PM Modi’s Consultative Meeting with Economists Ahead of Union Budget 2025-26
||Black and White Digital News ||
||December 24,2024 ||
As India gears up for the presentation of the Union Budget for the fiscal year 2025-26 on February 1, 2025, by Finance Minister Nirmala Sitharaman, Prime Minister Narendra Modi convened a high-level meeting with prominent economists and sectoral experts. The meeting aims to elicit insights, recommendations, and innovative ideas to shape the budget in alignment with the nation’s developmental goals.
Context and Significance of the Meeting:
1.Strategic Timing:The Union Budget 2025-26 comes at a critical juncture, with India navigating a complex global economic scenario marked by geopolitical tensions, post-pandemic recovery challenges, and inflationary pressures.As the government approaches the general elections scheduled for 2026, the budget is expected to balance populist measures with fiscal prudence.
2.Economic Goals:Boosting growth in sectors like manufacturing, agriculture, and services.
Addressing structural challenges such as unemployment, rising inequality, and infrastructure deficits.Focusing on sustainability, digital transformation, and global competitiveness.
Key Participants and Their Role:
Nirmala Sitharaman, Union Finance Minister: Leads the budget formulation process, integrating inputs from various stakeholders.
NITI Aayog:
Suman Bery, Vice Chairman: Provides macroeconomic insights and policy frameworks.
BVR Subrahmanyam, CEO: Facilitates inter-ministerial coordination and strategic planning.
Chief Economic Advisor Anantha Nageswaran: Offers data-driven analysis and projections on growth, inflation, and fiscal health.
Eminent Economists:
Surjit Bhalla: Expertise in global economic trends and policy recommendations.
DK Joshi: Known for his focus on domestic economic indicators and sectoral analysis.
Key Themes Likely Discussed:
1.Fiscal Consolidation and Spending Priorities: Balancing fiscal discipline with increased capital expenditure on infrastructure, healthcare, and education. Enhancing allocations for schemes like PLI (Production Linked Incentives) to boost domestic manufacturing.
2. Job Creation and Skill Development: Strategies to enhance employment opportunities, especially in MSMEs and startups.Policies aimed at upskilling the workforce to align with Industry 4.0.
3.Agriculture and Rural Development:
Increasing rural incomes through better MSP mechanisms and farm-to-market connectivity.
Boosting investments in agri-tech and water management systems.
4.Digital and Green Economy:
Driving digital adoption in governance and businesses.Accelerating the transition to renewable energy and low-carbon technologies.
5.Taxation and Revenue Generation:
Rationalizing GST structure for better compliance and revenue.Expanding the tax base without overburdening the middle class.
Challenges and Opportunities:
1.Global Slowdown:Slow recovery in key export markets like the US and EU poses a challenge to India’s export-driven growth sectors.Opportunities lie in leveraging trade partnerships and attracting supply chain relocations.
2.Inflation and Monetary Policy:Controlling inflation while maintaining growth momentum will require coordination with the Reserve Bank of India.
3.Public Sentiment:Meeting public expectations on subsidies, welfare schemes, and job creation, especially ahead of
Implications of the Meeting:
The consultative meeting reflects the government’s intent to adopt a collaborative and evidence-based approach in formulating the Union Budget. By involving a diverse set of experts, the government aims to address immediate economic concerns while laying down a roadmap for long-term growth and development.
The insights gathered will likely influence key decisions, including sector-specific reforms, fiscal allocations, and welfare initiatives, making the Budget 2025-26 a pivotal document for India’s economic trajectory.
