Indian PM Modi’s budget focuses on jobs, rural development and middle class
2024.07.23 02:53
NEW DELHI (Reuters) – Indian Prime Minister Narendra Modi’s first post-election budget unveiled on Tuesday plans to raise spending to create jobs and provide relief to the middle class, Finance Minister Nirmala Sitharaman said.
The government will allocate 2 trillion rupees ($24 billion) for job creation over the next five years, Sitharaman said.
Modi’s Hindu nationalist Bharatiya Janata Party (BJP) failed to secure an outright majority in the general election last month, making it dependent on allies to form a government for the first time since he swept to power a decade ago.
Here are the highlights of the budget:
JOB CREATION
* Budget proposes to allocate 2 trillion rupees for job creation over 5 years
* Allocates 1.52 trillion rupees for agriculture and allied sectors
* To launch 3 schemes for employment-linked incentives
INFLATION
* Finance minister says inflation remains low, moving toward 4% target
* Proposes to take supply-side measures to contain food inflation
* Minister says global economy still in the grip of policy uncertainties
ECONOMIC GROWTH
* To allocate 150 billion rupees as special financial support through multilateral development agencies to Andhra Pradesh state, ruled by Modi’s biggest ally TDP
* Credit support to small and medium businesses during the stress period
* Proposes to support setting up of 12 industrial parks
* Proposes to enhance small loans to 2 million rupees for small and medium businesses
* To set up a venture capital fund of 10 billion rupees for space
RURAL DEVELOPMENT
* Provision of 2.66 trillion rupees ($32 billion) for rural development
* Proposes state aid for 30 million affordable housing units in urban and rural areas
URBAN DEVELOPMENT
* Proposes 2.2 trillion rupees ($26 billion) federal government assistance for affordable urban housing over the next five years
* Government will partner with private players for developing small nuclear reactors
INFRASTRUCTURE INVESTMENTS
* Capex outlay for infrastructure retained at interim budget target of 11.1 trillion rupees ($133 billion)
* Proposes 1.5 trillion rupees for long-term loans to states for infrastructure investments
($1 = 83.6310 Indian rupees)
