The Union Budget 2024-25 presented by Finance Minister Nirmala Sitharaman on July 23 is a clear indication that the Modi government would continue to cater to its four core constituencies on a priority basis – women, poor, youth and farmers. In this context, the government has underlined nine thrust areas: Productivity and resilience in Agriculture, Employment and Skilling, Inclusive Human Resource Development and Social Justice, Manufacturing and Services, Urban Development, Energy Security, Infrastructure Innovation, Research and Development and Next Generation Reforms.
The top priority of the Modi government seems to be employment generation and rightly so as India has one of the largest young work forces globally. Lack of employment is often the result of poor skill sets. The Finance Minister has announced a new centrally sponsored scheme, as the 4th scheme under the Prime Minister’s package, for skilling in collaboration with state governments and industry. This focus is expected to bridge the skill gap and enhance employability. The budget also provides special attention to MSMEs and manufacturing, particularly labour-intensive manufacturing.
The government has announced a provision of Rs 1.52 lakh crore for agriculture and allied sectors this year. This shows that agriculture and farmers’ welfare remain on top of the government’s agenda. This has been the consistent stand of the Modi government for the last two terms. And in this first union budget of the third term of this government, it is significant that this continuity has been maintained. Agriculture and allied services form the nucleus of economic activities in India and strengthening this sector brings multiple gains for the industry and services sector through backward and forward linkages.
The government, in partnership with the states, will facilitate the implementation of the Digital Public Infrastructure (DPI) in agriculture for coverage of farmers and their lands in three years. The digitalisation of land records of farmers will go a long way to provide ‘ease of doing farming and other allied activities’ to Indian farmers. This would reduce litigation, social friction and tension in rural India where doubts over the veracity of land records are at the core of many land disputes that often result in serious criminal offences also. This would also ensure that the farmers aren’t exploited by vested interests by undermining the value of their land.
Focusing on job creation, fiscal consolidation, and infrastructure development, overall, this budget indicates continuity in the Modi government’s approach towards economic policy. It is forward-looking and reformist with a major focus on ensuring that while the economy should grow rapidly, the benefits should be distributed in such a manner that the fruits of prosperity should benefit the most those who are on the bottom of the pyramid. The budget’s strategic focus is poised to significantly shape India’s economic landscape in the coming years.
