Government likely to boost employment-linked incentives, skill development, and infrastructure to tackle inflation: Deloitte

The momentum on skill development and employment generation initiatives may be leveraged through India's demographic dividend to enhance incomes, stimulate consumption, and drive economic growth from both supply and demand perspectives.

The focus would be on creating job opportunities and upskilling the workforce to maximize the country's economic potential.Reforms in agriculture are anticipated to address long-standing structural inefficiencies in the value chain. To minimize delivery costs and ensure affordability, long-term solutions are needed, including improved supply chain infrastructure and production incentives.

In the short term, Direct Benefit Transfers (DBTs) and food coupons are expected to support rural consumption, which has been significantly affected by higher rural inflation.

With an ambitious target of USD 2 trillion in exports by 2030, the government is likely to implement measures to enhance the competitiveness of Indian products in global markets.

Policies such as tariff rationalization, duty exemptions, and remission schemes could lower export costs and boost trade. Additionally, simplifying export compliance procedures will help reduce barriers, making Indian products more competitive and efficient on the global stage.

Infrastructure development is expected to remain a key priority in the budget. Investments in physical, digital, and social infrastructure will support economic activity and improve logistics efficiency.

Expanding road networks, developing multi-modal logistics parks, and driving innovation in digital governance are expected to receive continued attention. Moreover, investments in health, education, and skilling initiatives will play a vital role in bridging social disparities and fostering inclusive growth.

To support job creation and skilling, policy recommendations include incentivizing labour-intensive sectors such as textiles, footwear, and food processing.

Collaboration between industries and educational institutions can create job-ready curricula and apprenticeship opportunities. Furthermore, adopting technology to formalize the economy and improve the quality of blue-collar jobs will be essential.

Establishing a comprehensive skill database and certification framework could address talent alignment and skill gap challenges.

Addressing inflation, particularly in the food sector, is another critical area. Developing cold storage networks and village-level warehouses can minimize post-harvest losses and ensure a steady food supply.

Expanding digital marketplaces like the National Agricultural Market (eNAM) and fostering public-private partnerships for supply chain modernization will strengthen rural economies.

The use of advanced technologies such as blockchain and AI can enhance supply chain efficiency and forecasting capabilities.To boost exports during global uncertainties, extending schemes like the Remission of Duties and Taxes on Exported Products (RoDTEP) and the Interest Equalisation Scheme will be crucial.

These initiatives lower costs and enhance the price competitiveness of Indian exports. The government is also expected to incentivize the export of high-value manufactured goods and expand credit guarantees for MSMEs, which often face liquidity challenges.

Upskilling workers in export-critical sectors will further strengthen India's position in international markets.Infrastructure and social investments are pivotal to sustainable growth. The budget should promote digital trade, diversify export markets, and allocate resources for affordable healthcare and expanded health insurance coverage.

Encouraging private sector participation in medical education can address skill shortages, while increased funding for R&D and critical disease programs will strengthen healthcare outcomes. Enhanced training and recruitment of professionals in underserved regions will ensure equitable access to education and healthcare. (ANI)