Presenting the annual budget on Sunday (February 1), Indian Finance Minister Nirmala Sitharaman outlined a renewed focus on strengthening the manufacturing sector as part of efforts to accelerate economic growth amid global uncertainties. The budget for the next fiscal year places emphasis on structural reforms, building a resilient financial sector, and increasing investment in advanced technologies, including artificial intelligence.
The Modi administration continues to face challenges in expanding the manufacturing sector’s contribution to the economy from the current level of under 20 per cent of gross domestic product (GDP) to a targeted 25 per cent, a move seen as critical for job creation for the millions entering the workforce each year.
According to budget estimates, India’s economy is expected to grow by 7.4 per cent in the current financial year, while inflation is projected to remain close to 2 per cent. The fiscal deficit for the year is forecast at 4.4 per cent of GDP.
