Union Budget 2024-25: Winners and losers from Modi govt’s first budget after Lok Sabha elections

India’s first budget since Narendra Modi was reelected as prime minister for a third term focused on creating jobs and supporting local businesses and infrastructure without blowing out the deficit.
Finance minister Nirmala Sitharaman announced a $24 billion package, with employment-linked measures for businesses to help spur jobs, skilling programs for India’s youth and women, as well as a new tax regime for India’s lower income earners.States represented by Modi’s key allies — Andhra Pradesh and Bihar — also got budget attention.
India’s fiscal deficit target was cut to 4.9% of gross domestic product for the current financial year through March, from the target of 5.1% announced during the interim budget. India’s bonds jumped, while stocks dropped after Sitharaman announced an increase on capital gains tax.
A record payout from the central bank gave the government ample resources to lift spending without damaging its deficit plans.
Here’s a look at some of the winners and losers from the announcements today:
WINNERS
Youth
Modi government’s new policies announced in the budget focused on India’s youth, with policies including plans to give one month of wage to all new entrants to the job market. It also announced several skilling programs, as well as an apprenticeship program to top 500 corporates for young Indians.
Modi Allies
Andhra Pradesh and Bihar — states that are governed by parties allied with Modi’s Bharatiya Janata Party — were in focus in the budget. The government has allocated 150 billion rupees in financial aid via multilateral agencies to Andhra Pradesh, while support for Bihar state will be expedited. It also pledged constructing roads, airports, medical colleges, and improving tourism spots in Bihar.
Shares of companies based in Andhra Pradesh, such as Power Mech Projects Ltd, and KNR Constructions Ltd, gained after the announcement.
Infrastructure
The government pledged to maintain strong fiscal support for India’s infrastructure sector, with spending seen at 11.1 trillion rupees, or 3.4% of India’s gross domestic product.
Startups
India’s start-up sector will benefit after the government abolished “angel tax” which is levied on funds raised by startups on a valuation above fair market value.
Middle-Class
The government proposed increasing the standard deduction for income tax to 75,000 rupees from 50,000. It also changed tax slabs:

Jewellery
The Indian government has proposed to lower custom duties on precious metals like gold and silver, with the duty for gold cut to 6%. Firms like Titan, and Kalyan Jewellers rallied after the announcement.
Local manufacturing
Indian government has proposed special focus on labor-intensive manufacturing in the budget. It has pledged to introduce credit guarantee schemes for micro, small, and medium-sized firms in this sector.
LOSERS
Equity markets
The government has proposed to hike long-term capital gains tax to 12.5% from 10%, while short term capital gains tax hiked to 20% from 15%. It also doubled security transaction tax on futures and options trading to 0.02% from 0.01%
Electric Vehicles
The government did not announce any policies to boost the manufacturing of electric vehicles in India.