CMA

CMA Leadership on the Union Budget 2024-25

Against the backdrop of global uncertainties and inflation, the Union Budget 2024-25 is transformative and forward looking with an eye on fiscal consolidation. The announcement of INR 11 lakh crore capital expenditure signifies the Government's commitment to modernising India’s infrastructure through various significant projects and allocations, which will undoubtedly drive demand for Cement and other building materials. These initiatives collectively illustrate the Budget's comprehensive and strategic approach to bolstering India's infrastructure across various sectors.

Additionally, the Cement industry is in alignment with the Government of India’s net zero goals. The transition roadmap for 'hard to abate' industries to move from the 'Perform, Achieve and Trade' mode to the 'Indian Carbon Market' mode is a welcome step. The roadmap will further boost India’s energy infrastructure and encourage renewable energy adoption. Overall, this Budget is a win-win for both the economy and the environment, and the Cement industry is poised to play a pivotal role in the Nation’s development journey.

Neeraj Akhoury
President, Cement Manufacturers’ Association
and Managing Director, Shree Cement Limited

The Budget indeed paves the way for a robust and resilient economy, fostering growth that is both equitable and sustainable. Its focus on employment, skilling, and urban development is a significant step towards inclusive growth. The Prime Minister's package, with its emphasis on skilling and employment linked incentives, will not only further enhance workforce capabilities but also generate new job opportunities within the Cement sector. As the Cement Industry is transitioning and adapting to newer technologies, India needs a workforce that is skilled and equipped. The allocation of INR 1.48 lakh crore for education, employment, and skilling initiatives stands to have a huge impact on creating a skilled workforce that can contribute effectively to the Cement Industry. The Cement Industry is a major contributor to employment generation in India. The Cement Industry welcomes the Budget's strategic initiatives and is committed to supporting these efforts through innovation and sustainable practices.

Parth Jindal
Vice President, Cement Manufacturers’ Association
and Managing Director, JSW Cement Limited

Mr Neeraj Akhoury
President, Cement Manufacturers’ Association
and Managing Director, Shree Cement Limited

Parth Jindal
Vice President, Cement Manufacturers’ Association
and Managing Director, JSW Cement Limited

Union Budget 2024-25 and the Cement Industry in India

Ms Nirmala Sitharaman, Finance Minister, Government of India, tabled the Union Budget 2024-25 for India today. The focus of the Union Budget 2024-25 was reinstated in four castes.

Figure 1 Focus on 4 major castes for the Union Budget 2024-25

Source: Union Budget 2024-25, https://www.indiabudget.gov.in/, accessed on July 23, 2024

It was highlighted that despite global challenges, India’s inflation was moving towards the 4% target with core inflation (non food, non-fuel) currently at 3.1%. Union Budget 2024-25 particularly focussed on employment, skilling, Micro, Small and Medium Enterprises (MSMEs) and the middle class.

Figure 2 Focus Areas

Source: Union Budget 2024-25, https://www.indiabudget.gov.in/, accessed on July 23, 2024

A package of 5 schemes and initiatives to facilitate employment, skilling and other opportunities of 4.1 crore youth over a 5 year period was announced with a Central Outlay of INR 2 lakh crore.

In line with the strategy of Viksit Bharat set out in the Interim Union Budget 2024-25, the Union Budget 2024-25 emphasised sustained efforts on the following 9 priorities for generating opportunities for all.

Figure 3 Nine Priorities for Generating Opportunities for All

Source: Union Budget 2024-25, https://www.indiabudget.gov.in/, accessed on July 23, 2024

A. Union Budget 2024-25: Key announcements relevant for the Cement Industry

This Section highlights distinct announcements from the Union Budget 2024-25, which are relevant for the Cement Industry.

B. Union Budget 2024-25: Indirect, Direct and Personal Income Taxes

This Section presents a detailed summary of the tax announcement under the Union Budget 2024-25 relevant to the Cement Industry.

I. Indirect Taxes
- A comprehensive review of the rate structure over the next six months to rationalise and simplify GST for ease of trade, removal of duty inversion and reduction of disputes would be undertaken.
- To support energy transition, the list of exempted capital goods for use in the manufacture of solar cells and panels in India was expanded. The exemption on customs duties was not extended as sufficient domestic manufacturing capacity of solar glass and tinned copper interconnect was available in India.

II. Direct Taxes
- Short term gains on certain financial assets to be taxed at 20%; all other financial assets and all non-financial assets shall continue to attract the applicable tax rate.
- Long term gains on all financial and non-financial assets to have a tax rate of 12.5%. The limit of exemption of capital gains on certain financial assets increased to INR 1.25 lakh per year.
- Corporate tax rate on foreign companies reduced from 40% to 35%.
- Angel tax abolished for all classes of investors

III. Personal Income Taxes

Under the new tax regime, standard deduction for salaried employees increased to INR 75,000. Deduction on family pension for pensioners enhanced to INR 25,000.

The income tax slab in new tax regime stands revised as follows:

Income Range	Tax on the income
INR 0-3 lakh	Nil
INR 3-7 lakh	5 percent
INR 7-10 lakh	10 percent
INR 10-12 lakh	15 percent
INR 12-15 lakh	20 percent
Above INR 15 lakh	30 percent

C. Scheme wise Budget allocation: Outlay of Major Schemes

Provided at Annexure 1

D. Ministry/Department wise Budget Allocation

Provided at Annexure 2

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