Top Sectors to Invest post Interim Budget 2024
6 February, 2024
The Interim Budget 2024 focuses on some key areas. Investors are keenly eyeing potential opportunities in sectors that have received attention from the government.
Let's explore some sectors where investments might yield good returns in the wake of the post-Interim Budget 2024 announcements.
1. Electric Vehicles (EVs)
One of the standout announcements in the budget revolves around the government's commitment to expanding and strengthening the EV ecosystem. With a clear focus on supporting manufacturing and charging infrastructure for EVs, the budget 2024 aims to address a crucial barrier. So far, EV adoption has been slow in the country, and the primary reason for this can be attributed to the shortage of public charging stations.
By incentivising and substantially increasing the number of charging stations, the government seeks to transform India's EV landscape and make electric vehicles more accessible. This can be a promising opportunity for investors to invest in companies involved in EV manufacturing, charging infrastructure, and related technologies.
2. Tourism
The tourism sector is one of India's biggest sectors. The Finance Minister made some fascinating announcements on India's tourism in the Interim Budget 2024. The sector has been earmarked for significant growth, with FM Sitharaman encouraging states to undertake comprehensive development of iconic tourist centers. The government also emphasised branding and marketing destinations globally, along with the establishment of a rating system based on facilities and service quality.
Additionally, the Finance Minister spoke about long-term interest-free loans provided to states for financing tourism infrastructure developments, including port connectivity and amenities on islands like Lakshadweep. These measures not only promise economic growth but also generate employment opportunities.
3. Electricity & Solar Energy
One of the key announcements was on roof-top solarisation, a noteworthy move towards sustainable energy solutions. FM Sitharaman announced that the government will enable 10 million households to obtain up to 300 units of free electricity every month. This will provide households with potential savings of ₹15,000 to ₹18,000 annually.
Post this announcement, renewable energy companies, solar technology providers, and businesses involved in solar power may likely see growth, bringing in investment opportunities.
4. Railways
Railway infrastructure has received a significant boost in the budget, with transformative announcements by Sitharaman. The conversion of 40,000 regular rail bogies to Vande Bharat, the expansion of significant rail projects like Metro Rail and Namo Bharat to more cities, and the unveiling of three major railway corridors indicate a comprehensive approach to rail development.
This is a brilliant time to look into companies involved in rail infrastructure, manufacturing, and related technologies to make the most of the expected growth in this sector.
5. Aviation
The aviation sector in India emerges as a promising investment avenue post-Budget 2024. FM Sitharaman highlighted the expansion of existing airports and the development of new ones. This signals positive growth for the sector. With the introduction of 517 new aviation routes catering to 1.3 crore passengers, there is a clear emphasis on enhancing air connectivity. Indian carriers' proactive orders for over 1,000 new aircrafts further indicate a robust demand for air travel. This, coupled with the remarkable growth of the aviation sector over the past decade, doubling the number of airports to 114, presents a range of investment opportunities in the coming times.
To sum it up
Nirmala Sitharaman's Interim Budget 2024 has laid the groundwork for transformative changes in various sectors. Aligning your portfolio with the government's vision at this time can help you gain financial growth and be a part of India's sustainable and vibrant economic expansion.
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Any information or charges mentioned above are subject to change. Please connect with the HDFC Bank team to know the latest information.