Guwahati: Can the Northeast benefit from increased allocations in the 2024-25 Budget, despite the lack of direct provisions for the region?
Industry chambers believe the region can benefit from allocations across various sectors.
The CII says the budget strikes a delicate balance between economic growth, social welfare, and environmental sustainability. “The North East region is poised to reap substantial benefits from this budget, which underscores the government’s commitment to inclusive growth and regional development,” it says.
Pradeep Bagla, Chairman CII North East Council & Managing Director, Amrit Cement Ltd termed Budget 2024-25 a progressive and development-oriented budget. It reaffirms the continued focus and commitment of Govt of India on the North East.
He said that announcements with a particular emphasis on natural farming and digital public infrastructure enhancements for agriculture, the establishment of 100 branches of India Post Banks in North East for facilitating bank credit, would support the socio-economic development of the region.
The enhancement of Mudra loan limits will provide a significant boost to the Northeast region’s entrepreneurs, enabling them to access a larger amount of funding to scale up their businesses, create jobs, and drive economic growth.
Bagla further welcomed the introduction of the new mechanism for facilitating bank credit through a credit guarantee scheme, for MSMEs during stress periods caused by factors beyond their control. This will provide a lifeline to small-scale industries in the North East, which are often vulnerable to external shocks such as natural disasters or economic downturns.
Pankaj Goswami, Chairman, CII Assam State Council & Director, Oil India Ltd said that the significant allocation for education, employment, and skill development will have a profound impact on the youth, enhancing opportunities and improving workforce capabilities. This will also enable the North East state to provide a skilled workforce to the entire country. The budget’s focus on four key areas – the poor, women, youth, and the farmers is particularly commendable. The allocation of ₹2.66 lakh crore for rural development, including rural infrastructure, will have a multiplier effect on the economy, stimulating growth and development in the North East.
Anil Mutha, Chairman of CII North East Sub Committee on Bamboo & Chairman, Mutha Industries Ltd mentioned that the focus on internship augurs well with the aspirations of Young India and will benefit the youth of the North East. He further added that the budget is an inclusive one that builds on India’s strong economic foundation, with 9 key pillars outlined, and will be a stepping stone for a Viksit North East contributing to a Viksit Bharat by 2047.
Hokhuli Sema, Chairperson, Nagaland State Council & CEO, Faith Hospital welcomed the the allocation of over Rs 3 lakh crore for schemes benefiting women and girls in the Union Budget for 2024-25. She said that this is a significant step towards promoting women-led development and empowering them to play a more significant role in the economic growth of North East.
Ranjit Barthakur, Chairman of FICCI North East Advisory Council (NEAC) says the next-generation reforms outlined in the budget are crucial for the northeastern states. “Collaboration with states for land-related reforms and urban planning will address our unique challenges and improve productivity and market efficiency. This will drive overall economic development in the region” he adds.
Joydeep Gupta, Co-Chairman of FICCI Assam State Council, welcomed the promotion of tourism in the northeastern states. “The comprehensive development initiatives and investments in cultural heritage sites and natural landscapes will position the northeast as a key tourist destination. This will not only enhance our region’s visibility but also create new economic opportunities for local communities,” he said.
Sarat Jain, Chairman of the ICC Assam and Meghalaya Committee, commended the Finance Minister for recognizing the unique needs and potential of this region. “The 2024 Union Budget has laid a strong foundation for the socio-economic transformation of Assam and the North East. The allocation of funds and the proposed initiatives reflect a commitment to fostering growth, improving infrastructure, and enhancing the quality of life in these states,” said Jain.
Jain emphasized that the Budget 2024 is a testament to the government’s dedication to integrating the Northeast with the rest of the country’s growth trajectory. “We are optimistic that these initiatives will not only uplift Assam and the Northeast but also contribute significantly to India’s overall development,” he added.
The Federation of Industry and Commerce of North Eastern Region (FINER) says a notable highlight of the Budget was the allocation of assistance for flood management and related projects in Assam, a measure warmly welcomed by the attendees. This step is expected to significantly aid in mitigating the adverse impacts of floods in the region, promoting sustainable development and resilience.
Additionally, the Budget emphasized economic measures such as initiatives to transform cities into dynamic growth hubs, including Transit Oriented Development (TOD) plans for 14 large cities. Education, employment, and skilling were given significant importance. The GST regime is set to be simplified, further supporting the economic growth agenda. India’s economic growth remains robust, characterized by low and stable inflation, targeting 4%.
Bajrang Lohia, President of FINER, praised the Union Budget 2024, highlighting its comprehensive coverage of almost all sectors. He particularly appreciated the special focus on agriculture and infrastructure and welcomed the announcement of the UNNATI Policy as a significant step towards the development of industries in the region.
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The Tea Association of India says the Pradhan Mantri Cha Shramik Protsahan Yojana” (PMCSPY) devised for the welfare of Tea workers, especially women and their children in Assam and West Bengal would be of great benefit.
As proposed earlier in the Budget Speech of 2021-22, Rs. 1,000 crores will be provided for the same and are aimed at making need-based interventions in tea garden areas for internal strengthening provisions of education and health services to the tea workers. The scheme will be implemented in the period of FY 2024-25 and 2025-26.
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