Kurukshetra Magazine September 2024 - 3 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

 Page 1


* Manjula Wadhwa
Budget 2024-25: Future-proofing 
the Rural Indian Economy
* The author is  DGM (Retd.), National Bank for Agriculture and Rural Development (NABARD)
he Budget for 2024-25 is the action 
plan of the to outline a roadmap 
towards India’s development in 
the next five years.  It lays the 
strongest-possible foundation for an 
‘Atmanirbhar’ (self-reliant) and ‘Viksit’ (developed) 
Bharat. The budget has been presented with 
the ‘mantra’ of ‘Sabka Saath, Sabka Vikas, and Sabka 
Vishwas’ and the whole of nation approach of ‘Sabka 
Prayas’. It focuses on upliftment of four major castes, 
that is, ‘Garib’ (Poor), ‘Mahilayen’ (Women), ‘Yuva’ 
(Youth) and  ‘Annadata’(Farmer).
In this budget, the momentous task of addressing 
multiple areas such as rural demand, infrastructure 
development, manufacturing, technology upgradation, 
among others, has been done to build levers 
for sustainable growth for the Indian economy-
underpinned by an overall focus on boosting 
consumption and spending. With the nine priority areas 
identified by the Government, it sets to achieve the 
T
Through a judicious mix of policy measures, resource allocation, and institutional 
reforms, the Union Budget 2024-25 endeavours to navigate the challenges and 
capitalise on the opportunities inherent in India’s economic landscape. As the nation 
embarks on a transformative journey towards inclusive prosperity and resilience, 
the Budget serves as a guiding compass, steering India towards a future defined by 
progress, equity, and opportunity.
Page 2


* Manjula Wadhwa
Budget 2024-25: Future-proofing 
the Rural Indian Economy
* The author is  DGM (Retd.), National Bank for Agriculture and Rural Development (NABARD)
he Budget for 2024-25 is the action 
plan of the to outline a roadmap 
towards India’s development in 
the next five years.  It lays the 
strongest-possible foundation for an 
‘Atmanirbhar’ (self-reliant) and ‘Viksit’ (developed) 
Bharat. The budget has been presented with 
the ‘mantra’ of ‘Sabka Saath, Sabka Vikas, and Sabka 
Vishwas’ and the whole of nation approach of ‘Sabka 
Prayas’. It focuses on upliftment of four major castes, 
that is, ‘Garib’ (Poor), ‘Mahilayen’ (Women), ‘Yuva’ 
(Youth) and  ‘Annadata’(Farmer).
In this budget, the momentous task of addressing 
multiple areas such as rural demand, infrastructure 
development, manufacturing, technology upgradation, 
among others, has been done to build levers 
for sustainable growth for the Indian economy-
underpinned by an overall focus on boosting 
consumption and spending. With the nine priority areas 
identified by the Government, it sets to achieve the 
T
Through a judicious mix of policy measures, resource allocation, and institutional 
reforms, the Union Budget 2024-25 endeavours to navigate the challenges and 
capitalise on the opportunities inherent in India’s economic landscape. As the nation 
embarks on a transformative journey towards inclusive prosperity and resilience, 
the Budget serves as a guiding compass, steering India towards a future defined by 
progress, equity, and opportunity.
42 Kurukshetra       September 2024
and the entrepreneurship to provide further impetus 
to the rural economy. It is noteworthy here that the 
announcement of the employment-linked schemes for 
new entrants into the rural workforce, along with the 
support loans of up to Rs. 10 lakh for higher education 
will ensure that the next generation of Rural Indians 
are adequately skilled in the trade and industry 
related areas. In addition, the internship opportunities 
outlined with the top 500 corporates in India will 
benefit over 10 million Indian youth, an impressive 
initiative being undertaken by the Government, which 
will ensure sustainable incomes and reasonable 
development, especially in the rural areas. 
The resilience of rural India, particularly evident 
during the turbulent times of the pandemic and 
geopolitical conflicts, has been remarkable. Agriculture, 
the mainstay of rural livelihoods, has displayed steady 
growth, averaging 4.4 percent over the past four 
years. The Rural Development Ministry’s budget has 
been increased to Rs. 1.77 lakh crore for 2024-25 from 
last year’s Rs. 1.57 lakh crore, an increase of around 
12 percent. However, when compared to the revised 
estimates, a mid-year review of expenditure done 
by the Ministry that stood at Rs. 1.71 lakh crore, the 
increase is three percent. In FY2025, the Government 
is expected to spend 5.58 percent of its total Budget 
on rural development. The share has been augmented 
from 5.32 percent in FY2024 (revised estimates). 
Despite the increase from last fiscal year, the allocation 
did not cross the 6 percent mark as it did in FY22, FY21, 
and FY18. The allocation for the flagship Mahatma 
Gandhi National Rural Employment Guarantee Scheme 
for 2024-25 has been kept at Rs. 86,000 crore, around 
43 percent more than Rs. 60,000 crore provided in the 
last budget.However, the revised estimate shows the 
expenditure on the scheme in the last financial year 
was Rs. 86,000 crore, same as the allocation made for 
the coming fiscal year.
In fact, it is not just about sustaining growth but 
transforming it. This transformation can be achieved 
through a multipronged strategy:-
Infrastructure-led Growth: While recognising 
the Budget’s allocation of Rs. 11.11 lakh crore for 
capital expenditure, the traders, businessmen and 
the industrialists have expressed a unified sense of 
hope and optimism, which is expected to propel 
economic growth through substantial investments 
in infrastructure. The Budget’s strategic balance 
between long-term and short-term goals seems quite 
vision by providing a balanced and strategic roadmap 
for a Viksit Bharat. This budget, with its clear focus on 
seeding resilience in agriculture, trade and industry, 
job creation, manufacturing, energy, sustainable and 
inclusive HRD, innovation, infrastructure development 
and tax reforms, emphasizes the clear vision this 
Government has on aiding the economy by driving 
inclusive growth and boosting consumption in the long 
term. The Union Budget shifts focus to Bharat–India’s 
rural heartland powering 65 percent of its populace 
and pivotal GDP contributions, envisioning a USD 5 
trillion economy, hinges on rural sector metamorphosis. 
The budget signifies a pivotal moment to recommit to 
rural upliftment. It is not just about sustaining growth 
but orchestrating transformation via a multifaceted 
strategy- prioritising policies, infrastructure, education, 
and tech advancements to unlock untapped potential, 
ensuring holistic and inclusive development.
With a view to give boost to trade and industry, 
particularly, in rural areas, three major economic railway 
corridor projects will be implemented - energy, mineral 
and cement corridors, port connectivity corridors and 
high traffic density corridors. 
• Expansion of existing airports and development of 
new airports will continue expeditiously. 
• Metro and NaMo Bharat systems will be expanded 
in the spirit of transit-oriented development.
During the last few years, India’s rural markets 
have been showing some promising signs of gradual 
demand recovery. Therefore, it becomes extremely 
vital that this budget addresses critical aspects 
pertaining to rural development- the trade, industry 
Page 3


* Manjula Wadhwa
Budget 2024-25: Future-proofing 
the Rural Indian Economy
* The author is  DGM (Retd.), National Bank for Agriculture and Rural Development (NABARD)
he Budget for 2024-25 is the action 
plan of the to outline a roadmap 
towards India’s development in 
the next five years.  It lays the 
strongest-possible foundation for an 
‘Atmanirbhar’ (self-reliant) and ‘Viksit’ (developed) 
Bharat. The budget has been presented with 
the ‘mantra’ of ‘Sabka Saath, Sabka Vikas, and Sabka 
Vishwas’ and the whole of nation approach of ‘Sabka 
Prayas’. It focuses on upliftment of four major castes, 
that is, ‘Garib’ (Poor), ‘Mahilayen’ (Women), ‘Yuva’ 
(Youth) and  ‘Annadata’(Farmer).
In this budget, the momentous task of addressing 
multiple areas such as rural demand, infrastructure 
development, manufacturing, technology upgradation, 
among others, has been done to build levers 
for sustainable growth for the Indian economy-
underpinned by an overall focus on boosting 
consumption and spending. With the nine priority areas 
identified by the Government, it sets to achieve the 
T
Through a judicious mix of policy measures, resource allocation, and institutional 
reforms, the Union Budget 2024-25 endeavours to navigate the challenges and 
capitalise on the opportunities inherent in India’s economic landscape. As the nation 
embarks on a transformative journey towards inclusive prosperity and resilience, 
the Budget serves as a guiding compass, steering India towards a future defined by 
progress, equity, and opportunity.
42 Kurukshetra       September 2024
and the entrepreneurship to provide further impetus 
to the rural economy. It is noteworthy here that the 
announcement of the employment-linked schemes for 
new entrants into the rural workforce, along with the 
support loans of up to Rs. 10 lakh for higher education 
will ensure that the next generation of Rural Indians 
are adequately skilled in the trade and industry 
related areas. In addition, the internship opportunities 
outlined with the top 500 corporates in India will 
benefit over 10 million Indian youth, an impressive 
initiative being undertaken by the Government, which 
will ensure sustainable incomes and reasonable 
development, especially in the rural areas. 
The resilience of rural India, particularly evident 
during the turbulent times of the pandemic and 
geopolitical conflicts, has been remarkable. Agriculture, 
the mainstay of rural livelihoods, has displayed steady 
growth, averaging 4.4 percent over the past four 
years. The Rural Development Ministry’s budget has 
been increased to Rs. 1.77 lakh crore for 2024-25 from 
last year’s Rs. 1.57 lakh crore, an increase of around 
12 percent. However, when compared to the revised 
estimates, a mid-year review of expenditure done 
by the Ministry that stood at Rs. 1.71 lakh crore, the 
increase is three percent. In FY2025, the Government 
is expected to spend 5.58 percent of its total Budget 
on rural development. The share has been augmented 
from 5.32 percent in FY2024 (revised estimates). 
Despite the increase from last fiscal year, the allocation 
did not cross the 6 percent mark as it did in FY22, FY21, 
and FY18. The allocation for the flagship Mahatma 
Gandhi National Rural Employment Guarantee Scheme 
for 2024-25 has been kept at Rs. 86,000 crore, around 
43 percent more than Rs. 60,000 crore provided in the 
last budget.However, the revised estimate shows the 
expenditure on the scheme in the last financial year 
was Rs. 86,000 crore, same as the allocation made for 
the coming fiscal year.
In fact, it is not just about sustaining growth but 
transforming it. This transformation can be achieved 
through a multipronged strategy:-
Infrastructure-led Growth: While recognising 
the Budget’s allocation of Rs. 11.11 lakh crore for 
capital expenditure, the traders, businessmen and 
the industrialists have expressed a unified sense of 
hope and optimism, which is expected to propel 
economic growth through substantial investments 
in infrastructure. The Budget’s strategic balance 
between long-term and short-term goals seems quite 
vision by providing a balanced and strategic roadmap 
for a Viksit Bharat. This budget, with its clear focus on 
seeding resilience in agriculture, trade and industry, 
job creation, manufacturing, energy, sustainable and 
inclusive HRD, innovation, infrastructure development 
and tax reforms, emphasizes the clear vision this 
Government has on aiding the economy by driving 
inclusive growth and boosting consumption in the long 
term. The Union Budget shifts focus to Bharat–India’s 
rural heartland powering 65 percent of its populace 
and pivotal GDP contributions, envisioning a USD 5 
trillion economy, hinges on rural sector metamorphosis. 
The budget signifies a pivotal moment to recommit to 
rural upliftment. It is not just about sustaining growth 
but orchestrating transformation via a multifaceted 
strategy- prioritising policies, infrastructure, education, 
and tech advancements to unlock untapped potential, 
ensuring holistic and inclusive development.
With a view to give boost to trade and industry, 
particularly, in rural areas, three major economic railway 
corridor projects will be implemented - energy, mineral 
and cement corridors, port connectivity corridors and 
high traffic density corridors. 
• Expansion of existing airports and development of 
new airports will continue expeditiously. 
• Metro and NaMo Bharat systems will be expanded 
in the spirit of transit-oriented development.
During the last few years, India’s rural markets 
have been showing some promising signs of gradual 
demand recovery. Therefore, it becomes extremely 
vital that this budget addresses critical aspects 
pertaining to rural development- the trade, industry 
43 Kurukshetra       September 2024
commendable. The significant push for job creation 
and skilling initiatives is anticipated to enhance 
the competitiveness of rural and urban workforce 
globally, while also addressing unemployment.  
Investing in rural infrastructure transcends mere 
construction; it ignites a chain reaction of economic 
activities and job creation. The Initiatives like Pradhan 
Mantri Gram Sadak Yojana (PMGSY) aim to enhance 
connectivity, which is fundamental for market 
access, mobility, and overall rural development. 
Similarly, the Pradhan Mantri Awaas Yojana- Gramin 
(PMAY-G) addresses the critical need for housing, 
improving living standards and generating construction-
related employment. The scheme aims to provide 
housing, with basic amenities, to poorer sections of 
society in rural areas.
The Jal Jeevan Mission (JJM) focuses on 
providing clean and accessible water, vital for health 
of the rural folks, while also creating jobs in water 
management and infrastructure. The proposed budget 
enhancement for these programmes in the current 
financial year, are a clear acknowledgement of the 
pivotal role infrastructure plays in rural upliftment. 
The expansion of rural capital expenditure into areas like 
trade-tech signifies a move towards modernizing trade 
and industry which are highly significant for increasing 
productivity and sustainability. 
Furthermore, skill development programmes are 
essential in preparing the rural workforce for a broader 
range of opportunities, beyond traditional farming 
and unskilled trades. These programmes can focus on 
vocational training and digital literacy, enabling rural 
population to adapt to the evolving job market and 
technological advancements. No employer wants to 
employ unskilled individuals. The Government wants to 
solve the employment problems but the issue in India 
is that most of the rural youth are unemployable. For 
resolving this issue, the Budget document suggests three 
significant steps: (i) 20 lakh youth to be skilled in the next 
five years; (ii) 1,000 ITIs to be made outcome-oriented; 
(iii) technical courses to be aligned to industry needs.  
Infrastructure projects in rural areas are not just about 
short-term employment; they lay the foundation for 
long-term economic stability. By increasing capital 
expenditure in areas like road construction, renewable 
energy projects and rural healthcare facilities, the 
budget can create a wide array of job opportunities. 
These projects also have the added advantage of 
improving the quality of life in rural areas, making them 
more attractive for sustained economic development 
and self-sufficiency among rural communities. 
The five schemes for Employment and Skilling are 
intended to create opportunities for 4.1 crore youth 
over a 5-year period. These will be based on enrolment 
in the EPFO and focus on recognition of first-time 
employees and support to employees and employers. 
1. Scheme A: First Timers
The scheme will provide one-month wage to all 
persons newly entering the workforce in all formal 
sectors. The direct benefit transfer of one-month salary 
in 3 instalments to first-time employees, as registered 
in the EPFO, will be up to Rs. 15,000. The eligibility limit 
will be a salary of Rs. 1 lakh per month. The scheme is 
expected to benefit 210 lakh youth.
2. Scheme B: Job Creation in Manufacturing
This scheme is intended to incentivize additional 
employment in the manufacturing sector, linked to 
the employment of first-time employees. An incentive 
will be provided at specified scale directly both to the 
employee and the employer with respect to their EPFO 
contribution in the first 4 years of employment.The 
scheme is expected to benefit 30 lakh youth entering 
employment and their employers as well.
3. Scheme C: Support to Employers
This employer-focused scheme will cover additional 
employment in all sectors. The Government will 
reimburse to employers up to Rs. 3,000 per month 
for 2 years towards their EPFO contribution for each 
additional employee. The scheme is expected to 
incentivize additional employment of 50 lakh persons. 
Page 4


* Manjula Wadhwa
Budget 2024-25: Future-proofing 
the Rural Indian Economy
* The author is  DGM (Retd.), National Bank for Agriculture and Rural Development (NABARD)
he Budget for 2024-25 is the action 
plan of the to outline a roadmap 
towards India’s development in 
the next five years.  It lays the 
strongest-possible foundation for an 
‘Atmanirbhar’ (self-reliant) and ‘Viksit’ (developed) 
Bharat. The budget has been presented with 
the ‘mantra’ of ‘Sabka Saath, Sabka Vikas, and Sabka 
Vishwas’ and the whole of nation approach of ‘Sabka 
Prayas’. It focuses on upliftment of four major castes, 
that is, ‘Garib’ (Poor), ‘Mahilayen’ (Women), ‘Yuva’ 
(Youth) and  ‘Annadata’(Farmer).
In this budget, the momentous task of addressing 
multiple areas such as rural demand, infrastructure 
development, manufacturing, technology upgradation, 
among others, has been done to build levers 
for sustainable growth for the Indian economy-
underpinned by an overall focus on boosting 
consumption and spending. With the nine priority areas 
identified by the Government, it sets to achieve the 
T
Through a judicious mix of policy measures, resource allocation, and institutional 
reforms, the Union Budget 2024-25 endeavours to navigate the challenges and 
capitalise on the opportunities inherent in India’s economic landscape. As the nation 
embarks on a transformative journey towards inclusive prosperity and resilience, 
the Budget serves as a guiding compass, steering India towards a future defined by 
progress, equity, and opportunity.
42 Kurukshetra       September 2024
and the entrepreneurship to provide further impetus 
to the rural economy. It is noteworthy here that the 
announcement of the employment-linked schemes for 
new entrants into the rural workforce, along with the 
support loans of up to Rs. 10 lakh for higher education 
will ensure that the next generation of Rural Indians 
are adequately skilled in the trade and industry 
related areas. In addition, the internship opportunities 
outlined with the top 500 corporates in India will 
benefit over 10 million Indian youth, an impressive 
initiative being undertaken by the Government, which 
will ensure sustainable incomes and reasonable 
development, especially in the rural areas. 
The resilience of rural India, particularly evident 
during the turbulent times of the pandemic and 
geopolitical conflicts, has been remarkable. Agriculture, 
the mainstay of rural livelihoods, has displayed steady 
growth, averaging 4.4 percent over the past four 
years. The Rural Development Ministry’s budget has 
been increased to Rs. 1.77 lakh crore for 2024-25 from 
last year’s Rs. 1.57 lakh crore, an increase of around 
12 percent. However, when compared to the revised 
estimates, a mid-year review of expenditure done 
by the Ministry that stood at Rs. 1.71 lakh crore, the 
increase is three percent. In FY2025, the Government 
is expected to spend 5.58 percent of its total Budget 
on rural development. The share has been augmented 
from 5.32 percent in FY2024 (revised estimates). 
Despite the increase from last fiscal year, the allocation 
did not cross the 6 percent mark as it did in FY22, FY21, 
and FY18. The allocation for the flagship Mahatma 
Gandhi National Rural Employment Guarantee Scheme 
for 2024-25 has been kept at Rs. 86,000 crore, around 
43 percent more than Rs. 60,000 crore provided in the 
last budget.However, the revised estimate shows the 
expenditure on the scheme in the last financial year 
was Rs. 86,000 crore, same as the allocation made for 
the coming fiscal year.
In fact, it is not just about sustaining growth but 
transforming it. This transformation can be achieved 
through a multipronged strategy:-
Infrastructure-led Growth: While recognising 
the Budget’s allocation of Rs. 11.11 lakh crore for 
capital expenditure, the traders, businessmen and 
the industrialists have expressed a unified sense of 
hope and optimism, which is expected to propel 
economic growth through substantial investments 
in infrastructure. The Budget’s strategic balance 
between long-term and short-term goals seems quite 
vision by providing a balanced and strategic roadmap 
for a Viksit Bharat. This budget, with its clear focus on 
seeding resilience in agriculture, trade and industry, 
job creation, manufacturing, energy, sustainable and 
inclusive HRD, innovation, infrastructure development 
and tax reforms, emphasizes the clear vision this 
Government has on aiding the economy by driving 
inclusive growth and boosting consumption in the long 
term. The Union Budget shifts focus to Bharat–India’s 
rural heartland powering 65 percent of its populace 
and pivotal GDP contributions, envisioning a USD 5 
trillion economy, hinges on rural sector metamorphosis. 
The budget signifies a pivotal moment to recommit to 
rural upliftment. It is not just about sustaining growth 
but orchestrating transformation via a multifaceted 
strategy- prioritising policies, infrastructure, education, 
and tech advancements to unlock untapped potential, 
ensuring holistic and inclusive development.
With a view to give boost to trade and industry, 
particularly, in rural areas, three major economic railway 
corridor projects will be implemented - energy, mineral 
and cement corridors, port connectivity corridors and 
high traffic density corridors. 
• Expansion of existing airports and development of 
new airports will continue expeditiously. 
• Metro and NaMo Bharat systems will be expanded 
in the spirit of transit-oriented development.
During the last few years, India’s rural markets 
have been showing some promising signs of gradual 
demand recovery. Therefore, it becomes extremely 
vital that this budget addresses critical aspects 
pertaining to rural development- the trade, industry 
43 Kurukshetra       September 2024
commendable. The significant push for job creation 
and skilling initiatives is anticipated to enhance 
the competitiveness of rural and urban workforce 
globally, while also addressing unemployment.  
Investing in rural infrastructure transcends mere 
construction; it ignites a chain reaction of economic 
activities and job creation. The Initiatives like Pradhan 
Mantri Gram Sadak Yojana (PMGSY) aim to enhance 
connectivity, which is fundamental for market 
access, mobility, and overall rural development. 
Similarly, the Pradhan Mantri Awaas Yojana- Gramin 
(PMAY-G) addresses the critical need for housing, 
improving living standards and generating construction-
related employment. The scheme aims to provide 
housing, with basic amenities, to poorer sections of 
society in rural areas.
The Jal Jeevan Mission (JJM) focuses on 
providing clean and accessible water, vital for health 
of the rural folks, while also creating jobs in water 
management and infrastructure. The proposed budget 
enhancement for these programmes in the current 
financial year, are a clear acknowledgement of the 
pivotal role infrastructure plays in rural upliftment. 
The expansion of rural capital expenditure into areas like 
trade-tech signifies a move towards modernizing trade 
and industry which are highly significant for increasing 
productivity and sustainability. 
Furthermore, skill development programmes are 
essential in preparing the rural workforce for a broader 
range of opportunities, beyond traditional farming 
and unskilled trades. These programmes can focus on 
vocational training and digital literacy, enabling rural 
population to adapt to the evolving job market and 
technological advancements. No employer wants to 
employ unskilled individuals. The Government wants to 
solve the employment problems but the issue in India 
is that most of the rural youth are unemployable. For 
resolving this issue, the Budget document suggests three 
significant steps: (i) 20 lakh youth to be skilled in the next 
five years; (ii) 1,000 ITIs to be made outcome-oriented; 
(iii) technical courses to be aligned to industry needs.  
Infrastructure projects in rural areas are not just about 
short-term employment; they lay the foundation for 
long-term economic stability. By increasing capital 
expenditure in areas like road construction, renewable 
energy projects and rural healthcare facilities, the 
budget can create a wide array of job opportunities. 
These projects also have the added advantage of 
improving the quality of life in rural areas, making them 
more attractive for sustained economic development 
and self-sufficiency among rural communities. 
The five schemes for Employment and Skilling are 
intended to create opportunities for 4.1 crore youth 
over a 5-year period. These will be based on enrolment 
in the EPFO and focus on recognition of first-time 
employees and support to employees and employers. 
1. Scheme A: First Timers
The scheme will provide one-month wage to all 
persons newly entering the workforce in all formal 
sectors. The direct benefit transfer of one-month salary 
in 3 instalments to first-time employees, as registered 
in the EPFO, will be up to Rs. 15,000. The eligibility limit 
will be a salary of Rs. 1 lakh per month. The scheme is 
expected to benefit 210 lakh youth.
2. Scheme B: Job Creation in Manufacturing
This scheme is intended to incentivize additional 
employment in the manufacturing sector, linked to 
the employment of first-time employees. An incentive 
will be provided at specified scale directly both to the 
employee and the employer with respect to their EPFO 
contribution in the first 4 years of employment.The 
scheme is expected to benefit 30 lakh youth entering 
employment and their employers as well.
3. Scheme C: Support to Employers
This employer-focused scheme will cover additional 
employment in all sectors. The Government will 
reimburse to employers up to Rs. 3,000 per month 
for 2 years towards their EPFO contribution for each 
additional employee. The scheme is expected to 
incentivize additional employment of 50 lakh persons. 
44 Kurukshetra       September 2024
amount. The Anusandhan National Research Fund will 
be operationalized for basic research and prototype 
development. Further, a mechanism will be set up for 
spurring private sector-driven research and innovation 
at commercial scale with a financing pool of Rs. 1 lakh 
crore in line with the announcement in the interim 
budget.
Moving further, in India, over 95 percent of 
industrial units belong to Micro, Small and Medium 
enterprises (MSMEs), which produce around 40 percent 
of all industrial output. Hence, logically this sector 
can create more jobs, particularly in rural areas. The 
current Budget provides: (i) credit guarantee schemes 
in manufacturing, which should result in more funding 
for small businesses; (ii) a new assessment model for 
granting credit (an innovative way to address MSME 
funding challenges); and (iii) additional legal windows for 
expeditiously solving insolvency issues. If MSME funding 
can be sorted, it should prove a big employment booster.  
In this budget, the Government while recognising the 
MSMEs as an important policy priority has emphasized 
the need to provide them with credit access, appropriate 
training and digital technologies for staying compliant 
and growth- oriented. The unveiling brought forth a 
series of pivotal tax reforms and compliance changes 
designed to provide tax relief to the MSME sector and 
expedite their growth. The move marks decisive steps 
to simplify the tax structure and MSME compliance 
mechanism and provide relief to the sector.The 
allocation for the sector is similar to what it received 
the previous year, i.e. Rs. 22,137.95 crore though 
rural industries, coir sector, cluster development show 
some increase in budget allocation. The Rs. 2 lakh 
crore package for development and employability also 
raises hopes for the rural communities. The initiatives 
to optimise financing opportunities and the abolition 
of the Angel Tax are expected to boost the startup 
ecosystem, attract diverse investments, and strengthen 
the MSME sector’s contribution to economy , building a 
skilled workforce for the future.
If we cast a glance at the seemingly hidden Gems in 
the budget, there are quite a many:-
• Private sector-driven R&D allocated Rs. 1 lakh crore.
• Solar Power budget doubled from Rs. 5000 crore to 
10000 crore. 
• PLI on Pharma doubled from Rs. 1200 crore to 
Rs. 2100 crore, a move towards de-risking from 
importing Chinese ingredients(APIs)
• Semi-conductor development allocation doubled 
4. Scheme: Centrally sponsored scheme in collaboration 
with State Governments and industry
Under this scheme, 20 lakh youth will be skilled 
over a 5-year period and 1,000 Industrial Training 
Institutes (ITIs) will be upgraded in hub and spoke 
model with outcome orientation. The course content 
and design will be aligned to the skill needs of industry 
and new courses will be introduced for emerging 
needs. The Model Skill Loan Scheme will be revised to 
facilitate loans up to 7.5 lakh with a guarantee from a 
government promoted Fund. This measure is expected 
to help 25,000 students every year.
5. Scheme: Internship opportunities in top companies
The Government will launch a comprehensive 
scheme for providing internship opportunities in 500 
top companies to one crore youth in 5 years. They 
will gain exposure for 12 months to real-life business 
environment, varied professions and employment 
opportunities. An internship allowance of Rs. 5,000 
per month along with a one-time assistance of Rs. 
6,000 will be provided to the youth. Companies will be 
expected to bear the training cost and 10 percent of the 
internship cost from their CSR funds. 
Schemes in Higher Education
A financial support will also be provided for loans 
upto Rs. 10 lakh for higher education in domestic 
institutions for helping youth who have not been 
eligible for any benefit under government schemes 
and policies.  E-vouchers for this purpose will be 
given directly to 1 lakh students every year for 
annual interest subvention of 3 percent of the loan 
Page 5


* Manjula Wadhwa
Budget 2024-25: Future-proofing 
the Rural Indian Economy
* The author is  DGM (Retd.), National Bank for Agriculture and Rural Development (NABARD)
he Budget for 2024-25 is the action 
plan of the to outline a roadmap 
towards India’s development in 
the next five years.  It lays the 
strongest-possible foundation for an 
‘Atmanirbhar’ (self-reliant) and ‘Viksit’ (developed) 
Bharat. The budget has been presented with 
the ‘mantra’ of ‘Sabka Saath, Sabka Vikas, and Sabka 
Vishwas’ and the whole of nation approach of ‘Sabka 
Prayas’. It focuses on upliftment of four major castes, 
that is, ‘Garib’ (Poor), ‘Mahilayen’ (Women), ‘Yuva’ 
(Youth) and  ‘Annadata’(Farmer).
In this budget, the momentous task of addressing 
multiple areas such as rural demand, infrastructure 
development, manufacturing, technology upgradation, 
among others, has been done to build levers 
for sustainable growth for the Indian economy-
underpinned by an overall focus on boosting 
consumption and spending. With the nine priority areas 
identified by the Government, it sets to achieve the 
T
Through a judicious mix of policy measures, resource allocation, and institutional 
reforms, the Union Budget 2024-25 endeavours to navigate the challenges and 
capitalise on the opportunities inherent in India’s economic landscape. As the nation 
embarks on a transformative journey towards inclusive prosperity and resilience, 
the Budget serves as a guiding compass, steering India towards a future defined by 
progress, equity, and opportunity.
42 Kurukshetra       September 2024
and the entrepreneurship to provide further impetus 
to the rural economy. It is noteworthy here that the 
announcement of the employment-linked schemes for 
new entrants into the rural workforce, along with the 
support loans of up to Rs. 10 lakh for higher education 
will ensure that the next generation of Rural Indians 
are adequately skilled in the trade and industry 
related areas. In addition, the internship opportunities 
outlined with the top 500 corporates in India will 
benefit over 10 million Indian youth, an impressive 
initiative being undertaken by the Government, which 
will ensure sustainable incomes and reasonable 
development, especially in the rural areas. 
The resilience of rural India, particularly evident 
during the turbulent times of the pandemic and 
geopolitical conflicts, has been remarkable. Agriculture, 
the mainstay of rural livelihoods, has displayed steady 
growth, averaging 4.4 percent over the past four 
years. The Rural Development Ministry’s budget has 
been increased to Rs. 1.77 lakh crore for 2024-25 from 
last year’s Rs. 1.57 lakh crore, an increase of around 
12 percent. However, when compared to the revised 
estimates, a mid-year review of expenditure done 
by the Ministry that stood at Rs. 1.71 lakh crore, the 
increase is three percent. In FY2025, the Government 
is expected to spend 5.58 percent of its total Budget 
on rural development. The share has been augmented 
from 5.32 percent in FY2024 (revised estimates). 
Despite the increase from last fiscal year, the allocation 
did not cross the 6 percent mark as it did in FY22, FY21, 
and FY18. The allocation for the flagship Mahatma 
Gandhi National Rural Employment Guarantee Scheme 
for 2024-25 has been kept at Rs. 86,000 crore, around 
43 percent more than Rs. 60,000 crore provided in the 
last budget.However, the revised estimate shows the 
expenditure on the scheme in the last financial year 
was Rs. 86,000 crore, same as the allocation made for 
the coming fiscal year.
In fact, it is not just about sustaining growth but 
transforming it. This transformation can be achieved 
through a multipronged strategy:-
Infrastructure-led Growth: While recognising 
the Budget’s allocation of Rs. 11.11 lakh crore for 
capital expenditure, the traders, businessmen and 
the industrialists have expressed a unified sense of 
hope and optimism, which is expected to propel 
economic growth through substantial investments 
in infrastructure. The Budget’s strategic balance 
between long-term and short-term goals seems quite 
vision by providing a balanced and strategic roadmap 
for a Viksit Bharat. This budget, with its clear focus on 
seeding resilience in agriculture, trade and industry, 
job creation, manufacturing, energy, sustainable and 
inclusive HRD, innovation, infrastructure development 
and tax reforms, emphasizes the clear vision this 
Government has on aiding the economy by driving 
inclusive growth and boosting consumption in the long 
term. The Union Budget shifts focus to Bharat–India’s 
rural heartland powering 65 percent of its populace 
and pivotal GDP contributions, envisioning a USD 5 
trillion economy, hinges on rural sector metamorphosis. 
The budget signifies a pivotal moment to recommit to 
rural upliftment. It is not just about sustaining growth 
but orchestrating transformation via a multifaceted 
strategy- prioritising policies, infrastructure, education, 
and tech advancements to unlock untapped potential, 
ensuring holistic and inclusive development.
With a view to give boost to trade and industry, 
particularly, in rural areas, three major economic railway 
corridor projects will be implemented - energy, mineral 
and cement corridors, port connectivity corridors and 
high traffic density corridors. 
• Expansion of existing airports and development of 
new airports will continue expeditiously. 
• Metro and NaMo Bharat systems will be expanded 
in the spirit of transit-oriented development.
During the last few years, India’s rural markets 
have been showing some promising signs of gradual 
demand recovery. Therefore, it becomes extremely 
vital that this budget addresses critical aspects 
pertaining to rural development- the trade, industry 
43 Kurukshetra       September 2024
commendable. The significant push for job creation 
and skilling initiatives is anticipated to enhance 
the competitiveness of rural and urban workforce 
globally, while also addressing unemployment.  
Investing in rural infrastructure transcends mere 
construction; it ignites a chain reaction of economic 
activities and job creation. The Initiatives like Pradhan 
Mantri Gram Sadak Yojana (PMGSY) aim to enhance 
connectivity, which is fundamental for market 
access, mobility, and overall rural development. 
Similarly, the Pradhan Mantri Awaas Yojana- Gramin 
(PMAY-G) addresses the critical need for housing, 
improving living standards and generating construction-
related employment. The scheme aims to provide 
housing, with basic amenities, to poorer sections of 
society in rural areas.
The Jal Jeevan Mission (JJM) focuses on 
providing clean and accessible water, vital for health 
of the rural folks, while also creating jobs in water 
management and infrastructure. The proposed budget 
enhancement for these programmes in the current 
financial year, are a clear acknowledgement of the 
pivotal role infrastructure plays in rural upliftment. 
The expansion of rural capital expenditure into areas like 
trade-tech signifies a move towards modernizing trade 
and industry which are highly significant for increasing 
productivity and sustainability. 
Furthermore, skill development programmes are 
essential in preparing the rural workforce for a broader 
range of opportunities, beyond traditional farming 
and unskilled trades. These programmes can focus on 
vocational training and digital literacy, enabling rural 
population to adapt to the evolving job market and 
technological advancements. No employer wants to 
employ unskilled individuals. The Government wants to 
solve the employment problems but the issue in India 
is that most of the rural youth are unemployable. For 
resolving this issue, the Budget document suggests three 
significant steps: (i) 20 lakh youth to be skilled in the next 
five years; (ii) 1,000 ITIs to be made outcome-oriented; 
(iii) technical courses to be aligned to industry needs.  
Infrastructure projects in rural areas are not just about 
short-term employment; they lay the foundation for 
long-term economic stability. By increasing capital 
expenditure in areas like road construction, renewable 
energy projects and rural healthcare facilities, the 
budget can create a wide array of job opportunities. 
These projects also have the added advantage of 
improving the quality of life in rural areas, making them 
more attractive for sustained economic development 
and self-sufficiency among rural communities. 
The five schemes for Employment and Skilling are 
intended to create opportunities for 4.1 crore youth 
over a 5-year period. These will be based on enrolment 
in the EPFO and focus on recognition of first-time 
employees and support to employees and employers. 
1. Scheme A: First Timers
The scheme will provide one-month wage to all 
persons newly entering the workforce in all formal 
sectors. The direct benefit transfer of one-month salary 
in 3 instalments to first-time employees, as registered 
in the EPFO, will be up to Rs. 15,000. The eligibility limit 
will be a salary of Rs. 1 lakh per month. The scheme is 
expected to benefit 210 lakh youth.
2. Scheme B: Job Creation in Manufacturing
This scheme is intended to incentivize additional 
employment in the manufacturing sector, linked to 
the employment of first-time employees. An incentive 
will be provided at specified scale directly both to the 
employee and the employer with respect to their EPFO 
contribution in the first 4 years of employment.The 
scheme is expected to benefit 30 lakh youth entering 
employment and their employers as well.
3. Scheme C: Support to Employers
This employer-focused scheme will cover additional 
employment in all sectors. The Government will 
reimburse to employers up to Rs. 3,000 per month 
for 2 years towards their EPFO contribution for each 
additional employee. The scheme is expected to 
incentivize additional employment of 50 lakh persons. 
44 Kurukshetra       September 2024
amount. The Anusandhan National Research Fund will 
be operationalized for basic research and prototype 
development. Further, a mechanism will be set up for 
spurring private sector-driven research and innovation 
at commercial scale with a financing pool of Rs. 1 lakh 
crore in line with the announcement in the interim 
budget.
Moving further, in India, over 95 percent of 
industrial units belong to Micro, Small and Medium 
enterprises (MSMEs), which produce around 40 percent 
of all industrial output. Hence, logically this sector 
can create more jobs, particularly in rural areas. The 
current Budget provides: (i) credit guarantee schemes 
in manufacturing, which should result in more funding 
for small businesses; (ii) a new assessment model for 
granting credit (an innovative way to address MSME 
funding challenges); and (iii) additional legal windows for 
expeditiously solving insolvency issues. If MSME funding 
can be sorted, it should prove a big employment booster.  
In this budget, the Government while recognising the 
MSMEs as an important policy priority has emphasized 
the need to provide them with credit access, appropriate 
training and digital technologies for staying compliant 
and growth- oriented. The unveiling brought forth a 
series of pivotal tax reforms and compliance changes 
designed to provide tax relief to the MSME sector and 
expedite their growth. The move marks decisive steps 
to simplify the tax structure and MSME compliance 
mechanism and provide relief to the sector.The 
allocation for the sector is similar to what it received 
the previous year, i.e. Rs. 22,137.95 crore though 
rural industries, coir sector, cluster development show 
some increase in budget allocation. The Rs. 2 lakh 
crore package for development and employability also 
raises hopes for the rural communities. The initiatives 
to optimise financing opportunities and the abolition 
of the Angel Tax are expected to boost the startup 
ecosystem, attract diverse investments, and strengthen 
the MSME sector’s contribution to economy , building a 
skilled workforce for the future.
If we cast a glance at the seemingly hidden Gems in 
the budget, there are quite a many:-
• Private sector-driven R&D allocated Rs. 1 lakh crore.
• Solar Power budget doubled from Rs. 5000 crore to 
10000 crore. 
• PLI on Pharma doubled from Rs. 1200 crore to 
Rs. 2100 crore, a move towards de-risking from 
importing Chinese ingredients(APIs)
• Semi-conductor development allocation doubled 
4. Scheme: Centrally sponsored scheme in collaboration 
with State Governments and industry
Under this scheme, 20 lakh youth will be skilled 
over a 5-year period and 1,000 Industrial Training 
Institutes (ITIs) will be upgraded in hub and spoke 
model with outcome orientation. The course content 
and design will be aligned to the skill needs of industry 
and new courses will be introduced for emerging 
needs. The Model Skill Loan Scheme will be revised to 
facilitate loans up to 7.5 lakh with a guarantee from a 
government promoted Fund. This measure is expected 
to help 25,000 students every year.
5. Scheme: Internship opportunities in top companies
The Government will launch a comprehensive 
scheme for providing internship opportunities in 500 
top companies to one crore youth in 5 years. They 
will gain exposure for 12 months to real-life business 
environment, varied professions and employment 
opportunities. An internship allowance of Rs. 5,000 
per month along with a one-time assistance of Rs. 
6,000 will be provided to the youth. Companies will be 
expected to bear the training cost and 10 percent of the 
internship cost from their CSR funds. 
Schemes in Higher Education
A financial support will also be provided for loans 
upto Rs. 10 lakh for higher education in domestic 
institutions for helping youth who have not been 
eligible for any benefit under government schemes 
and policies.  E-vouchers for this purpose will be 
given directly to 1 lakh students every year for 
annual interest subvention of 3 percent of the loan 
45 Kurukshetra       September 2024
from 3000 crore to 6900 crore, is for sure, a new 
age move. 
• The Vibrant Village Program Rs. 1000 crore; the 
Urban Digital Mission Rs. 115 crore, e-buses in areas 
difficult to travel-1300 crore, defence equipment 
manufacturing industries-40000 crore, for naval 
fleets-4000 crore, etc.
The limit of Mudra Loan has also been enhanced 
from Rs. 10 lakh to 20 lakh for the entrepreneurs 
who have already availed the loan and repaid it.  
The target for creating ‘Lakhpati Didis’ has been 
increased from two crore to three crore. Under the 
‘Lakhpati Didi’ initiative, which comes und er DAY-NRLM, 
each self-help group (SHG) household is encouraged to 
take up multiple livelihood activities coupled with value 
chain interventions, resulting in a sustainable income of 
Rs. 1 lakh or more per year.
The allocation for the National Livelihood Mission-
Aajeevika has been Rs. 15,047 crore, around six percent 
more than last year’s Rs. 14,129.17 crore. The revised 
estimate for the scheme also stands at Rs. 14,129.17 
crore. The scheme aims to organize rural poor women 
into Self Help Groups (SHGs) and support them till they 
attain an appreciable increase in incomes over a period 
of time. 
Credit to SHGs in Food Processing
Though the specific details on credit access to 
MSMEs are not available, yet in the mix of incentives 
and tax benefits being offered to small businesses, 
the Government’s efforts towards making credit easily 
accessible are evident. For instance, more than 2.4 lakh 
Self-Help Groups and 60,000 individuals have benefited 
with credit linkages through the Pradhan Mantri 
Formalisation of Micro Food Processing Enterprises 
Yojana. Policies such as these, naturally will enable 
them to build a strong foundation and grow in a planned 
manner.
Digital Transformation
The Budget 2024 lays a strong emphasis on 
harnessing digital technologies as a catalyst for 
inclusive growth, innovation, and governance reforms. 
Initiatives such as Digital India, BharatNet, and National 
Digital Health Mission are accorded priority, aimed 
at expanding digital infrastructure, promoting digital 
literacy, and fostering e-governance, which is the pre-
requisite of expansion of trade and industry in this age 
of ICT. 
To sum up, by prioritising the needs of rural India, 
the Government could strengthen the backbone of the 
Indian economy. This focus is not just about enhancing 
the resilience of the rural economy but also about 
paving the way for a more sustainable and inclusive 
growth trajectory. As we navigate the complexities of 
the global economic landscape, the path to a prosperous 
India unequivocally goes through its villages and fields.
Through a judicious mix of policy measures, resource 
allocation, and institutional reforms, the Budget 
endeavours to navigate the challenges and capitalise 
on the opportunities inherent in India’s economic 
landscape. As the nation embarks on a transformative 
journey towards inclusive prosperity and resilience, 
the Budget serves as a guiding compass, steering India 
towards a future defined by progress, equity, and 
opportunity.  ?