India's Path to Economic Growth: Leveraging Skills and Infrastructure

India's government plans to bolster skill development and employment initiatives, reform agriculture, enhance export competitiveness, and expand infrastructure. Policies aim to address inflation and drive economic growth by maximizing India’s demographic dividend. Initiatives include incentivizing labor-intensive sectors, modernizing supply chains, and expanding export markets.

The government is set to reinforce initiatives such as Employment-Linked Incentives and skill development programs, addressing supply-side measures to manage food inflation and bolster export competitiveness, Deloitte reports. Capitalizing on India's demographic dividend could boost incomes, spur consumption, and stimulate economic growth from both supply and demand perspectives.

Key efforts will focus on job creation and workforce upskilling to unlock the country's economic potential. Reforms in agriculture are predicted to tackle structural inefficiencies, requiring improvements in supply chain infrastructure and production incentives to minimize delivery costs. In the short term, Direct Benefit Transfers and food coupons are expected to aid rural consumption affected by higher rural inflation.

With a goal of achieving USD 2 trillion in exports by 2030, the government is likely to introduce measures to raise the competitiveness of Indian products internationally. These could include tariff rationalization and simplification of export compliance procedures, reducing barriers to make Indian products more competitive in the global market.

Infrastructure development will remain a budget priority. Investments in physical, digital, and social infrastructure are anticipated to enhance economic activity and improve logistics efficiency. The development of road networks and multi-modal logistics parks, alongside digital governance innovation, will receive sustained focus. Additionally, investments in skilling, health, and education are central to bridging social disparities and fostering inclusive growth.

To support job creation and skilling, policies might incentivize labor-intensive sectors like textiles and food processing. Industry-education collaborations could cultivate job-ready curricula and apprenticeship opportunities. Technological adoption is seen as vital for formalizing the economy and boosting the quality of blue-collar jobs.

A comprehensive skill database and certification framework could address talent alignment and skill gap challenges. Combating food sector inflation is critical, with suggested developments in cold storage and village-level warehouses to reduce post-harvest losses.

Expanding digital marketplaces such as the National Agricultural Market and fostering public-private partnerships for supply chain modernization could invigorate rural economies. Advanced technologies like blockchain and AI may enhance supply chain efficiency. To boost exports amid global uncertainties, schemes like RoDTEP and Interest Equalisation may be extended.

Such initiatives are expected to lower costs, increasing the global competitiveness of Indian exports. The government is also expected to boost high-value manufactured goods exports and extend credit guarantees for MSMEs facing liquidity challenges. Upskilling in export-critical sectors is likely to reinforce India's global market standing.

Infrastructure and social investments are critical for sustainable growth. The budget should prioritize digital trade, market diversification, and resources for affordable healthcare and expanded insurance coverage.

Private sector participation in medical education may alleviate skill shortages, with increased funding for R&D and critical disease programs bolstering healthcare outcomes. Enhanced training and recruitment in underserved areas aim to ensure equitable access to education and healthcare.

(With inputs from agencies.)