The FY27 Budget is now being shaped to double down on labour-intensive industries, expand incentives for MSMEs, and push growth in sectors with the highest employment elasticity. Despite rapid GDP expansion, the sectors that absorb the most workers (textiles, leather, food processing, toys, gems & jewellery, light manufacturing etc) have relatively lagged. A huge informal sector (73M workers, only 10% formal enterprises) and the rising risk of a “middle-income trap” make job creation the central weakness in India’s growth model. @livemint