India to raise spending on job creation ahead of election

By KRUTIKA PATHI
Associated Press

NEW DELHI (AP) — Indian Prime Minister Narendra Modi’s government plans to ramp up capital spending by 33% in a $550 billion annual budget designed to spur economic growth and create jobs ahead of a general election next year. Finance Minister Nirmala Sitharaman says private investment has been rising after the pandemic and the government should focus on driving growth. India’s economy is projected to grow 7% in the fiscal year ending in March. The government forecasts growth of 6%-6.5% next year. But it is struggling to generate enough jobs for its population of 1.4 billion people. Apart from raising capital spending to $122 billion, the budget focuses on expanding social welfare and prioritizes “green growth,” in line with India’s climate change commitments.