PM Modi's “self-reliant India” vision is central to the 2024-25 Union Budget. It boosts domestic production, supports SMEs, and fosters innovation to reduce import dependency
Prime Minister Modi's vision of a "self-reliant India" (Atmanirbhar Bharat) is a recurring theme in the budget. This vision emphasizes self-sufficiency in critical sectors such as agriculture, manufacturing, and technology. The budget outlines measures to boost domestic production, support small and medium-sized enterprises (SMEs), and encourage innovation. These initiatives are designed to reduce import dependency and create a robust, self-sustaining economy.At the same time, the budget reflects Modi's understanding of India's interconnectedness with the global economy. The focus on enhancing India's export competitiveness, attracting foreign direct investment (FDI), and participating in global value chains underscores the dual approach of strengthening domestic capabilities while engaging with the global market.
This balanced approach is crucial for India to navigate the challenges and opportunities of an increasingly complex global economic landscape.The Union Budget, a cornerstone of the country's economic planning, may serve as a reflection of the government's strategic priorities and vision for the future. It is being billed as a path-breaking foundation of Reforms for the next 5 years. According to some experts, under the leadership of Prime Minister, Narendra Modi, the budget has been targeted to foster economic growth, address social inequalities, and position India as a key player on the global stage. The latest budget unveiled amidst a backdrop of global economic uncertainty, showcases a balanced approach, combining domestic development with an international outlook.
CHALLENGES BEFORE FM
In light of the 2024-25 Union Budget, the BJP-led central government faces scrutiny over its dealings with opposition-ruled states, which allege discrimination in fund allocation and policy implementation. Experts say that Central Schemes and Fund Allocation; The Budget reveals a 15% increase in allocations for flagship schemes such as the Pradhan Mantri Awas Yojana (PMAY) and Ayushman Bharat. However, opposition states argue that their share of these funds does not reflect their proportionate needs. For instance, Tamil Nadu has claimed that despite a significant allocation under PMAY, delays in fund release and implementation hinder effective utilization.
The central government’s response involves reiterating the equitable distribution based on various factors, but opposition states view these explanations sceptically. Implementation Issues; Critics point to inefficiencies in scheme implementation as evidence of discrimination. The opposition-ruled states have raised concerns about delays and insufficient execution of these schemes.
The central government needs to ensure that these funds are utilized efficiently and that implementation is monitored closely to address these grievances. Political Dynamics; Allegations of political bias also come into play. Opposition leaders argue that central agencies are used to target political rivals, exacerbating feelings of discrimination. With the BJP's political rivals accusing it of manipulating central resources, the government must navigate these complex political dynamics carefully.
STEPS TO ADDRESS THE CONCERNS
To mitigate allegations of discrimination, the central government should adopt multiple strategies which include Enhanced Transparency: Provide detailed reports on fund allocations and expenditures to ensure transparency and address concerns of inequitable distribution.
The focus should be on the efficient and timely execution of central schemes, particularly in opposition-ruled states, to demonstrate commitment to equitable development. The Centre must engage in regular discussions with opposition state governments to address grievances and ensure that their concerns are heard and addressed.A Balanced Approach for Sustainable Growth; The Indian Union Budget, under the leadership of Modi, presents a balanced blueprint for growth, combining a focus on domestic development with a strategic international outlook. The emphasis on infrastructure, healthcare, education, and financial inclusion reflects the government's commitment to inclusive growth.
At the same time, the focus on global partnerships, defence manufacturing, and renewable energy highlights India's aspirations to be a key player on the world stage.Domestic Positives: A Focus on Inclusive Development; The budget's primary focus is on inclusive growth, ensuring that the benefits of economic development reach all sections of society. A significant allocation has been made towards infrastructure development, including roads, railways, and digital infrastructure. This not only promises to create jobs but also lays the groundwork for long-term economic resilience. The emphasis on renewable energy and green technology is another forward-looking aspect, aligning with global trends towards sustainability.Healthcare and education have not received substantial attention. The substantial increase in funding for public health infrastructure is a must, especially after the lessons learned from the COVID-19 pandemic. Additionally, investments in education, particularly in digital and vocational training, will equip the younger generation with skills for the future job market.
This focus on human capital development is critical for sustaining economic growth in the long term.The government's commitment to financial inclusion continues with initiatives to expand the reach of banking and financial services to rural areas. This effort is crucial for integrating rural populations into the formal economy, enhancing their economic opportunities, and reducing regional disparities. Moreover, targeted welfare schemes for farmers, women, and marginalized communities underscore the government's intent to address social inequalities and ensure a more equitable distribution of resources.Extreme evidence of a discriminatory approach exhibited in the union budget estimates for 2024-24 pertains to the allocation of Rs 11,500 crore for flood mitigation to Bihar whereas Himachal as well as Uttrakhand faced unprecedented catastrophe in July/August 2023 which suffered extensive damages to the tune of over Rs 12,000 crore and Rs 4,000 crore respectively but figures have not been mentioned in the budget.
Himachal government is in a quandary as 550 lives were lost and rehabilitation of lakhs of hapless people had been undertaken by the state government by making provision of Rs 650 crore hence expected a liberal Special Package from the union finance minister who preferred to just give an assurance about financial assistance to the state but no allocation of the budget. Inordinate delay in the announcement of a “Special Package” had affected relief and rehabilitation works though the state demanded immediate help of Rs 9,042 crore from the centre in Aug 2023 Chief Minister, Sukhvinder Sigh Sukhu regretted the apathy of the centre which gave nothing for one year. The finance minister skipped Punjab also which witnessed devastation owing to heavy rains and floods in 21 out of 23 districts and damages were more than RS 1,680 crore.
About 70 lives were lost and the state government has been demanding financial assistance which has been ignored in this budget. Contrary to it, Bihar has been chosen for special treatment and the finance minister allocated Rs 11,500 crore for flood mitigation which is being interpreted as a Reward for helping BHP to form a government after its reduced strength in Lok Sabha. Experts say that Bihar has been India’s most flood-prone state with 76% of the population of north Bihar living under recurring threat of divesting floods for decades hence it deserves a special package but not by ignoring other states that suffer an identical natural disaster every year. As India navigates the challenges of a post-pandemic world, the budget's provisions for economic resilience, social equity, and environmental sustainability provide a solid foundation for future growth. Modi's vision of a self-reliant India resonates throughout the budget, offering a roadmap for the country's economic and strategic aspirations. This holistic approach, balancing domestic priorities with international engagement, positions India well for a sustainable and prosperous future.
(The writer is a political analyst and senior journalist based in Shimla; views are personal)
