Commending India’s Union Budget 2024, Mukesh Aghi, President and CEO of the US-India Strategic Partnership Forum, praised it as a balanced budget focused on job creation. Aghi highlighted the goal of reducing the fiscal deficit from 5.3% to 4.9%, calling it a responsible approach.
“It’s a pretty balanced budget. From a macro perspective, the focus is to bring the deficit from 5.3 per cent to 4.9 per cent. So that’s a very responsible budget. The budget focuses on job creation, skills in attracting FDI to create more jobs,” he told ANI.
A significant portion of the budget is allocated to first-time wage earners and skill development. Aghi noted that only 51% of graduates are currently skilled enough for the workforce, compared to 34% a decade ago. The government aims to improve this percentage through substantial investments in skill development.
“So the government has made a lot of effort and progress, but I think we have to go beyond 51 per cent and that’s where the whole investment is going to take place. But more important is that by reducing the income tax on foreign companies by 5 per cent, that’s going to attract multinationals to come in and invest more in India,” he added.
Aghi further mentioned the goal of increasing Foreign Direct Investment (FDI) from USD 70 billion to USD 110 billion annually. This influx of capital is expected to create more jobs, reinforcing the budget’s focus on employment.
Noting that 65% of India’s population is below 35, Aghi emphasized the need to make the workforce more productive. Currently, about 50% of the workforce is in agriculture, which contributes only 15% of the GDP. He stressed the importance of skilling the workforce to compete globally, with investments in Industrial Training Institutes (ITIs) and other centers to ensure graduates are work-ready.
Finance Minister Nirmala Sitharaman presented her record seventh consecutive Union Budget 2024-25 on Tuesday during the Budget Session of Parliament. She makes history as the first finance minister to present seven consecutive budget speeches, surpassing former Prime Minister Morarji Desai’s record of six consecutive budgets as finance minister between 1959 and 1964.
FM Sitharaman, in her seventh consecutive Union Budget for 2024-25, outlined key priorities aimed at fostering economic growth and creating ample opportunities. The priorities include Productivity and Resilience in Agriculture, Employment and Skilling and services.
“I think the focus is job creation and that’s where the budget is focused on,” Aghi concluded.