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Indore: The announcement by government in Interim Budget for 2024-25 to set up three major railway corridors, aimed at addressing congestion and reducing cost of logistics, is seen to boost economic growth, said industry associations while lauding government’s forward looking financial roadmap focussing on green energy.

A slew of proposals announced in the budget for startups and electric vehicle ecosystem would accelerate the sector and encourage entrepreneurship, said top industrialists.

Union finance minister Nirmala Sitharaman while presenting the Interim Budget for 2024-25 announced to set up three major railway corridor programmes for energy, mineral, and cement under PM Gati Shakti scheme.

“The three corridors are poised to significantly boost economic growth and streamline logistics for industries, thereby enhancing overall efficiency. This forward-looking approach signals a positive trajectory for nation’s economic development,” CII Madhya Pradesh State Council chairman Shreyaskar Chaudhary said.

Industry leaders said that the announcement of capex expenditure to a record Rs 11.1 lakh crore before general elections would fuel infrastructure growth and creation of logistics corridors and improved railway cargo handling would simplify trade operations, fostering growth in businesses across the nation.

“The budget stands out for its positive impact on solar energy, ensuring sufficient power for EVs and providing support for EVs and charging stations. This initiative is expected to kickstart the implementation of environmentally friendly and sustainable solar power systems across the nation,” FICCI MP State Council chairman Dinesh Patidar said.

The announcement to create a corpus of Rs one lakh crore with interest free loans for 50 years is seen as encouraging research and development in emerging industries, said industrialists.

“The government’s strategic emphasis on regulatory reforms and ease of doing business for startups are pivotal in creating an environment where startups can thrive, innovate, and scale effectively,” CEO of an investing, trading and mentoring platform, Vamsi Krishna UV said.

The budget, however, did not have any major proposals for MSME sector. Proposal to withdraw disputed Direct Tax Demands is seen as reducing litigation.“The proposal to withdraw disputed Direct Tax Demands dating back to 1962, including tax demands of up to Rs 25,000 for fiscal years up to 2009-10 and up to Rs 10,000 for fiscal years up to 2014-15, is indeed a positive step toward resolving tax disputes. It will certainly save a substantial amount of tax litigation costs,” Tax Practitioners Association Indore secretary CA Abhay Sharma said.

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  • Published On Feb 2, 2024 at 12:45 PM IST

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