Union Budget 2024-25 Reaction – Arun Misra, CEO, Hindustan Zinc
“The Union Budget 2024-25 is balanced & inclusive reflecting India’s accelerated infrastructure and industrial growth. The capital expenditure of Rs 11.11 lakh crore will be a game-changer, propelling the nation towards its ‘Viksit Bharat’ vision. This massive investment will create a robust demand for metals, cement, and other construction materials, stimulating growth across the entire value chain. Further, the government’s effort in trimming its fiscal deficit target for FY25 to 4.9% of GDP will take us on a positive trajectory in the economic landscape aligning well with our strategic initiatives.
With the Budget’s key focus on Energy Transition with solar, nuclear, and pumped hydro storage receiving a policy push, there will be a boost to capacity addition in the renewable energy sector. Initiatives like the PM Surya Ghar Muft Bijli Yojana and the upcoming policy document on energy pathways, will increase the adoption of rooftop solar panels and utility-scale solar power plants. This transition will require metals like zinc, silver and other metals used in solar panels and frames. The energy transition policy will not only enhance energy security but also create a thriving ecosystem for clean technologies.
The government’s foresightedness in establishing a critical minerals mission will help secure a stable supply of these vital resources essential for India’s technological advancement and economic sovereignty. The auction of offshore blocks for mining is a step in the right direction.
Bringing focus on MSMEs, job creation and announcement of the ‘Employment Linked Incentive’ scheme will positively generate numerous employment opportunities. By providing the first salary to those newly entering the workforce, this initiative will pave the way for youth from villages to work in the country’s top companies under the apprenticeship program. This will not only empower our young talent but also strengthen our nation’s economic fabric.
As an organization with a strong belief in preserving cultural heritage and community development for our nation’s harmony, conserving religious monuments, and developing spiritual corridors will significantly boost Tourism in India. The creation of these corridors will also in turn boost employment in the sector.
Overall, the Union Budget 2024-25 lays a strong foundation for India’s economic resurgence. The metals and mining sector is eager to contribute significantly to this growth trajectory, driving innovation, employment, and sustainable development. Additionally, the Government can consider rationalizing customs duties in a phased manner, which could bring about positive changes in the long run.”