Budget Likely to Drive Job Growth in Rural Areas Through Manufacturing Push: Experts
As the date of India’s first budget under the re-elected Modi government draws closer, the focus of the fiscal plan is expected to be on creating new employment opportunities, especially in rural regions. According to analysts at Goldman Sachs, promoting labor-intensive manufacturing industries and strengthening rural infrastructure could help address unemployment.
In its pre-budget analysis, the financial services major anticipates key incentives and policies targeted at rural job generation. Labor-intensive sectors like apparel, textiles and toy manufacturing may receive production-linked incentives to boost hiring. Commercial aircraft assembly is another area the experts believe could generate significant new positions. Addressing the farm sector’s needs is also on the cards, with forecasted measures to raise domestic food production and tackles high food inflation through agricultural infrastructure development.
With the economy rebounding to an estimated 7.2% growth in the current fiscal, job creation still lags demand. As per estimates, annual employment generation must rise to 11-12 million to absorb new entrants, requiring continued policy nudges. The upcoming budget is thus seen extending ongoing supportive schemes with explicit targets for rural employment and MSME credit growth.
Overall, the analysis points to the upcoming budget retaining its fiscal deficit goal while emphasizing long-term priorities like job creation. Measures expanding skill development opportunities and services exports are also anticipated. With multiple signals that tackling joblessness will stay an overarching objective, the budget’s rural orientation could play a defining role in rebooting the post-pandemic jobs market.
