India unveils plans to spend on jobs, middle class in first post-poll budget

The government will allocate $24 billion for job creation over the next five years

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Photo: Reuters

By Reuters

Published: Tue 23 Jul 2024, 10:16 AM

Last updated: Tue 23 Jul 2024, 10:24 AM

The first budget of Indian Prime Minister Narendra Modi after this year's general elections will focus on employment and the middle class, Finance Minister Nirmala Sitharaman said on Tuesday.

The government will allocate 2 trillion rupees ($24 billion) to create jobs over the next five years, Sitharaman said, in a plan that provides employment-linked incentives to companies, including those in manufacturing.

Some highlights of the budget include:

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Job creation

  • Budget proposes to allocate 2 trillion rupees for job creation over 5 years
  • Allocates 1.52 trillion rupees for agriculture and allied sectors
  • To launch 3 schemes for employment-linked incentives

Inflation

  • Finance minister says inflation remains low, moving toward 4% target
  • Global economy still in grip of policy uncertainties

Programmes to improve skills and provide subsidised loans for higher education will also be launched, Sitharaman added.

India's official unemployment rate in urban areas is close to 6%, but private agency the Centre For Monitoring Indian Economy pegs it higher, at close to 9%.

Government data this month showed 20 million new job opportunities generated in India each year since fiscal 2017-18, but private economists said self-employment and temporary farm hiring accounted for much of the figure, rather than formal positions with regular wages.

Modi's Bharatiya Janata Party (BJP) lost its absolute majority in the election last month, making it dependent on allies to form a government for the first time since he came to power more than a decade ago.

Sitharaman said the government would hasten loans from multilateral agencies for the eastern state of Bihar and the southern state of Andhra Pradesh, both governed by key allies.

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Reuters

Published: Tue 23 Jul 2024, 10:16 AM

Last updated: Tue 23 Jul 2024, 10:24 AM

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