India’s $5 Trillion Dream: Can Budget 2024 Deliver Growth and Jobs?

Finance Minister Nirmala Sitharaman is poised to present the government’s first budget of Modi’s third term on July 23. This eagerly awaited budget will provide insights into potential shifts in economic policy, replacing the interim estimates for the 2024–25 fiscal year that began on April 1.

New Delhi, July 22, 2024 — As India sets its sights on becoming a $5 trillion economy within the next three years, all eyes are on the upcoming Union Budget 2024–25. With the nation’s economic growth trajectory hovering around 6.7% annually, this budget holds immense significance. It’s not just about numbers; it’s about jobs, innovation, and laying the groundwork for India’s continued advancement.

The Countdown Begins

Finance Minister Nirmala Sitharaman is poised to present the government’s first budget of Modi’s third term on July 23. This eagerly awaited budget will provide insights into potential shifts in economic policy, replacing the interim estimates for the 2024–25 fiscal year that began on April 1.

Tech Giants’ Wishlist

Tech giants are clamoring for increased government investment. Their wish list includes:

AI Revolution: Research and Development (R&D) in Artificial Intelligence (AI) could transform industries like recruitment through AI-powered talent matching platforms.
Digital Infrastructure: Revitalizing digital infrastructure and supporting fintech are top priorities. Expanding the reach of Unified Payments Interface (UPI) aims to streamline financial transactions.
Cybersecurity: Robust investments in cybersecurity infrastructure are essential to combating ever-growing cyber threats.

Bridging the Skills Gap

The budget is expected to address the skills gap between academia and industry. Programs that equip young people with in-demand skills for sectors like technology, electric vehicles, healthcare, and e-commerce are crucial. Digital skills training, STEM education, and vocational programs will prepare the future workforce.

Tier-2 Cities: The New Hubs

Infrastructure development remains pivotal. While large-scale projects continue, there’s a growing emphasis on tier-2 cities. These cities are poised to become vibrant Global Capability Centers (GCCs), attracting companies to establish or expand their operations. This focus could also address the skilling challenge by creating new job opportunities and relevant training programs.

Semiconductors and MSMEs Await

The semiconductor industry eagerly awaits announcements, especially in areas like chip design and fabrication facilities. Meanwhile, the Micro, Small, and Medium Enterprises (MSME) sector hopes for schemes that enhance supply chains, strengthen manufacturing capabilities, and reduce compliance burdens. Expanding the Production-Linked Incentive (PLI) scheme could be a game-changer for manufacturing.

Sustainability Takes Center Stage

Sustainability remains a global concern. Expect incentives for renewable energy projects, electric vehicles, and green fintech initiatives.

Financial Services and Insurance

The financial services and insurance sectors anticipate measures to enhance market depth. A reduction in the Goods and Services Tax (GST) on life insurance products and aligning life insurance annuity or pension products with the National Pension Scheme (NPS) are on the radar.

HR Industry’s Wishlist

HR industry experts emphasize investments in skill development and increased women’s workforce participation. They call for reforms to create a more dynamic HR landscape. Upskilling and reskilling, especially in technology, are critical.

The Unfolding Budget

As the budget unfolds, we eagerly await how these expectations will be addressed. The government faces the intricate task of balancing economic growth, job creation, and fiscal management in a fiercely competitive global landscape.

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