Earlier today, Hon’ble Finance Minister Nirmala Sitharaman presented the first budget of the current government. The budget places significant emphasis on employment, skilling, MSMEs, the middle class, and overall prosperity. In her 83-minute speech, the minister outlined nine priorities aimed at generating ample opportunities and detailed specific actions and reforms required to achieve the goal of Viksit Bharat. This article delves into the various aspects of the budget, providing a comprehensive analysis and highlighting the key initiatives and reforms proposed.
The 2024 budget highlights the government's commitment to creating employment and skilling opportunities for the youth. The Prime Minister’s package includes five schemes and initiatives with a central outlay of INR 2 lakh crore to facilitate employment, skilling, and other opportunities for 4.1 crore youth over a five-year period. Additionally, INR 1.48 lakh crore has been allocated for education, employment, and skilling. This substantial allocation underscores the government's focus on building a skilled workforce to drive the nation's economic growth.
The budget envisages sustained efforts on the following nine priorities to generate ample opportunities for all:
Subsequent budgets will build on these priorities and add more actions, ensuring a continuous and comprehensive approach to national development.
A comprehensive review of the agriculture research setup will focus on raising productivity and developing climate-resilient varieties. Funding will be provided in a challenge mode, including to the private sector, with domain experts overseeing the research. This initiative aims to modernize agricultural practices and enhance the resilience of the agricultural sector against climate change.
Importance of Agricultural Research
Agricultural research plays a critical role in ensuring food security and enhancing the livelihoods of farmers. By focusing on productivity and climate resilience, the government aims to address the challenges posed by climate change and fluctuating weather patterns. The inclusion of private sector participation is expected to bring in innovation and efficiency, fostering a more competitive and sustainable agricultural sector.
In the next two years, 1 crore farmers will be initiated into natural farming, supported by certification and branding. Implementation will involve scientific institutions and willing gram panchayats. Additionally, 10,000 need-based bio-input resource centres will be established. This shift towards natural farming is expected to promote sustainable agricultural practices and reduce dependency on chemical inputs.
Benefits of Natural Farming
Natural farming focuses on ecological balance and minimal use of synthetic inputs, making it environmentally friendly. By encouraging farmers to adopt natural farming, the government aims to improve soil health, increase biodiversity, and reduce the costs associated with chemical fertilizers and pesticides. The establishment of bio-input resource centres will provide farmers with the necessary resources and knowledge to transition to natural farming practices.
Production, storage, and marketing will be strengthened to achieve self-sufficiency. A strategy for achieving 'atmanirbharta' for oil seeds such as mustard, groundnut, sesame, soybean, and sunflower is being developed. This initiative aims to reduce India's import dependency on edible oils and boost domestic production.
Strategic Importance of Pulses and Oilseeds
Pulses and oilseeds are essential components of the Indian diet and agriculture. Enhancing self-sufficiency in these crops will not only reduce import bills but also support the livelihoods of farmers. The focus on storage and marketing infrastructure is crucial to ensure that farmers receive fair prices for their produce and that supply chains are efficient and resilient.
Three schemes will be implemented to support new workforce entrants and additional employment in manufacturing:
Impact on Employment
These schemes are expected to significantly boost employment, particularly in the manufacturing sector, which is a major contributor to the economy. By supporting both employees and employers, the government aims to create a more dynamic and inclusive job market.
Working women hostels will be established in collaboration with the industry, and women-specific skilling programs will be organized. Market access for women SHG enterprises will also be promoted. These measures aim to increase the participation of women in the workforce and support women entrepreneurs.
Empowering Women
Increasing women's participation in the workforce is crucial for achieving gender equality and boosting economic growth. By providing safe and supportive environments through hostels and skilling programs, the government aims to empower women to pursue their careers and entrepreneurial ventures.
A new centrally sponsored scheme for skilling will be launched in collaboration with state governments and industry, aiming to skill 20 lakh youth over five years. Additionally, 1,000 Industrial Training Institutes will be upgraded, with course content aligned to industry demands. This initiative aims to bridge the skill gap and ensure that the workforce is equipped with the necessary skills to meet industry requirements.
Addressing the Skill Gap
The rapidly changing job market demands new skills and competencies. By focusing on skilling and upgrading Industrial Training Institutes, the government aims to provide the youth with the skills needed for future jobs, thereby enhancing their employability and supporting economic growth.
Saturation Approach
A comprehensive social justice program will cover all eligible people through various initiatives, including education and health. Schemes supporting economic activities by craftsmen, artisans, self-help groups, scheduled castes, scheduled tribes, women entrepreneurs, and street vendors will be strengthened. This approach aims to ensure that all segments of society benefit from government schemes and programs.
Promoting Social Justice
Inclusive development is essential for achieving social justice and reducing inequalities. By adopting a saturation approach, the government aims to ensure that no one is left behind, and that all eligible individuals have access to essential services and opportunities.
A plan for the all-round development of the eastern region, including Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh, will be formulated. The plan will focus on human resource development, infrastructure, and economic opportunity generation. The initiative aims to address regional disparities and promote balanced economic development.
Regional Development
The eastern region of India has immense potential for growth but has historically lagged in development. By focusing on infrastructure, education, and economic opportunities, the government aims to unlock the region's potential and ensure balanced development across the country.
More than INR 3 lakh crore has been allocated for schemes benefiting women and girls, emphasizing women-led development. This substantial allocation aims to empower women and promote gender equality.
Fostering Gender Equality
Investing in women-led development is crucial for achieving gender equality and inclusive growth. By allocating substantial resources to schemes benefiting women and girls, the government aims to create a more equitable society where women have equal opportunities to contribute to and benefit from economic growth.
Support for MSMEs
The budget introduces several measures to support MSMEs:
Strengthening MSMEs
MSMEs are the backbone of the Indian economy, contributing significantly to employment and GDP. By providing financial support and improving credit assessment processes, the government aims to strengthen the MSME sector and enhance its resilience.
E-commerce export hubs will be set up in PPP mode to enable MSMEs and traditional artisans to sell their products in international markets. This initiative aims to promote e-commerce and expand the market reach of MSMEs.
Promoting E-Commerce
E-commerce offers significant opportunities for MSMEs to access global markets and increase their sales. By establishing export hubs, the government aims to provide MSMEs with the necessary infrastructure and support to succeed in the international market.
The government will facilitate the development of cities as growth hubs through economic and transit planning. Creative brownfield redevelopment and transit-oriented development plans for large cities will also be formulated. This initiative aims to promote urban development and improve the quality of life in cities.
Urban Transformation Urban areas are the engines of economic growth, and their development is crucial for national prosperity. By focusing on growth hubs and transit-oriented development, the government aims to create vibrant and sustainable cities that offer high quality of life and economic opportunities.
PM Awas Yojana Urban 2.0 aims to address the housing needs of 1 crore urban poor and middle-class families with an investment of INR 10 lakh crore. This substantial investment aims to provide affordable housing and improve living conditions for urban residents.
Affordable Housing
Housing is a fundamental need, and providing affordable housing is essential for social stability and economic growth. By investing in urban housing, the government aims to ensure that all urban residents have access to safe and affordable homes.
A policy document for appropriate energy transition pathways balancing employment, growth, and environmental sustainability will be drafted. This initiative aims to promote sustainable energy practices and reduce the carbon footprint.
Sustainable Energy
Transitioning to sustainable energy sources is crucial for addressing climate change and ensuring long-term energy security. By focusing on energy transition, the government aims to promote the use of renewable energy and reduce reliance on fossil fuels.
The government will partner with the private sector to set up Bharat Small Reactors and develop newer technologies for nuclear energy. This initiative aims to enhance energy security and promote the use of clean energy sources.
Nuclear Energy
Nuclear energy offers a reliable and low-carbon source of power. By investing in small reactors and new technologies, the government aims to enhance energy security and reduce greenhouse gas emissions.
Strong fiscal support for infrastructure will continue over the next five years, with a provision of INR 11,11,111 crore for capital expenditure. This substantial investment aims to improve infrastructure and support economic growth.
Infrastructure Development Robust infrastructure is essential for economic development and improving quality of life. By investing in infrastructure, the government aims to create a strong foundation for sustained economic growth.
Encouragement to states to provide similar scale support for infrastructure, with a provision of 1.5 lakh crore for long-term interest-free loans to states. This initiative aims to promote infrastructure development at the state level.
State-Level Infrastructure State governments play a crucial role in infrastructure development. By providing financial support, the central government aims to encourage states to invest in infrastructure projects that drive economic growth and improve living standards.
Operationalization of the fund for basic research and prototype development, with a mechanism to spur private sector-driven research and innovation at commercial scale. This initiative aims to promote innovation and research, driving technological advancements.
Promoting Research and Innovation
Innovation and research are key drivers of economic growth and competitiveness. By supporting basic research and prototype development, the government aims to foster a culture of innovation and support the development of new technologies.
The government aims to expand the space economy by five times over the next ten years, supported by a venture capital fund of INR 1,000 crore. This initiative aims to promote space exploration and develop the space economy.
Expanding the Space Economy
Space exploration offers significant opportunities for scientific advancement and economic growth. By investing in the space economy, the government aims to position India as a global leader in space technology and innovation.
A new economic policy framework will delineate the approach to economic development and set the scope of the next generation of reforms to facilitate employment opportunities and sustain high growth. This initiative aims to promote economic reforms and drive sustainable growth.
Developing a forward-looking economic policy framework is essential for ensuring long-term economic prosperity. By focusing on next-generation reforms, the government aims to create an enabling environment for sustained growth and development.
Land Reforms
Effective land administration is crucial for agricultural productivity and economic development. By introducing ULPIN and digitizing cadastral maps, the government aims to improve land records, facilitate credit flow, and support agricultural services.
The Budget 2024 marks a significant step towards achieving the goal of Viksit Bharat. With a strong focus on employment, skilling, MSMEs, and the middle class, the proposed reforms and initiatives aim to generate ample opportunities for all. The outlined priorities and specific actions will pave the way for sustained growth and prosperity.
The budget reflects a comprehensive approach to addressing the various challenges and opportunities facing the nation. By focusing on key areas such as agriculture, employment, social justice, manufacturing, urban development, energy security, infrastructure, innovation, and reforms, the government aims to create a more inclusive and prosperous India.
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