(Sanghnomics is a weekly column that tracks down and demystifies the economic world view of Rashtriya Swayamsevak Sangh (RSS) and organisations inspired by its ideology.)
The Union Budget 2024-25 attracted mixed reactions from various quarters. Issues like removal of indexation in the real estate have dominated the narrative. An increase in short-term capital gain tax and less than expected relief in the income tax also led to criticism of the budget in certain quarters.
But the backing of the budget by Swadeshi Jagaran Manch (SJM), an ideological mentee of the Rashtriya Swayamsevak Sangh (RSS), known for its bold, nationalist and well-informed stand on critical issue of economic policy -- has been a shot in the arm for the government.
Congratulating the central government, especially Union Finance Minister Nirmala Sitharaman for innovative schemes announced in the budget for promoting job creation and also self-employment, the SJM also underlined that that employment has always been a pain point in the post-globalisation period.
Though, there has been significant increase in GDP growth after 1991, but creating more and more jobs is becoming increasingly challenging. The issue of jobless growth is an outcome of the flawed economic models of the west. In the earlier columns we have discussed the issue of how indigenous or Bharat-centric economic models can ensure consistent employment growth.
Meanwhile, if one goes by the SJM’s assessment of the present budget, it offers an innovative comprehensive internship opportunity in 500 top companies, to develop skill sets for educated youth, and make them employable. If implemented properly this can prove to be a watershed moment for our younger generation. This can help one crore youth to skill themselves for future job opportunities, in the next five years. Apart from this, a good number of schemes have been announced in the budget to incentivise creation of jobs in the private sector including support to businesses for EPFO contribution and also providing first salary to first time employed from government’s kitty.
Further, SJM appreciated an increase in capital expenditure by the government and encouragement to increase private investment. Increasing the cap for MUDRA loan from Rs 10 lakhs to 20 lakhs is also a step in the right direction. Introduction of credit guarantee scheme for MSME, credit support to MSME during stress period, e-commerce export hubs for MSME, development of investment ready plug and play industrial parks, rental housing for industrial workers etc. are some of the good measures adopted for development of MSMEs. Scheme for street vendors is yet another step towards inclusive growth.
According to the SJM, push to infrastructure both by way of public capital expenditure and also private investment can go a long way towards much desired infrastructure development. Encouragement to renewable, especially solar energy is also an appreciable program. Encouragement to natural farming and support to the farmers in crop diversification can also help improve the farmer welfare.
Reforms and strengthening debt recovery tribunals, steps towards speeding up insolvency resolution are also welcome steps, according to SJM. Overall the SJM found this budget to be employment centric, pro-agriculture, pro-business, especially MSME.
Going ahead, the SJM had suggested to the government that it needs to take additional steps for promotion of entrepreneurship in the country. This suggestion is an outcome of the repeated emphasis by the RSS leadership on the fact that creating more employment does not mean creating more jobs.
Since ancient times, Indians had always focused on entrepreneurship rather than working on jobs. The RSS Sarsanghchalak (Chief Mentor) Mohan Bhagwat has also repeatedly mentioned in his speeches that we should promote entrepreneurship as much as we can. The RSS has also batted repeatedly for a decentralised model of economic development with micro, small and medium enterprises forming the backbone of the industry and services sector. In the farm sector, the RSS has backed natural farming utilising the ancient Indian techniques blending it with modern technology.
Organisations like Bharatiya Kisan Sangh(BKS), the largest farmer’s organisation, have been working on this aspect for the last several decades amidst farmers across the country.
Thrust on Natural Farming
The finance minister has announced in the Union Budget 20224-25 that in the next two years, one crore farmers across the country will be initiated into natural farming supported by certification and branding. The implementation will be through scientific institutions and willing gram panchayats and 10,000 need-based bio-input resource centres will be established for the purpose.
The Modi Government has been giving a major push to Natural Farming since 2019-20 through “Bhartiya Prakritik Krishi Paddhati (BPKP)” under Paramparagat Krishi Vikas Yojna (PKVY). BPKP is planned to be upscaled in mission mode through National Mission on Natural Farming (NMNF). One of the key targets of the government is to create and promote a single national brand for naturally grown chemical free produce. The scheme has a total outlay of ₹2481.00 crore for the period of four years (2022-23 to 2025-26).
Conclusion
Though most of the macroeconomic policies continue to be governed by our technocrats’ and bureaucrats’ obsession with the western economic model, there are some shining spots in certain sectors where indigenous models and ancient Indian knowledge have been put into practice yielding encouraging results. The Modi government has been encouraging them. The real challenge now is to scale them up.
Earlier Sanghnomics columns can be read here.
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