On July 23, the Indian government is set to unveil its annual budget, marking the first since Prime Minister Narendra Modi began his third term last month. Experts anticipate that the budget will prioritize infrastructure development and job creation.
Finance Minister Nirmala Sitharaman will present the budget to Parliament, making this her seventh occasion in this role for Modi’s government during the current fiscal year, which spans from April 2024 to March 2025. This budget follows a temporary budget introduced earlier this year in February, which was necessary due to the proximity of the general elections held in June. Despite facing a reduced mandate, Modi was able to secure his third consecutive term.
Infrastructure investment has been a significant focus in recent budgets, and many analysts expect the government to continue this trend. According to Moody’s Analytics, “This post-election budget will likely reinforce the goals outlined in the pre-election budget, which emphasized spending on infrastructure, support for the manufacturing sector, and fiscal prudence.” Analysts believe that the new budget will aim to boost consumer and business confidence following the election results.
One pressing issue that has come to the forefront is the lack of job opportunities in India. Venkatramanan Anantha Nageswaran, the government’s chief economic advisor, highlighted the urgent need for job creation during a recent press conference. He noted, “We estimate that India needs to create approximately 8 million jobs per year.” This statement was made in conjunction with the release of the Economic Report for 2023-2024.
The report forecasts GDP growth of between 6.5% and 7% for the fiscal year 2025. It emphasizes that internal growth factors have bolstered the economy in the past year, driven by stable consumer demand and an improving investment climate. If the current growth rate persists, India could potentially become the world’s third-largest economy during this legislative term, trailing only the United States and China.
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