
India’s economic policies have undergone significant transformation, reflecting the nation’s evolving priorities over the decades. A retrospective look at the country’s budgets reveals distinct phases that have shaped its economic trajectory.
The late 20th century marked a bold shift with economic liberalization reforms, which included slashing import duties and welcoming foreign investments. These measures, introduced amidst a severe economic crisis, revitalized India’s economy and laid the foundation for sustained growth. This era remains a defining period in India’s journey toward a market-oriented economy.
The early 2000s saw a pivot towards stabilizing the economy through rural development and infrastructure expansion. Landmark initiatives such as the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and the “Make in India” campaign symbolized efforts to address rural unemployment and boost industrial growth, setting the stage for global competitiveness.
The most recent phase emphasizes digital transformation, green energy, and skill development. Programs like Digital India, the Gati Shakti master plan, and Production-Linked Incentive (PLI) schemes highlight efforts to position India as a leader in innovation and sustainability.
As the nation prepares for Budget 2025, several key themes emerge that could significantly shape India’s future economic landscape.
Stimulating Domestic Consumption
India’s GDP growth is projected at 6.4% for FY25, the slowest in four years. This makes boosting domestic consumption critical. Enhanced tax benefits for individuals can stimulate urban spending, drive demand for affordable housing, and provide much-needed relief to the middle class. Building on prior budgets, measures to accelerate job creation are equally vital to sustain economic growth and strengthen consumer confidence.
Driving Job Creation
A multi-pronged strategy is essential to address employment challenges. Supporting labor-intensive sectors like construction, textiles, tourism, and low-skilled manufacturing can generate significant opportunities. Targeted policies such as Production and Employment Linked Schemes, strategic tariff adjustments, and Free Trade Agreements are necessary to boost exports from these sectors.
Labor reforms, including the rollout of new Labor Codes and social security coverage for gig workers, must be expedited. To increase women’s workforce participation, initiatives like building dormitories using CSR funds, establishing government-supported crèches, and implementing gender-sensitive employment policies are critical.
India must strengthen its global trade position to achieve the ambitious target of US$2 trillion in exports by 2030. This involves improving export competitiveness through tariff rationalization, duty remissions, and ease of doing business reforms. Sustained investments in infrastructure, including road networks, multi-modal logistics parks, and digital connectivity, will enhance productivity and economic activity.
Additionally, fostering the EV and green energy sectors with transformative policies and incentives, alongside skill development in these areas, is crucial for job creation and long-term economic growth.
“Swift action on several key fronts is crucial, including tax relief for households, incentives for businesses, enhancing employability, and strategic investments in electric vehicles (EVs), healthcare, and skilling. These decisions will have a far-reaching impact on the lives of millions of Indians,” says Atanu Banerjee, CEO at Spectrum Talent Management.
Budget 2025 represents a pivotal moment for India’s economic future. The choices made today will not only shape policies but also influence the lives of millions, steering the nation towards a more sustainable and equitable growth trajectory.
Spectrum Talent Management is a leading recruitment and staffing solutions provider with over 16 years of experience. With a presence in 13+ offices and over 300 clients, it specializes in handling global workforce needs, offering payroll, compliance, and HR solutions across various industries and regions.