The interim Budget 2024 presented by Union Finance Minister Nirmala Sitharaman on February 1 laid out details of the government’s focus areas and strategy for the economy’s holistic growth.
While the Budget allocation elevated focus on upliftment reforms for Garib, Mahilayen, Yuva, and Annadata (the poor, women, the youth, and farmers), it also elaborated on the government’s investment plans across infrastructure and investment, sustainable and inclusive development, and agriculture and food processing.
The election Budget showcased the Government of India's resolve to meet its ‘Net Zero by 2070’ commitment. Facilitating viability gap funding for wind energy, plans for rooftop solarisation, setting up coal gasification and liquefaction capacity, strengthening the e-vehicle ecosystem, and supporting manufacturing are all prudent steps for driving sustainable development.
An 11 percent increase in the FY25 capex outlay to Rs 11.11 lakh crores is also a welcome move, which will further enable rapid infrastructure development in the country.
The interim Budget, however, was quiet on any noteworthy reform for Infrastructure Investment Trusts (InvITs), which have constantly been positioned as key platforms for driving asset monetisation in the country. Since their introduction in the Indian market in 2014, InvITs have grown
handsomely in both – the number of InvITs registered with SEBI as well as the total assets under their management. However, to gain higher mainstream importance and growth momentum, the sector is in need of additional regulatory push.
We had hoped that this year the Budget would include, among other reforms, policy upgrades to classify investment trusts as an equity or equity-like instrument or allow us to participate in mainstream indices, but the lack of any major update has left the sector disappointed.
We hope to see some measures being announced for investment trusts soon, to help us to better contribute towards the Kartavya Kaal of the nation.
(Views are personal, and do not represent the stand of this publication)
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