Finance Minister Nirmala Sitharaman has informed Parliament that the all-India unemployment rate has dropped from 6 percent in 2017–18 to 3.2 percent in 2023–24 for individuals aged 15 years and above, as per usual status criteria. In a written reply to the Lok Sabha, the Finance Minister credited the drop to sustained employment generation, inflation control and household income improvements—particularly benefiting youth and economically vulnerable communities.
The minister explained that strategic reforms across agriculture, industry and public welfare have anchored both macroeconomic stability and inclusive growth. A six-year inflation low was recorded with average Consumer Price Index (CPI)-based retail inflation falling from 5.4 percent in 2023–24 to 4.6 percent in 2024–25. Notably, CPI declined further to an average of 2.7 percent in Q1 of 2025–26, ending the quarter at 2.1 percent in June 2025. Food inflation also reversed into negative territory, reaching –1.06 percent in June, the lowest since January 2019.
Sitharaman outlined interventions that helped control inflation, including buffer stock augmentation, calibrated market sales, facilitation of imports, export curbs on scarce commodities, imposition of stock limits to increase market supply, subsidised retail sales under the Bharat brand, and free distribution of food grains to 810 million beneficiaries under the National Food Security Act.
She also highlighted measures to enhance disposable income, including personal income tax exemption for annual earnings up to ₹1.2 million—and up to ₹1.275 million for salaried individuals after standard deduction—enabling greater household liquidity and consumption.
On employment, Sitharaman cited a multi-pronged effort involving flagship programmes like the Prime Minister’s Employment Generation Programme, Aatmanirbhar Bharat Rojgar Yojana, employment-linked incentives for industries, National Urban and Rural Livelihoods Missions, Mahatma Gandhi National Rural Employment Guarantee Scheme, and the Kaushal Vikas Yojanas.
The Union Budget 2025–26 introduced the Rural Prosperity and Resilience programme to address underemployment in agriculture, with special emphasis on skilling and technology adoption among marginal farmers, youth and women. According to the Finance Minister, these aligned efforts are collectively expanding economic participation and fortifying household earnings across rural and urban India.
With key structural reforms targeting both inflation and unemployment, the government asserts that policy coherence and grassroots execution have made India’s macroeconomic fundamentals more resilient, equitable and inclusive.
