The Budget 2024-25 presented by the Finance Minister Nirmala Sitharaman on February 1, 2024, has been hailed as a growth-oriented and forward-looking budget that aims to revive the economy from the impact of the Covid-19 pandemic and prepare it for the future challenges and opportunities. One of the key features of the budget is the creation of a corpus of ₹1 lakh crore to provide 50-year loans at low or nil interest rates to encourage the private sector to scale up research and innovation in sunrise sectors.
Table of Content
What Are Sunrise Sectors?
Sunrise sectors are those industries that have the potential to grow rapidly in the near future and generate large-scale employment and wealth. They are usually driven by new technologies, changing consumer preferences, and favourable government policies. Some of the sunrise sectors in India are biotechnology, nanotechnology, artificial intelligence, electronics, green energy, food processing, tourism, and defence manufacturing.
Why Do They Need Long-term Financing?
Sunrise sectors are often characterised by high risk, high reward, and high capital intensity. They require long-term investments in research and development, infrastructure, and human resources to achieve economies of scale, quality standards, and market penetration. However, the conventional sources of financing, such as banks, venture capitalists, and angel investors, may not be willing or able to provide adequate funds for such long-term and uncertain projects. This creates a funding gap that hampers the growth and innovation of the sunrise sectors.
How Will The Corpus Help?
The corpus of ₹1 lakh crore, which will be administered by a dedicated institution, will bridge the funding gap and provide long-term financing for the sunrise sectors at low or nil interest rates. This will enable the private sector to undertake ambitious and transformative projects in the emerging fields and leverage the opportunities offered by the global market. The corpus will also create a multiplier effect by attracting more investments, creating more jobs, and generating more revenues for the government.
What Are The Expected Outcomes?
The corpus for long-term financing for sunrise sectors is expected to have a positive impact on the economy and society in the following ways:
- It will foster a culture of innovation and entrepreneurship in India, and make it a hub for cutting-edge research and development in the world.
- It will enhance the competitiveness and productivity of the Indian industries, and enable them to capture a larger share of the global market.
- It will create new avenues for employment and income generation, especially for the youth and women, and reduce poverty and inequality.
- It will promote the use of clean and renewable energy sources, and reduce the dependence on fossil fuels and imports.
- It will improve the quality of life and well-being of the citizens, and contribute to the achievement of the Sustainable Development Goals.
Conclusion
The Budget 2024-25 is a visionary and pragmatic budget that reflects the aspirations and needs of the nation. The corpus for long-term financing for sunrise sectors is one of the most significant and innovative initiatives of the budget that will boost the growth and development of the economy and society. It is a step towards realising the dream of Viksit Bharat by 2047.
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