As India progresses towards its vision of “Viksit Bharat” by 2047, the interconnected pillars of energy, infrastructure and agriculture play a pivotal role in shaping this journey. These sectors are not only vital to the nation’s economic growth but are also crucial for social equity, environmental sustainability and political stability.
The 2024-25 Budget has initiated a transformative shift in these areas, underscoring the need for integrated development strategies that can propel India towards its goal of becoming a developed nation. Yet, despite the profound implications of these advancements, there has been a noticeable lack of comprehensive discussion on how they collectively influence India’s path forward.
What are the key areas where these sectors intersect? How does the recent budget lay the foundation for a future where prosperity is widely shared and economic resilience is built on sustainable practices? In this article, we delve into the critical areas of renewable energy, robust infrastructure and modernised agriculture, exploring how the budget’s provisions are setting the stage for a prosperous and resilient future for all.
Energy
As India strides towards its ambitious goal of becoming a developed nation by 2047, energy lies at the core of this transformation. The 2024-25 Budget has injected fresh momentum into the energy sector, outlining a vision that seeks to balance growth with environmental stewardship and economic equity with technological advancement. How does this budget align with the broader Viksit Bharat vision, particularly in terms of energy? What potential impact could these provisions have on India’s energy landscape?
Energy Security The concept of energy security has evolved beyond mere availability; it now encompasses accessibility, affordability and sustainability. Recognising this, the 2024-25 Budget places a strong emphasis on enhancing energy security, a critical component of the Viksit Bharat vision. With an allocation of ₹0.19 lakh crore specifically for renewable energy infrastructure and initiatives, the budget reflects the government’s commitment to ensure affordable energy for growing economy.
A cornerstone of this strategy is the PM Surya Ghar Muft Bijli Yojana, which aims to install rooftop solar systems for one crore households, providing up to 300 units of free electricity per month. This initiative is expected to add approximately 100 GW of solar power capacity, positioning India as a global leader in renewable energy. By 2027, this could result in a 15% reduction in the country’s carbon emissions, significantly contributing to India’s climate goals under the Paris Agreement.
Driving the Green Transition India’s energy transition heavily relies on the expansion of renewable energy sources. The budget’s focus on promoting pumped storage projects is a strategic move to address the intermittency of renewable energy sources like solar and wind. By integrating these storage solutions, the government aims to stabilise the grid, ensuring a reliable supply of electricity even when renewable generation fluctuates.
Moreover, the budget’s emphasis on developing Bharat Small Modular Reactors (SMRs) underscores the government’s commitment to diversifying the energy mix. SMRs, with their enhanced safety features and flexibility, are poised to play a significant role in India’s energy future. By 2030, SMRs could contribute an additional 10 GW of clean energy, reducing the country’s dependence on coal-fired power plants and cutting down carbon emissions by 20% from the power sector.
Creating employable labour pool Furthermore, the budget’s provisions for green jobs, particularly through the upgradation of Industrial Training Institutes (ITIs) and the skilling of youth, are designed to align the workforce with the demands of a green economy. Over the next five years, these initiatives could result in the creation of 1 million green jobs, contributing to both economic growth and environmental sustainability.
Energy and Social Equity The budget’s focus on energy equity is particularly noteworthy. As noted earlier, Surya Ghar Muft Bijli Yojana, by providing free electricity to 1 crore households, directly addresses energy poverty, which remains a significant issue in rural India. Access to reliable and affordable electricity can transform lives by improving health outcomes, enhancing educational opportunities and enabling economic activities.
In addition, the budget’s support for traditional micro and small industries to shift to cleaner energy sources through energy audits and financial assistance is a step towards inclusive growth. By facilitating the adoption of clean energy in these sectors, the government aims to reduce the operational costs for small enterprises, making them more competitive and sustainable.
Energy Independence and Global Leadership The budget’s provisions for critical mineral resources, essential for renewable energy technologies and electric vehicles, reflect a strategic approach towards reducing dependence on imports. The reduction in customs duties on critical minerals like lithium and cobalt is expected to attract significant foreign investment, potentially amounting to $10 billion over the next five years. This move not only strengthens India’s energy independence but also positions the country as a key player in the global supply chain for clean energy technologies.
Moreover, India’s efforts to secure critical mineral assets abroad, coupled with domestic production and recycling initiatives, highlight the country’s proactive stance in the global energy arena. By 2025, India aims to source 50% of its critical minerals from domestic and allied sources, reducing its vulnerability to global supply chain disruptions and enhancing its strategic autonomy.
Infrastructure
At this crucial juncture, the 2024-25 Budget provides a robust framework to accelerate infrastructure growth, aiming not only to meet current demands but also to lay the foundation for a future aligned with India’s aspirations of becoming a global powerhouse. The following are the areas where this budget seems to lay emphasis on acting as a catalyst for economic growth, job creation and improved quality of life for millions of Indians.
Infrastructure Development Central to the Viksit Bharat mission, infrastructure development is recognised as one of the nine core priorities in the latest budget. The allocation of ₹1,111,111 crore for capital expenditure in the fiscal year 2024-25, representing 3.4% of GDP, marks a significant leap in the government’s commitment to infrastructure. This investment is not just a financial outlay; it is a strategic move to catalyse economic growth and create jobs
Urban Transformation One of the most compelling aspects of the infrastructure agenda is the transformation of cities into growth hubs. The budget outlines a strategy to develop peri-urban areas through economic and transit planning, which is essential for managing the rapid urbanisation that India is experiencing. By 2030, India is expected to add 416 million urban dwellers, necessitating massive investments in urban infrastructure. How will the development of peri-urban areas address the challenges of rapid urbanisation? What role does this play in the broader strategy for infrastructure growth?
The budget has earmarked ₹10 lakh crore for urban housing under the PM Awas Yojana Urban 2.0, aiming to address the housing needs of 1 crore urban poor and middle-class families. This initiative is not just about providing shelter; it is about fostering inclusive growth by ensuring that every citizen has access to basic amenities like water, sanitation and electricity. The provision of affordable housing is expected to drive demand in the construction sector, which is projected to grow at 8% annually over the next five years, contributing significantly to GDP growth.
Transport Infrastructure Transport infrastructure, particularly roads, railways, and ports, is another critical area in which the budget has made substantial allocations. The launch of Phase IV of the Pradhan Mantri Gram Sadak Yojana (PMGSY) to provide all-weather connectivity to 25,000 rural habitations is a transformative step. This initiative will not only improve rural connectivity but also enhance access to markets, education and healthcare for millions of rural residents. What are the expected economic impacts of improved rural connectivity? How will these transport infrastructure developments enhance India’s global competitiveness?
Moreover, the development of expressways and highways, with an allocation of ₹1.5 lakh crore for long-term interest-free loans to state governments for infrastructure development, underscores the central government’s commitment to enhancing connectivity across the country. These projects are expected to reduce travel time by 30% and logistics costs by 15%, making Indian businesses more competitive globally.
Digital Infrastructure The integration of energy and digital infrastructure into the broader infrastructure agenda is a forward-looking strategy. The budget has allocated ₹21,400 crore for setting up a new 2400 MW power plant in Bihar, alongside other critical power projects aimed at improving energy security and reducing transmission losses. This is crucial for supporting the growing energy demands of a rapidly industrialising nation.
In the digital realm, the development of Digital Public Infrastructure (DPI) is set to revolutionise service delivery and governance. The government’s plan to implement DPI in agriculture, covering six crore farmers and their lands in the next three years, is a testament to how digital infrastructure can drive efficiency and transparency. This digital push is expected to increase agricultural productivity by 20 per cent, contributing to overall economic growth.
Economic Implications The budget’s infrastructure investments are designed with a clear understanding of their multiplier effects on the economy. For every ₹1 invested in infrastructure, the GDP is expected to grow by ₹2.5 to ₹3. This substantial impact is primarily due to the job creation potential of these projects. The construction of highways, industrial parks and urban housing will generate millions of direct and indirect jobs, addressing the critical issue of unemployment.
The focus on skilling, as seen in the allocation of ₹1.48 lakh crore for education, employment and skilling, further complements the infrastructure agenda. By aligning the workforce with the needs of a modern, infrastructure-driven economy, the government is ensuring that the benefits of growth are widely shared.
Political Context The implementation of infrastructure projects in a federal structure like India involves collaboration between the central and state governments. The budget’s provision of ₹1.5 lakh crore in long-term interest-free loans to states is an incentive for state governments to prioritise infrastructure development. This approach not only promotes competitive federalism but also ensures that infrastructure development is aligned with local needs and priorities.
Agriculture
Agriculture is integral to the vision of Viksit Bharat, where the goal is not merely to achieve higher productivity but also to ensure sustainability, resilience and inclusivity. The 2024-25 Budget reflects this with a significant allocation of ₹1.52 lakh crore towards agriculture and allied sectors. This is not just a financial commitment but a strategic endeavour to modernise agriculture through research, innovation and infrastructure development.
Research and Resilience One of the most noteworthy initiatives is the comprehensive review of the agricultural research setup aimed at enhancing productivity and developing climate-resilient crop varieties. Given that agriculture in India is highly vulnerable to climate change, this focus on resilience is crucial. By 2030, India aims to develop over 200 new high-yielding and climate-resilient crop varieties, potentially increasing crop yields by 15-20% and safeguarding the livelihoods of millions of farmers. How will the development of climate-resilient crops impact India’s agricultural output? What are the long-term benefits of such an initiative for the rural population?
Green Revolution 2.0 The budget introduces a significant push towards natural farming, with plans to initiate one crore farmers into this practice over the next two years. Natural farming, which emphasises the use of organic inputs and traditional practices, is seen as a sustainable alternative to the Green Revolution’s input-intensive agriculture. The government’s support for this initiative through certification and branding is expected to significantly boost the marketability of organically grown produce, which could see a 25% increase in market prices due to higher consumer demand.
This shift towards natural farming is also politically significant. It aligns with the growing global and domestic demand for sustainable practices, positioning India as a leader in organic and sustainable agriculture. Moreover, by promoting natural farming, the government aims to reduce the dependency on costly chemical inputs, thus improving the profitability of small and marginal farmers, who constitute 86 per cent of the farming community in India.
Technological Integration Digital technology is set to revolutionise Indian agriculture, as highlighted by the government’s plan to implement Digital Public Infrastructure (DPI) across the sector. The budget allocates significant resources for expanding DPI, including the digital mapping of agricultural lands and the issuance of Jan Samarth-based Kisan Credit Cards in five states. This initiative aims to cover six crore farmers and their lands within three years, enabling better access to credit, subsidies and real-time information on weather and market prices. What are the expected outcomes of integrating digital technology into agriculture? How might this digital transformation affect farmers’ income and productivity?
The potential impact of this digital integration is profound. Studies suggest that the adoption of digital technologies in agriculture can increase farm income by up to 30% by improving efficiency and reducing input costs. Furthermore, the digital crop survey for Kharif crops planned in 400 districts will provide granular data that can be used to tailor interventions, optimise resource use and ultimately increase agricultural productivity.
Economic Implications The budget’s focus on pulses and oilseeds, particularly the missions aimed at achieving self-sufficiency in these critical crops, is a strategic move towards enhancing food security. India is one of the largest consumers of pulses, yet it remains dependent on imports to meet domestic demand. The budget’s initiatives to strengthen the production, storage and marketing of pulses and oilseeds could reduce imports by 25% over the next five years, saving the exchequer approximately ₹20,000 crore annually.
Moreover, the promotion of Farmer-Producer Organisations (FPOs) and cooperatives in vegetable supply chains is expected to streamline marketing and reduce post-harvest losses, which currently stand at 30% for perishables. By improving supply chain efficiencies, the government aims to increase farmers’ share of consumer prices from the current 30-40% to over 60%, significantly boosting rural incomes.
Social and Political Implications Allocation of an 8% rise in the budget’s emphasis on agriculture is not just an economic strategy; it is also a social and political one. The extension of the Pradhan Mantri Garib Kalyan Anna Yojana for another five years, benefiting more than 80 crore people, underscores the government’s commitment to food security. This initiative, coupled with higher Minimum Support Prices (MSPs) that promise at least a 50% margin over costs for major crops, is a clear signal of the government’s intent to secure the welfare of farmers, who are often referred to as “Annadata” or the providers of food.
Politically, these measures are designed to consolidate the government’s support base among rural voters, particularly in states where agriculture is a dominant livelihood. By addressing both the economic and social dimensions of agricultural development, the government aims to create a more resilient rural economy that can withstand the shocks of climate change, market volatility and global competition.
Challenges And The Way Ahead
The strategic investments in renewable energy, urban and transport infrastructure and sustainable agriculture aim to foster inclusive growth, enhance sustainability and ensure that the benefits of development reach all sections of society. What are the major hurdles that might impede the successful implementation of these ambitious initiatives?
The energy sector’s transformation will be a critical determinant of the country’s ability to achieve its ambitious goals and set a benchmark for the world in sustainable development. The successful implementation of the initiatives will require strong governance, technological innovation and active participation from all stakeholders, including the private sector, civil society and international partners.
The strategic investments in urban, transport, energy, and digital infrastructure are not just about building physical assets but about transforming the economic and social landscape of the country. However, the successful realisation of these goals will require meticulous planning, efficient execution and continuous monitoring. The government’s focus on inclusive growth, job creation and regional development through infrastructure projects is a step in the right direction. How can India overcome potential bottlenecks in project implementation? What role can public-private partnerships play in ensuring the timely completion of these infrastructure projects? The foundations laid today through infrastructure development will determine its ability to achieve the lofty vision of Viksit Bharat.
The 2024-25 Budget has laid down a comprehensive roadmap for the transformation of Indian agriculture, aligning it with the broader vision of Viksit Bharat. However, the path to achieving these goals is fraught with challenges. The successful implementation of natural farming, digital infrastructure and FPOs will require sustained effort, effective governance and the active participation of all stakeholders, including farmers, government agencies and the private sector. What strategies can be adopted to overcome resistance to change among farmers? How can the government ensure that digital initiatives reach the most remote and underserved areas? No doubt, the agriculture sector’s transformation will play a pivotal role in realising the vision of a developed, inclusive and sustainable Bharat.
As India approaches its centennial independence anniversary in 2047, the success of these initiatives will determine the nation’s ability to achieve its lofty ambitions and secure a prosperous future for all its citizens.
Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of the publication.
_20240731134909_original_image_17.webp)