Budget 2024: Building foundation to monetise India's demographic dividend

Budget 2024 highlights the government’s continued focus on building a strong foundation that empowers citizens and organisations to drive inclusive and sustainable economic growth. The policy initiatives announced attempt to solve for structural issues that have been impeding the nation from attaining its growth potential. 
 

A lot has been said about India’s demographic potential in recent years – being home to more than 600 million people between the age of 18 and 35, with 65 per cent under the age of 35 — and this demographic advantage will prevail for another three decades or so. Having crossed the inflection point in terms of GDP per capita a few years ago, the next phase of growth will be defined by a future-ready workforce to drive our momentum towards a Viksit Bharat. 
 

In line with the recently released Economic Survey, the Budget also sends a clear message to the private sector – to take on the onus of bringing more people into the ambit of formal employment with the government’s support. This, supplemented by the ongoing education reforms and fiscal support to students, will help build capabilities, provide on-the-job experience, and boost the overall employability of the youth. From supporting wide-scale internships to new employment generation, each of these initiatives will help in the overall development of skills, creation of a talent pool, increasing employability and productivity, and as a result promoting overall economic development. 
 

The Budget also places emphasis on leveraging the power of women in the workforce. Increased support around rental housing and hostels for women will create much-needed safety and stability, and will drive migration to emerging manufacturing hubs while improving quality of life for many. 
 

Moving beyond formal employment towards entrepreneurship, the Budget also called out support for the start-up ecosystem, street vendors and MSMEs – each of which will drive progress in both urban and rural areas while also boosting tourism and consumption at the micro level.
 

India’s vibrant start-up ecosystem has developed over the last few years, with the number of start-ups increasing from Rs 300 in 2016 to Rs 1.25 lakh as of March 2024. With 45 per cent of these organisations emerging from Tier -II and Tier-III cities, India’s growing entrepreneurial prowess is helping create solutions to solve on-ground problems. The government’s fiscal support, abolition of angel tax and sector-specific reforms are further expected to drive innovation.
 

Boosting agri-productivity and strengthening allied sectors is a welcome step. Modernisation of agricultural practices and bringing in Digital Public Infrastructure (DPI) can help drive efficiencies. This DPI also creates an opportunity for rural entrepreneurs who can contribute to the transformation of the agri space. Improving farm productivity will not only help improve farmer incomes, but also strengthen India’s food security.
 

For India to bring to life its aspirations, it is essential that health be treated with paramount importance. Support for the agricultural sector, especially in terms of self-sufficiency and a more robust supply chain, can help set the foundation in this regard.
 

India’s journey towards building an energy-efficient ecosystem continues, and support for alternative energy sources such as nuclear and solar, building energy storage mechanisms, and energy audits will play a defining role. If safely and efficiently developed, these will help reduce any negative impact on the environment, and create a better world for future generations.

Our nation’s diverse social and cultural landscape requires a nuanced approach to ensure equitable growth in the country. Similar to the Delhi-Mumbai Industrial Corridor, the Purvodaya plan is expected to contribute to regional growth through infrastructure and human resource development, and generate economic opportunities to make the region an engine in our journey towards a Viksit Bharat.
 

The last decade has seen India make significant strides in terms of developing its physical and digital infrastructure. This year’s Budget has taken the next leap forward — empowering the very nucleus of the nation – Indian citizens. 

The writer is Chairperson, PwC in India