Unemployment Reduced From 6% To 3.2% In 6 Years, Inflation At Record Low: FM Sitharaman

Finance Minister Nirmala Sitharaman on Monday told Parliament that the government had reduced the unemployment rate from 6% to 3.2% in six years. She also said inflation had dropped to its lowest level in six years.

In a written reply in the Lok Sabha, Sitharaman said the government took several steps to check inflation, boost employment, and improve household incomes. These steps focused mainly on the poor and the youth.

To control prices, the government increased buffer stocks of key food items. It also sold grains in the open market and eased imports. At the same time, it imposed export curbs during shortages.

Moreover, the government set stock limits to push more supplies into the market. It sold select food items under the Bharat brand at subsidised rates. Further, it gave free food grains to about 81 crore people under the National Food Security Act.

In addition, the government raised disposable incomes. It exempted annual income up to ₹12 lakh from income tax. Salaried individuals with standard deduction now get exemption up to ₹12.75 lakh.

As a result, retail inflation dropped. The Consumer Price Index (CPI) fell from 5.4% in 2023–24 to 4.6% in 2024–25. This marked the lowest rate in six years.

Alongside inflation control, the government launched several job schemes. These include the Prime Minister’s Employment Generation Programme, Aatmanirbhar Bharat Rojgar Yojana, and employment-linked incentives for industries.

It also used schemes like MGNREGA, the National Livelihood Missions, and Kaushal Vikas Yojanas to support job creation. In the 2025–26 Budget, it announced the ‘Rural Prosperity and Resilience’ programme. This scheme aims to reduce underemployment in agriculture by focusing on skilling, investment, and technology. It gives special attention to women, youth, and marginal farmers.

As a result, the all-India unemployment rate for those aged 15 and above fell from 6% in 2017–18 to 3.2% in 2023–24.

Meanwhile, CPI inflation in Q1 of 2025–26 dropped to 2.7%. It fell further to 2.1% in June 2025. Notably, food inflation slipped into the negative zone, reaching -1.06% in June—the lowest since January 2019.

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