31) struck Houthi missiles as well as Iranian drones as the terror outfit upped its aggression in the region. Click on headlines to read more: Budget 2024 LIVE updates: Nirmala Sitharaman reaches Ministry of Finance The Narendra Modi government will be presenting its final budget of its second tenure on Thursday (February 1). Union Finance Minister Nirmala Sitharaman will deliver the interim Budget which typically takes care of the fiscal needs of the intervening period until a government is formed after the Lok Sabha polls. US destroys Houthi missiles targeting warship, blames Iran-backed militia for Jordan attack American forces on Wednesday (Jan 31) claimed they had destroyed a missile belonging to Yemen's Iran-backed Houthi rebels that posed an "imminent threat" to US aircraft. A few hours later, another anti-ship ballistic missile and Iranian drones were shot down in the Gulf of Aden. Meta's Zuckerberg faces accusation of having 'blood on his hands', apologises to families Meta CEO Mark Zuckerberg, while testifying in an ongoing hearing on online child safety before the Senate Judiciary Committee on Capitol Hill, apologised to the families who claimed that their children have suffered harm from social media platforms. 'They can do that': Nikki Haley bats for Texas to secede from the US Republican presidential nomination seeker Nikki Haley has said the Lone Star state of Texas has the right to secede from the US if its citizens decide to do so. Watch | Israeli PM Netanyahu says UNRWA is 'totally infiltered by Hamas' ×

Morning news brief: India's interim Budget; US destroys Houthi missiles, and more

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