India's 'jobs budget' won't create enough formal jobs

Modi's fiscal plan needs to be bolder to address structural challenges of the labor market

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Employees assemble an electric transformer on the outskirts of Ahmedabad, India. © Reuters

Trinh Nguyen is senior economist for emerging Asia at Natixis in Hong Kong.

Indian Prime Minister Narendra Modi's government in July unveiled a crowd-pleasing "jobs budget" for the fiscal year ending March 2025. This move aims to address the poorer performance of Modi's party in this year's general election compared to the previous two polls.

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