SEPTEMBER 2024 A DEVELOPMENT MONTHLY

Let noble thoughts come to us from all sides. Since 1957 A DEVELOPMENT MONTHLY
CHIEF EDITOR
RIg Veda
KULSHRESTHA KAMAL

EDITOR
IN THIS ISSUE
SHU(HITA [HATURVEDI
OuR REPRESENTATIVES
Ahmedabad: JS Patel, Bengaluru: Shahid T Komath,
Bhubaneswar: Manoj Kumar Jali, Chennai: Sanjay
Ghosh, Guwahati: Maruf Alam, Hyderabad:
Krishna Vandana P, Jalandhar: Gagandeep Kaur

PUBLIC FINANCE ANIl INNOVATIOIl, RESEAR(H AMP

l]EVELOPMENT: EVALllATI0N 0F DrvELOpMEMT
iNI]IA's Biil]GETAnv pnlonlTIEs Sachin Chaturvedi
E-mail (Editorial): sec-yojanaeng-moib@gov.in
Dr Sajjan Singh Yadav
YO}ANA, a development monthly published since ENERGY SE(URITY
1957, is a theme-based journal providing in-depth IN[LiislvE HUMAN nEsoim[E
Dr S C Lahiry
analyses and views on socio-economic issues in I]EVELOPMENTANl]SO[IAL|lJSTI[E
the broader framework of government policies. Sanjib Pohit
Although published by the Ministry of Information FOSTERING INFRASTRufluRE
and Broadcasting, Y0jANA is not restricted to
Souryabrata Mohapatra
DEVELOpMENT IN iNI]IA THnouGH
expressing the official point of view.
A HEW [HAPTER IN INDIA'S FISCAL INTEIVENTI0NS
DISCLAIMER EMPLoyMENT sTony Dr Amiya Kumar Mohapatra
• The views expressed in various articles are Ramesh Krishnamurthy
those of the authors and they do not necessarily
Focus oN THE MANUFACTimiNG
refoect the views Of the Government or the sALAnlEI] [LAss ANi] [ONsiiMms:
organisation/s they work for. KEY TO VIKSIT BHARAT
ANI] sEnvl[Es sECTons
• Maps/flags used in the articles are only indicative
Shishir Sinha Dr Ranjeet Mehta
and they do not refoect the political map or legal
representation of the foag Of India/any other i"oDUITlvlTy ANi] nEsiLIEN[E iN INDUSTRY PERSPEFTIVE ON
Country.
AGni[uLTimE MAHUFAFTURiNG e ioBs (REATIOM
• The .Infographics/figures are `provided by the
Dr Jagdeep Saxena Jyoti ViJ.
authors through their reliable sources and
YC}]AINAclaims no respohsibility for the same.
• Images, graphics and illustrations, wherever
used, are mostly sour:ed from government
channels and are indicative in nature.
• YO|AINALdoes not own responsibility regarding
the contents Of th.e advertisements. The readers
are requested to verify the claims made in the
advertisements regarding courses, career-
± guidance books or institutions.
• YOJAENA doesn't endorse or promote any
brands or private entities presented as case
studies in any of the articles.

SuBSCRIPTION/GRIEVANCES
Email: pdjucir@gmail.com
Phone: 011-24367453
(Monday-Friday, 9:30 am-6:00 pin)
Postal Address: Abhishek Chaturvedi, Editor,
Journals Unit, Publications Division, Room No.
779, Soochna Bhawan, CGO Complex, Lodhi
Road, New Delhi-110 003.

please note that it will take atleast eight weeks to

start your subscription. Kindly raise your queries/
Number of pages: 64
grievances about nan receipt of the journals only
Details of the Sales Outlets of the Publications Division on Page 45
after this period.
YOJANA is published in Assamese, Bengali, English, Gujarati, Hindi, Kannada, Malayalam, Marathi, Odia,
SUBSCRIPTloN-RELATED DETAILS : Page 61
Punjabi, Tamil, Telugu, and Urdu.
 Towards a Viksit Bharat
As India embarks
by 2047, on its journey
the Golden towards becoming
Era - Karfclvya a 'Vi.k57.f
KacJ/ signifies Bharar
a period of
responsibility and action. The Union Budget 2024-25 lays out a
comprehensive roadmap for the growth and development of the
manufacturing and services sectors, recognising their pivotal role in
driving economic growth and employment. The budget is focused on
four major groups: Gc7r/.b (poor), Mahi./acryen (women), yqwa ( youth) and
Annadata (farmers).
Initiatives like SAMAfl7TJ Udyog Bharaf 4.0 and the Production
Linked Incentive (PLl) scheme aim to boost the manufacturing sector's
competitiveness and increase its share of GDP to 25 per cent by 2025.
The shift towards automated and process-driven manufacturing is a step
in the right direction, enabling India to become a global manufacturing
hub. A comprehensive skill development initiative aims to empower approximately 2 million youth over
a five-year period. This endeavour involves the upgrading of 1,000 Industrial Training Institutes (lTls)
through a hub-and-spoke model, prioritising outcome-based training to enhance employability and
industry readiness. Course content and design are aligned with the skill needs of the industry.
The services sector contributes over 50 per cent to lndia's GDP and is poised for growth. Focussing on
digital technologies and institutional frameworks has created an environment conducive to the sector's
expansion. Initiatives like Smart Cities, Clean India and Digital India have fostered a culture of innovation,
enabling the services sector to experience double-digit growth in recent years.
The Union Budget 2024-25 reinforces the commitment to the growth of these sectors, with a focus on
nine priority areas, including manufacturing and services. The budget aims to stimulate rural economic
development and promote Micro, Small, and Medium Enterprises (MSMEs). A comprehensive package has
been introduced to support MSMEs, including financing, regulatory changes, and technology support.
The synergy between manufacturing and services will be crucial as India navigates its journey towards
becoming a developed nation. Integrating logistics, financial services, and a robust startup ecosystem
will create a dynamic and resilient economy. The emphasis on digital infrastructure, digital literacy, and
the integration of manufacturing and services aims to build a dynamic economy that fosters innovation,
growth, and prosperity for all citizens.
The Union Budget 2024-25 charts a promising course for lndia's economic growth, emphasising
manufacturing, services, and digital technologies. While the initiatives hold potential for driving growth
and employment, their success hinges on effective implementation and navigating potential headwinds.
As we embark on this journey, it's crucial to remain vigilant and adapt to emerging challenges, ensuring
that the benefits of growth are equitably shared and the digital divide is bridged. By doing so, we can
harness the opportunities presented by this budget and pave the way for a resilient and inclusive growth
trajectory, illuminating a brighter future for all Indians.
In the current issue of Yojana, we delve into the intricacies of the Union Budget 2024-25, presenting
a compendium of erudite articles from distinguished subject-matter experts, academics, and specialists
in their respective fields of work. Through their insightful analyses and nuanced perspectives, we aim to
provide readers with a comprehensive understanding of the budget's implications and potential impact on
the nation's socio-economic landscape. I

YOJANA SEPTEMBER 2024

 PlmlEo [Enanoe anil nouelonliiolil:

skilling, MSME support, and balanced regional development. Key initiatives

include transforming agriculture for climate resilience, promoting natural
farming, and achieving self-sufficiency in pulses and oilseeds. The budget also
focuses on urban development, energy security, infrastructure investment,
and next-generation reforms to drive inclusive economic growth[
n 23 July 2024, Finance Minister Smt of economic growth and employment, provide

ril Nirmala Sitharaman made history by

presenting her seventh consecutive
Union Budget in Parliament. The core
of the 2024-25 budget focusses on the `GCJr/.b'
ample opportunities for all, facilitate balanced
regional development, and
vulnerable sections of society.
To achieve these
benefit the

objectives, the
most

Finance
(poor), `Mch/./cJc7yen' (women), `yuvcJ' (youth), and
Minister highlighted nine priority areas in her
`Annadc7fa' (farmer). Key areas of emphasis include
speech: productivity and resilience in agriculture;
employment generation, skilling, Micro, Small, and employment and skilling; inclusive human resource
Medium Enterprises (MSMEs), and the middle class. development and social justice; manufacturing
The budget proposals aim to create a virtuous cycle and services; urban development; energy

YOJANA SEPTEMBER 2024

 ii. Promotion of Natural Farming: Natural
farrhiing, or Bhartiya Prakratik Krishi Paddhati,
is rooted in Indian tradition and relies on desi-
cows and locally available resources, avoiding
Employment & §killing chemical fertilisers and pesticides. It is climate-
resilient, cost-effective, rejuvenates soil health,
reduces water requirements, and produces
scheme A: First Timers
safe and healthy food. The budget proposes to
a Direct benefit transfer of 1-month solory initiate and support one crore farmers across
in 3 installments up to = 15,000 to the country in natural farming over the next
first-time employees registered in EPFO
two years, setting up 10,000 need-based bio-
scheme 8: Job Creation in Manufacturing input resource centres and supporting farmers
o Incentive to be provided directly to both employee
and employer os per their EPF0 contribution, in
through certification and branding.
the first 4 years of employment
ii. Self-Sufficiency in Pulses and Oilseeds
Scheme €: Su|]F)art to Employers Production: Pulses are environmentally
a Reimbursement to employers up to { 3,000 p th for 2 yecirs friendly crops that put minimal pressure on
towards their EPFO Contribution for eo[h oddi
natural resources and fix atmospheric nitrogen
in the soil.They are also crucial for nutrition and
security; infrastructure; innovation, researc health. Currently, there is a gap of 4.4 million
development; and next generation reforms. Let's tonnes between the demand and supply
discuss and evaluate these nine priorities. of pu.Ises, met by imports. Similarly, India
I

Priority 1: Productivity and Resilience in heavily depends on imports to meet its edible
Agriculture oil requirements. The budget emphasises
achieving self-sufficiency in the production
Agriculture plays a pivotal role in the Indian
of pulses and oilseeds by strengthening their
economy, providing livelihood support to 42.3
production, storage, and marketing.
per cent of the population and contributing 18.2
per cent to the country's GDP. Recognising its iv. Vegetable Production and Supply Chains:
critical importance, the budget rightly focusses on India, with a production of 256 MT (Metric
transforming lndia's agricultural sector to ensure Tonnes), is the second-largest producer of fruits
food security, enhance farmers' income, and make and vegetables globally. However, significant
agriculture more productive, sustainable, and post-harvest losses occur due to inefficient
resilient to climate change. The agriculture and supply chains, inadequate infrastructure,
allied sectors have received a generous allocation transportation issues, and poor market linkages.
of Rs 1.52 lakh crore in the budget. Key initiatives To address these challenges, the Finance
announced to enhance productivity and resilience Minister announced plans to develop large-scale
in agriculture are as follows: clusters for vegetable production near major
consumption centres and promote Farmer
i. Transforming Agricultural Research:
Producer Organisations (FPOs), cooperatives,
Achieving a quantum leap in agricultural
and startups for vegetable supply chains.
productivity requires transforming research
to enhance productivity and develop climate- v. Digital public.nfrastructure for Agriculture:
resilient varieties. The government has decided Digital Public Infrastructure (Dpl) will enable
to comprehensively revamp the country's the development of innovative, farmer-centric
agricultural research setup. The budget also solutions and services to improve agricultural
proposes to provide funds for agricultural productivity and profitability. It will assist in
research in a challenge mode for both the providing relevant information services on
public and private sectors. Additionally, it aims crop planning and health, improve access
to provide 109 new, high-yielding, and climate- to farm inputs, credit, and insurance, aid in
resilient varieties of 32 field and horticultural crop estimation and market intelligence, and
crops to farmers. support the growth of the Agri-Tech industry

SEPTEMBER 2024 YOJANA

 and startups. The budget proposes that addressed to realise this potential. Employment and
the central government implement Dpl in skilling are thus central objectives of the budget.
agriculture in partnership with states, with a To harness the demographic dividend and
digital crop survey for Kharif to be conducted build an inclusive economy, the Finance Minister
in 400 districts in the current fiscal year. announced the Prime Minister's Package of five
Additionally, the details of 6 crore farmers and schemes and initiatives with an allocation of Rs 2
their lands will be included in the farmer and lakh crore, aiming to benefit 4.1 crore youth over
land registries. five years. Here's a closer look at the ambitious
Besides these measures, the Finance Minister package:
announced the government's thrust on shrimp i. Employment Linked Incentive Scheme-A
production and export. To facilitate this, a (for First Timers):
network of nucleus breeding centres for shrimp •<,

broodstock will be set up, and financing will be This scheme targets 2.1 crore youth entering
the workforce with salaries up to Rs 1 lakh per
provided for shrimp farming, processing, and
export. The government will also introduce the month.The government will pay one month's salary,
National Cooperation Policy to ensure systematic, up to Rs 15,000, directly to the employee's bank
orderly, and all-round development of the account in three instalments. All formal sectors are
cooperative sector, fast-tracking rural economic c`overed, but employers must refund the subsidy if
employment ends within 12 months of recruitment.
growth and generating large-scale
opportunities. Employment Linked Incentive SchemelB
Thus, the budget aims to tr (Job Creation in Manufacturing):
agricultural landscape of the cou making Benefiting 30 Iakh youth, this scheme promotes
it more resilient to climate change he substantial hiring of first-time employees in
fluctuations. Comprehensive support for manufacturing. Incentives are provided if employers
achieve this objective is outlined in the budget too. hire at least 25 per cent more EPFO employees
comparedtothepreviousyearoratleast50previously
Priority 2: Employment and Skilling
non-EPFO workers. The government will pay 24 per
lndia'sdemographicdividendoffersasignificant cent of the wage or salary for the first two years,16 per
advantage, but challenges like skill mismatches, cent in the third year, and 8 per cent in the fourth year.
regional disparities in job opportunities, The scheme covers employees with salaries up to Rs 1
underemployment, and unemployment must be lakh per month, but incentives for those earning over

YOJANA SEPTEMBER 2024

 Table-1 Prime Minister's Package for Employment and Skilling
Coverage and Estimated Central Outlay
Beneficiaries Central Outlay
(in lakh) (Rs in crore)
Employment Linked Incentive Scheme A (First Timers) 23,000
Employment Linked Incentive scheme B (bulk hiring offirst-timers i 30 52,000
in manufacturing) i

Employment Linked Incentive Scheme C (j.ob creation) 32,000

Internship Programme (Phase-1 ) 1 9,000
Internship Programme (Phase-2) 44,000
Upgradation of lTls 30,000
2,00,000

Rs 25,000 are capped at Rs 25,000/month.T aligning course content with industry needs and
is in addition to Scheme-A benefits. introducing new courses for emerging demands.
iii. Employment Linked Incentive Scheme-C Capacity at five national institutes for training
tr_ainers will also be augmented.
(Support to Employers):
This scheme is expected to incentivise the ii. Internship atTop companies
employment of 50 lakh people and cover additional The Prime Minister's Internship Scheme will skill
employment in all sectors. Employers with fewer one crore youth, aged 21 -24, over five years through
than 50 employees who increase their EPFO internships at lndia's top companies. Interns will
employees by at least two, and other employers receive a Rs 5,000 monthly allowance for one year,
who increase EPFO employees by five are eligible with the government covering Rs 54,000 annually
for incentives. The government will reimburse towards the allowance and Rs 6,000 for incidentals.
up to Rs 3,000 per month for two years towards Companies will contribute Rs 6,000 monthly and
EPFO contributions for each additional employee. bear training costs through CSR funds.
This subsidy is in addition to Scheme-A but is not The coverage and estimated central outlay of
available for employees under Scheme-B. the schemes in the Prime Minister's package for
Skilling employment and skilling are summarised in Table-1.
Enhancing employability is another focus of the Additionally, the Finance Minister announced
budget. For this, the government plans to introduce the construction of working women hostels and
advanced skill training programs and upgrade creches to facilitate higher workforce participation
Industrial Training Institutes (lTls) in collaboration by women, as well as skilling loans and education
with the industry. Key skilling schemes include: loan schemes. One lakh students will benefit from
i. Newschemeforskilling and upgradation of education loans up to Rs 10 lakh with a 3 per cent
ITls: interest subvention, and 25,000 youth will receive
skilling loans annually.
Under the Prime Minister's package, a new
Centrally Sponsored Scheme (CSS) with an outlay Thus, the Union Budget 2024-25 presents
of Rs 60,000 crore will be launched to skill 20 lakh a comprehensive strategy to address lndia's
youth over five years. The central government, employment challenges, create a robust framework
state governments, and industry will contribute Rs for j.ob creation, and drive inclusive economic
30,000 crore, Rs 20,000 crore, and Rs 10,000 crore,growth. The employment generation initiatives are
respectively.The scheme will upgrade 1,000 ITls in a ambitious, targeting multiple sectors and addressing
hub-and-spoke model with industry collaboration, diverse aspects of the employment landscape.

SEPTEMBER 2024 YOJANA

Priority 3: Inclusive Human Resource Development iv. Pradhan Mantri Janjatiya Unnat Gram
and Social Justice Abhiyan.. To improve the socio-economic
The budget for fiscal 2024-25 underscores the conditions of tribal communities, the
government's commitment to comprehensive and government will launch this initiative, covering
inclusive development, particularly for farmers, tribal families in tribal-majority villages and
aspirational districts. Over five crore tribal
youth, women, and the poor. Human capital
development and social justice ensure growth that people in 63,000 villages will benefit.
benefits all sections of society. Key initiatives in this v. Enhanced Coverage of India Post Payment
direction include: Bank: To expand banking services and spur
i. Saturation Approach to Promote Social economic growth in the North East, more than
Justice: The government will ensure all eligible 100 branches of India Post Payment Bank will
be opened in the region.
people are covered in various programs
for education, health, and other sectors. vi. Increased Funding for Education,
Accelerated implementation of schemes will Healthcare, and Housing: The budget raises
support economic activities for craftsmen, the allocation for education by 12 per cent to
artisans, self help groups, scheduled castes, Rs 1.2 lakh crore, aiming to improve quality
scheduled tribes, women entre and expand access to digital learning tools.
street vendors. J ' Healthcare funding has increased by 15 per

ii. Purvodaya: The eastern p of India, cent to Rs 3.8 Iakh crore. To address housing
in cultural traditions and r urces, will needs, the central government will support
comprehensive developm under constructing three crore additional houses
'Purvodayt7' plan. This initiative under the PM Awas Yojana.
human resources, infrastructure, The government's focus on human capital
opportunities, transforming the region into an development and social justice in the budget is a
eng.ine for a Viksit Bharat. welcome move, promoting inclusive growth and
iii. Women-Led Development: The budget ensuring that development benefits all sections of
allocates over Rs 3 lakh crore for schemes society.
benefiting women and girls, emphasising their Priority 4: Manufacturing and Service
role in economic development. Enhanced
Revitalising the manufacturing and service
funding targets their health, nutrition, and
sectors to boost economic growth and create
education.
jobs is a key priority of the budget. Special
attention has been paid to promoting MSMEs
and labour-intensive manufacturing. MSMEs, the
backbone of the Indian economy, are crucial for
employment generation. The budget earmarks
Rs 1.5 Iakh crore for the MSME sector, including
measures to enhance credit availability, reduce
compliance burdens, and provide technical
support. Key initiatives include:
i. Credit Guarantee Scheme for MSMEs: The
government will introduce a credit guarantee
scheme to facilitate term loans for MSMEs to
purchase machinery and equipment without
collateral or third-party guarantees. An
amount of Rs 9,812 crore is allocated in the
budget for the scheme. This will enable small
businesses to expand, improve credibility,
and create more jobs.

YOJANA SEPTEMBER 2024

 i. Industrial Parks: The government will
develop investment-ready 'plug and play'
industrial parks with complete infrastructure
in loo cities in partnership with states and the
private sector. Twelve industrial parks will also
be sanctioned under the National Industrial
Corridor Development Programme.
ii. Rental Housing for Industrial Workers: The
government will facilitate rental housing with
dormitory-type accommodation for industrial
workers in PPP mode with Viability Gap Funding
(VGF) support and commitments from anchor
industries.

iii. Digital Public lnfl-astructure (Dpl)

Applications: Dpl applications will be
developed at a population scale to enhance
[ctivity, business opportunities, and
ation in areas such as credit, e-commerce,
ii. New Assessment Model for MSME Cre ion, health, law, logistics, MSME, service
Public sector banks will develop a ci
y, and urban governance.
assessment model based on the di
footprints of MSMEs rather than traditi ction Linked Incentive (PLI) Scheme:
asset or turnover criteria, improving cre budget allocates Rs 2 lakh crore for
eligibility assessment. e PLl scheme, aiming to boost domestic
manufacturing, attract investment, and generate
iii. CI-edit Support to MSMEs During Stress
jobs in key industries such as electronics,
Periods: For MSMEs in the 'special mention automobiles, textiles, and pharmaceuticals.
account' (SMA) stage, a new mechanism will
facilitate the continuation of bank credit through v. Bolstering Startups: To spur investments in
agovernment-promotedfundguarantee,helping startups and promote ease of doing business,
them avoid NPA (Non Performing Asset) status. the budget proposes abolishing the 'Angel Tax'
on all classes of investors.
iv. Enhanced Scope for Mandatory Onboarding
These initiatives will stimulate industrial
in TReDS: The budget reduces the turnover
threshold for mandatory onboarding on growth and enhance the global competitiveness of
the TReDS (Trade Receivables Discounting Indian manufacturers, paving a new path for small
System) platform from Rs 500 crore to Rs 250 traders and MSMEs. The focus on the service sector
crore, unlocking working capital for MSMEs leverages lndia's strengths in lT and digital services,
by converting trade receivables into cash. This driving inclusive economic growth.
measure will bring 7,000 more companies onto Priority 5: Urban Development
the platform. Urban development is a key priority of the
Additionally, new branches of SIDBl will expand budget, with a range of initiatives proposed to
their reach to MSME clusters, providing direct revitalise cities, including creative redevelopment,
credit. The government will support the setup of 50 transit-orientated development, and incentives for
multi-product food irradiation units in the MSME urban renewal projects.
sector and establish e-commerce export hubs in i. CitiesasGrowth Hubs:The union government
PPP mode to help MSMEs and traditional artisans will collaborate with state governments
sell internationally. to develop cities as growth hubs through
Other schemes to promote manufacturing: economic and transit planning and the orderly
Besides boosting MSMEs, the budget includes development of peri-urban areas using town
initiatives to promote manufacturing and services: planning schemes.

SEPTEMBER 2024 YOJANA

ii. Creative Redevelopment of Cities: The Urban development is crucial for
government will design a framework for accommodating the growing population and
enabling policies, market-based mechanisms, ensuring sustainable cities. The government's
and regulations to facilitate the creative proposed initiatives aim to develop cities as growth
brown field redevelopment of existing cities hubs, createjobs, enhance urban sustainability, and
with transformative impacts. improve the quality of urban life.
iii. Transit-Orientated Development: Development Priority 6: Energy Security
plans, implementation, and financing strategies Ensuring energy security is crucial for sustaining
for transit-orientated development will be
economic growth and reducing dependence
formulated for 14 large cities with populations
on fossil fuels. The budget underscores the
over 30 lakh.
government's commitment to high, resource-
iv. Urban Housing: The government will invest efficient economic growth and energy security. Key
Rs 10 lakh crore to build 1 crore houses for initiatives announced are:
urban poor and middle-class families over the
i. Energy Transition: The government will
next five years, addressing housing needs. The
introduce a policy on energy transition
scheme also envisages a provision of interest
pathways, balancing employment, growth,
subsidies to facilitate loans at affordable rates.
and environmental sustainability. Rs 1.5 Iakh
An efficient and transparent rental housing
crore has been allocated for renewable energy
market with enhanced availability will
projects, including solar, wind, and green
be put in place through enabling poli
ydrogen.
regulations.
Surya Char Mutt Bijli Yojana: This
v. Water Supply and Sanitation:
heme aims to install rooftop solar plants,
bankable projects, the governm
roviding 1 crore households with free
promote water supply, sewage treatn electricity up to 300 units per month. The
solid waste management services in 100
Finance Minister earmarked Rs 6,250 crore
cities, partnering with state governments and
for it in the current fiscal year due to its
multilateral development banks.
remarkable response.
iii. Pumped Storage Policy: A policy
will be introduced to promote pumped
storage projects for electricity storage,
facilitating the integration of renewable
energy with its variable and intermittent
nature.
iv. R&D of Small and Modular
Nuclear Reactors: Nuclear energy is set
to play a significant role in the energy
mix for Vfk5tt Bhart7f. The government
will partner with the private sector,
providing R&D funding for Bharat Small
Reactors and Bharat Small Modular
Reactors, along with new nuclear
technologies.
v. Advanced ultra Super Critical
Thermal Power plants: India has
developed indigenous technology for
Advanced Ultra Super Critical (AUSC)
thermal power plants. Fiscal support will
be provided for setting up an 800 MW

YOJALNA SEPTEMBER 2024

 will create jobs, stimulate investments, and
unlock economic opportunities for other sectors.
A substantial allocation for infrastructure
development is a cornerstone of the budget for
2024-25. It will drive industrial development,
economic growth, job creation, and improved
connectivity.
Priority 8: Innovation, Research and
Development
Research and Development (R&D) and
innovation are crucial for driving economic
growth and maintaining global competitiveness.
To enhance R&D, the government will
operational.ise the 'Anusandhan National Research
commercial plant using AUSC technology as a
Fund: Additionally, the budget propo5e5 creating
joint venture between NTPC and BHEL.
a Rs 1 lakh crore financing pool and establishing a
The measures announced in the budget align mechanism to spur private sector-driven research and
with global climate goals, potentially reducing innovation on a commercial scale. Moreover, a venture
lndia's carbon footprint and positioning the country capital fund of Rs 1,000 crore will be set up to expand
as a leader in clean energy. the space economy fivefold in the next 10 years.
Priority 7: Infrastructure The government's focus on research and innovation
will drive technological advancements and create
I nfrastructure i nvestmen hasa
high-techjobs.
employmentmultipliereffect,i ves produc
and boosts the economy. The b Priority 9: Next Generation Reforms
government's commitment to rob Next-generation reforms aim to create a more
for infrastructure over the next five the
efficient and competitive economy.The government
following initiatives for the current year: will formulate an economic policy framework to
i. Government Infrastructure Investment: define the approach to economic development
Rs 11,11,111 crore, roughly 3.4 per cent of GDP, and scope out the next wave of reforms. These will
has been allocated for capital expenditure by enhance productivity and facilitate more efficient
the central government. State governments markets and sectors. State governments play a crucial
will also be encouraged to increase capital role in these reforms. To incentivise states for faster
investment by Rs 1.5 lakh crore under the implementation, the budget proposes allocating
Scheme for Special Assistance to States for part of the 50-year interest-free loan to states for
Capital Investment 2024-25. land-related reforms in both rural and urban areas.

ii. Private Infrastructure Investment: The The budget also proposes simplifying rules
government will promote private sector and regulations for Foreign Direct Investment (FDl)
investment in infrastructure through viability and overseas investments to attract more foreign
gap funding, enabling policies, and a market- capital, prioritise investments, and promote the use
based financing framework. of the Indian Rupee for overseas transactions.
iii. Pradhan MantriGram sadakYojana (PMGSY): Epilogue
Phase lv of PMGSY will be launched to provide As India navigates a rapidly changing global
all-weather connectivity to an additional 25,000 economic landscape, the budget for 2024-25 sets
rural habitations. the course for a resilient and sustainable future. The
iv. Tourism Infrastructure: The central government success of these initiatives will depend on effective
will support state governments in developing implementation, continuous monitoring, and
iconic tourist destinations. Tourism development adaptability to evolving circumstances. D

SEPTEMBER 2024 YOJANA

 the heart of this vision lies the third priority of the budget= Inclusive
Human Resource Development and Social )ustice. The budget adopts
a saturation approach, aiming to cover all eligible individuals under
various government schemes. This approach ensures comprehensive
coverage and eliminates exclusion errors, which have historically hindered
the effectiveness of welfare programmes. The proposed measures
under Priority 3 have the potential to drive significant socio-economic
transformation in India. Ensuring that allocated funds are utilised
efficiently and reach the intended beneficiaries is crucial. Transparency
and accountability mechanisms must be strengthened to prevent
leakages and corruption. Success hinges on robust governance, effective
coordination and private-sector participation.

SEPTEMBER 2024 YOJANA

 he Economic Survey 2023-24 provides of this vision lies the third priority of the budget:
an in-depth analysis linking Vr.k5r.I Inclusive Human Resource Development and

EH Bhcircir and Priority 3 of Budget 2024. It

emphasises the need for robust social
infrastructure to support economic growth. The
Social Justice. This essay delves into this priority,
exploring its significance, the strategies proposed
and their potential impact on lndia's j.ourney
survey highlights that sustained economic growth towards becoming a developed nation. How can a
must be accompanied by social progress, including nation truly become developed if segments of its
health, education and digital empowerment. population are left behind? What role do education,
skilling and social justice play in this transformative
The survey also proj.ects that lndia's
employment landscape is transforming with rising J.Ourney?
formalisation and skill development. For example, Inclusive Human Resource Development
EPFO membership grew by an impressive 8.4 per Inclusive human resource development
cent CAGR between FY15 and FY24, reflecting aims to equip every citizen with the skills and
increased formal employment. Moreover, opportunities needed to contribute to and benefit
initiatives like the Production Linked Incentive (PLI) from economic growth. The 2024 budget allocates
scheme are expected to create millions of jobs in a substantial Rs 1.48 lakh crore to education,
manufacturing, further boosting employment. employment and skilling initiatives.This significant
Looking ahead, the Economic Survey projects allocation underscores the Government's
that lndia's GDP could grow at an annual rate of commitment to enhancing the capabilities of its
7 per cent or more, provided that structural reforms workforce, particularly among the disadvantaged
continue. This growth is expected to lift millions segments of society.
out of poverty and improve the standard Education and Skilling lnitiatives
across the country. However, achieving this One of the most tra ns formative a n nou ncements
a steadfast commitment to inclusive po budget is the provision of Rs 60,000 crore over
socialj.ustice. ears for upgrading 1,000 Industrial Training
The 2024 Union Budget of India, utes (lTls) into hub-and-spoke arrangements.
by the Finance Minister, articulates a gran se upgraded ITls will align their curricula with
for `Vt.k5tt Bhc7rcJf' (Developed India). At the jstry needs, ensuring that 20 Iakh youth are

MINISTRY OF
FINANCE

Promoting lnvB§tment,
Employment & Social SBcurity
Labour RefBrrms
a Angel tcix for clll clcisses of investors to be
cibolished, to bolster Indian stcirt-up
o E-shrqm portal to bE integrated
eco~system
with other portc]ls to provide
a Corporcite tcix rote on foreign compclnies to be
one-stop lc]bour services solution;
reduced to 35o/a
will include mE[hclnism to [onne[t
a Simpler tax regime for foreign shipping [ompclnies operclting job-seEl{ers with potential
domestic Cruises in the country employers c]nd sl{ill providers
_

o Safe hcirbor rates for foreign mining [omponies selling rciw

diclmonds in the country
a Shrclm §uvidhci and Scimodhon portclls to be
® Oedu[tion of expenditure by employers towards NPS to be revclmped to enhcin[e ease of [ompliclnce for
in[reosecl from loo/a to 14% of Employee's so!ory
industry and trade

® Similar deduction up to 14°/o of sc]lory from income of employees

in private sector, public sector bclnl{5 and undertcll{ings, opting
for the new tax regime

YOJANA SEPTEMBER 2024

 addressing specific needs within the
labour market:
• Scheme A: First Timers: This
scheme provides a one-month wage
subsidy of up to Rs 15,000 for first-
time employees. Expected to benefit
§implifiEation of IT #Et, Tax
2.1 crore youth, this initiative aims to
Rga§§g§smgnt, Capital Bain§ ease the entry of new workers into the
Taxation formal sector, providing a crucial bridge
between education and employment.
fry Income-tax Act, ]961 to be made concise and easy to read
• Scheme 8: Job Creation
¢ Opening of Reassessment beyond three years from end of assessment
year only if escaped income is E 50 Iakh or more, up to a maximum ih Manufacturing: This scheme
period of five years from end of assessment year incentivises employers to hire first-time
S Time limit for search cases to be reduced from 10 years to 6 years employees in the manufacturing sector
before year of search by covering a portion of their EPFO
a Short-term gains on certain financial assets to be taxed at 20%,
contributions. It targets the employment
Long-term gains on all financial and non-financial a§§ets to be of 30 Iakh youth, encouraging robust job
taxed at 12.5% creation in a sector crucial for economic
4* Listed finclncial assets held for more than a year to b growth. By focussing on manufacturing,
as long-term the Government is bolstering a sector
fy Vivad Se Vishwas Scheme, 2024 for resolution of c income tax that has the potential to drive large-
disputes pending in appeal scale employment and spur industrial
development.

skilled with relevant and employable skills. Scheme C: Support to Employers: This
initiativeaddressestheskillsgapinlndia'sworkforce, scheme reimburses up to Rs 3,000 per month of
a critical impediment to economic productivity and EPFO contributions for new hires earning less
competitiveness. By modernising these lTls, the than Rs 1 lakh per month. It aims to incentivise
Government is creating a robust infrastructure for the creation of 50 lakh newjobs across various
vocational training that aligns with the demands of sectors, supporting broad-based employment
a rapidly evolving j.ob market. growth and reducing barriers for employers to
expand their workforce.
The budget also introduces a revised Model
Skill Loan Scheme, providing loans up to Rs 7.5 Iakh Social Justice
with government guarantees. This measure aims Social j.ustice is an integral part of human
to support 25,000 students annually, enabling resource development. The budget's focus on
them to pursue vocational training without the social justice aims to ensure that economic
financial burden. Moreover, education loans of growth benefits all sections of society, particularly
up to Rs 10 lakh will be offered with an annual the marginalised and disadvantaged. But how
interest subvention of 3 per cent, benefiting can we measure the true impact of social justice
1 lakh students each year. These financial support initiatives?
mechanisms are designed to democratise access
Saturation Approach
to quality education and training, fostering an
inclusive growth environment where economic The budget adopts a saturation approach,
opportunities are within reach for all. aiming to cover all eligible individuals under
various government schemes. This approach
Employment-Linked Incentives ensures comprehensive coverage and eliminates
The budget outlines three employment-linked exclusion errors, which have historically hindered
incentive schemes with a central outlay of Rs 2 the effectiveness of welfare programmes. The
lakh crore over five years. These schemes target Pradhan Mantri Garib Kalyan Anna Yojana,
different aspects of employment creation, each which provides free food grains to over 80 crore

SEPTEMBER 2024 YOJANA

people, is a prime example of this approach. Its conditionsoftribalcommunities.Withanallocation
extension for five more years demonstrates the to cover 63,000 villages and benefit five crore tribal
Government's commitment to food security for people, this initiative adopts a saturation approach
the poor. By ensuring that no eligible individual to ensure comprehensive development. The
is left out, the saturation approach aims to create programme focusses on education, healthcare,
a more equitable society where the benefits of infrastructure, and economic opportunities,
development are shared widely. addressing the unique challenges faced by tribal
Women-Led Development populations. By providing targeted support to
tribal communities, the Government aims to uplift
Women's empowerment is a cornerstone some of the most marginalised groups in society,
of social justice. The budget allocates over Rs 3 ensuring that they, too, can benefit from lndia's
Iakh crore for schemes benefiting women and development.
girls. This substantial investment highlights the
Potential Impact
Government's recognition of the critical role
women play in economic development. Initiatives The proposed measures under Priority 3 have
such as working women hostels, creches, and the potential to drive significant socib-economic
women-specific skilling programmes aim to transformation in India. By investing in education,
enhance women's participation in the workforce. skilling, and employment, the Government aims to
The establishment of market access channels create a more capable and competitive workforce.
for women Self-Help Groups (SHGs) further This, in turn, will enhance productivity, spur
supports women entrepreneurs, promoting innovation, and attract investment, contributing
inclusive economic growth. By removing b`irriers to su.`stained economic growth.
to women's participation in the economy, the The focus on social j.ustice ensures that the
Government is fostering a more inclusive and benefits of growth are equitably distributed.
dynamic workforce. Initiatives targeting women, tribal communities,
Tribal Welfare and the eastern states address historical
inequalities and regional disparities. By promoting
The Pradhan Mantri Janj a Unnat
inclusive development, these measures foster
Abhi.yon aims to improve th ocio-econ
social cohesion and stability, which are essential
for long-term prosperity.
UNION Challenges and Considerations
MINISTRY 0F
fflNANCE While the budget's proposals are ambitious
and well-intentioned, their successful
implementation will require robust governance
Eapital antl and effective coordination between the
Entmepren8ur§hip RBfurm§
central and state governments. Ensuring that
allocated funds are utilised efficiently and
a Fingn[igl sector vision find reach the intended beneficiaries is crucial.
5trc!tEgy do[umEnt to Set c!gEndg Transparency and accountability mechanisms
for nExt 5 years must be strengthened to prevent leakages and
corruption.
a Tclxonomy for [IimfltE fintlnEe to in[regse Additionally, the success of skilling and
Hvailt]bility of REpitgl for climate action employment initiatives hinges on the active
__:::_-----I--I---+
participation of the private sector. Industry
a RulE5 for FBI and Oversefl5 Investments tg be collaboration in designing curricula, providing
simplified to in[red5e FBI inflows and promote internships, and creating job opportunities
usa of lndicln RupeE as [urren[y for overseq5 is essential. The Government must foster
investments an enabling environment for public-private
partnerships, incentivising businesses to invest

YOJAVA SEPTEMBER 2024

 Scheme 8 targets manufacturing,
aiming to employ 30 Iakh youth,
while Scheme C supports employers,
incentivising 50 lakh new jobs.
These initiatives are expected to
reduce unemployment and formalise
employment.
lnGIH§iuE HHman Hg§oHnee
Social justice measures, like the
n8uEIOpm8Ht and §OEial Ju§tiGB Pradhan Mantri Garib Kalyan Anna
Yo/.ancl, ensure comprehensive
• Rs 3 lath crore for schemes benefitting women and girls coverage for 80 crore people, while
Rs 3 lakh crore for women-focused
I More than 100 branches Of India Post Payment Bank to be sct schemes promote empowerment.
up in the Noth Eastern Region The Pradhan Mantri Janjatiya Unnat
GrcJm Abhi.ycJn, targeting 63,000
• Compteffion Of Polaveram Irrigation Project to ensLlre food villages and benefiting five crore tribal
seeurtyofthermtrfu
people, addresses unique community
challenges.
• Funds to be provided for essential irfuastructure development Success hinges on robust
in ifepparmy frode on vishalfroplrfuam-Chenrmj Industrial
Corridor & Orvefal rode on Hyderahad-BengalLiru Industrial governance, effective coordination,
Corrifer and privatelsector participation.
Ensuring efficient fund utilisation
and strengthening transparency are
crucial. Structural reforms to improve
in human resource development. labour market flexibility and infrastructure will
Furthermore, addressing str ral issu complement these initiatives, fostering a more
such as labour market rigidities equitable and inclusive society where all can
infrastructure is vital. Reforms to thrive.
market flexibility, enhance the ease of doing But as we move forward, we must continually
business, and invest in physical and digital ask ourselves: Are we doing enough to ensure that
infrastructure will complement the budget's every Indian, regardless of their background, has
initiatives and create a conducive environment for the opportunity to thrive in a Vi.k5it Bhc7raf? Are
sustainable development. the financial commitments and policy frameworks
Conclusion and anticipations adequate to overcome deep-rooted social and
economic challenges? How can we harness the
Looking ahead, the ambitious goals and
potential of these initiatives to create a truly
comprehensive strategies outlined in the 2024 inclusive and prosperous India? The answers to
Union Budget signal a transformative trajectory for these questions will determine the success of our
lndia's socio-economic landscape. Projected GDP
journey towards a developed nation. I
growth of 7 per cent annually could lift mil`lions out
of poverty, enhancing living standards nationwide. (Views are personal)
The Rs 1.48 lakh crore allocation for education,
employment, and skills, including the Rs 60,000 tJ1+`l+i+ +

TifeofptdiGaEim:Ibdi.SFdrlRepmoryL±:ThrmsitiouingToumardsa
croreupgradeofl,000lTls,aimstQbridgeworkforce Rdeandcodfu-priiiiiiysyedm
PpblicatimDcait!=Ylqiatl]a±JdF.2024edilin
skills gaps, fostering economic productivity. This erxrig± is tchg isbd at the request Of tw. Alha Rae. Advisor* FSSAL these mme
ve find as €dbg athpr Of the pdylicdim mchtioaiaed ahevre* It is amed din wltile Eir.
AdEa Rae cdcoqpgEd and farili]a8ed this iveck as a oeprnrfing Gfficcr to the amhors. ds did fwh
Employment-linked incentives, with a Rs 2 € co de fGgrfu or v"g. Hchce, the ¢mes* audeg3hip lisle is Dr. Htrm Yddrv,
Tchied Officer, rssAI and in, AndL Sba" Dfrocter. rssAI. Yqbe nd Ptrmcrfu
lakh crore outlay, are set to catalyse job creation. divirfutxlrtyqquffljt)rindisinadverfedcrmrtydealdhom
Scheme A offers a Rs 15,000 wage Subsidy for
first-time employees, benefiting 2.1 crore youth. dr,ife
DtiDector. FSS.AI

i SEPTEMBER 2024 YOJANA

The Finance Minister's Budget Speech unveiled the Govemment's priorities
with a focus on employment, shilling, and MSMEs. Key initiatives include
a Rs 2 lalth crore package to benefit 4.1 crore youth and the introduction
of the First Timers Scheme, offering financial support to new workers.
The revamped National Career Services (NCS2.0) and Shram Suvidha i

portalsaimtobiidgegapsbetweenjobs=aekersandemp]oyers,whilenew
schemes will boost job creation in manufacturing and support for SMEs.
Thesameasuresrepresentacomprehensiveapproachtoaddressinglabour
market challenges and fostering economic growth.
UsheringEnhancedEmpleymentopportunities central outlay of Rs 2 Iakh crore. The Ministry of
through Emplnymemt Linked Incentive Labour and Employment has been tasked with the
The Finance Minister in her Budget Speech creation of an environment through Employment
laid down the Government's priorities to focus on Linked Incentive (ELI) to foster employment in the
employment, skilling, MSMEs and the middle class country. A series Of innovative schemes focused
with the announcement of the Prime Minister's on job creation and youth employment while
package of 5 schemes and initiatives to facilitate ensuring that the informal sector also benefits
employment, skilling and other opportunities from the various Government Schemes. The next
for 4.1 crore youth over a .t5-year period with a generation job portal, National Career Services

YOJANA SEREMBER 20Z4

 The importance of this initiative cannot be
overstated. By easing the financial burden of
starting a new job, the First Timers Scheme helps
kickstart the journey 'of young workers, many of
whom come from economically disadvantaged
backgrounds. It encourages them to take up
formal employment, where they can benefit from
job security, social security and opportunities for
career growth. Moreover, by incentivising young
people to enter the formal workforce, the scheme
also contributes to the broader goal of formalising
lndia's labour market.
Job Creation in Manufacturing: Revitalising a
Critical Sector
While the services sector has been the
dominant'driver of lndia's economic growth in
recent decades, the manufacturing sector remains
a critical pillar of the economy. It is not only a
major contributor to GDP but also a key source
(NCS2.0), will significantly aid in bridging the gap of employment, particularly for semi-skilled and
between employers and job seekers. The revival unskilled workers.
of the 5hram 5uvi.dha and Samadhan portals will
facilitate ease of doing business for employers and In recognition of these challenges, the
lead to faster resolution of labour disputes. government has introduced a new scheme to
incentivise job creation in the manufacturing
As we get into the specifics of these sector, with a specific focus on first-time
announcements, it is clear that they ar employees. This initiative ties incentives to the
to address challenges for preparin employment of these workers, providing direct
market today and in the future. benefits to both employees and employers in
First Timers: A Lifeline for Youth tering the relation to their EPFO contributions during the first
Workforce fouryearsofemployment.Theschemeisexpected
lndia's demographic dividend to benefit approximately 30 lakh youth entering
realised if our youth are successfully integrated the workforce in the manufacturing sector while
into the workforce. Whether it's a lack of relevant at the same time incentivising their employers.
skills, insufficient work experience, or simply the This is a strategic move that addresses multiple
challenge of finding a job in a competitive market, objectives. First, it encourages manufacturers
the process of transitionining from education to to hire more workers, thereby helping to reduce
employment for youth can be daunting. unemployment and underemployment in the
The First Timers Scheme is a direct response to economy. Second, it supports the development
these challenges. By offering a one-month wage of a skilled workforce in the manufacturing sector,
to all individuals newly entering the formal sector, which is essential for enhancing productivity and
the Government is providing a crucial financial competitiveness. And third, it aligns with the
cushion to help young workers get started. This Government's broader push to make India a global
support will be disbursed through direct benefit manufacturing hub, particularly in key industries
transfers, with up to Rs 15,000 provided in three such as electronics, textiles, and automotive.
instalments to first-time employees registered The potential impact of this initiative in the
with the Employees' Provident Fund Organisation manufacturing sector is significant, along with
(EPFO). With an eligibility limit of a salary of related announcements including the credit
Rs 1 lakh per month, this scheme is expected to guarantee scheme for MSMEs and internships
benefit 210 Iakh youth across the country. at top companies, coupled with infrastructure

SEPTEMBER 2024 YOJALNA

investment by the Central Government. The new expanding their workforce. Under this scheme, the
centrally sponsored scheme for skilling will also Government will reimburse employers up to Rs
help bridge a critical gap felt by employers and 3,000 per month for two years towards their EPFO
will benefit 20 lakh youth who will be skilled contribution for every additional employee hired
over a 5-year period. By boosting employment with a salary of up to Rs 1 lakh per month. This
in the manufacturing sector, the government initiative is expected to incentivise the additional
is not only creating jobs but also laying the employment of 50 lakh people across the country.
groundwork for long-term economic growth. This scheme is a win-win for both employers
vibrant manufacturing sector can drive expor
and employees. For employers, it reduces the cost
attract foreign investment, and create a ripp
of hiring new workers, making it easier for them to
effect of economic benefits across the supp
expand their operations and increase production.
chain. Moreover, by linking incentives to EPF
For employees, it creates more job opportunities
contributions, the scheme also promotes greater
and enhances their access to formal employment,
social security coverage for workers, which is a
with all the associated benefits such asjob security,
crucial aspect of building a more inclusive economy.
social security, and career development.
Support for Employers: Easing Services to Labour
Expansion
The Budget envisages e5hram portal as
For any economy to thrive, essential `one-stop-solution' for unorganised workers by
that businesses, particularly smal d mediu integrating a wide array of services to labour
enterprises (SMEs), have the supp through integration of the e-5hram portal with
to grow and expand. SMEs are the other existing platforms, creating a one-stop
the Indian economy, accounting for a significant solution for workers seeking employment, skills
share of employment and economic activity. training, and career guidance, besides facilitating
However, they often face significant challenges access to various government schemes.
when it comes to scaling up, including financial
The next generation National Career Services
constraints, regulatory burdens, and a lack of
(NCS2.0), set to be developed on Open Network
access to skilled labour.
principles, will enable faster job searches and
To support employers, a scheme has been provide end-to-end services by opening up the
designed to address these challenges by providing job market. This data-driven approach will help
targeted financial assistance to businesses that are workers stay ahead of the curve by identifying

YOJANA SEPTEMBER 2024

emerging trends and matching their skills with This initiative is part of a broader effort to
the demands of the market. It will also enable create a business-friendly environment in India.
policymakers to make more informed decisions By making it easier for businesses to operate,
about workforce development, ensuring that our the Government is encouraging investment,
education and training systems are aligned with innovation, and j.ob creation. It also aligns with
the needs of the economy. the Government's vision of making India a more
Shram Suvidha and Samadhan Portal: attractive destination for both domestic and
foreign investors by ensuring that the regulatory
Streamlining Compliance for Businesses
environment is transparent, efficient, and
The Shram Suvidha and Samadhan portals, conducive to growth.
two key platforms that have been instrumental
in enhancing ease of compliance for industry and Conclusion
trade, will be revamped. These portals have played The budget announcements made for the
a crucial role in simplifying labour law compliance, Ministry of Labour and Employment mark the
particularly for small and medium-sized businesses beginning of a new chapter in lndia's employment
that often lack the resources to naviga story. The whole-of-government approach is
regulatory requirements. ly reflected in the budget announcements.
The revamped portals will o improved hey reflect a deep understanding of the
features and functionalities, making ten easier hallenges facing our labour market and address
for businesses to comply with labou hem in a holistic and comprehensive manner.
Bystreamliningtheseprocesses,thec By focussing on job creation, youth employment,
reducing the administrative burden on businesses, support for employers, and the empowerment of
freeing them up to focus on what they do best- workers, these initiatives are laying the foundation
creating jobs and driving economic growth. for a more prosperous and equitable economy. I

SEPTEMBER 2024 YOJALNA

 ThdasyaediREyG:pby:03:
salaried individuals and consumers. Key measures include raising the standard
deduction, changing tax slabs, introducing the Employment Linked Incentive
(ELI) Scheme, and a Paid Internships Scheme. For consumers, the budget aims
to increase disposable income and reduce prices, with actions such as reduced
customs duties and plans for GST rate rationalisation. The budget emphasises
enhancing regular income and consumption to support economic growth.

SHISHIR SIIIHA The author is a senior business journalist. Email: hblshishir@gmail.com

"T7o Pecpme a developed nation, we need to strive to be a USS 30 trillion economy by 2047 with a per
ca.p_i.ta incoTe of uS$ 18,000 per annum. The GDP would have to grow 9 times from today's USS 3.36
trillion, and the per capita income would need to rise 8 times from today's USS 2,392 per annum."
-Vision for Viksit Bharat@2047: An Approach Paper by NITI Aayog, released on 27 July 2024

hen a nation aims to become the leads to another positive, and the process continues

E" third-largest economy in the world

with a GDP of $5 trillion in the next
three years, $7 trillion by 2030, $10
trillion by 2033, and set a higher goal of becoming a
'developed country' by 2047, then it needs a strong
for betterment, first at the micro-level and then
at the macro-level. In this entire cycle, there are
two important categories of people: salaried and
consumers. Are these two different? The answer is
that all salaried people could be consumers, but not
virtuous cycle. This is the cycle where one positive all consumers need to be salaried.

YOJANA SEPTEMBER 2024

 1. Standard Deduction: The Budget proposed
raising the standard deduction by 50 per cent to
Rs 75,000 from Rs 50,000. After a gap of 13 years,
this deduction was re-introduced by then
Finance Minister Late Arun Jaitley in the budget
of Fiscal Year 2018-19 and the amount was Rs
40,000 in lieu of the exemption in respect of
transport allowance (Rs 19,200 per annum),
and reimbursement of miscellaneous medical
expenses (Rs 15,000 per annum) which means a
net gain of Rs 5,800, but most importantly, this
resulted in reducing paper work and compliance.
ln the Interim Budget for Fiscal Year 2019-20,
this deduction was raised to Rs 50,000, and now,
from the current fiscal, it would be Rs 75,000, but
withthecaveatthatonlysalariedpersonswillget
the benefit of a higher deduction, provided they
opt for the New Income Tax regime. Along with
salaried persons, deductions have been raised
Both of these categories get special mention in mily pensions to Rs 25,000 from Rs 15,000
the budget analysis. One reason for that is the sl sioners too, opting for the New Income
size of these two categories. Although there is gime. The new provision will provide
one complete set of government data for sala about four crore salaried individuals and
people in India, there are two sources for get
an estimate of this class. First, income tax data
nge in New Income Tax Regime: Neither
Assessment Year 2023-24 shows around 3.8 crore
there is any change in the number of slabs nor
out of 7.97 crore returns declared salary income
in the rates. However, three slabs have been
in their returns between more than Rs 91,000 and
expanded. The previous slab of Rs 3 Iakhs to Rs
Rs 177.5 crore. Second, the Annual Periodic Labour
6 lakhs will now be Rs 3 lakhs to Rs 7 lakhs, while
Force Survey of 2022-23 found the share of regular
the rate remains at 5 per cent. Similarly, the slab
wage or salaried employees among workers in
of Rs 6 Iakh to Rs 9 lakh will now be Rs 7 Iakh
usual status at 47.1 per cent and 50.8 per cent for
male and female, respectively, in urban areas. The
corresponding figures in rural areas are 14.3 per cent
and 8 per cent respectively.
There is one more reason for the importance
of the salaried class. The Union Budget for FY
Tax HgiiBf anal Hgui§Etl
2024-25 estimates getting Rs 11.87 lakh crore
Tax Elab§ iH Na" Tax RBgimE
from Personal Income Tax (PIT) as compared to Rs
10.20 Iakh crore from Corporate Income Tax (CIT). 0-3 lckh rupee
-----5-7lathrupces
Nil

5 per cent
Needless to mention here that a good chunk of PIT tc per cent
7-10 lekh rupees
comes from salaried assessees, hence, there will be 15=iiIQkhrupees 15 per cent
---fa--T5 lath rupeHse
close scrutiny of the Union Budget to determine 20 per cent
what measures are for the salaried class in the Above 15 Iokh rupcos 30 per cent

income tax. Based on the announcements, there • lncoime tax saving of up to 3 17,500/- for salaried employee ln
new tax regime
are two measures for salaried employees, with
lnc®in® Tax R®Itof tor around Four t=r®re Salarled lndfuiduals
one having pensioners too. There are some other and Pensloners
measures that can either help in increasing the • Standard deduction for salaried emplayees to be lncrca§ed
tram e 50,Qo0|-to era,ono|-
number of salaried persons in the formal sector or •#:dju§t!:,no88/f.atTl±y2¥gg:a/:forpensionerstobe!ncreased
boost the employability of educated youths:

SEPTEMBER 2024
YOJALNA
 to Rs 10 lakh, with a rate of 10 per cent. slab of
Rs 9 lakh to Rs 12 lakh is now contracted to
Rs 10 lakh to Rs 12 lakh at a rate of 15 per cent.
''With these changes (hiking standard deducting 2024-Z5
and restructuring slabs), a salaried employee in the Ermpl8yrmEHt&§killiflg
new tax regime stands to save up to Rs 17,500 in
7.ncome fc7x," said Finance Minister Smt Nirmala
Sitharaman in her budget speech.
S[hemE A: First Timers
3. Employment Linked Incentive (ELI) Scheme:
a Birett benefit trflnsfer of 1-month salary
ln order to add more and more employed in 3 instqllmEnts up to ¥ 15fo88 to
persons to the category of salaried persons, a first-time Emplnyees registered in EPFO
three-tiered ELl scheme has been proposed:
Scheme 8: Job Eredtion in Monufucturing
i. Scheme A: Under this, a one-month wage up ® Incentive tB be provided di*e[tly to both employee
to Rs 15,000 will be given to all persons newly and employer os per their EPFO contribution, in
the first 4 yeflr5 of employment
entering the workforce in all formal sectors. The
amount will be given in 3 instalments through S[heme C: Suppert to Employers
the direct benefit transfer. The eligibility limit C Reimbur5emeut to empleyers up to ¥ 3,000 per mouth for 2 years
be a salary of Rs 1 lakh per month.The towards their EPFO [®ntribution for cach qdditionql employee

expected to benefit 2.1 crore youth.

ii. Scheme 8: This aims to incentivise a the internship cost from their CSR funds.
employmentinthemanufacturingsect
to the employment of first-time empl( 11 these, combined with skilling through the
incentive will be provided at a specified idation of lTl (Industrial Training Institutes)
directly to the employee and the emp.layer with under the Prime Minister's Package for Employment
respect to their EPFO contribution in the first and Skilling involve an outlay of Rs 2 lakh crore and
4 years of employment. The scheme is expected aim to benefit 4.1 crore youth.
to benefit 30 lakh youth entering employment Budget for Consumers
and their employers. From the salaried class andjob seekers, let's move
iii. Scheme C: This will cover additional toanotherimportantcategorycalled'consumers'and
employment in all sectors. All additional find out what is in store for them. However, before
employment within a salary range of Rs 1 lakh that, it is important to know who is a consumer and
per month will be counted.The government will whatarethenewtrendsinconsumption.Normally,all
reimburse employers up to Rs 3,000 per month salaried people are categorised as consumers. Also, it
for 2 years towards their EPFO contribution is believed that anyone who buys a good or avails
for each additional employee. The scheme is of a service and pays a consideration, can be termed
expected to incentivise additional employment a consumer. Combining these, India can have 100
for 50 lakh people. crore or more consumers. However, the same cannot
4. Paid lnternships Scheme: This could help be said if one takes a look at global benchmarks.
in temporary addition in persons getting According toworld Data Lab (WDL), an Austria-based
fixed income every month. It aims to provide welllrecognised data enterprise, spending more
than $12 a day in 2017 PPP (Purchasing Power Parity)
paid internship opportunities in 500 top
companies to 1 crore youth in 5 years. They puts an individual in `Consumer class:
will gain exposure for 12 months to the real-life Using this, the Washington-based Brookings
business environment, varied professions and Institution highlighted that the size of the consumer
employment opportunities. The participant will class in India is 47.3 crore out of a population of over
getamonthlystipendofRs5,000,alongwithone- Rs 140 crore. In 2023, it grew by 3.1 crore.The average
time assistance of Rs 6,000. Companies will be consumer in India is 30 years old, and growth will be
expectedtobearthetrainingcostandl0percent among young people. By 2030, India will be home

YOJALNA SEPTEMBER 2024

to 35.7 crore young consumers under 30 years old, a. On account of changes in standard deduction
the largest `young consumer market' in the world. and slabs under the new tax regime, taking
India's consumer class is much more dispersed. into account average spending of Rs 10,000
Only around half of its consumer class lives in urban per person for 4 crore estimated beneficiaries,
areas. By 2030, India will be home to one-fifth of the the consumer market is likely to get a boost of
world's youth consumer market. India's consumer Rs 40,000 crore during the current fiscal.
class boasts a young, geographically dispersed b. A new scheme to offer internships to 1 crore
population with significant potential for growth in
youths in the country's top 500 companies. The
consumer spending, the study said. scheme is likely to expand the formal job market,
Leading global consultancy firm Deloitte has which in turn has the potential to expand the
observed a notable trend among Indian consumers consumer market.
stating that, "Indian consumers are becoming c. The push on urban and rural growth will help
aspirational''. In a report on the Indian economy,
boost rural consumption and also increase
the firm said that the rapid growth of the middle- discretionary spending.
income class has led to rising purchasing power and
even created demand for premium luxury products d. An importdutyexemptionfor25criticaI minerals,
and services. India's per capita income has steadily including lithium. India has been exploring
increased from Ussl,673.95 in 2014 to US$2,341.10 ways to secure supplies of lithium, a critical raw
in 2022. material used to make electric vehicle batteries.
This is expected to boost the sale of EVs.
In its latest edition of the bi-monthly'C
Confidence Survey' by the Reserve Bank stomdutyongoldandsilverhasbeenreduced,
it has been said that for the year ahead, c ich is expected to boost the sale of jewellery
confidence remained at an elevated d also bring down the cost of manufacturing
the optimistic terrain, though it decline here these are used as input.
marginally, due to relatively tempered se Custom duty on mobile phones and mobile
on the general economic situation and employment chargers reduced, which means the prices of
prospects. Consumers expect a higher rise in overall imported mobile phones will come down. This will
spending over the next year vis-a-vis the previous prompt domestic companies to also reduce prices.
survey round. Also, more respondents expect
9. An intention to expedite GST rate rationalisation
an increase in both essential and non-essential has been shown in the budget. Although a final
spending.
call will be taken by the GST Council, the hope is
Meanwhile, an important indicator of that there will be some action soon that will have
consumption trend in India, Private Final an impact on the overall consumer market.
Consumption Expenditure (PFCE), published along Conclusion
with GDP estimates, is not very encouraging. As per
the provisional estimates of gross domestic product The journey to achieve 'Vi.k5tt Bhc"c7r is not just
for 2023-24, released by the National Statistical about higher allocation in the budget, but also to
Office, the growth rate of PFCE at constant prices in ensure enhancing regular income along with a
2022-23 and 2023-24 is 6.8 per cent and 4.0 per cent, gradual increase in consumption over a period of
respectively. The growth rate of PFCE at current time. These two acts play a key role in the virtuous
cycle. The Union Budget 2024-25 appears to have
prices in 2022-23 and 2023-24 is 14.2 per cent and
8.5 per cent, respectively. These data necessitate understood this philosophy and acted upon it. I
measures of consumption boosts through budget (Views are personal)
and also through the GST Council. References
Keeping all these in mind, a twin strategy can 1. https://www.brookings.edu/articles/china-and-india-the-
future-of-the-global-consumer-market
be used: providing more money in the hands of
2. https://www2.deloitte.com/xe/en/insights/economy/
people and making the goods and services cheaper. asia-pacific/india-economic-outlook.html
It is required accordingly. Here, are the measures 3. RBI's Consumer Confidence Survey, published on
expected to boost consumption: June 7, 2024.

SEPTEMBER 2024 YOJANA

 Produclivily and Resilience

Time and again, scientific research has proven its critical importance in
agriculture development through the 3Is (Intervention, Invention and
Innovation). The nation is proud of having one of the world's largest
agricultural research, extension and education networks. But now it needs to
be fineltuned to tackle new and emerging challenges. Hence, the Government
proposed `a comprehensive review of the agricultural research setup to
bring focus to raising productivity and developing climate resilient varieties'.
The Government has committed to building DPI for agriculture as an open
source, open standard and interoperable public good. It will be a multifaceted
architecture that will enable inclusive and farmer-centric solutions through
relevant information services on various aspects of farming. Budget
allocations and provisions for agriculture and allied sectors have a visionary
approach to making India a selflreliant and developed nation by 2047.

SEPTEMBER 2024 YOJANA

 he Government of India has made a agriculture is fraught with many challenges that
strong commitment and initiated a primarily include climate change, degradation of

EH string of transformative steps to make

India a developed nation by 2047.
Agriculture is one of the key drivers of change in
natural resources, low productivity and a significant
deficit in infrastructure. The Union Budget,
through its various provisions and allocations,
this pursuit due to its critical role in the national is endeavouring to address such challenges in a
economy. Currently, the agriculture sector provides holistic way with a future vision.
livelihood to about 42.3 per cent of the population
Research and Roadmap
and contributes 18.2 per cent in the national GDP
at current prices. The Union Budget (2024-25) has Time and again, scientific research has proven
echoed the sentiments of the Government towards its critical importance in agriculture development
agriculture by designating it as one of the priority through the 3Is (Intervention, Invention and
sectors in the strategic roadmap for `Vi.k5r.f Bhc7rar. In Innovation). The nation is proud of having one of
her budget speech, the Finance Minister identified the world's largest agricultural research, extension
nine priority areas in which 'Productivity and and education networks. But now it needs to
Resilience in Agriculture' occupied the top slot. An be fine-tuned to tackle new and emerging
allocation of Rs 1.52 Iakh crore has been made for challenges. Hence, the Government proposed 'a
agriculture and allied sectors to support ongoing comprehensive review of the agricultural research
schemes and new programmes for agricultural setup to bring the focus to raising productivity and
development and farmers' welfare. Several developing climate resilient varieties'. Government
initiatives, schemes and measures have helped the funding will be provided to develop appropriate
agriculture sector to register an interventions to address specific challenges. To
growth of 4.18 per cent at constant p the effort more widespread, the private
last five years. ector will also be involved in research and
versee the conduct of research. The Government
Due to the furtherance of agri re along
as also set a target to release 109 high-yielding
its many verticals, foodgrain produc
and climate-resilient varieties of 32 field and
an all-time high of 329.7 million
horticultural crops. Such varieties are generally
2022-23. However, in 2023-24, a mild slump hit it
resistant or tolerant to various biotic and abiotic
(328.8 million tonnes), mainly because of poor and
stresses such as high temperatures, droughts,
delayed monsoons. Horticulture and other allied
water logging, etc.
sectors, such as animal husbandry, dairying and
fisheries, are also registering impressive growth, The Department of Agricultural Research
boosting overall agricultural production. But and Education, a wing of the Ministry of

YOJALNA SEPTEMBER 2024

 Digital Empowerment of Farmers -
Digital Public Infrastructure for Agriculture
The Government is vigorously pursuing the integration of digital technologies in the agriculture
sector to digitally empower farmers and improve outreach and delivery of services. The concept of 'Digital
Agriculture' is fast evolving in India to improve efficiency, enhance productivity and ensure sustainability
in agriculture. To further strengthen it, the Finance Minister stated in her budget speech, "Buoyed by the
successofthepilotproject,ourGovernment,inpartnershipwiththestates,willfacilitatetheimplementation
of the Digital Public Infrastructure (Dpl) in agriculture." During this year, a digital crop survey for ongoing
Kharif season, using the DPI, will be taken up in 400 districts. Additionally, farmers across the country and
their lands are to be covered in three years. The details of six crore farmers and their lands will be brought
into the farmer and land registries. Last year, the Union Government asked states and union territories to
automate or digitise the process of area enumeration/Girdawari of crops at field level by adopting a digital
crop survey. A pilot project was also rolled out across 12 states with success.
The Government has committed to building Dpl for agriculture as an open source, open standard
and interoperable public good. It will be a multifaceted architecture that will enable inclusive and
farmer-centric solutions through relevant information services on various aspects of farming. DPI for
agriculture comprises mainly three components: the Agri Stack, Krishi-DSS, and Krishi Mapper (KM). Agri
Stack has three maj.or foundation registries (databases), which register farmers, village maps and crops
in fields. This will enable administration to access farmer IDs, geo-tagged farm plots and crop-sown
data in digital format. Krishi Decision Support System is designed to integrate and store data, such as
remote sensing data, weather data, soil data etc. It also stores data on government schemes pertaining
to agriculture and farmers'welfare, along with its beneficiaries. KM is a geospatial mobile application for
all the land-based schemes and provides comprehensive soil fertility and profile mapping for suitable
soil health-related interventions. KM acts as a digital tool for crop estimation surveys by accurately
measuring crop yields through crop cutting experiments on randomly selected plots. The evolution of
digital agriculture in India is supported by a robust ecosystem, which visualises the support of over 1,000
agri-tech startups, including women-led griculture is embracing the digital domain very fas,t.

Agriculture and Farmers Welfare res ature and Nurture

the development of technologies human Moving from research to nature, the
resources, has been allocated Rs 99 9 crore, vernment proposed to rope in one crore farmers
which was Rs 9876.60 crore in the revi cross the country into natural farming in the next
of the last fiscal. A study estimated th two years. They will be supported by certification
rupee invested in agricultural research (inclu and branding services to scale up the marketing of
education), there is a payoff of Rs 13.85. In their produce with the best profit margins. Further,
2022-23,nls 19.65 thousand crore was spent on 10,000 need-based bio-input resource centres will
agricultural research, which yielded promising be established to facilitate the supply of specific
results. During this period, the Indian Council of inputs directly to farmers. Scientific institutions
Agricultural Research (lcAR), the apex national and Gram Panchayat§ will be involved to get the
organisation for agricultural research, education best results in the interest of farmers. At national
and exteflsion, released 347 new varieties and level, natural farming gained prominence when
hybrids of 44 field crops for cultivation across Finance Mi`nister mentioned it in her 2019 budget
India. In+. addition, 99 varieties of horticultural speech as a means of doubling farmers' income.
crops were notified for commercial cultivation. Natural farming, often intertwined with organic
` ` -JD

The Government is eyeing a rich dividend for farming, is a non-chemical system of fafroing with
farmers and the nation by strengthening the no use of external inputs. It integrates 'crops, trees,
agricultural research ecosystem with human and livestock and traditional indigenous practices with
financial resources. the concepts of resource recycling and on-farm

SEPTEMBER 2024 YOJANA

resource optimisation. The Government has shown So, the Government has decided to promote Farmer
its commitment to promote natural farming due Producer Organisations, cooperatives and start-ups
to its cost-effectiveness and scope for increasing for vegetable supply chains including collection,
employment and rural development. A `National storage and marketing. The development of
Mission on Natural Farming' is already underway as infrastructure and services for vegetable processing
a separate and independent scheme from 2023-24. will help ensure a reduction in the wastage of
It was formulated by upscaling a previous perishable vegetables and an enhancement in
scheme, the `Bhartiya Prakritik Krishi Paddhati`. value addition. The Government has taken several
With the current emphasis on natural farming, the initiatives to improve supply chain management,
Government aims to create awareness and provide from farm gates to retail outlets. An ambitious
training, handholding and capacity building for scheme,'Operation Green; was launched in 2018-19
farmers. The lcAR has developed impactful natural to developing value chain for tomatoes, onions
farming models and an appropriate package of and potatoes (TOP). But now its coverage has been
practices specific to different agro expanded from only three crops to 22 perishable
the country. crops, which include 10 fruits,11 vegetables and
Aiming for nutritional security, ancement one marine product, i.e, shrimp. `Operation Green'
the income of farmers and employ t generatio is working with twin objectives-price stabilisation
the Government has proposed to in case of glut situations and supporting integrated
scale clusters for vegetable produc value chain development projects.
major consumption centres. Incn Despite impressive self-sufficiency in
awareness of health and nutrition issues has foodgrains, milk and other major commodities, the
pushed up market demand for vegetables, mainly production of pulses and oilseeds is still struggling
in urban areas. Currently, with enabling policies with many challenges. To meet increasing domestic
and financial support, India is the second-largest demand for both of these essential commodities,
producer of vegetables in the world. During the Government relies on imports, causing a dent
2022-23 (final estimate), the nation produced on exchequer. The Government has already taken
212.55 million tonnes of vegetables, which included several initiatives to increase production and
a vast variety of vegetables grown in different productivity of pulses and oilseeds and has now
agroclimatic zones. Being highly perishable (mostly again emphasised it in its budget presentation.The
vegetables) in nature, it needs quick transportation Finance Minister said, "For achieving self-sufficiency
to consumption centres and otherwise requires in pulses and oilseeds, we will strengthen their
long-term storage and processing facilities. production, storage and marketing." At the same
time, a strategy is being put in place to achieve
'atmanirbharta' for oilseeds such as mustard,

groundnut, sesame, soybean and sunflower. The

NationalFoodsecurityMission-Pulses,operational
in 28 states and two Union Territories, aims for
area expansion and productivity-enhancement
through various interventions such as cluster
demonstrations on improved packages of practices,
cropping systems, seed production, etc. In addition,
the certified seeds of high-yielding varieties of
pulses are provided in the form of seed minkits
at no cost to the farmers. The Minimum Support
Price (MSP) for pulses has also been increased
over the years to encourage farmers to grow more
pulses by ensuring remunerative prices. In an
almost similar pattern, the National Food Security
Mission-Oilseeds is encouraging farmers to take
up cultivation of oilseeds by providing incentives.

YOJALNA SEPTEMBER 2024

 communities. The Government is consistently
taking steps to accelerate development in this
sector, which is also beaming with ample export
opportunities. Last year (2022-23), India recorded
fish production of 17.54 million tonnes, making it
ProtluEtiuity antl
the third largest producer globally. In the current
Re§ilienoe in AgriGultume
budget, the Department of Fisheries has been
® Oigittil Public Infrastructure: Oigitql Crop
survey for Kharif using OPI to be token up in earmarked Rs 2616 crore, a jump of 54 per cent
400 districts. over Rs 1701 crore in last fiscal. A maj.or chunk
________

® lssuon[e of Jon §amorth based Kisgn Credit

of Rs 2352 crore is allocated to boost activities
Ctlrds to be enabled in 5 states under the flagship scheme 'PM Matsya 5ampada
Yo/.anc7' (PMMSY). While presenting the interim
_

• Financial support for setting up a network of

Nucleus Breeding Centres for Shrimp Broodsto[ke to
budget, the Finance Minister said PMMSY is being
be provided stepped up to enhance aquaculture productivity
from the existing 3 to 5 tonnes per hectare,
® Nationt]l Cooperation Policy to be framed with an objective
to Fast-tracking growth of rural economy a generation of doubling exports to Rs 1 lakh crore and generating
employment opportunities
55 lakh employment opportunities. Five integrated
aquaparks will be established along with the launch
Such measures have resulted in an impressive
of BIue Revolution 2.0 to bolster the sustainable
increase in total pulse and oilseed production by
and holistic development of the fisheries sector in
43 per cent and 44 per cent respectivel
India. Aiming for large-scale exports from fisheries
last ten years (2014-15 to 2023-24).
sector, the Government has proposed several
Fisheries and Forex initiatives and measures in the current budget.
Alliedsectorsoflndianagricult thatis,ani Now, financing for shrimp farming, processing and
husbandry, dairying. and fisherie export will be facilitated through the National Bank
growth drivers of the agricultural for Agriculture and Rural Development (NABARD).
Government is eyeing these er Further, financial support for setting up a network
primary source for enhancing farm incomes. In the of Nucleus Breeding Centres (NBC) for shrimp
current budget, the Finance Minister has allocated brood stocks will be provided. Thus, the availability
Rs 4521 crore to Department of Animal Husbandry of quality brood fish for quality seed production
and Dairying (DAHD) for funding ongoing schemes will be ensured. NBCs will improve the genetic
and the creation of new research facilities. Provisions quality of'aquaculture species for higher quality
have been made for the establishment of the Animal and significantly reduce the country's dependence
Health Institute, Small Livestock Institute, the Breed on import of shrimp broodstock. To support this
Improvement Centre and a Centre of Excellence activity further, the Finance Minister announced a
for Animal Husbandry. Other than specific budget reduction in Basic Customs Duty (BCD) on certain
allocations to DAHD, the Government proposed broodstock, polychelate worms, shrimp and fish
a new credit guarantee scheme for MSMEs, easier feed to five per cent. Customs duty on various
access to working capital and a network of quality inputs for the manufacture of shrimp and fish
testing labs to empower MSMEs for success. DAHD feed now stands exempt. During the last fiscal,
said,`These initiatives will provide immense support lndia's seafood exports hit an all-time high of over
to the dairy and livestock processing industries, Rs 60,000 crore, of which frozen shrimp had a major
fostering growth and innovation.' Such measures share, nearly two-thirds, of the total. Shrimp exports
will enhance productivity, ensure animal health have increased significantly to Rs 40,013 crore in
and facilitate infrastructure development. 2023-24 from Rs 8,175 crore in 2011.

The fisheries sector, often referred to as a 'sunrise Budget allocations and provisions for agriculture
sector; has emerged as a significant contributor and allied sectors have a visionary approach to
to the national economy, and also supports the making India a self-reliant and developed nation by
livelihood of approximately 30 million people, 2047. Further, welfare and financial empowerment
mainly belonging to marginalised and vulnerable of poor and small farmers are at the core. t]

SEPTEMBER 2024 YOJANA

 The Economic Survey 2023-24 notes that despite being o
growing economies in the world, India's annual per capita
only about one-third of the global average. India has successfully decoupled
its economic growth from greenhouse gas emissions, reducing the emission
intensity of its GDP. It is envisioned to develop technology for domestic
production, recycling and overseas acquisition of critical minerals, to abate
the challenges posed by dependency on other countries for critical minerals.
Apart from the renewable sources of energy, the Budget also recognises the
importance of nuclear energy for the energy mix for VI`ksl`t Bhaiiat. Idea of
VI.kslt Bharmf requires a major push for mainstreaming of technology diffusion
across various strata and state-based entities. This would need greater focus on
peoples' participation and engagement of STI with current challenges.

sA[HIN [HATunvEDI The author is the Director General, RIS (Research and Information System for Developing Countries), New Delhi. Email: dg@ris.org.in

he Budget 2024-25 in the realm of private sector participation. As the numbers

science, technology and innovation indicate, the Ministry of Science and Technology

EH (STl) has launched several initiatives

reinforcing national commitment for
Vi.kst.I Bhcl/clf 2047. The budgetary allocations for
has got an additional allocation of 31 per cent
over that of last year. The Budget now stands at
Rs 16628.12 crore, which was Rs 12701.63 crore in
STl are supplemented by additional efforts for the 2023-24.There has been a substantial 64 per cent
institutionalisation of new initiatives and ensuring increase in allocation for the Department of Science

YOJANA SEPTEMBER 2024

and Technology (DST), followed by a 42 per cent rise create and promote a culture of innovation and
in the Budget of the Department of Biotechnology entrepreneurship across the country.
(DBT), and also that of the Department of Scientific In addition, Budget 2024-25 has also launched
and Industrial Research (DSIR). several initiatives such as the Critical Mineral
The allocation for STl is spread across several Mission, India AI Mission and PM Surya Ghar
Ministries and Departments such as the Department Muft Bij.li Yojana, largely dedicated for ensuring
of Space, Department of Atomic Energy, Ministry the competitiveness of the Indian economy, its
of Earth Sciences, Ministry of Electronics and future resilience and sustainability.The Budget
Information Technology, Ministry of Environment, 2024-25 has given a maj.or boost to some of the
Forests and Climate Change, Ministry of New and existing schemes and programmes such as the
Renewable Energy, Ministry of Health and Family National Quantum Mission, National Mission
Welfare, Ministry of Agriculture and Farmers on Interdisciplinary Cyber-Physical System,
Welfare, and Ministry of AYUSH. Budget allocations Deep Ocean Mission, Cyber Security, Modified
across key STl-related ministries ments Programme for Development of Semiconductors
are presented in Table 1. and Display Manufacturing Ecosystem in India, Solar
Energy, National Green Hydrogen Mission, Pradhan
Institutionalisation of R&D
dhan Nati Mantri Ayushman Bharat Health Infrastructure
a new direction with the An
Research Foundation (ANRF), w was laun Mission, and Krishionnati Yojana (including Digital
in the last Budget.The ANRF was a Agriculture & Seed/Planting Material). The Budget
allocation of Rs 50,000 crore during has also proposed a thorough assessment of the
with this, the allocation for NRF (including ANRF) agriculture R&D system and its future priorities.
in the Budget 2024-25 has gone up from Rs 258.60 New Missions New lnitiatives
crore to Rs 2000 crore. This jump of 673 per cent is
The Economic Survey 2023-24 notes that
likely to help in achieving maj.or tasks assigned to
despite being one of the fastest-growing
address the pressing need for a professional and
economies in the world, lndia's annual per capita
comprehensive research framework that directs
human and material resources towards carrying carbon emission is only about one-third of the
out well-coordinated research across disciplines global average. India has successfully decoupled its
and all types of institutions.The overarching goal of economic growth from greenhouse gas emissions,
the NRF is to seed, grow and promote research and reducing the emission intensity of its GDP. In this
development and foster a culture of research and context, the Budget 2024-25 has furthered lndia's
innovation throughout Indian universities, colleges, effort towards a cleaner and greener future which
and research institutions. This will augment the may be seen in the newly launched solar power
efforts of the Atal Innovation Mission, which is the initiatives like pM Surya Ghar Muft Bijli Yojana which
flagship initiative of the Government of India to enabled the promotion of subsidised installation of

Table 1 : Budget AIIocation for Select STl-related Ministries/Departments (in Rs Cr)

•=.-.'-i:,----;:-i,i :,::-,:--,I::=:i

•*1 ---=!s-
•.
_ i -_,-:-,-:`--,:-:j±,Z*,_:`-,Ii,i=-

.,-I-. 2o21-22 2o22-23 2o23-24 20 --,

(Actual) (Actual) (Revised) (Es I mate)

Ministry of Science & Technology 13113.98 12333.14 12701.63 16628.12

Ministry of Earth Sciences 21 84.43 1568.86 2879.02 3064.80

Department of Space 12473.84 10139.43 1 1070.07 13042.75

Department of Atomic Energy 22613.26 24641 .6 1 2SflgrJJ8 24968.98

MinistryofElectronicsandlnformationT=€hnology 8118.65 8199.25 14421 .25 21936.90

Total 58,504.16 56,882.29 C;fl ,R;J I J 5 79,641.55

Share in Total Budget 1.54 1.36 1.51 1.65

Source: Budget papers of the relevant years.

SEPTEMBER 2024 YOJANA

 the lndiaAI Mission to advance artificial
intelligence R&D.

Role of Private Sector

The Budget 2024-25 has allocated
Rs 1 lakh crore to support private sector-
driven research and innovation to build
a more robust national S&T ecosystem
and accelerate the development of new
technologies and products, through
a dedicated corpus fund and capital
expenditure (CAPEX).The proposed capital
expenditure of Rs 11,11,111 lakh crore,
almost 3.4 per cent of GDP, would continue
to play a catalytic role in lndia's journey
for a dollar 5 trillion economy. As pointed
out by the Economic Survey, the spill-over
effect of rising cAPEx is now evident across
the private sector as well. According to the
Survey, private CAPEX grew by 19.8 per
cent to 18.7 Iakh crore, as the combined
CAPEX of central and state government
has grown by 22.9 per cent. The private
rooftop solar panels for 1 crore households along CAPEX include not only dwellings but also IPR and
with free electricity up to 300 units every month. machineryequipment.Theseeffortstogetherwould
The budget underlined the need for a roadmap incentivise the private sector to invest in innovative
for moving away from the 'hard to abate' industries technologies, advanced R&D projects which are
from `energy efficiency' targets to 'emission targets'. crucial for driving technological advancement, and
Additionally, the Finance Minister announced the enhancing global competitiveness in the high-tech
setting up of the Critical Mineral Mission during sector and economic growth. The investments in
the Union Budget. It is envisioned to develop R&D infrastructure are critical for strengthening
technology for domestic production, recycling and the national STl ecosystem for which enhanced
overseas acquisition of critical minerals, to abate collaboration between public and private sectors is
the challenges posed by dependency on other necessary.
countries for critical minerals.
The government aims to create a vibrant
The Artificial Intelligence has been viewed as space economy, making India a significant player
a significant futuristic technology to realise the in the global space economy by expanding
vision of 'Make Al in India and Make Al work for the commercial potential of the space sector,
lndia'. The Government has envisioned the India encouraging private sector participation and
AI programme as a mission-centric approach for fostering innovation. In this context, the Budget
leveraging transformative technologies to boost announced the setting up of a venture capital
inclusion, innovation, and adoption for social fund of Rs 1,000 crore to support start-ups and
impact. The India AI Mission was launched in June
projects in the space sector, in line with the vision
2024, aiming to position India as a leading AI and strategy formulated by the Indian Space
R&D and deployment country, harnessing the Al's Policy 2023. The Department of Space has seen a
transformative potential to drive economic growth, 18 per cent increase in its allocation.
improve public services and address societal
challenges. In line with this vision, and recognising Future Resilience and Sustainability
the significance of emerging technologies like AI, ln line with PM's priority of digitalising
the Union budget has allocated Rs 551.75 crore to citizen centric services and delivery mechanisms,

YOJALNA SEPTEMBER 2024

 the Ministry of New and Renewable
Energy has seen a 143 per cent increase
in their allocation from Rs 7848 crore
to Rs 19,loo crore. The budget saw
significant allocation for renewable
energy proj.ects, particularly grid solar
energy -solar power to reduce carbon
emissions and promote sustainable
development. Incentives for electric
vehicle have been introduced, including
for manufacturer and consumers.
As may be recalled during the G20
Presidency India launched the Global
Biofuel Alliance (GBA). The priority has
continued in this Budget, as allocation
for Bio-energy programme has gone up
from Rs 75 crore to Rs 300 crore.
Apart from the renewable
sources of energy, the Budget also
recognises the importance of nuclear
the Budget proposed greater allocation for energy for the energy mix for Vik5it BhcJraf.The
modernisation of land record both in rural and in budget has announced the setting up of small and
urban areas. This would give fillip to the on-going modular nuclear reactors as well as R&D of newer
programme of unique identification numbers for technologies for nuclear energy.The substantial
land in rural and urban areas called 'Bhu-Aadhaar: higherallocationofRs600croretowardstheNational
This is part of a larger effort to improve land Green Hydrogen Mission, which was launched in
administration, planning and management. January 2023, reflects commitment towards scaling
The Budget earmarks funding allocation for the the mission and accelerating the development of
digitalisation of land records and GIS mapping green hydrogen infrastructure and technologies
as well as support to States for modernising their for lndia's energy transition and climate goals as
land record system, together with strengthening well as positioning India as a global leader in green
technological infrastructure and integrating hydrogen production and technology.
Bhw-Aadhcrc7r with other digital initiatives. The
The Ministry of Electronics and Information
unique identity for citizens particularly farmers in Technology has seen a substantial 52 per cent
rural areas, would provide a greater integration increase in its budgetary allocation in this Budget
of various streams of benefits and services
(Rs. 21936.90 crore). Higher allocation is proposed
being delivered, which would sharpen focus on for its Central Sector Schemes vis-a-vis R&D in IT/
beneficiaries and would also help in minimising Electronics, capacity building and skill development
exclusions.
(launched last year). Significant allocation has also
In terms of future preparedness, energy security made towards cyber security projects (Rs 759 crore),
andgreenenergytransitionwasanotherkeypriority PLl for Large Scale Electronics and lT Hardware
of this year's Budget. The budgetary allocation for Manufacturing(Rs6200crore),aswellastheModified
the Ministry of Environment, Forests and Climate Programme for Development of Semiconductors
Change has increased (Rs. 3330.37 crore) with and Display Manufacturing Ecosystem in India
enhanced funding proposed for the Environment, (Rs 6903 crore). The increased funding is in line
Education, Awareness, Research and Skill with the India Semiconductor Mission launched by
Development (launched last year). Recognising the the Prime Minister in 2021 to further lndia's efforts
growing concerns of pollution, allocation has also towards developing domestic semiconductor
increased for the control of pollution. Additionally, industry and manufacturing capabilities.

SEPTEMBER 2024 YOJANA

 The innovation focus is also there in several by farmers. There is an increase in budgetary
line ministries, including health and agriculture. allocation for agriculture R&D in schemes relating
`With an increase in allocation for the Ministry
to agriculture mechanisation, natural resource
of Health and Family Welfare, the funding for management, crop sciences, horticultural sciences,
National Institute for Research in Digital Health livestock sciences, and fisheries sciences from
and Data Science (NIRDHDS) has increased from Rs 1945 crore to Rs 2145 crore.
Rs 2295 crore to Rs 2732 crore. In order to ensure an Idea of V/.k5i.I Bhcrraf requires a major push for
inclusive and comprehensive health infrastructure mainstreaming of technology diffusion across
for the country, a substantial 23 per cent increase various strata and state-based entities. This would
is seen in the allocation for the Ministry of Ayush need greater focus on peoples' participation
(Rs 3712.49 crore), with an enhanced budget and engagement of STl with current challenges.
proposed for AYURGYAN and Ayurswasthay Yojana. The proposed Budget has strived at this delicate
Greater funding is proposed for the promotion of balance between the Budgetary allocation for
international cooperation as well as the National future preparedness and current and contemporary
Ayush Mission. challenges. The Budget also made an effort to focus
At the same time, productivity and resilience in on those sectors which would augment total factor
agriculture was another key priority of the Budget. productivity and inclusion through access and
The Budget underlined the focus on agriculture equity. The focus on ANRF is an important step
research to raise productivity and develop climate- towards institutionalisation of long-term objectives
resilient varieties as well as the government's and inter-ministerial coordination for science,
commitment to facilitate implementation of technoloav and innovation advancement. I
the Digital Public Infrastructure in agriculture.
(Views are personan
It also announced that new 109 high-yielding
research support provided by Dr Amit Kumar,
and climate-resilient varieties of 32 field and
horticulture crops will be released for cultivation Dr Sneha Sin nd Mr Syed Arslan Ali are duly acknowledged.

firm dpd_india I X DPD_lndla i XYojanaJournal H E= publicationsdivision p

l|F#F -.--=,I I---lit,i ,,,`-r I--~'--`-,_ I '_" '

YOJALNA SEPTEMBER 2024

 As per Economic Survey 2023-24, India's energy needs are expected to grow
2 to 2.5 times by 2047 to meet a growing economy's developmental priorities
and aspirations. Energy security would be enhanced through diversification of
the sources of imports and increased domestic production while reducing energy
demand. According to Ministry of Power, 54.5 per cent of lndia's power came
from thermal sources (like coal, gas and diesel), while 45.5 per cent came from
nonlfossil fuel sources, which includes 1.8 per cent nuclear power in June 2024[
Adopting gasification technology in India can revolutionise the coal sector,
reducing reliance on imports of natural gas, ammonia, methanol and other
essential products while reducing emission. High dependeney on imports mainly
for petroleum for its energy needs shifts to high import dependeney for Solar PV
panels and critical minerals whose supply chain is heavily skewed. India needs
to target diversi,,fled energy sources. S rsification will help minimise risk
associated with energy system g with low emission path.
rkhand (on deput and the Planning Commission. He served for 25 years in the Planning
DR S ( LAH|RY I I!eLa_u:.h.?Tis:^f`?TT.eLr^A_a.V|sfe,r.t.q.tp:
Commission, Government of India, in various capa ross the lndu Minerals, Agriculture, and allied sectors. Email: sclahirv@gmail.com

he International Energy Agency demands on the resources for improving

(lEA) defines energy security as the resilience to climate change and for sustained social

EH uninterrupted availability of energy

sources at an affordable price. Energy
security concerns are key driving force of energy
and economic development. Energy security refers
to a country's ability to ensure a reliable, sustainable
and uninterrupted supply of energy to meet its
policy, considering that resources are limited, the economic, social and political needs. The four key
pace of energy transition would need to factor in objectives of the new energy policy of our country

YOJANA SEPTEMBER 2024

 I A policy document titled `Energy Transition
Pathways' will be released to balance
utunmMes
filtAHut
employment, growth and environmental
sustainability.
I A policy to promote pumped storage proj.ects
for electricity storage will be introduced which
will facilitate smooth integration of growing
share of renewable power with its variable and
S More thou l.28 croro mgistrattons end t4 fakh applicctens
rocehodunderPMSurye®harMutBijtiYqjara intermittent nature in the overall energy mix.
® Pumped storage pofie¥ to be brought out for etectdefty storage cnd I A joint venture between NTPC Limited and
intngrationOfronermbte®mfg]r!ntheavarialienergrm!x
Bharat Heavy Electricals Limited will be
® R&D ct smut end medufro nuelaer roecters are ftever technologies
fernuefro""ngY established to create an 800 MW commercial
a JQint venture bet\veen NTse and BHEl to set up a full scale 8cO MW plant using advanced ultra super critical
commer€iol thamal pfant using AuSC* teehro!ogir

¢ Roodmep fer 'herd ta chct€' irdustde§ to be fomumed for trans!

oadmap for moving the 'hard to abate'
stries from 'energy efficiency' targets
• Energy audit of frodidenol miero and small industds in so ctust
firanctalsoppedfershiftlngthemtocteonerforms emission targets' will be formulated.
ropriate regulations for transition of these
are: access at affordable prices, improved en dustries from the current `perform, achieve
security and independence, greater sustainability and trade' mode to 'lndian carbon market'
and economic growth. mode will be put in place.
Today, India is heavily dependent on oil and 1 PM Suraj Ghar Muft Bijli Yojana has been

gas imports while also importing coal. As per launched to install rooftop solar plants to
Economic survey 2023-24, lndia's energy needs are enable 1 crore households obtain free electricity
expected to grow 2 to 2.5 times by 2047 to meet a upto 300 units every month. The scheme has
growing economy's developmental priorities and generated remarkable response with more
aspirations. Energy security would be enhanced than 1.28 crore household registrations besides
through diversification of the sources of imports 14 lakh applications.
and increased domestic production while reducing I As support to traditional micro and small
energy demand. Our fossil fuel requirement which enterprises, an investment-grade energy audit
comprise 90 per cent of our commercial primary of traditional micro and small industries in 60
energy supply are increasingly being met by clusters including brass and ceramic will be
imports which means that reducing fossil fuel facilitated. Financial support will be provided
consumption would promote the twin goals of for shifting them to cleaner forms of energy and
sustainability and security. NITI Aayog's India implementation of energy efficiency measures.
Energy Security Scenarios 2047 estimates that The scheme will be replicated in another loo
India will need to invest US$250 billion annually clusters in the next phase.
until 2047 to prepare its energy systems for
Budgetary AE!ocations FY 24-25
net-zero pathways.
Apart from estimates and revenue, the
Budget 2024-25
annual budget exercise provides directions to
As part of the Union Budget 2024-25, the the economic policy measures and articulate
Finance Minister announced following key major initiatives of the Government. In 2024-25,
measures to enhance energy security: the Ministry of Non Renewal Energy (MNRE) has
I The Government will collaborate with the been allocated Rs 19100 crore which is an annual
private sector on research and development increase of 86.7 per cent over the budget allocation
for Bharat Small Modular Reactors and new (Rs 10222.00 crore) in 2023-24. The budgetary
nuclear energy technologies, and establish allocation for the Ministry of Power has been
Bharat Small Reactors. pegged at Rs 20502 crore (as against Rs 20671 crore

SEPTEMBER 2024 YOJANA

budgeted in 2023-24) which is 0.81 per cent utilised for capacity addition of 6000 ckm (circuit
lower than the allocation in the previous year. kilometres) transmission infrastructure under
The Ministry of Coal has been allotted Rs 192.58 intra state Green Energy Corridor project. Higher
crore (as against Rs 192.32 crore budgeted in 2023- allocation for the year 2024-25 (Rs 600 crore against
24) whereas budgetary allocation has been slashed Rs 297 crore in 2023-24) is made in respect of
with respect to Ministry of Petroleum and Natural National Green Hydrogen Mission. The provision
Gas at Rs 15930.26 crore (as against Rs 41007 is to make India the global hub for production,
crore budgeted for the year 2023-24). ge and export of green hydrogen and its
atives and to achieve self-sufficieny through
Amongst the major MNRE schemes, So
energy and move in the direction towards
off Grid is allotted a significant hike i.e., Rs
I clean energy transition. Among the major
crore as against budgeted allocation of
mes of Ministry of Power, a) Strengthening
crore in 2023-24. This covers installation
solar street lights, distribution of solar study I power system in North Eastern states allotted
Rs 2416 crore as against budgeted Rs 2902.62 crore
and installation of solar power packs under Phase
in 2023-24, b) Rs 12585 crore earmarked for Reform
3 implementation. The allocation under KUSUM
linked distribution scheme against Rs 12071 crore
(Kisan Urja Suraksha evam Utthan Mahabhiyan),
budgeted in 2023-24, c) Rs 3021 crore allotted to
launched by the Government to increa_se the
income of farmers and provide sources for irrigation
the scheme -Assistance to CPSUs against budgeted
Rs 3931.34 crore in 2023-24.The Ministry of Power is
and de-dieselisation of agri-sector, is passed at
ingplementing some important schemes, eg Energy
Rs 1496 crore as against Rs 1996.46 crore budgeted
in 2023-24. The existing Solar Power (GRID) scheme
conservation with a budget provision of Rs 25 crore
(Rs 30.90 crore provided for 23-24), Manufacturing
(which is having budgeted allocation of Rs 4000
zones under Atmanirbhar Bharat package allotted
crore in 2023-24) is proposed to be subsumed
under PM Surya Ghar Muft BI.jll. scheme announced Rs 80 crore against budgeted Rs loo crore in 23-24,
in Feb'24 alongwith remaining financial outlay and
Promoting energy efficiency in the economy with
liabilities. Rs 8250 crore is allotted in the scheme.
budget allocation of Rs 40 crore against budget
of Rs 103.80 crore in 23124. The Ministry of Power
Rs 600 crore is allotted in 2024-25 as against
Rs 500 crore budgeted in 2023-24 for the Green is entrusted with the development of battery
Energy Corridor scheme. The provision will be energy storage system and a budget allocation
of Rs 96 crore is made in 24-25 (as viability
gap funding). The allocations for Ministry of
Coal and Ministry of Petroleum and Natural
Gas are made primarily for enhancing
domestic production, exploration/drilling,
identification of new mining block, etc and
adoption of clean technologies, etc.
Present Status
There are three typical features
characterised in lndia's energy use-high use
of bio-mass as a share of the total primary
energy supply, predominance of imports
of petroleum and use of domestic coal for
electric power generation. Petroleum (over
85 per cent imported) has a diversified
presence across transport, industrial sector,
residential and commercial sector which
poses a significant challenge given the
volatility in oil prices and limited access to
natural gas. Coal accounts for about 70 per
cent of the total electric power generation.

YOJANA SEPTEMBER 2024

Coal is critical input material to industries eg steel,
lndia's energy mix and ensuring continuous
iron, cement, paper, etc. According to Ministry of power supplies while helping moderate prices.
Power, 54.5 per cent of lndia's power came from A roadmap will be formulated to transition `hard
thermal sources (like coal, gas and diesel), while to abate' industries from energy efficiency targets
45.5 per cent came from non-fossil fuel sources, to emission targets. This shift will move from the
which includes 1.8 per cent nuclear power in June 'Perform, Achieve and Trade' mode to the 'lndian
2024. The composition in the electricity sector Carbon Market' mode, setting a new regulatory
has significantly changed due to the phasing framework for these sectors. The government
in renewable energy (RE) with non-fossil power intends to set up a Critical Mineral Mission for
capacity being 45.5 per cent (as of June 2024) domestic production, recycling of critical minerals
from around 32 per cent in April 2014. Incidentally, and overseas acquisition of critical mineral assets.
India pledged in Paris (Paris Agreement for Climate There is a proposal to fully exempt customs
Change) to generate 40 per cent of lndia's power duty from 25 critical minerals, such as lithium,
capacity from non-fossil fuel sources and create copper, cobalt and rare earth elements, which
an additional carbon sink of 2.5 to 3 billion tonnes are critical for sustainable technologies such as
of C02 equivalent by 2030. India has overachieved electric vehicles and renewable energy systems.
the target set for installed acity from The Government has launched several clean coal
non-fossil fuel sources. .initiativesincluding coal gasification mission
policy lnitiatives aiming to gasify 100 million Tonnes of coal by
2030. Adopting gasification technology in India
Recent initiatives for en ing the pro can revolutionise the coal sector, reducing reliance
Of RE are a) PM-Surya Ghar M Yojanal on imports of natural gas, ammonia, methanol and
in February 2024 with a tota other essential products while reducing emission.
crore is expected to add 30G Initiatives like extracting coal based methane gas
and reduce 720 million tonnes of C02 equivalent
(CBM), coal beneficiation, carbon capture and
across the solar value chain, b) the Government storage (CCS), etc mitigate emissions and enhance
has notified the national offshore wind energy environmental sustainability. Adoption of super
policy and offshore wind energy lease rules 2023. critical and ultra super critical technologies for
Several offshore zones have been identified for thermal power plants has led to lower emission and
harnessing this potential and c) underscoring higher efficiency. Further, it is proposed that 800 MW
the importance of green hydrogen in reducing commercial plant using advanced ultra super
carbon emissions in the hard-to-abate sectors. critical technology in a Joint Venture (JV) between
Indian Green Hydrogen Mission targets 5MMT NTPC Limited and BHEL will be established.
(million metric tonnes) of green hydrogen by
2030. The scheme offers financial incentives to challenges ` 4,
boost electrolyser manufacturing and production. Energy demand is expected to increase as the
Additionally, the budget 2024-25 promotes country develops in line with the goal of Viksit
the development of small and modular nuclear Bharat and a concommitant rise in RE capacity
reactors in partnership with the private sector and may lead to baseline efficiency as the supply
emphasises renewable energy storage solutions composition changes.
and advanced ultra-supercritical thermal power
Large scale phasing in of RE poses several risks
plants.These initiative,s will bolster energy security associated with intermittency and dispatchability
by diversifying energy sources and reducing
in the energy system. Addressing the issue is critical
teliance on fossil fuels, while also mitigating
for significant deployment of RE. Expanding RE
climate change by lowering greenhouse gas
and clean fuels will increase dema.nd for land and
emissions. Enhancing the storage and integration
water. The availability of land is a maj.or challenge
of renewable energy, the government is set
for India.
to introduce a robust Pumped Storage Policy
(PSP). This initiative aims to provide a large-scale Critical minerals/metals are required for RE
solution for storing excess electricity, facilitating and battery storage technologies. The sources
smoother integration of renewable sources into of minerals are geographically concentrated eg

SEPTEMBER 2024 YOJANA

graphite (China 79 per cent), cobalt (DRC 70 per non-fossil fuel resources eg nuclear, biofuel and
cent), rare earths (China 60 per cent) and Lithium hydrogen. High dependency on imports mainly
(Aus 55 per cent). The concentration level is even for petroleum for its energy needs shifts to high
higher for processing with China dominating import dependency for Solar PV panels and
across the board. India's initiative to build critical minerals whose supply chain is heavily
domestic capacity should be seen in the backdrop skewed. India needs to target diversified energy
of the current supply chain for RE which is heavily sources. Such diversification will help minimise
skewed. Shifting lndia's high import dependency risk associated with energy system while
from petroleum to solar panels and critical pursuing with low emission path. It is suggested
minerals, which have complex supply chains and to integrate RE with nuclear power, bio-fuels and
are currently subject to geopolitical issues, would green hydrogen to address the risks associated
be a challenge. with large-scale RE adoption. Financial support
Solar PV waste recycling is a challenge. SPV proposed for traditional micro and small scale
sector to transition to cleaner energy forms will
panels have lifetime of 25-30 years. SPV waste
recycled as scrap poses risks to environment and bring in positive change. I
human life due to toxic metals. References
Conclusion *
1. Finance Minister's Budget 24-25 Speech, Ministry of
+
Finance, GOI
For lndia's ensuring ener security,
2. Expenditure Budget 24-25 document, MinistryofFinance,
should be expanded as much as ssible in t Gol
short to medium term, the foc 3. Ministries Demands for Grant 24-25, Ministry of Finance,
be actively adopting clean tec Gol
Government initiatives for cleaner coal 4. Economic survey 23-24 document, Ministry ofFinance, GOI
gasification, CBM, CCS and coal beneficiation, etc 5. India Energy security scenario, 2047, NITI Aayog, GOI
to mitigate emissions and enhance environmental
6. Objectives of New Energy policy, Ministry of coal, PIB, Gol
sustainability needs to be promoted. Solar power
7. Annual Report22-23, MinistryofNon Renewable Energy,Gol
installed capacity has increased significantly.
However, risks are associated with the large scale 8. Annual Report 22-23, Ministryofpower, Gol

phasing in of renewable eg intermittency, grid 9. Annual Report22-23, Ministryofcoal,Gol

integration, back up power generation, storage, 10. Annual Report 22-23, Ministry of Petroleum and Natural
etc. It is important to supplement with other Gas, Gol.

YOJANA SEPTEMBER 2024

 Fostering Infrastructure Development
in India Through Fiscal Intervemtioms
The author is the Professor and Dean of Research at |aipuria Institute of Management lndore.
DR AMIYA KUMAR MOHAPATRA Email: amiva[ademi[s@gmail.com.

India is uniquely placed in terms of demographic dividends, with about

40 per cent of youth (18-35 years) and over 62 per cent of the population
falling under the age group of 15-59 years, which is expected to rise up to
65 per cent by 2035. This demographic dividend of India can be leveraged
with the help of adequate strategic measures for integrated development
and transformation of population into a treasure house of productivity
and prosperity in general and with the help self-sustaining infrastructure
development in particular. Infrastructure plays a significantly critical role, in
economic development and acts as a key driver in sustaining the growth and
development process amidst uncertain and challenging environments. The
ripple effects of infrastructure investments include boosting the economy,
improving the quality of life, fostering regional and balanced development,
enhancing positive social impact, and fostering all-encompassing economic
and societal progress through innovation and technology integration. It is
a fact that the inherently rapid growth of infrastructure will cause some
environmental impacts and is likely to create challenges for the nationi
Hence, green and sustainable infrastructure projects are the need of the
hour, considering the well-being of people, society and the planet.

SEPTEMBER 2024 YOJANA

formulated a plan, `PurvodcJyt7', for the all-round development. The government has made adequate
development of the eastern region of the country, investmentprovisionsforinfrastructuredevelopment,
covering Bihar, Jharkhand, West Bengal, Odisha and since it is a vital engine for economic growth and
Andhra Pradesh. This will cover human resource societal progress. A positive correlation between
development, infrastructure, and open-up economic infrastructure spending and GDP underscores the
opportunities to make the region to attain rise in infrastructure provisioning in the current
'Viksit Bharat`. budget FY2024-25, without compromising the fiscal
consolidation objectives and targets.
Social infrastructure, as
importance in the budget allo n as it imp Overall, the budget is predominantly focused
the quality of life and societal ress. Edu on the development of 9 pillars of priorities, and
health, drinking water, and sani infrastructure is one of them. Infrastructure has the
crucial roles in overall well-being major budgetary allocation, along with continued
major initiatives that received budgetary support and strategic policymaking to intiate faster economic
•incJude Ayushman Bharat, the National Health Mission,
development and societal progress. Budgetary
the AMRUT Scheme, Samagra Shiksha Abhiyan, the provision has opened up various opportunities
National Livelihood Mission, e+c. it .is found from for the youth, and social service provisions have
various research studies that investing in healthcare, been enhanced. To onboard the private sector and
education, and governance has a greater multiplier make them a part of infrastructure development,
effect and has a positive impact on quality of life. It is the government has started viability gap funding,
noted that as social initiatives, Rs 38 Iakh crores have tax reforms, and ease of market financing. These
been transferred since 2013, through the Jan Dhcln measures will not only attract private investments
Yojana-Aadhaar-Mobile(JAM)'Tr.in.ity.inhiiatwe. but also attract foreign direct investment (FDl) for
fostering the holistic infrastructure development,
To promote manufacturing, the government
which will have a multiplier effect on lndia's overall
has recognised the need for industrial infrastructure
in the right locations with appropriate facilities. growth story.
A further proposal is made to create investment- It is a fact that the inherently rapid growth
ready'plug and play' industrial parks with all sorts of of infrastructure will cause some environmental
infrastructure in or near 1 00 cities, through partnering impacts and is likely to create challenges for the
with private sector and state governments. In nation. Hence, green and sustainable infrastructure
addition,12 new industrial parks are proposed under projects are the need of the hour, considering
the National Industrial Corridors Development the well-being of people, society and the planet.
(NICD) programme. To encourage higher private In addition, policymakers should ensure that the
participation in infrastructure investment to benefits of socio-economic development as a
optimise the capital requirements in the budget, the result of augmented infrastructure budgeting
government has proposed to implement viability are percolated to the bottom of the pyramid; and
gap funding and supports the policy and regulation. reach the last-mile citizens. This can be ensured
A market-based financial framework will be created by strategic public policy interventions and good
to crowd in private finance, and promote private governance that keep the long-term national goals,
sector participation. An amount of Rs 1.5 Iakh crores which must be effective, inclusive, collaborative
is provisioned as a long-term interest-free loan and sustainable. With these multiple yet growth-
to support resource allocation for infrastructure orientated interventions, India can forge ahead to
development in the states. This is expected to emerge as a developed nation, as it gets aligned
contribute to balanced development across India. with global trends and particularly with a focus on
a 'holistic and sustainable development agenda'. I
Way Forward And `Future of lndia@2047'
(Views are personal)
lndia's growth traj.ectory will take a new turn in
boosting the economy, as a result of an increase in References
infrastructure spending; and will help in attaining • Economicsurvey2023-24,Governmentof India.
'Viksit Bharat@2047'- India as a 'developed nation', • Union BudgetDocuments2019to2024,Governmentoflndia.

which promises overall holistic and sustainable • Newspapercoverageswith Analysis on union Budget2024-25.

SEPTEMBER 2024 YOJANA

 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 nextlgeneration reforms with a particular focus
on generating ample opportunities for all. Among these areas, the pillar
of manufacturing and services is crucial, as it holds the potential to drive
economic growth, create jobs, and foster innovation.
anufacturing has historically been plays a significant role in the economy. Through
a cornerstone for the development the implementation of different programmes and

RE of every economy. The Indian

manufacturing industry generated
16-17 per cent of lndia's GDP pre-pandemic and
policies, the government hopes to have 25 per cent
of the economy's output come from manufacturing
by 2025.
is projected to be one of the fastest-growing
The Ministry for Heavy Industries & Public
sectors. By 2030, India will have the capacity to
export goods worth US$ 1 trillion and is on the Enterprises, Government of India, has initiated
verge of becoming a major global manufacturing SAMARTH Udyog Bharat 4.0, or SAMARTH Advanced
hub. The manufacturing sector, with 17 per cent Manufacturing and Rap.Id Transformation Hubs.
of the nation's GDP and over 27.3 million workers, The expectation is that this initiative will boost

SEPTEMBER 2024 YOJANA

the manufacturing sector's competitiveness in streamlined regulatory processes, joint research
the capital goods market. With an impetus on and development opportunities, and capacity to
developing industrial corridors and smart cities, manufacture and assemble high-quality products
the Government aims to ensure the nation's meeting international standards. As a result, maj.or
holistic development. The corridors would international companies are increasingly setting up
further assist in integrating, monitoring, and in the country or exploring R&D partnerships.
developing a conducive environment for industrial In recent years, the Government has taken a
development and will promote advanced practices structured approach to fostering growth across
in manufacturing.
varioussectors,includingagriculture,infrastructure,
India is gradually progressing on the road to digital platforms, skilling, and manufacturing.
Industry 4.0 through initiatives like the National The Union Budget 2024-25 continues this trend
Manufacturing Policy, which aims to increase the by focusing on nine priority areas that benefit
share of manufacturing in GDP to 25 per cent farmers, women, youth, and the economically
by 2025, and the PLl scheme for manufacturing, disadvantaged. A key objective of the budget is to
which was launched in 2022 to develop the stimulate rural economic growth, thereby positively
core manufacturing sector at par with global impacting the nation's overall development. It also
manufacturingstandards.Themanufacturingsector maintains capital expenditure at the level set in the
in India is gradually shifting to more automated and interim budget, ensuring sustained investment in
process-driven manufacturing, which critical areas.
to increase the efficiency and boost The Union Budget 2024-25 places significant
the manufacturing industry.
emphasis on the promotion and growth of micro,
In the last five years, India has en a rise in small, and medium enterprises (MSMEs), especially
foreign technical collaborations, in theq realm of labour-intensive manufacturing.
sectors like mobile phones, electrc Recognising the vital role of MSMEs in the economy,
processing, with the US, Germany, and Ja the budget has introduced a comprehensive
maj.or technology transfer partners. Also, during packa+ge that includes financing, regulatory
the COVID-19 pandemic, India demonstrated its changes, and technology support to help these
manufacturing prowess by rapidly producing enterprises grow and compete globally.
pharmaceuticals and vaccines, changing To facilitate term loans for MSMEs for the
perceptions about its manufacturing capabilities.
purchase of machinery and equipment without
India now presents itself as a favorable requiring collateral or third-party guarantees, a
destination for foreign companies due to new credit guarantee scheme will be introduced.
This scheme will operate by pooling
the credit risks of these MSMEs. A
self-financing guarantee fund will
be established to provide guarantee
coverage of up to Rs 100 crore for each
applicant, although the loan amount
can be larger. Borrowers will be
required to pay an up front guarantee
fee and an annual guarantee fee on
the reducing loan balance.
Public sector banks will develop
in-house capabilities to assess MSMEs
for credit, moving away from reliance
on external assessments. A new credit
assessment model will be created
based on the scoring of the digital
footprints of MSMEs in the economy.

YOJALNA SEPTEMBER 2024

 The small Industries Development Bank of India
(SIDBl) will open new branches to expand its reach
and serve all major MSME clusters within three
years. This year, 24 new branches will be opened,
expanding the service coverage to 168 out of 242
major clusters.
Financial support will be provided for setting
up 50 multi-product food irradiation units in the
MSME sector. Additionally, the establishment of
loo food quality and safety testing labs with NABL
accreditation will be facilitated.
To enable MSMEs and traditional artisans
to sell their products in international markets,
E-Commerce Export Hubs will be set up in a public-
private partnership (PPP) mode. These hubs will
provide trade and export-related services under
a seamless regulatory and logistic framework, all
under one roof.

This model will offer a significant improvement

These initiatives demonstrate the Government's
over traditional credit eligibility assessments that
commitment to fostering the growth and
opment of MSMEs in India, ensuring they
rely solely on asset or turnover criteria,
also covering MSMEs without a formal acc the support and resources needed to thrive in
lobal market. The Union Budget 2024-25 is a
System.
ent to the vital role that MSMEs play in driving
A new mechanism will be introd mic growth and I.ob creation in the country.
ensure the continuation of bank credit t(
icro, Small, and Medium Enterprises (MSMEs)
during periods of stress. When MSMEs are
`special mention account' (SMA) stage due are the backbone of lndia's manufacturing sector.
factors beyond their control, they need credit to Recognising their importance, the budget has
sustain their business and avoid falling into the
introduced a comprehensive support package for
MSMEs.
non-performing asset (NPA) stage. Credit
availability will be supported by a guarantee from In line with global trends towards sustainability,
a government-promoted fund. theunionBudget2024-25hasalsoplacedasignificant
The limit of Mudra loans (Micro Units emphasis on green manufacturing. Key measures
Development & Refinance Agency Ltd.) will be include subsidies for eco-friendly technologies,
increased from the current Rs 10 lakh to Rs 20 Iakh
where industries adopting environmentally
for entrepreneurs who have previously availed and friendly technologies and practices are eligible for
successfully repaid loans under the `Tarun' category. subsidies, reducing the financial burden associated
This enhancement aims to provide further support with transitioning to greener methods. Moreover,
to growing businesses. additional tax incentives are offered to companies
that demonstrate a commitment to reducing their
To help MSMEs unlock their working capital by carbon footprint through innovative solutions.
converting trade receivables into cash, the turnover
threshold of buyers for mandatory onboarding on
As mentioned above, India has the potential
the Trade Receivables Discounting System (TReDS)
to become a global manufacturing hub, and
by 2030, it can add more than US$ 500 billion
platform will be reduced from Rs 500 crore to Rs
annually to the global economy. For this, a robust
250 crore. This measure will bring an additional 22
infrastructure is vital.
Central Public Sector Enterprises (CPSEs) and 7000
companies onto the platform, including medium The budget has earmarked substantial
enterprises within the scope of suppliers. investments in infrastructure development,

SEPTEMBER 2024 YOJANA

including the development of new industrial
corridors and the enhancement of existing ones,
which are expected to facilitate smoother logistics
and supply chain management. The Smart Cities
initiative aims to create urban environments
conducive to industrial activity with state-of-the-art
facilities and efficient public services. Investment
V]ks:to4::arat
in logistics parks will streamline the movement
of goods, reducing transportation costs and
improving delivery times.
a 30 crore Mudra Yojana loans disbursed to women
The services sector is not only the dominant
entrepreneurs
contributor to lndia's GDP but also a magnet ___ --`-,`---`.-

for significant foreign investment, a major o Female enrolment in higher education increased
contributor to exports, and a provider of large-scale by 28 per cent in 10 years
I ----- ~ --I --

employment. In 2022-23, the sector accounted o Female constitute 43 per cent of enrolment in STEM
for over 50 per cent of lndia's GDP and witnessed courses, one of the highest in the world
a growth rate of 9.1 per cent. Of the 8.12 million
o 1 crore women assisted by 83 Iakh SHGs to become
jobs created in FY23, nearly half were generated by Lakhpati Didis
service sector companies in IT, banking, and finance.
As the engine of growth for lndia's economy, the commercial services exports and increase its share
services sector contributed 55 per cent to lndia's in the global services ,market beyond the current
Gross Value Added (GVA) at current prices in FY24, 3.3 per cent, the Government is making concerted
according to advance estimates. It also ranked first efforts to facilitate a multi-fold expansion in the
in FDl inflows, as per data from the Department for GDP.
Promotion of Industry and Internal Trade (DPIIT).
India's unique position as an emerging market
India's services sector encompasses a diverse is bolstered by its knowledge-based services, which
range of activities, including trade, hotels and create a competitive advantage. The Indian services
restaurants, transport, storage and communication, industry benefits from numerous government
finance, insurance, real estate, business services, initiatives like Smart Cities, clean India and Digital
community, social and personal services, and India, fostering an environment that strengthens
construction-related services. To boost lndia`'s the sector. This environment has the potential

YOJALNA SEPTEMBER 2024

 revenue generation. To tackle the challenge of job
creation, the Skill India programme aims to skill
and upskill 400 million people by 2022, primarily
by fostering private sector initiatives in skill
development and providing necessary funding.
Additionally, the Make in India programme,
while focused on strengthening the manufacturing
sector, will have a multiplier effect, enhancing
the services sector's portfolio. In this context, the
Startup India initiative serves as a crucial enabler
for both the manufacturing and services industries
in India by supporting innovative startups.
With the focused attention of the Government
in the Union Budget 2024-25, the strategic
measures outlined are designed to enhance the
sector's capacity to drive economic growth and
innovation. The services sector is rapidly evolving
with the advent of digital technologies. The budget
emphasises significant investments in upgrading
digital infrastructure, including high-speed
to unlock multi-trillion-dollar opportunities, internet connectivity across urban and rural areas.
stimulating symbiotic growth globally. Service Additionally, initiatives to improve digital literacy
providers in India have continued to see positive among the workforce ensure that employees can
demand trends, leading to increased business effectively leverage digital tools and platforms. The
volumes and job creation. Union Budget 2024-25, with its comprehensive
In December 2023, services exports grew by focus on manufacturing and services, marks a
significant step towards realising the vision of
1.3 per cent to USD 31.6 billion, driven by software, `Viksit Bharat'. The strategic measures outlined in
business and travel services, while imports
the budget are expected to drive economic growth,
declined by 1.2 per cent, resulting in record-
create employment opportunities and enhance the
high net earnings of USD 16.0 billion. During the
overall standard of living for all citizens. The synergy
October-December 2023 period, India experienced
between manufacturing and services, underpinned
a 5.1 per cent year-on-year increase in services
by integrated logistics, financial services and a
exports to USD 87.7 billion, with a trade surplus of
robust startup ecosystem, will create a dynamic
USD 44.9 billion, largely driven by software, business
and resilient economy.
and travel services.
Finally, the Union Budget 2024-25 sets a
Both domestic and global factors influence the
robust framework for achieving `Vt.k5tt Bhc7rc7f: By
growth of the services sector. An extensive range
emphasising digital infrastructure, workforce digital
of service industries has experienced double-
literacy and the integration of manufacturing
digit growth in recent years, supported by digital
and services, the budget aims to build a dynamic
technologies and institutional frameworks made
economy that fosters innovation, growth and
possible by the Government. The ease of doing
business in India has significantly increased for prosperity for all citizens. The strategic measures
outlined will not only drive economic growth
domestic and foreign firms due to considerable
and employment but also enhance the overall
advancements in culture and the government
outlook. quality of life, ensuring a resilient and inclusive
future for India. I
The services sector in India boasts the highest
Reference
employment elasticity among all sectors, signifying
its potential for significant growth and the ability to 1. IBEF Report on Manufacturing May 2024 (Manufacturing
create highly productive jobs, which in turn drive Industries in India & its Growth I lBEF)

SEPTEMBER 2024 YOJALNA

 With one of the youngest populations and a median age of 28, India can
harness its demographic dividend by nurturing a workforce equipped with
employable skills that match industry needs. The revamping of the
SJliiflm SHvl-dha and SamfldhaJ] portals will lead to a more efficient,
transparent and user-centric labour ecosystem, benefiting all stakeholders.
Another inclusive initiative by the government is to enhance women's
participation in the workforce by facilitating the establishment of working
women's hostels and creches in collaboration with industryi A slew of
measures announced in the budget for manufacturing, particularly for
employment generation and skilling, bodes well for the country.
Employment is one of the biggest challenges
landmark in terms of its focus on faced by policymakers in India.The Indian economy
employment and skilling. It lays a needs to generate nearly 78.51 Iakh jobs annually in
Ehe Union Budget
strong foundation2024-25
for the Vi.k5itwas a
Bhc]rc7f the non-farm sector to cater to the rising workforce,
inclusive agenda of growth with employment. aspertheeconomicsurvey2023-24.Thisbudgethas

SEPTEMBER 2024 YOJANA

attempted to address this gargantuan challenge. Sixty-five per cent of lndia's fast-growing
One of the most notable initiatives introduced population is under 35, and many lack the skills
in the budget is the Employment Linked Incentive needed for a modern economy. Estimates show
Schemes. These schemes provide financial that about 51.25 per cent of the youth are deemed
incentives to employers for hiring new workers, employable. In other words, about one in two
are not yet readily employable immediately after
particularly in the manufacturing sector. By offering
wage subsidies and other benefits, the government college. This initiative will help strengthen the
aims to encourage j.ob creation in the formal sector, connection between educational institutions and
thereby helping to reduce unemployment and spur industry, ensuring that academic programs are
economic growth. better aligned with industry needs.

With one of the youngest popu Another inclusive initiative by the government is
median age of 28, India can harness its Ographic enhance women's participation in the workforce
dividend by nurturing a workforc facilitating the establishment of working
quipped
with employable skills that match ind omen's hostels and creches in collaboration with
Offering internship opportunities to dustry.This initiative aims to reduce turnover rates
among female employees by addressing the work-
youth in the top 500 companies, with a mix of
life balance challenges faced by women, thereby
government contributions and CSR spend by the
industry, is a novel idea. These interns will acquire expanding the talent pool available to industries.
industry-specific knowledge and build professional We need to now ensure that these hostels are near
networks that can lead to job and self-employment the workplaces of women employees.
opportunities. More importantly, these interns A key objective on our path to Vi.k5tt Bhc7rc7f is to
will help in replicating the world class culture and bringourvastunorganisedsectorintotheorganised
systems of the top 500 companies in other entities, fold. The e-Shram portal, lndia's first national
thereby helping them scale up. database of unorganised workers, has already

YOJANA SEPTEMBER 2024

registered over 29.79 crore workers. Designed to employment, strengthening support for MSMEs,
establish a National Database for Unorganised and also addressing areas that would reduce costs
Workers, the portal aims to include approximately for the sector.
38 crore workers from this sector. Progress has The role of manufacturing in Viksit Bharat is
been steady, and we anticipate reaching the target imperative, and this came out loud and clear in
soon. Integrating the e-5hrc7m portal with other the latest budget. A slew of measures announced
platforms, such as the National Career Service (NCS) in the budget for manufacturing, particularly for
portal and similar portals from various Ministries employment generation and skilling, bodes well
and Departments, will create a more responsive, for the country. Manufacturing is generally one of
efficient, and user-friendly labour ecosystem that the most dynamic sectors in the global economy,
benefits workers, employers, and policymakers both in terms of economic weight and its links
alike.These integrated services will also help ensure with all other sectors. Structural change towards
that workers receive their entitlements and benefits higher value-added manufacturing activities has
promptly, thereby enhancing their overall welfare. therefore traditionally been considered the main
The revamping of the 5hrcJm Suvi.dha h economies can take to achieve higher income
5c7madhc7n portals will lead to a more and provide sustainable livelihoods for their
transparent, and user-centric labour eco
benefiting all stakeholders. The unified ntion to the future of work should be
5uvi.dha Porfcl/ has been developed to f to -a topic that is becoming increasingly
inspection reporting and the submission of int in the context of rapid technological
The portal serves as a single point of vancements, shifting demographics, and
between employers and enforcement agencies, changing economic landscapes. This has
promoting transparency in their daily interactions. implications for our employment scenario going
Each inspectable unit under any labour law has forward. The future of work is characterised by
been assigned a Labour Identification Number automation, artificial intelligence, and the rise of
(LIN) through the portal, marking a significant step the gig economy. While these changes bring about
towards ease of doing business. new opportunities, they also pose challenges
Another important aspect related to labour that we must address proactively. According to
is productivity. In this budget, we have seen an the World Economic Forum's (WEF) Future of Jobs
announcement to lay out an economic policy report, 2023, in the next five years, 23 per cent of
framework for next generation reforms that will the jobs are expected to change globally. This
include reforms for improving the productivity change is likely to consist of growth in 10.2 per
of factors of production, namely land, labour, cent of the j.obs and a decline in 12.3 per cent of
capital, entrepreneurship and technology, making the jobs. Employers anticipate 69 million new
markets and sectors more efficient. The world's j.obs to be created and 83 million eliminated-a
living standards have climbed sharply over the net decrease of 14 million jobs, or 2 per cent of
past two decades, driven by strong productivity current employment. So we need to ensure that our
growth. However, there are signs that productivity youth and existing workforce are future-ready. The
growth is fading in many parts of the world. If India announcements made in budget have also tried to
has to sustain its economic growth rate over a address this challenge.
quarter century and do it sustainably, it is important Toconclude,thelabour-relatedannouncements
that these reforms for factors of production, in the Union Budget 2024-25 demonstrate a
including labour, for improving their productivity comprehensive strategy to bolster lndia's labour
and making markets efficient, are carried out now. market. By prioritising job creation, enhancing
Further, the budget's focus on manufacturing, women's workforce participation, advancing skill
MSME, and employment is going to be a decisive development, improving labour market efficiency,
factor in our growth journey. The budget has and focussing on manufacturing and MSMEs, the
addressed the manufacturing sector in a very government is committed to driving inclusive and
comprehensive manner by providing incentives for sustainable economic growth for Vi.k5i.I Bharc7f. a

SEPTEMBER 2024 YOJANA