Union Budget 2024: US-India Business Council lauds commitment to semiconductors, green energy

Washington DC [US], February 1 : The US-India Business Council (USIBC) congratulated Finance Minister Nirmala Sitharaman and the Union Government and lauded the commitment of the Indian government towards developing India's semiconductor ecosystem.
USIBC President, Ambassador Atul Keshap also praised the budget's focus on sustainable development stating that it can help promote New Delhi's leadership of the green economy.
"USIBC congratulates the Honorable Finance Minister Nirmala Sitharaman and the Government of India on today's presentation of its confident, pro-growth Union Budget 2024-25. With elections due this spring, this is, in effect, a mini-budget, with another set of announcements likely to come in July once a new government is in place. Even so, today's presentation contained several notable programs and milestones that build on the momentum from prior years," the statement by Keshap read.
He said that the budget has a strategic focus on technology, green growth, and infrastructure, as well as a commitment to public health and macroeconomic stability, adding that these complement the initiatives that can drive India-US cooperation Initiative on Critical and Emerging Technologies (iCET).
"Combined, these are likely to contribute to India's prosperity through sustainable growth, increased productivity, reduced logistics costs and enhanced personal well-being. They also complement the major bilateral initiatives that are likely to drive cooperation between India and the United States this year, such as the Initiative on Critical and Emerging Technologies (iCET) and the Innovation Handshake," he stated.
Keshap also commended the Union Government's continued commitment to developing India's semiconductor ecosystem and accelerating its 'deep tech' sector through additional financial support and public-private partnerships, adding that it positions New Delhi to make an even stronger contribution to iCET.
"We also look forward to learning more details about the significant commitment of USD 12 billion to long-term low or no interest financing for so-called 'sunrise sectors,' which has significant potential to enhance innovation," the statement added.
He further emphasised that sustainable growth is critical to ensuring that India's economic expansion supports individual well-being.
He lauded the vision of bringing clean energy generation and use to peoples' doorsteps through rooftop solar power for 10 million households as well as viability gap funding for one gigawatt of wind energy.
"These demand signals can help promote India's leadership of the green economy and integration into its global value chains," he said.
Keshap said that the above initiatives along with an 11 per cent increase in capital expenditure government outlays are aimed at increasing job creation and productivity.
He also lauded the announcement of universal vaccination to prevent cervical cancer as a critical step in ensuring a healthy workforce and an equitable society.
"Finally, India's ongoing focus and execution on budget consolidation, including beating its fiscal deficit target for this past year, is important to maintaining and enhancing its credibility with foreign investors," the statement read.
"This is likely to have a net positive impact on the ultimate allocation that Indian sovereign bonds receive as they are incorporated into benchmark international indices in 2024, which, in turn, would deepen the country's capital markets and reduce public financing costs," it added.
Earlier today, Union Finance Minister Nirmala Sitharaman delivered her Interim Budget speech for FY 2024-25.
Underlining the government's commitment to stability in taxation and a strategic approach to encourage economic growth, the Finance Minister proposed to make no changes in the taxation structure, which can be seen as a relief to taxpayers.
The Interim Budget 2024 is expected to undergo thorough scrutiny and debate in the coming days in Parliament as stakeholders assess its potential impact on the nation's economic trajectory.