From pre-budget coverage to Sobha Group's ambitious plans: Our top stories of the week

Read more about the Union Budget 2024 expectations of the renewable energy sector, space tech startups, and even the GenZ population

By Forbes India

Published: Jul 20, 2024 10:00:00 AM IST

Updated: Jul 19, 2024 03:36:39 PM IST

Clockwise: Finance Minister Nirmala Sitharaman with Union Minister of State for Finance Pankaj Chaudhary during the 'Halwa' ceremony to mark the final stage of Union Budget 2024-25; (Sitting) PNC Menon, Chairman Emeritus, Sobha Limited and Ravi Menon, Chairman Sobha Limited; farmer working in a rice paddy

1) Are there quick fixes?

It is that time of the year. The Union Budget is upon us, and every sector is expecting some benefit, relief, and booster to advance in a challenging world economy. All eyes are on Finance Minister Nirmala Sitharaman, scoping what announcements will come from her tablet. The first story in our pre-budget coverage looks at the state of employment in the country. It was a challenge in the recently concluded Lok Sabha elections, which were also contested around topics such as labour participation and skilling. In the previous two terms, the ruling government was unsuccessful in creating more jobs. The coalition mandate in the third term is putting more pressure on the FM. Here's a look at whether spending on capex, GenAI, and PLIs will help solve this tough situation.

2) What rural distress needs

Brutal heatwaves and sporadic but torrential rains have been crucial in increasing rural distress in India. Prices of vegetables, pulses, and spices have spiked. Rural consumption has suffered. Programmes for public health infrastructure, sanitation, rural housing, and farming communities are needed to revive the rural segment. The sector expects a pivot towards rural and welfare spending from capex when the Union Budget 2024 will be presented on July 23. A focus on rural India is required for the new government, the nation's economic growth, political stability, upcoming state elections, and the appeasing of a coalition government.

3) Challenge of fiscal prudence

Recently concluded Lok Sabha elections saw the BJP fall to 240 seats and form a government in a coalition with its NDA allies. Of these, the Telugu Desam Party (TDP) and the Janta Dal United (JDU) are the largest constituents, with 16 and 12 MPs, respectively. A coalition government means bending knees to the partners and their demands to save the seats. NDA allies have been vocal about their demands for their respective states. It will be fascinating to see how FM Sitharaman answers those demands while still maintaining fiscal prudence. How her ministry balances these would set the tone for the next five years.

Discover

1) What space tech startups need

India’s Department of Space’s budget for the current fiscal year, as proposed in the interim Budget presented in February, is Rs 13,042.75 crore. Experts note that these budgets are far less than most major space-faring economies. While India has implemented programmes under space policy and tasked the Indian National Space Promotion and Authorisation Centre (IN-SPACe) with the commercialisation of India's space tech capabilities, a lot needs to be done to raise capital for the nascent space tech startups. Having demonstrated the provenance of their technologies, several Indian space startups are looking for growth capital of as much as $50 million each. Here's what they are asking of the finance minister.

2) Boosting renewable energy

India has done well in renewables expansion, particularly solar, with policies focussed primarily on large-scale projects and resources. In the interim Budget, an estimated Rs12,850 crore was earmarked for the Ministry of New and Renewable Energy (MNRE, while an estimated Rs 20,502 crore was earmarked for the Ministry of Power. Minister of Finance Nirmala Sitharaman made several announcements about green energy, particularly in the context of helping India achieve its goal of becoming a net-zero economy by 2070. However, to meet the requirements of a growing economy, the reliance on thermal power, led by coal, will continue for the next few years. Here's what Union Budget 2024 can do to reduce this dependency and boost renewable energy.

3) What does Gen-Z want?

Nearly half of India's population is below the age of 25. They hold the power to change governments, to take the economy ahead, and are the key to achieving the vision of Vikasit Bharat 2047. Subjects such as skill training, climate change, the increasing impact of new technologies such as GenAI, and the rising cost of living have taken up space on their minds. So, how important is the Union Budget for this population? How do they rank social welfare vs infrastructure? In part one of a series on Budget expectations, watch Gen-Z talk about their wishlist for the government.

4) Inside Sobha Group's ambitious plans

Sobha Group started as an interior design and decoration firm in the 1970s in Oman, before diversifying into construction and later into real estate in India. Today, Sobha has built a steely reputation for its construction quality and delivery timelines, both in India and Dubai. In the process, founder PNC Menon has also built a personal fortune worth $3.1 billion, making him the wealthiest Omani citizen in the world. In a recent interaction with Forbes India, Menon and his son and chairman of Sobha Limited, Ravi PNC Menon, revealed their grand plans to take the group into the US and increase its presence in India. The numbers are gigantic, and ambition is unyielding. Take a look.

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