Union Budget 2024-25: Towards sustainable and inclusive growth

Empowering Rural India Empowering rural India is a central theme in the recent Budget, with an allocation of Rs 2.66 lakh crore dedicated to rural development, including rural infrastructure projects. By improving roads, electricity, and communication networks, the government aims to create a thriving environment for economic activities in rural areas. This initiative will generate significant employment opportunities, improve living standards, and drive inclusive development, ultimately uplifting millions of lives across the country. Organisations like Jan Kalyan play a crucial role in this empowerment journey by focussing on education and skill development, ensuring that rural communities are equipped with the necessary knowledge and tools to seize new opportunities.

Affordable Housing To tackle the pressing issue of housing shortages, the Budget emphasises the government’s commitment to affordable housing. It proposes constructing 30 million houses under the PM Awas Yojana in both rural and urban areas. The PM Awas Yojana Urban 2.0 specifically targets the housing needs of 10 million urban poor and middle class families—backed by an investment of Rs 10 lakh crore—including central assistance of Rs 2.2 lakh crore over the next five years. This ambitious plan aims to provide decent housing for low-income families and marginalised communities, improving their quality of life and stimulating job creation in the construction sector, which is crucial for economic recovery and growth.

Renewable Energy Revolution The Pradhan Mantri Suryodaya Yojana is a landmark initiative aimed at empowering 10 million households with solar panels and providing 300 units of free electricity monthly. This programme promotes renewable energy adoption, significantly reducing electricity costs. By investing in solar energy, India enhances its energy security, reduces dependency on fossil fuels, and positions itself as a leader in the global clean energy movement. Additionally, the government will invest Rs 600 crore in the National Green Hydrogen Mission, further supporting the transition to sustainable energy sources.

Boosting infra, Manufacturing The Budget’s substantial allocation for manufacturing and infrastructure development highlights a strong commitment to growth. A new credit guarantee scheme for MSMEs will provide collateral-free term loans of up to Rs 100 crore, while Sidbi will open 24 new branches in major MSME clusters. Sectors such as textiles, electronics, and pharmaceuticals are set to benefit from increased funding and support. By creating a favourable environment for foreign direct investment and enhancing domestic manufacturing, the government aims to position India as a global manufacturing hub. Improved infrastructure, including transport and logistics networks, will facilitate smoother supply chains and boost productivity across various sectors, driving economic growth and creating jobs.

Investing in Human Capital Recognising the importance of a skilled workforce, the Budget emphasises employment and skill development. Key initiatives include a central outlay of Rs 2 lakh crore to provide opportunities for 41 million youth over five years. This includes wage support for new employees, incentives for additional employment, and skills training programmes. An internship scheme will offer opportunities in 500 top companies for 10 million youth over five years, with allowances and support from these companies. These programmes aim to equip young people with the skills needed for the evolving job market, enhancing employability and contributing to economic resilience.

The Role of PPPs Public-private partnerships (PPPs) are essential for achieving the goals of Viksit Bharat. By combining public resources with private sector expertise and investment, PPPs can enhance efficiency, drive innovation, and accelerate project delivery. They enable the government to leverage private funding for infrastructure projects, share risks, and improve service quality.

This collaboration is particularly important in sectors like renewable energy, housing, and manufacturing, where both public and private sectors can work together to create sustainable solutions.

Conclusion The Union Budget 2024-25 outlines a comprehensive road map for India’s growth trajectory, reinforcing the vision of a sustainable and inclusive future.

As we move forward, it is crucial for stakeholders across sectors, including public and private entities, to align their efforts with these transformative initiatives.

Together, we can build a brighter, more sustainable future for all.

The writer is Chairman & Managing Director, Havells India. Views are personal