Budget 2025 : India Inc. Calls for Job Creation and Skill Development in Budget

By siliconindia  |  Wednesday, 29 January 2025, 01:01:17 PM IST

India Inc. Calls for Job Creation and Skill Development in Budget
A survey revealed that over 72.2% of respondents, primarily from the services and manufacturing sectors, believe that job creation and skill development should be the top priorities in the upcoming budget. This perspective stems from the fact that most respondents view job creation (59.8%) and rising food inflation (45%) as the two major challenges facing the Indian economy in the next fiscal year (FY26).
The other big vote (62.7 per cent) was for boosting consumption, with 61.5 per cent advocating capex revival.  A far smaller set of people sought support for export-oriented sectors (25.4 per cent) and fiscal consolidation (24.9 per cent).
Some respondents also identify uneven domestic consumption (36.7%), growing geopolitical conflicts (34.9%), and weak external demand (23.7%) as major challenges for the Indian economy in FY26.
However, 52.7 per cent of participants believe that India’s medium-term economic outlook remains optimistic despite growth concerns. Almost 54 per cent respondents expect India’s real GDP growth in FY26 to be between 6 per cent to 6.5 per cent, while 17.2 per cent expect it to be less than 6 per cent. The rest expect it to be higher than 6.5 per cent. One big hope nursed by 71 per cent respondents is tax relief. 
While the country is nowhere near the budget target of 17 per cent growth in capex in the current fiscal year, 40.8 per cent of respondents believe India’s capex will grow by 5-10 per cent in FY26 compared to FY25 actuals, 33.7 per cent expect growth between 11-15 per cent, while 15.4 per cent anticipate growth of more than 15 per cent. On the other hand, 10.1 per cent foresee growth of less than 5 per cent in FY26.
Additionally, 76.9 per cent of respondents expect an increase in infrastructure spending. This is followed by 67.5 per cent who expect more investment in job creation and skill development programs, 34.3 per cent in social welfare schemes, and 21.3 per cent in subsidies.
The fiscal deficit for FY25 was budgeted at 4.9% of GDP. For FY26, 50.3% of respondents believe the fiscal deficit will exceed 4.5% of GDP. Meanwhile, 28.4% expect it to be at 4.5%, and 21.3% predict it will be below 4.5%.

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