India: Govt to Formulate Economic Policy for Next Generation Reforms

New Delhi, Jul 23 (PTI) The government will formulate an 'Economic Policy Framework' to set the scope of the next generation of reforms for facilitating employment opportunities and sustaining high growth.

The proposed 'Economic Policy Framework' is one of the nine priorities envisaged in the Budget for generating ample opportunities for all.

"We will formulate an Economic Policy Framework to delineate the overarching approach to economic development and set the scope of the next generation of reforms for facilitating employment opportunities and sustaining high growth," Finance Minister Nirmala Sitharaman said in her Budget Speech in the Lok Sabha.

She said the government will initiate and incentivise reforms for improving productivity of factors of production, and facilitating markets and sectors to become more efficient.

"These reforms will cover all factors of production, namely land, labour, capital and entrepreneurship, and technology as an enabler of improving total factor productivity and bridging inequality," she added.

The minister said effective implementation of several of these reforms requires collaboration between the Centre and the states and building consensus, as development of the country lies in development of the states.

"For promoting competitive federalism and incentivising states for faster implementation of reforms, I propose to earmark a significant part of the 50-year interest-free loan. Working with the states, we will initiate the following reforms," Sitharaman said.

In the speech, she said people have given a unique opportunity to Modi government to take the country on the path of strong development and all-round prosperity.

In the interim Budget presented in February, she said the government promised to present a detailed roadmap for its pursuit of 'Viksit Bharat'.

"In line with the strategy set out in the interim Budget, this Budget envisages sustained efforts on the following 9 priorities for generating ample opportunities for all," she said.

The nine priorities are: 'productivity and resilience in agriculture', 'employment & skilling', 'inclusive human resource development and social justice', 'manufacturing & services', 'urban development', 'energy security', 'infrastructure', 'innovation, research & development' and 'next generation reforms'.

Sitharaman said subsequent budgets will build on these nine, and add more priorities and actions.

"We are pleased with the Union Budget 2024-25's strong focus on employment and education, particularly the allocation of Rs 1.48 crore and the Rs 2 lakh crore package for five schemes aimed at creating jobs and providing skilling to 4.1 crore youth. This will drive economic growth and progress by enhancing job creation, improving higher education access, and expanding skill development programmes," Wadhwani Foundation President and CEO Ajay Kela said.