Expectations soar as Finance Minister Nirmala Sitharaman prepares to present the Modi government’s first full-term budget of its third term. This budget, the first full budget of Prime Minister Narendra Modi’s third term, is expected to lay the foundation for a developed India or ‘Viksit Bharat’.
The Economic Survey for 2023-24, which was released yesterday, depicted a picture of resilience and growth in the face of global challenges. It predicts India’s GDP to grow at a rate of 6.6-7% for FY25. Nonetheless, the survey also emphasised specific areas that need attention, particularly in terms of job creation and workforce development.
The survey highlighted the urgent need to generate approximately 80 lakh new jobs annually to accommodate India’s expanding workforce. The focus is on creating high-quality employment opportunities in the manufacturing and services sectors, moving beyond agriculture-dependent jobs.
A significant bright spot in the survey is the 13.7% increase in female labour participation over the past six years. Rural India led this positive trend, with the female Labour Force Participation Rate (LFPR) reaching 37% in 2022-23. Government initiatives like the Pradhan Mantri Jan Dhan Yojana (PMJDY) and Pradhan Mantri Mudra Yojana (PMMY) have played crucial roles in empowering women financially and fostering entrepreneurship.
As global dynamics shift, with the USA and EU seeking to reduce dependence on China, India aims to position itself as a manufacturing powerhouse. The budget may introduce more Production-Linked Incentive (PLI) schemes, especially in labour-intensive sectors. This move could address two critical needs: providing employment to India’s youth and boosting economic growth.
Unemployment remains a significant concern, and the budget is expected to unveil measures to address this potential future crisis. Key focus areas may include policies for skilling and reskilling India’s employable youth and facilitating easy credit access for aspiring entrepreneurs, among other initiatives.
As the day unfolds, we will continue to update this story with key announcements and analyses from Finance Minister Sitharaman’s budget presentation. Stay tuned for comprehensive coverage of Union Budget 2024-25 and its implications for India’s economic future.