Farmer’s welfare and boosting rural demand is one of the main  highlights of interim budget 2024-25 presented by  Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman in Parliament today.  Terming Farmers as our ‘Annadata’, Smt. Sitharaman stated that Minimum support prices for the produce of ‘Annadata’   are periodically increased appropriately. The Finance Minister said that every year, under PM-KISAN SAMMAN Yojana, direct financial assistance is provided to 11.8 crore farmers, including marginal and small farmers, while crop insurance is given to 4 crore farmers under PM Fasal Bima Yojana. She stated that these, besides several other programmes, are assisting ‘Annadata’  in producing food for the country and the world and added that the worries about food have been eliminated through free ration for 80 crore people.

 

The interim budget 2024-25 has promised for stepping up value addition in agricultural sector and boosting of farmers’ income. Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman promised to further promote private and public investment in post-harvest activities including aggregation, modern storage, efficient supply chains, primary and secondary processing and marketing and branding to ensure faster growth of the agriculture and food processing sector.

 

 'The sector is poised for inclusive, balanced, higher growth and productivity. These are facilitated from farmer-centric policies, income support, coverage of risks through price and insurance support, promotion of technologies and innovations through start-ups.', the Finance Minister mentioned in her speech.

 

She said Pradhan Mantri Formalisation of Micro Food Processing Enterprises Yojana has assisted 2.4 lakh SHGs and sixty thousand individuals with credit linkages. The finance minister added that other schemes are complementing the efforts for reducing post-harvest losses, and improving productivity and incomes. Smt. Sitharaman mentioned that Pradhan Mantri Kisan Sampada Yojana has benefitted 38 lakh farmers and generated 10 lakh employment. The Finance Miniser said Electronic National Agriculture Market has integrated 1361 mandis, and is providing services to 1.8 crore farmers with trading volume of  Rs. 3 lakh crore.

 

'These and the provision of basic necessities have enhanced real income in the rural areas. Their economic needs could be addressed, thus spurring growth and generating jobs.'  the finance minister asserted. 

 

ATMANIRBHAR OIL SEEDS ABHIYAN

 

The interim budget 2024-25 presented by  Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman has said a strategy will be formulated to achieve ‘atmanirbharta’ for oil seeds such as mustard, groundnut, sesame, soybean, and sunflower. The Finance Minister mentioned in her speech that this will cover research for high-yielding varieties, widespread adoption of modern farming techniques, market linkages, procurement, value addition, and crop insurance.    

 

NANO DAP

 

'After the successful adoption of Nano Urea, application of Nano DAP on various crops will be expanded in all agro-climatic zones.' Union Finance Minister mentioned in her speech. 

The emphasis on modernizing the farm sector through greater investments in upgraded storage, streamlined supply chains and branding will enhance overall efficiency and competitiveness, industry executives said, as a sizeable chunk of produce stored gets spoiled for lack of proper storage.

 

The budget offers a roadmap for empowering farmers, ensuring food security, and propelling the agricultural sector towards a brighter future, said Balram Singh Yadav, managing director, Godrej Agrovet. The measures pave the way for inclusive, sustainable growth in the agricultural sector.

 

According to several estimates, more than 40% of the produced food gets spoiled even before it reaches the consumers.

 

With India facing challenges of high prices of Diammonium-phosphate (DAP) and the need to import, the step to promote nano-DAP will help the government save on production and transportation costs and deliver environmental benefits.

 

'Initiatives such as National Agriculture Market (e-NAM) and Pradhan Mantri Matsya Sampada Yojana (PMMSY) are empowering farmers with better market access and infrastructure, while the focus on enhancing adoption of Nano-DAP clearly showcases the government's intent to handhold farmers amidst the continuously evolving weather conditions,' Yadav said.

 

Finance Minister Nirmala Sitharaman said that efforts for value addition in the agricultural sector and boosting farmers’ income will be stepped up and that the sector is poised for inclusive and balanced growth and productivity.

 

'These are facilitated from farmer-centric policies, income support, coverage of risks through price and insurance support, promotion of technologies and innovations through startups,' she added.

 

The finance minister has set the stage for policies that can substantially boost development in rural areas, said Simon Wiebusch, president, Bayer South Asia. He added that the budget also shows the government’s continued push to improve farmer incomes. 'Policies such as the PM Kisan Sampada Yojana and PM Fasal Bima Yojana, along with measures to promote private and public investment in post-harvest activities including modern storage, efficient supply chains, and marketing and branding, will not only ensure reduction in wastage, easier access to markets and remunerative prices for smallholder farmers but also help consumers access nutritious and quality produce at reasonable prices,' Wiebusch said.

 

'These foundational policies are primed to ignite fresh opportunities, spur demand, and trigger economic growth,' said Simon George, President, Cargill India, and MD, Cargill Food Business, South Asia. Sitharaman told lawmakers during her speech that for ensuring faster growth of the sector, the government will promote private and public investment in post-harvest activities. The robust social, physical and digital infrastructure will help India in meeting its aspirations of Viksit Bharat, said Dr KC Ravi, chief sustainability officer, Syngenta India. Some schemes to give a boost to the agro-chemical industry would have helped in laying a stronger foundation for the growth of the sector, he added.

In order to increase the availability of wheat and rice in the open market and to control the prices of wheat and rice, Government of India has been offloading wheat and rice in the market through weekly e-auction. A total of 101.5 LMT wheat and 25 LMT rice has been allocated by Government of India for offloading under Open Market Sale Scheme (Domestic) OMSS(D). Wheat is being offered at reserve price of Rs 2150/Qtl for FAQ and Rs 2125/Qtl for URS. The reserve price of rice is being kept at Rs 2900/Qtl.

 

The first e-auction of this current phase was held on June 28, 2023, wherein 0.86 LMT wheat was sold in the open market. However, to increase the availability of wheat and to cater to the demand of wheat in the open market, the weekly offering of wheat in the e-auction is being gradually increased from initial 2 LMT to the present weekly offering of 4.5 LMT. As a result, the weekly sale of wheat has increased to more than 4 LMT. Till January 24, 2024, 71.01 LMT wheat has been sold under OMSS(D).

 

The first e-auction of rice under OMSS(D) for 2023-24 was held on July 5, 2023. In order to increase the sale of rice in the open market, GoI reduced the Reserve Price of rice from Rs 3100/ Qtl to Rs 2900/Qtl. and the minimum and maximum quantity of rice was revised to 1 MT and 2000 MT respectively.

 

In addition to this, regular advertisement was done by the FCI regional offices for wider outreach and as a result, the sale of rice gradually increased. Till January 24, 2024, 1.62 LMT rice has been sold in the open market which is the highest sale in any year under OMSS (D) i.r.o. rice to private traders. The previous highest was 42000 MT.

 

Central Government is also providing wheat to cooperative agencies like NAFED/NCCF/Kendriya Bhandar/MSCMFL under Bharat Atta scheme. 4 LMT has been allocated by GOI under this scheme from the total 101.5 LMT of OMSS(D). Under this subset of OMSS (D) scheme, Semi-government/Cooperative agencies are getting wheat at Rs 21.50/Kg which has been revised to Rs 17.15/ kg w.e.f. December 16, 2024, for converting to atta and selling to general public at no more than Rs 27.50/Kg. Till January 29, 2024 - 2,80,456 MT wheat has been sold to these agencies.

Telangana's Minister for Agriculture, Thummala Nageswara Rao, inaugurated the 2nd Edition of KISAN Agri Show 2024 On February 1, 2024. The grand event, titled KISAN Hyderabad 2024, has firmly established itself as Telangana's largest agricultural exposition, converging industry leaders, policymakers, professionals, and farmers at the HITEX Exhibition Center from February 1 to 3, 2024. Focused on highlighting the latest agricultural innovations, the show aims to foster crucial dialogues for the sustainable development of the state's agricultural sector.

 

KISAN Hyderabad Innovative Initiative

Minister Rao lauded KISAN Hyderabad as an innovative initiative that successfully united diverse stakeholders in the agriculture sector. He emphasised that the event not only serves as a showcase for innovations but also provides a platform for essential conversations crucial for the sustainable growth of the agricultural sector in the state.

 

KISAN Hyderabad Showcases Cutting-edge Agriculture

The three-day event is dedicated to displaying the latest advancements in agriculture, offering a comprehensive platform for exhibitors from various sectors within the industry. Covering an extensive range of products and services, the exhibition includes farm machinery, tractors, implements, water and irrigation solutions, plasticulture, IoT-driven tools and machines, innovations and start-ups in agriculture, contract farming solutions, agriculture inputs, protected cultivation technologies, mobile apps for agriculture, and custom clearance services.

 

Industry Participation and Expectations

With over 140 exhibitors, ranging from industry leaders to innovative start-ups, the exhibition spans across a sprawling 12,000 sq m area. Anticipated to connect over 140 companies with approximately 20,000 visitors from Telangana and neighboring states, KISAN Hyderabad 2024 stands as a crucial networking and business opportunity for all stakeholders in the agricultural domain.

 

Comprehensive Knowledge Sessions for Farmers

Simultaneously, the Telangana Horticulture Officers Association is hosting a concurrent conference, offering knowledge sessions tailored for farmers. The event boasts a comprehensive exhibition, informative seminars, and interactive sessions, providing attendees with the chance to explore the latest advancements, products, and services in the agricultural sector. The presence of officials from the Department of Agriculture and the Department of Horticulture further underscores the significance of this agricultural extravaganza.

India and Japanese centuries old ties span people, business, geopolitical and spiritual issues nurtured by shared values of global prosperity with peace & amity. This multifaceted mutual affection elevates business and people engagements across cuisine, alcobev, education, industry, R&D, sustainability, infrastructure, investments, socio-economic upliftment and spiritual well-being. These win-win ties are notably flourishing in hospitality & fine-dining sectors, delighting Japanese expatriates, tourists & revving up Indians love for Japanese food & premium beverages.

 

Scaling up this further, Japanese Government is promoting India entry & expansion of Japan’s global favourite –premium brands of fine rice wine – Sake. Having taken steps to boost market appreciation, & availability, its premium brands will be sold at attractive prices. Japanese embassy is hosting on February 7, 2024, an enticing Sake alcobev appreciation & business launch event. Its chief host and organiser is Kojiro Honda, appointed by Japan’s National Tax Authority as Japanese liquor Import Co-ordinator to India, and he is also the co-owner and founder of Hirohama India Pvt. Ltd., and Kuuraku India Pvt. Ltd. He will be organising an offline Sake appreciation & experiential meet followed by an educative webinar.

 

This will showcase Sake from all over Japan allowing people to know the variations of Sake flavours resulting from rice from Tohoku to Kyushu. Focusing on different Sake alcobev types viz. Seishu Sake, and Koshu Sake (Vintage), Awamori, Sparkling Sake, it will enable attendees to experience differences in drinking styles and flavours. This will help in better appreciation of what Sake is all about & depth of Sake when taken with different Japanese cuisine.

India has sustained its export growth notwithstanding the global challenges emerging due to issues like the Israel-Hamas war and the Budget has laid out a strong foundation to push the economic growth, Commerce and Industry Minister Piyush Goyal said on Thursday. The minister said that certainly, the country is facing 'very severe' challenges due to these conflicts.

 

'But despite these challenges, India continues to be a bright spot in terms of economy, economic growth, and we continue to broadly sustained our exports...I think, the Indian story is a story of resilience, and strength,' Goyal told PTI in a post-budget interaction.

 

In her budget speech, Finance Minister Nirmala Sitharaman stated that geopolitically, global affairs are becoming more complex and challenging due to wars and conflicts.

 

'Globalization is being redefined with reshoring and friend-shoring, disruption and fragmentation of supply chains, and competition for critical minerals and technologies. A new world order is emerging after the Covid pandemic,' Sitharaman said.

 

The Russia-Ukraine war, the Isreal-Hamas conflict and the Red Sea crisis have disrupted the global supply chains. Red Sea is the busiest trade route as it accounts for 30 per cent of global container traffic and 12 per cent of global trade.

 

Goyal said due to these challenges the growth potential on the trade front that we had is 'slowing very significantly and showing weakness'.

 

He added that due to these wars and crises, 'our logistics, our shipment lines, out of India for exports' are getting impacted significantly.

 

India's exports rose by only 1 per cent to USD 38.45 billion in December 2023 while the trade deficit narrowed to a three-month low of USD 19.8 billion, according to the government data.

 

Exports during April-December this fiscal dipped by 5.7 per cent to USD 317.12 billion. Imports contracted by 7.93 per cent to USD 505.15 billion, leaving a trade deficit of USD 188.02 billion in the first three quarters as against USD 212.34 billion in April-December 2022.

 

Welcoming the budget proposals, Goyal said that the Budget has focused on every section of the society.

 

Announcements pertaining to e-mobility promotion and increase in infrastructure spending will provide 'more and more' opportunities for business and domestic industry, Goyal stated.

 

'Every infrastructure project means greater degree of sale of goods, steel, cement, furnishing. It touches so many different segments of industry,' Goyal said.

 

'When we talk about greater exports and greater economic activity, people get opportunities in services, logistics, the transportation sector gets a leg up,' the minister said.

 

He said that the Budget has laid out a strong foundation to push the country's economic growth.

 

Sitharaman announced a Rs 11.11 lakh crore spending on infrastructure and vowed to continue reforms as she resisted resorting to populist measures in Modi government's last Budget before general elections, instead choosing to stay on the path of cutting deficit while bolstering measures for focus groups.

 

Giving a sneak preview of what will be the Modi government's priority in the third term, if re-elected, she said economic policies that foster and sustain growth, facilitate inclusive development and contribute to generation of resources to power investments will be adopted towards making India a developed country by 2047.

 

'The next five years will be years of unprecedented development and golden moments to realise the dream of developed India by 2047,' she said.

The interim budget eschews populism as it is not election-driven because the government prioritises national well-being, minister for commerce and industry, consumer affairs, food and public distribution and textiles Piyush Goyal told Shambhavi Anand in an interview.

 

Talks are going on with many countries on different levels at different times. Many BITs were cancelled in 2016 so many of them are talking. Many of them don't even want the BITs in their original form because it has become passe. For example, many countries don't like investor - state dispute settlement (ISDS). Many countries don't like to include tax.

 

For example, if you take the UK, as much money has been invested in India, we have also invested equally. Our investments in the UK are steep. The difference is that there was a time when India used to negotiate from a position of weakness. People would dictate terms to India. We would do things under pressure. Some of the deals signed in the past, are really detrimental to India. Our imports from those countries have gone up and our exports haven't gone up at all. They were not done with any great stakeholder consultation like we do.

 

Our style is that whatever we'll do, we'll do it with great confidence that what we are doing is for the good of India. FTAs, BITs will be from a position of strength and confidence.

 

How worrying is the Red Sea situation?

 

We are concerned that shipments are getting delayed; also getting more expensive if it goes on for longer. It's a matter of concern. We were hopeful that it would get resolved but it seems to be pulling longer, otherwise the exports would have again returned to growth. Many governments, including India, are taking precautionary measures to safeguard free flow of vessels and to attack or protect from this type of activities. But the jury's still out. We don't know exactly.

 

The FM said expansion of existing airports and development of new airports will continue expeditiously as Indian carriers have collectively ordered over 1000 new aircraft. What do you think?

 

My sense is that in the next 20-25 years, India will be the largest market for aircraft. There are several manufacturers who want to locate in India.

 

What has the budget done to spur growth?

 

Our goal is that every decision taken is in the interests of India. Look at the investment made in infrastructure, for the second time in a row. Money spent on infrastructure has a transformational impact on people's lives as it gives a boost to several industries such as steel, cement, furnishing, tiles and marbles.

 

Today capacity utilisation in steel is around 90%. I am from the steel industry. It's like a dream. With better infrastructure, logistics costs come down. Then you become more competitive. There's more demand for goods and services.

 

There has been an increase in the outlay for PLIs. Are there any new sectors for which the PLI scheme will be launched?

 

Don't look at the outlay. This will increase in leaps and bounds. See every industry has a gestation period. Those PLI schemes just started four years back. Electronics and all where the gestation period is small, they have come into operations, but like textile PLI, auto component, steel - they have longer gestation period. So, as these will come into operation, then this will grow by leaps and bounds and if all this gets used up and more is required, we will provide more

New Delhi, The government on Thursday approved the signing and ratification of a Bilateral Investment Treaty (BIT) between India and the United Arab Emirates (UAE). The pact would help promote investments between the two countries.

 

'The Union Cabinet chaired by Prime Minister Narendra Modi, today has given its approval for signing and ratification of BIT between India and the UAE,' an official statement said.

 

The treaty is expected to improve the confidence of investors, especially large investors, resulting in an increase in foreign investments and overseas direct investment (ODI) opportunities, the statement said, adding that this may have a positive impact on employment generation.

 

'The approval is expected to increase investments in India and is likely to help in realising the goal of Atmanirbhar Bharat by encouraging domestic manufacturing, reducing import dependence, increasing exports etc,' it added.

 

The two nations have also implemented a free trade agreement in May 2022.

 

India received an FDI of USD 16.7 billion between April 2000 and September 2023.

India is negotiating bilateral investment treaties with different countries with a view to promote foreign inflows, Finance Minister Nirmala Sitharaman said on Thursday. She said that foreign direct investment (FDI) has doubled during 2014-23 to USD 596 billion compared to the inflow received during 2005-14.

 

'For encouraging sustained foreign investment, we are negotiating bilateral investment treaties with our foreign partners, in the spirit of 'first develop India',' she said while presenting the interim Budget 2024-25.

 

India is negotiating this treaty with countries such as the UK.

 

These investment treaties help in promoting and protecting investments in each other's countries.

These pacts are important as India has earlier lost two international arbitration cases against British telecom giant Vodafone and Cairn Energy plc of the UK over the retrospective levy of taxes.

 

Foreign direct investment (FDI) equity inflows in India declined 24 per cent to USD 20.48 billion in April-September 2023, according to government data.

 

The total FDI -- which includes equity inflows, reinvested earnings and other capital -- contracted 15.5 per cent to USD 32.9 billion during the period under review against USD 38.94 billion in April-June 2022.

 

The top investor countries include Singapore, Mauritius, the US, the UK, and the UAE.

 

Computer software and hardware, trading, services, telecommunication, automobile, pharma and chemicals are some of the key sectors that attract FDI into India.

 

An official had earlier said that hardening interest rates globally and worsening geopolitical situation impacted FDI inflows into India in 2022-23.

Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman said that the recently announced India-Middle East-Europe Economic Corridor is a strategic and economic game changer for India and others. While presenting the Interim Budget 2024-25 in Parliament today, the Minister quoted the Prime Minister, Shri Narendra Modi saying that the corridor 'will become the basis of world trade for hundreds of years to come, and history will remember that this corridor was initiated on Indian soil'. 

 

Highlighting the global context, Smt. Nirmala Sitharaman said that geopolitically, global affairs are becoming more complex and challenging with wars and conflicts. She noted that globalization is being redefined with reshoring and friend-shoring, disruption and fragmentation of supply chains, and competition for critical minerals and technologies. A new world order is emerging after the COVID-19 pandemic, she added.

 

The Minister stated that India assumed G20 Presidency during very difficult times for the world. She highlighted that the global economy was going through high inflation, high interest rates, low growth, very high public debt, low trade growth, and climate challenges. She said that the pandemic had led to a crisis of food, fertilizer, fuel and finances for the world, while India successfully navigated its way. Smt. Sitharaman said that the country showed the way forward and built consensus on solutions for those global problems.

 

Promoting Investments

The Minister said that the Foreign Direct Investment (FDI) inflow during 2014-23 was USD 596 billion marking a golden era. She highlighted that it is twice the inflow during 2005-14. 

While presenting the Interim Budget 2024-25, the Minister further said, 'For encouraging sustained foreign investment, we are negotiating bilateral investment treaties with our foreign partners, in the spirit of ‘first develop India’.'