India’s Budget’24: 9 Priority Areas for Sustainable, Inclusive Area and Broad-based Growth
July 24, 2024
Budget’24: Revising Agriculture as an Engine for Growth and Food Security
July 24, 2024
Key Takeways
1. Commitment to Climate Resilience
The government promotes sustainable agriculture through natural farming practices and climate-resilient varieties, certifying and branding nearly 1 crore farmers.
2. Energy Transition
The move towards renewable energy, energy storage policies, nuclear energy, and rooftop solar initiatives aims to reduce carbon emissions and ensure energy security. The list of exempted capital goods for solar cell and panel manufacture will expand, but customs duties exemptions will end.
3. Market-Based Emission Management
The shift from ‘Perform, Achieve and Trade’ to ‘Indian Carbon Market’ indicates a strategic move towards market-based industrial emissions management.
4. Energy Efficiency in MSMEs
Investment-grade energy audits for traditional micro and small industries will enhance energy efficiency, reduce costs, and encourage sustainability.
5. Water Supply and Sanitation
Collaboration with state governments and multilateral banks on water supply, sewage treatment, and waste management projects will improve urban sanitation and water resource management.
6. Climate Finance Taxonomy
Developing a climate finance taxonomy will increase capital for climate adaptation and mitigation, supporting the country’s green transition.
7. Plastics Management
Initiatives to reduce plastic pollution include measures to restrict the import of hazardous and non-biodegradable plastics, such as PVC flex banners.
Intueri's Analysis
1. The emphasis on climate-resilient commodities and natural agricultural practices promotes sustainable agriculture. These initiatives foster ecological equilibrium, enhance productivity, and reduce environmental damage.
2. A comprehensive approach to energy transition is achieved by balancing environmental sustainability with employment growth, which promotes economic and ecological benefits.
3. The increase in customer duties on import of goods required for manufacturing solar panels and also expanding the exemption list for domestic production will give boost to the domestic production of solar panels.
4. Transition from ‘Perform, Achieve and Trade’ Mode to ‘Indian Carbon Market’ Mode will result in substantial reductions in industrial emissions, thereby fostering a market-based approach to carbon management.
5. The facilitation of energy audits for traditional micro and small industries will improve the sustainability and energy efficiency of these sectors.
6. The launch of the PM Surya Ghar Muft Bijli Yojana and policies for energy storage and nuclear development suggest a significant effort to promote the adoption of renewable energy, which will reduce carbon emissions and provide economic benefits through electricity cost savings.
7. Urban sanitation and water resource management will be enhanced through the promotion of water supply, sewage treatment, and solid waste management initiatives in collaboration with state governments and multilateral banks.
8. By creating a taxonomy for climate finance, the identification and allocation of funds for climate-related projects will be streamlined, thereby improving the transparency and efficacy of the financing of climate adaptation and mitigation efforts.
Increasing import duties on non-biodegradable plastics and promoting alternatives will reduce plastic pollution and promote the use of environmentally favorable materials, thereby promoting long-term environmental sustainability. In addition, it may stimulate domestic production to satisfy market demand.
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