Kurukshetra Summary: September 2024 – Budget For Rural India 2024-25

1. Strengthening Rural Economy

Introduction:

• Agriculture and rural development play a central role in fostering inclusive growth in India, as they impact a vast majority of the population.
• The Union Budget 2024-25 and the Economic Survey 2023-24 focus on strengthening the rural economy by generating jobs, boosting farmers’ income, and addressing regional disparities.
• This article outlines key measures taken by the government to support agriculture and rural development in the country.

Expanding the Rural Economy through Employment and Income Generation

• The Budget 2024-25 places a strong emphasis on creating jobs and wealth in rural areas, focusing on both agricultural and non-agricultural sectors.
• As per the Economic Survey 2023-24, policy reforms are essential to address regional disparities and generate employment in rural regions.
• An important initiative is value addition to primary agricultural products, which helps increase farmers’ incomes and promotes sustainable practices.

Key Budget Allocations for Agricultural Growth

• The Ministry of Agriculture and Farmers Welfare saw a budget increase from Rs. 1,56,287 crore in 2015-16 to Rs. 1,77,566 crore in 2024-25, highlighting the government’s commitment to agricultural development.
• The allocation includes significant investments in sectors like animal husbandry, dairying, and fisheries, encouraging income diversification for farmers.
• The agricultural sector is projected to grow by over 7% in the coming years, driven by supportive policies and investments in research and development.

Infrastructure Development and Rural Connectivity

• Investments in rural infrastructure such as roads, bridges, and communication networks are crucial for improving market access and overall development.
• The government plans to enhance rural connectivity, enabling farmers and rural entrepreneurs to access markets and services more efficiently.
• These investments are expected to improve rural living conditions and contribute to long-term economic growth in the sector.

Empowering Rural Communities with Targeted Employment Programs

• Employment generation remains a top priority, with MGNREGA receiving Rs. 86,000 crore in 2024-25, marking a 43.33% increase from the previous year.
• Programs like the National Rural Livelihoods Mission (NRLM) and the Pradhan Mantri Awas Yojana (PMAY) are key to poverty reduction and rural empowerment.
• These schemes focus on creating infrastructure, improving livelihoods, and supporting the most vulnerable populations in rural areas.

Supporting Farmers with Enhanced Market Access and Innovation

• The government promotes the formation of Farmer Producer Organizations (FPOs) to improve farmers’ market access and reduce their dependency on middlemen.
• Value addition to agricultural products is essential for increasing farmers’ profitability, particularly through initiatives in the dairy, fisheries, and animal husbandry sectors.
• Investments in agricultural research and development aim to introduce innovative farming practices and improve productivity, ensuring long-term sustainability in the agricultural sector.

Social Welfare and Skill Development Initiatives

• The budget allocates funds to improve healthcare and education in rural areas, addressing disparities in access to basic services.
• Skill development programs are being implemented to enhance employability among rural youth, encouraging entrepreneurship and innovation in these regions.
• Women empowerment initiatives are also prioritised, with a focus on fostering economic independence and promoting gender equality.

Conclusion:

• By investing in infrastructure, employment programs, and agricultural innovation, the government aims to foster inclusive growth and improve livelihoods in rural India.

2. Blueprint For Sustained Growth In Rural India

Introduction:

• Rural India forms the backbone of the country, contributing significantly to its socio-economic structure.
• The Indian government has laid out a comprehensive strategy for rural development through budgetary initiatives, programs, and targeted investments.
• Key sectors such as agriculture, healthcare, infrastructure, and employment generation have been prioritised for sustained growth and social upliftment.

Holistic Development of Rural Areas

• The Indian government emphasises the need for a multi-dimensional approach to rural development, addressing fundamental needs:
  • Investment of Rs. 1.52 lakh crore in agriculture and allied sectors.
  • Implementation of programs like MGNREGA, PM Awas Yojana, Samagra Shiksha, and Ayushman Bharat Yojana.
  • Direct government intervention to improve roads, electricity, health, education, and access to drinking water.
  • Special attention to gender and caste inequalities through social welfare initiatives.
• Challenges Faced by Rural India:
  • Rural communities encounter a variety of challenges, such as illiteracy, caste discrimination, and limited access to markets.
  • Infrastructure issues include a lack of storage facilities, middleman dominance in agriculture, financial illiteracy, and inadequate healthcare.
  • According to the Economic Survey 2022-23, 65% of India’s population resides in rural areas, with agriculture being the primary livelihood for 47% of the rural population.

Strategic Budgetary Allocations for Growth

• Empowering Agriculture and MSMEs:
  • Recognizing agriculture’s role in GDP, the government has allocated funds for agricultural sustainability.
  • The Pradhan Mantri Fasal Bima Yojana ensures crop insurance for farmers facing natural calamities.
  • Establishment of 1000 agricultural credit societies to ensure easier access to loans for farmers.
  • The government supports MSMEs as engines of job creation and economic growth, with a focus on easier credit access.
• Strengthening Rural Infrastructure:
  • Massive allocations for infrastructure development, particularly in roads, rural connectivity, and housing.
  • The PM Awas Yojana focuses on affordable housing for the urban poor and lower-middle classes.
  • Infrastructure initiatives are part of the government’s broader vision to boost rural livelihoods through robust connectivity.
• Healthcare and Social Upliftment:
  • The National Health Mission (NHM) and Ayushman Bharat are vital schemes for expanding healthcare access and affordability in rural regions.
  • Budgetary provisions focus on improving health infrastructure to combat rural healthcare inadequacies.
  • Various welfare schemes are dedicated to addressing gender inequality and promoting social justice, including Saksham Anganwadi and the Pradhan Mantri Anna Kalyan Yojana.

Employment Generation and Financial Inclusion

• Boosting Employment:
  • Programs like the Pradhan Mantri Employment Generation Programme (PMEGP) have created self-employment opportunities, particularly for marginalised communities.
  • The government promotes entrepreneurship in rural areas to create sustainable employment opportunities.
• Financial Inclusion:
  • The Pradhan Mantri Jan Dhan Yojana (PMJDY) has significantly contributed to financial literacy and inclusion, bringing banking facilities to the unbanked.
  • The scheme’s impact extends to rural areas, promoting savings and improving access to financial services.

Quantitative Insights into Government Initiatives

• Over 6.3 crore MSMEs in India have generated 11 crore jobs, highlighting the sector’s importance.
• 31.54 lakh beneficiaries have profited from the Pradhan Mantri Anna Kalyan Yojana.
• Significant funds have been allocated for affordable housing, healthcare, and rural development initiatives, providing much-needed infrastructure.
• The government is working towards drinking water access for every household, a key achievement target.

Conclusion

• By focusing on critical sectors like agriculture, healthcare, and infrastructure, while promoting entrepreneurship and financial inclusion, the government aims to transform rural India.

3. Inclusive Human Resource Development And Social Justice: Budget Perspective

Introduction

• Inclusive Human Resource Development (IHRD) is a critical focus for India’s economic and social progress, especially in the context of the Union Budget 2024-25.
• The budget emphasizes addressing key challenges such as poverty, healthcare, education, gender inequality, and social justice.

Expanding Human Resource Development

• Focus on Education and Skill Development:
  • The government aims to enhance capabilities through education, skill development, and employment generation.
  • Significant budgetary allocations have been made, including an increase in the education budget from ₹1,12,889.47 crore in 2023-24 to ₹1,20,627.47 crore in 2024-25.
  • The Samagra Shiksha Abhiyan will be revamped to align with the National Education Policy (NEP) 2020, promoting a holistic approach to school education.
  • The Pradhan Mantri Uchchatar Shiksha Abhiyan (PM Usha) aims to improve higher education systems through state funding, aligning with NEP 2020 goals.
  • The PM Shre Scheme supports the implementation of NEP 2020 by focusing on school infrastructure and curriculum enhancement.
• Skill Development Initiatives:
  • The budget focuses on Skill India Mission, investing in training and upskilling India’s youth to meet the evolving job market.
  • E-vouchers for University Training Institutes (UTIs) will be provided, facilitating skill acquisition and enhancing employability.
  • The First Timers Scheme offers one-month wages for first-time employees in the private sector, encouraging youth participation in formal employment.
  • Anusandhan National Research Foundation will be set up with a massive ₹1 lakh crore allocation to foster research and innovation, strengthening private sector-driven research.

Social Justice and Economic Empowerment

• Promoting Gender Equality and Women’s Empowerment:
  • The government has allocated resources for programs aimed at achieving gender equality and empowering women.
  • The Vatsalya Pension Scheme provides financial support for women, reflecting a commitment to women-led development.
  • A loan scheme for women entrepreneurs has been introduced, offering financial aid to encourage women’s participation in business and entrepreneurship.
• Support for Marginalised Communities:
  • Pradhan Mantri Janjatiya Unnat Gram Abhiyan focuses on tribal development, empowering communities through livelihood support and infrastructure development.
  • Social justice is at the forefront, with the Social Justice and Empowerment budget increased from ₹12,847.03 crore to ₹13,000 crore in 2024-25, supporting marginalised groups.
  • Key welfare schemes like the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) provide a safety net for rural populations by ensuring wage employment.

Healthcare and Social Security

• Healthcare Sector Boost:
  • The budget places a strong emphasis on healthcare access, with the healthcare budget increased from ₹2,527.81 crore in 2023-24 to ₹4,520 crore in 2024-25.
  • The Pradhan Mantri Jan Arogya Yojana (PMJAY) is a flagship health insurance scheme that provides coverage for millions of families, promoting affordable healthcare.
  • Enhancing the healthcare system is essential to improving the overall well-being of citizens, contributing to inclusive development.
• Social Security Programs:
  • The government continues to focus on social security measures, ensuring that citizens from all walks of life are protected.
  • The Jan Dhan Yojana provides financial inclusion by opening bank accounts for millions of citizens, offering access to formal financial services.
  • Purvodaya Schemes focus on regional development, especially in eastern India, supporting infrastructure projects and livelihood generation.

Boosting Rural Development and Agriculture

• Rural and Agricultural Development:
  • Recognizing the importance of agriculture and rural development in driving economic growth, the government has prioritised these sectors.
  • Several schemes aim to enhance agricultural productivity, provide livelihood opportunities, and reduce rural poverty.
  • Pradhan Mantri Gram Sadak Yojana and other rural infrastructure projects help connect remote areas, facilitating market access and improving quality of life in rural regions.

Focus on Emerging Sectors and Innovation

• Space Economy and Technological Advancement:
  • The Union Budget 2024-25 aims to position India as a global leader in technology and innovation.
  • The goal to expand the space economy fivefold in the next decade highlights India’s growing capabilities in the space sector.
  • Investments in research and development, especially through the Anusandhan National Research Foundation, are crucial to fostering innovation and driving sustainable development.

Conclusion

• Through various initiatives and increased allocations, the budget sets the foundation for a more inclusive and prosperous India, aligning with the vision of a “Viksit Bharat” by 2047.

4. Budget 2024-25: A Roadmap To Develop an Industry-ready Workforce

Introduction

• India is poised to leverage its demographic dividend by developing an industry-ready workforce.
• The need for relevant skills is crucial to engage both urban youth and the rural workforce effectively.
• The Economic Survey 2023-24 highlights the urgent requirement for job creation in the non-farm sector to accommodate the rising workforce.

Workforce Challenges and Opportunities

• India needs to generate nearly 78.5 lakh jobs annually until 2030 to meet the demands of its growing workforce.
• Although the overall unemployment rate is declining, youth unemployment remains a significant concern.
• Increased labour force participation, particularly among women, underscores the potential for a more inclusive workforce.
• Bridging the skill gap is essential for aligning the workforce with the demands of a modern economy.

Government Initiatives for Employment Generation

• PM Vishwakarma Scheme
  • Allocated Rs. 990 crore for FY25, with a total outlay of Rs. 11,000 crore.
  • Supports traditional artisans and craftspeople with credit, identity cards, and marketing assistance.
• PM Kaushal Vikas Yojana (PMKVY)
  • Financial allocation of Rs. 12,000 crore for FY24-25.
  • Aims to train 1.25 crore individuals in vocational skills to enhance employability.
• National Apprenticeship Promotion Scheme (NAPS)
  • Encourages apprenticeships by providing practical training opportunities.
  • Offers incentives for both employers and apprentices to foster skill development.
• Industrial Training Institutes (ITIs)
  • Established nationwide to provide vocational training tailored to industrial job requirements.
• Skill India Mission
  • A comprehensive initiative to train and certify millions of Indians, boosting the skilled workforce.
• Prime Minister’s Employment Generation Programme (PMEGP)
  • Financial support for micro and small enterprises, promoting job creation in both rural and urban settings.
• National Rural Livelihoods Mission (NRLM)
  • Empowers women through self-help groups by offering training and support to start their businesses.
• Deendayal Antyodaya Yojana-National Rural Urban Livelihoods Mission (DAY-NRLM)
  • An integrated approach aimed at eradicating poverty by creating livelihood opportunities for the rural and urban poor.

Conclusion

• The Indian government is committed to addressing employment challenges through various targeted initiatives.
• These programs are instrumental in transforming India into a manufacturing hub and creating job opportunities.

5. Union Budget 2024-25: Next Generation Reforms

Introduction

• The Union Budget 2024-25 outlines ambitious reforms aimed at revitalizing the Indian economy.
• Aimed at achieving the vision of “Vikasit Bharat” by 2047, these reforms focus on key factors of production: land, labor, capital, and entrepreneurship.
• The government is committed to creating a favorable environment for economic growth and addressing the aspirations of the Indian populace.

Key Objectives of the Reforms

• Stimulate Economic Growth: Reforms are designed to enhance productivity and overall economic health.
• Restore Economic Health: The government aims to alleviate supply-side constraints and strengthen the economy’s capabilities.
• Promote Business Environment: Initiatives are focused on improving the ease of doing business, facilitating investment, and fostering entrepreneurship.

Comprehensive Areas of Focus

• Banking System Restructuring: Efforts to strengthen the banking sector to enhance financial stability.
• Nationwide GST Implementation: Measures to streamline Goods and Services Tax for greater compliance and efficiency.
• Infrastructure Development: Investments in physical and social infrastructure to support economic activities and improve quality of life.

Collaborative Implementation

• Central-State Cooperation: The Finance Minister emphasizes the importance of collaboration between Central and State governments.
• Stakeholder Engagement: Engagement with the private sector and civil society is vital for the successful implementation of reforms.
• Economic Survey  advocates for intense collaboration among governments, the private sector, and civil society to achieve reform objectives.

Emphasis on Bottom-Up Reforms

• Strengthening Governance: The reforms aim to enhance governance structures to create a conducive environment for balanced growth.
• Long-Term Benefits: Structural reforms are designed to yield sustainable, inclusive growth in the long run.

Specific Initiatives and Policies

Land Management Improvements

• Land Parivarthan Adhikar:
  • Provides land ownership rights to forest dwellers and marginalized communities.
  • Over 50 million people have received unique IDs under this scheme.
• Land Records Modernization:
  • Efforts are underway to digitize land records and create a comprehensive database.
  • This initiative aims to enhance transparency and efficiency in land management.
• Samadhan Portal:
  • An online platform launched to resolve land disputes among landowners, employers, and trade unions.

Labor Market Reforms

• Shram Suvidha Portal:
  • A comprehensive online solution for various labor-related services, including registration and compliance.
  • The portal has facilitated the resolution of over 1 lakh cases related to labor laws.
• Minimum Wages Act Amendment:
  • The government has amended the Minimum Wages Act to increase the minimum wage for workers by 25%.
• Ease of Doing Business Initiatives:
  • Streamlining of labor laws and regulations to enhance the business environment.

Government’s Commitment to Reforms

• The Union Budget 2024-25 reflects the government’s dedication to implementing extensive reforms in land and labor sectors.
• These initiatives aim to uplift the social and economic conditions of citizens, contributing significantly to the country’s development.

Conclusion

• By addressing critical areas such as land management and labor conditions, the government aims to create a sustainable and inclusive growth environment.