Union Budget 2024: Focus on Economic Growth, Employment, and Private Investment

Narendra Modi
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The Narendra Modi-led NDA government is gearing up to prioritize economic growth and employment generation in the upcoming Union Budget 2024. This budget aims to build on previous initiatives and lay out a roadmap for the future, according to sources familiar with early discussions on reforms.

Long-term Strategy and Immediate Plans

According to Deepshikha Sikarwar’s report in the Economic Times, the Modi government’s long-term strategy will draw from five-year plans and a vision document targeting India’s transformation into a developed nation by 2047. In the short term, the budget will build upon the agenda prepared for the first 100 days leading up to the elections. The Union Budget 2024, expected to be unveiled in early July, will detail specific measures to achieve these goals.

A senior government official mentioned that the budget will focus on promoting labor-intensive growth to create jobs while maintaining macroeconomic stability. This includes initiatives related to startups, taxation reforms, correcting inverted duty structures, and rationalizing GST rates.

Expansion of Production-Linked Incentive (PLI) Schemes

The government is considering expanding the PLI schemes to cover more employment-generating sectors, such as the leather industry. This move aims to boost private investment by continuing support for capital expenditure.

Emphasis on Emerging Sectors

The Modi 3.0 government is likely to maintain its focus on emerging sectors like green energy, mobility, and technology, which have significant potential to create employment opportunities for the youth. Job creation was a major issue during the recent elections, and the government plans to address this through targeted recruitment drives and filling vacant positions within its ranks.

Ease of Doing Business and Economic Stability

To improve the ease of doing business, the government is expected to introduce initiatives targeting areas directly impacting the common man. India’s economy grew by 8.2% in FY24, supported by a 7.8% growth in the March quarter. Strengthening the domestic economy to mitigate geopolitical risks will also be a priority.

Policy Adjustments and Stakeholder Consultations

Although substantial tax reforms might be deferred to the next budget in February 2025, various adjustments are under consideration to create a more taxpayer-friendly regime. Over the past two months, the finance ministry has held extensive consultations with stakeholders to enhance the ease of doing business and identify key areas for both short- and long-term focus. Some manifesto promises, like the expansion of Ayushman Bharat, might be announced immediately.

In summary, the Union Budget 2024 will outline the Modi government’s plans to sustain economic growth, generate employment, and encourage private investment. The budget will reflect a balance between long-term vision and immediate action, addressing both macroeconomic stability and specific sectoral needs.

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