MODI 3.0'S 1ST BUDGET: IS IT A FUNAMBULIST CHALLENGE?

As India prepares for the presentation of its annual budget, the sense of anticipation is palpable.

- LOVEJEET ALEXANDER

This budget is more than just a financial document; it is a strategic roadmap for the nation’s economic future. This year, expectations are particularly high, with the government facing the dual challenge of fostering growth while addressing socio-economic disparities amidst global uncertainties and domestic constraints.

Political considerations are a significant factor in budget formulation, especially with state elections looming. The Modi government faces an unprecedented challenge in balancing economic reforms with populist measures that resonate with the electorate. Immediate concerns such as inflation, unemployment, and rural distress will need to be addressed, with schemes offering direct benefits like subsidies and welfare programmes likely to be featured prominently. Additionally, managing the demands of coalition partners will be a critical aspect of the budget process.

The primary expectation from this budget is to drive economic growth. The government is anticipated to introduce measures to enhance both domestic and foreign investment, with incentives targeted at key sectors like manufacturing, technology, and infrastructure. The National Infrastructure Pipeline has earmarked $1.5 trillion for infrastructure projects over the next five years. Reforms to improve the ease of doing business and enhance labor market flexibility are also expected. However, this growth must be achieved while maintaining economic stability.