Will the Narendra Modi government focus on job creation, education and skill development shortly and the Union Budget 2025 be job-centric? It is clear from the Economic Survey 2025 that Finance Minister Nirmala Sitharaman may adopt the policy of less government interference in economic activities and more focus on increasing consumption, education, jobs and innovation like AI.
The team led by Chief Economic Adviser V Ananth Nageswaran has suggested the government take bold steps in reforming the Indian economy and chalk out a growth strategy that should focus on sustainable and long-term growth.
Economic Survey: Sustainable Growth
After India registered a growth rate of 6.4% for FY 2024-25, the Economic Survey did not have leeway enough to predict a higher growth rate in spite of the government’s claim of becoming the third largest economy in the world. So, it has predicted a growth rate of 6.3% to 6.8%.
The Economic Survey has come at a time when the GDP growth rate has plummeted from 8.2% for FY 2023-24 to the four-year low of 6.4% for FY 2024-25.
Keeping in mind this irony, the team led by the Chief Economic Adviser has advised the government to not interfere too much in the economy and let it take the corrective measures of its own.
Economic Survey: Focus On Jobs, Education
Going by the Economic Survey 2025, Nirmala Sitharaman may increase the allocation for infrastructure development, skill development, startups and the MSME so that more and more jobs can be created.
The Economic Survey has pointed out that the country must create 78.5 lakh new non-farm jobs annually till 2030-32.
Similarly the government is most likely to increase the budget allocation for education and skill development so that it could achieve 100%, literacy and develop the quality of our education institutions. The survey has said in clear terms that the government must develop high-quality, future-ready infrastructure.
After Nirmala Sitharaman allocated Rs 1.48 lakh crore for to education, employment, and skills in Union Budget 2024-25, it is quite natural that she increase this amount so that this can be achieved.
However, as the target is to be achieved by 2032, it is quite natural that the amount is spread over many years and it may not be a substantive figure for FY 2025-26.
More Allocation For MNREGA?
Similarly, as the Economic Survey has suggested to create more jobs, the finance minister is most likely to increase the budget allocation for the MNREGA.
Nirmala Sitharaman allocated Rs 86,000 crore for the MNREGA in the budget of 2025-25. It was about 14% less than the allocation in FY 2023-24.
More Concessions For Renewable Energy Sector?
Finance Minister is most likely to increase allocation for the renewable energy sector and come out with considerable concessions for those working in the field of green energy, hydrogen, solar energy, and EVs. She may announce concessions for solar panels and may also impose fresh restrictions on imports of such panels from China.
It is evident by the fact that the Economic Survey has called for a balanced approach to energy transition, promoting electric mobility and public transport while also addressing the need for skilling and education to leverage technological advancements like AI.
Analysing the Economic Survey it is clear that the government may announce fresh PLI schemes for selected sectors.
The team led by Nagesaran has asked to discuss restrictive trade policies and their potential impact on India, showcasing the success of the Production-Linked Incentive Scheme.
