The government is serious about the slow growth rate of the country

The government is serious about the slow growth rate of the country, it may make a new announcement in the budget on measures to increase employment

The government is serious about the slow growth rate. The government can announce measures to increase employment in the budget. The government's focus in the coming financial year 2025-26 is especially on providing employment to people and increasing exports. The growth rate in the current financial year is estimated to be only 6.4 percent, which will be the lowest growth rate in four years. The government is serious about dealing with this.

 New Delhi. In view of the slow growth forecast in the current financial year 2024-25, increasing employment and consumption will be the priority of the government in the upcoming financial year 2025-26. To increase employment, the government can announce measures to further encourage manufacturing. At the same time, with the aim of increasing consumption, a scheme may be announced for urban areas on the lines of MNREGA.

The government has estimated the growth rate to be only 6.4 percent in the current financial year, which will be the lowest growth rate in four years. The average growth rate for the last three years has been eight percent. Experts are blaming the lack of capital expenditure and the weak performance of manufacturing for the low growth rate in the current financial year.

Capital expenditure in this financial year was the lowest in four years

In the current financial year, both the centre and the states have spent the least capital expenditure in the last four years. In the first half of the current financial year, only five out of the 17 big states have spent more on capital expenditure than in the same period of the previous financial year. In the budget for the current financial year, Rs 11.11 lakh crore was allocated for capital expenditure and till November, not even 60 per cent of the allocated amount has been spent.

Which scheme can be announced in the upcoming budget?

According to Bank of Baroda Chief Economist Madan Sabnavis, the allocation for capital expenditure in the upcoming budget will remain around the same as in the current financial year. But to encourage manufacturing, employment-oriented sectors which have not been included in the Production Linked Incentive (PLI) scheme may be announced to be included in the PLI scheme in the upcoming budget. 

Government will take these measures to increase manufacturing

Experts say that to increase manufacturing, special focus can be given on exports in the budget. Especially in the current situation, sectors which have the possibility of increasing exports to America can also be encouraged. These include some sectors like leather products, apparel, chemicals.       

India's share in the $147 billion export market of organic products is less than three percent. To encourage the export of organic products, the government can also bring a scheme for farmers in the budget.

Service sector will perform well

Industrial organizations say that the pace of consumption in urban areas has slowed down. To increase consumption in urban areas, the government can announce a scheme on the lines of MNREGA. The service sector is expected to perform the best with a growth of 7.2 percent in the current financial year, whereas in the last financial year 2023-24, the growth rate of the service sector was 7.6 percent. Dailymintz