India's Budget Allocates US$630 Billion to Boost Manufacturing, Exports, and Youth Jobs

TheWkly Analysis

India’s newly unveiled budget signals an ambitious push to strengthen its position as a global manufacturing hub through a range of policy measures. Analysts caution that the US$630 billion allocation may need further reinforcement as the country seeks to diversify exports and expand into new markets. The measures, announced by Finance Minister Nirmala Sitharaman (India's Finance Minister responsible for presenting the annual budget) in her budget speech on Sunday, are designed to address two pressing challenges: generating employment for India’s vast youth population — the largest in the world — and leveraging existing free-trade agreements to boost exports and attract investment. India remains the world’s fastest-growing major economy, with projections suggesting it could outpace several global peers in the coming decades. However, its economic structure differs significantly from that of China. While China continues to dominate global manufacturing — with the sector accounting for roughly 25 percent of GDP in recent years — India has built a services-led growth model that sets it apart.