On February 1, Union Finance Minister Nirmala Sitharaman will present the 14th Budget of the Narendra Modi government since it took office in 2014. Except for the economic affairs secretary and chief economic adviser, Sitharaman will have a new team of bureaucrats, who will help her chart the strategy for the upcoming Budget.

As Sitharaman prepares to present her eighth consecutive budget, she is confronted by four main challenges. One, how to revive aggregate consumption in the economy’ two, how to generate more employment, three, how to contain a rise in prices and four, how to boost the decelerating growth rate of the economy. She also faces the arduous task of attracting more investments from abroad. A rise in consumption could also induce domestic industrialists to invest more in India.

As the nation charts a new growth path, expectations are running high among India’s citizens, especially the youth.

A major focus for the government in the past decade has been youth-led development and empowering youth has been one of the main objectives to achieve the mission of Viksit Bharat.

According to reports, the upcoming Budget is projected to primarily focus on tax relief via revised slabs, higher deductions, AI, employability, and upgrades.

The government’s previous budget, which emphasised jobs and upskilling, was a step in the right direction, with the announcement of a Rs 2 lakh crore initiative aimed at benefiting over four crore individuals over the next five years. This flagship scheme, which offers a month’s wage subsidy to first-time employees entering the formal sector, is designed to not only create jobs but also to ensure job retention. Employers who register new hires with the Employees’ Provident Fund Organisation will benefit from direct benefit transfers of up to Rs 15,000 per employee, incentivising them to sustain their workforce for a minimum of 12 months. This policy is a well-thought-out attempt to foster a long-term, stable job market – especially for young people eager to enter the workforce.

Creating jobs alone, however, will not solve the broader challenge. A significant gap exists in the skills segment, making it harder for youngsters to secure meaningful employment opportunities. To bridge this gap, the government has proposed a comprehensive upskilling programme, which aims to leverage the existing network of Industrial Training Institutes and collaborate with states and the private sector. Now that AI is gaining more prominence, it remains to be seen how the government is planning to make the optimum use of the technology for bolstering job opportunities for youngsters.

Through this Budget, the government will seek to demonstrate that it understands the present challenges of citizens and is committed to building an inclusive and progress-filled growth path.