Budget 2024: FM Nirmala Sitharaman unveils road map for 'Viksit Bharat'

Finance Minister Nirmala Sitharaman’s Budget proposals lay out a comprehensive road map for transforming India into a developed nation, focusing on key priorities that aim to generate ample opportunities for all citizens in “Viksit Bharat”. It sets the stage for sustained economic growth, social development, and technological advancement.

The government’s focus on employment and skilling is at the heart of this ambitious plan. Three innovative employment-linked incentive schemes have been introduced to encourage job creation, particularly for first-timer in the manufacturing sector. A new centrally sponsored skilling programme aims to train 2 million youth over five years, aligning their skills with industry needs and emerging technologies. These approaches show a strong commitment to not only creating job opportunities but also ensuring that India’s workforce is well-prepared for the challenges of a rapidly evolving global economy. 

The manufacturing and services sectors get substantial attention in the Budget, with a focus on supporting micro, small, and medium enterprises (MSMEs). New credit guarantee schemes, assessment models, and support mechanisms have been proposed to facilitate MSME growth and competitiveness. These measures, coupled with initiatives to promote industrial parks and critical mineral production, are designed to strengthen India’s manufacturing base and increase its global competitiveness. Urban development is another key priority, with the Budget outlining plans to develop cities as growth hubs. This includes initiatives for creative redevelopment of cities, transit-oriented development in large cities, and addressing urban housing needs, which is particularly are crucial for managing rapid urbanisation and creating sustainable, liveable cities that can drive economic growth.

The FM’s proposals place a strong emphasis on energy security and transition. By prioritising renewable energy and energy efficiency, the Budget lays the groundwork for a greener, more sustainable path to development, positioning India as a responsible global leader and paving the way towards India’s net zero goals.

Infrastructure development continues to be a major focus, with huge allocations for capex. The Budget encourages both public and private investments in infrastructure, recognising its role in driving economic growth and improving quality of life. Initiatives like the expansion of the Pradhan Mantri Gram Sadak Yojana to improve rural connectivity underscore its commitment to inclusive development.

Innovation and research and development are highlighted as key drivers of India’s journey to developed nation status. The Budget proposes the operationalisation of a national innovation fund and sets up mechanisms to spur private sector-driven research and innovation. These aim to foster a culture of innovation and technological advancement, crucial for competing in the global knowledge economy.

There is a strong emphasis on boosting agricultural productivity and resilience. These are designed to enhance food security, increase farmer incomes, and make the agricultural sector more sustainable in the face of climate change. 

Finally, the Budget outlines a series of next-generation reforms across sectors. These are related to land, labour, and measures to enhance ease of doing business. The Centre also plans to develop a comprehensive economic policy framework to guide the next phase of reforms and sustain high growth rates. These key priorities placed in the context of continued focus on public investment fiscal consolidation can provide macro-economic stability and a healthy environment for investment and growth in India.

On the whole, the Budget presents a holistic and ambitious plan to propel India towards developed nation status. By addressing key areas, such as agriculture, employment, urban development, energy, infrastructure, and innovation, while also focusing on inclusive growth and social justice, the government has laid out a clear path for India’s transformation. These have the potential to significantly accelerate India’s progress towards becoming a developed country, improving the lives of millions and strengthening India’s position on the global stage.

The writer is chairman, Aditya Birla Group