India has unveiled a significant budget on Tuesday, July 23, aimed at creating new jobs and supporting key coalition partners following an election setback.
As per Reuters, Prime Minister Narendra Modi's government is targeting voter support with a range of new spending initiatives.
Analysts had attributed the ruling Bharatiya Janata Party's (BJP) recent election losses to distress in rural areas and a weak job market.
India's official unemployment rate in urban areas stands at 6.7%, but private estimates suggest it may be as high as 8.4%.
Finance Minister Nirmala Sitharaman announced a series of tax changes and spending measures on Tuesday.
The government plans to raise taxes on equity investments to prevent market overheating while reducing taxes for foreign companies to attract investment.
Key budget allocations include $32 billion for rural development programs, $24 billion over five years for job creation, and over $5 billion for two states governed by coalition partners.
Sitharaman emphasised the budget's focus on employment, skill development, small businesses, and the middle class, stating that future budgets will continue to build on these areas.
Additionally, the budget maintains spending on long-term infrastructure projects at 11.11 trillion rupees, with 1.5 trillion rupees in long-term loans to states for funding such projects.
