The Union Budget for 2024-2025 presented by Finance Minister Nirmala Sitharaman was hailed as a pragmatic budget, particularly for its extensive focus on the development of the northeastern states of India.
Ranjit Barthakur, the Chairman of FICCI North East Advisory Council (NEAC) said, “The Union Budget 2024-2025 is a positive step towards the holistic development of the northeastern states. The significant allocations for infrastructure and connectivity, particularly the INR 1.11 lakh crore for capital expenditure and specific assistance for flood management in Assam will bridge the regional disparities and enhance the connectivity of the northeast with the rest of the country. This budget truly recognizes and addresses the unique needs of our region”.
“We need substantial investment in connectivity infrastructure in the Northeast, particularly in riverways, International road and rail connectivity as well as Airways, I am sure the significant allocation towards capital expenditure will help address this need”, he said.
Barthakur further added the allocation of INR 1.52 lakh crore for agriculture and allied sectors along with targeted support for shrimp production and the creation of large-scale vegetable clusters, is poised to transform the agricultural landscape of the northeastern states.
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The introduction of digital public infrastructure for agriculture will provide farmers with crucial information and resources, boosting productivity and profitability. Furthermore, the emphasis on natural farming and increased agricultural credit will enhance overall agricultural output. I am confident the Northeast will benefit from this. I also hope Agro Forestry will be included under this initiative.”
The Union Budget 2024-2025 also underscores the government’s commitment to combating climate change and promoting environmental sustainability. The budget includes policies for renewable energy projects, sustainable energy solutions, and initiatives aimed at reducing carbon footprints. The focus on green growth, including the PM Surya Char Muft Bijli Yojana, highlights the importance of integrating environmental considerations into economic development. The northeastern states, with their rich biodiversity and unique ecosystems, will benefit greatly from these initiatives, said Ranjit Barthakur.
He also said, “The next-generation reforms outlined in the budget are crucial for the northeastern states. Collaboration with states for land-related reforms and urban planning will address our unique challenges and improve productivity and market efficiency. This will drive overall economic development in the region.”
Ravi Patwa, the Chairman of FICCI Assam State Council complimented the Finance Minister on the budget’s inclusive approach towards human resource development, saying, “The allocation of INR 2.66 lakh crore for rural development, including education, health, and social justice programs, is a testament to the government’s commitment to inclusive growth.”
He further added the budget’s support for MSMEs, including credit guarantee schemes and financial support for food irradiation units will significantly benefit the northeastern states. The development of MSME clusters and e-commerce hubs will boost local manufacturing and service industries. Special financial incentives for MSMEs in the northeastern states will enable them to compete globally and contribute to the region’s economic growth.
Patwa also said, “the operationalization of the Anusandhan National Research Fund and a venture capital fund for the space economy will support research and innovation initiatives relevant to the northeastern region. Funding for local universities and research institutions will foster innovation and technological advancement, driving economic growth and development.”
Commenting on the taxation-related proposals, Patwa said “The time limits for the reopening of assessments has been significantly reduced and the simplification of income tax and GST structures, along with various customs duty changes, will promote domestic manufacturing and exports”.
Speaking on the Tourism Sector, Joydeep Gupta, Co-Chairman of FICCI Assam State Council said, “The promotion of tourism in the northeastern states is a welcome move. The comprehensive development initiatives and investments in cultural heritage sites and natural landscapes will position the northeast as a key tourist destination. This will not only enhance our region’s visibility but also create new economic opportunities for local communities.”
Tax incentives aimed at boosting local industries in the northeastern states and simplified tax compliance measures will encourage entrepreneurship and economic activity in the region.
