Marching Towards A Better India

Budget At A Glance

Minister of Finance and Corporate Affairs of India (FM), Nirmala Sitharaman announced an increase of 11.86 per cent in the education budget 2022, along with initiatives to ensure education is accessible and affordable to everyone. There was also a strong mention of “Make In India,’ which will be responsibly providing millions of jobs, while emphasising the need to invest in skill development and building infrastructure. These initiatives, if executed properly can create many blue-collar and white-collar jobs. 

“This will empower citizens to skill, reskill or upskill through online training. It also provides API- based trusted skill credentials, payment, and discovery that they can use to find relevant jobs and entrepreneurial opportunities,” she said.

This year’s futuristic growth-friendly Union Budget rightly envisioned the roadmap for India entering Amrit Kaal, the 25-year long leadup to India@100. Analytics is the key to the successful implementation of the multi-modal PM GatiShakti master plan with its seven-engine focus for economic transformation and inclusive development for India@100. FM highlighted Artificial Intelligence (AI) as a sunrise opportunity while advocating promoting digital economy & fintech, technology-enabled development.

Further CP Gurnani, MD & CEO, Tech Mahindra, said, “the focus on innovation and R&D (Research and Development) with an emphasis on strengthening talent capacity through STEM (Science, Technology, Engineering, Mathematics) universities and skilling courses in IIT’s will enable India to become a global hub for skilled talent. Overall, Budget 2022 promises to provide the much-needed impetus to sustain India’s economic and digital growth.”

Education & Employability Go Hand-in-Hand

This has indeed been a great start of the year for fresh graduates, citing that 86 per cent of companies are hiring freshers, a positive step towards reducing youth unemployment and skill-building for graduates beginning their careers. Viswanath PS, MD & CEO, Randstad India, commended the announcement for addressing the employment need of the nation. He states, “You always need an ambition, then gets your direction right and then you need to accelerate.” Commenting further that the budget announcement ensures that there is something for everyone, with the infrastructure projects, the blue-collar sector will see demand, along with the PLI (productivity linked insurance) Scheme; task force on AVCG to help serve global market demands and a strong focus on MSMEs. 

The focus on online learning in the Union budget 2022-23 will propel growth in India’s edtech industry. The pandemic changed the atmosphere of learning in India, with most classes being conducted online. The focus on online learning is a step towards democratising learning in India. Skill-based online learning took the center stage in this year’s budget, highlighting the importance of vocational and creative classes that online learning enables. The announcement to launch a Digital University and dedicated online videos, quality online content will see higher demand, creating a positive environment for online learning companies to grow in India. 

Gurpreet Singh, Co-Founder & CRO, Awign further explained, “with the digital ecosystem expanding into more sectors, the government is focusing on skilling, reskilling, and upskilling Indian citizens through online training, which will be the source of their livelihood. This initiative will undoubtedly have a positive impact on the gig economy, as digital integration will aid in further crossing the borders between urban and rural geographies.”

Government’s stress on the importance of Nari Shakthi as one of the key pillars of inclusive growth will also pave the way to grow and strengthen the women-led enterprise in the country, an area that we have been working on for decades by providing entrepreneurial opportunities for lacs of women.  “The growing focus on women and youth as the harbinger of the country's bright future is in line with our efforts towards driving entrepreneurship by powering passion and creating successful business ventures. Constant efforts to promote ease of doing business announced in the budget will help the MSME sector, and a further push in this direction will bolster growth, states Anshu Budhraja, CEO, Amway India.

The Other Side Of A Coin

While we are witnessing the great number of lauds from the education and employability segment on this year’s budget, we must not forget that there will always be a few loopholes as the ministry cannot fulfill the wishes of all. 

West Bengal’s Chief Minister Mamata Banerjee, who is also the Finance Minister of the state tweeted,” Budget has been zero for common people, who are being crushed by unemployment and inflation. The government is lost in big words signifying nothing. A Pegasus spin budget.”

With a heavy heart, Delhi Chief Minister Arvind Kejriwal also echoed sentiments. “People had high expectations from the budget, especially during the COVID pandemic. The budget disappointed the people. There is nothing in the budget for the general public. Nothing to reduce inflation,” he tweeted. “Budget 2022 disappoints, India’s Salaried Class & Middle Class were hoping for relief in times of pandemic, all-round pay cuts and back-breaking inflation,” asserts Gautam Saraf, CHRO at Ferns N Petals.

Communist Party of India-Marxist (CPI-M) general secretary Sitaram Yechury also pointed out, “India has 200 million missing jobs today. No urban employment guarantee was announced. MGNREGA allocation remains the same as last year ₹73000cr, which fell short by nearly ₹50000cr. A criminal assault on the livelihood of our youth.”

The Union government’s fiscal stimuli in the last two years have not been large enough to reverse the collapse in jobs that the COVID-19 lockdowns triggered, on top of a pre-existing shortage of jobs. The Union government’s fiscal stimuli in the last two years have not been large enough to reverse the collapse in jobs that the COVID-19 lockdowns triggered, on top of a pre-existing shortage of jobs, giving rise to poverty and increasing inequality in India.

Looking Towards A Futuristic Lens

Overall, a very growth and development-oriented budget. For the economic recovery from the COVID-19 crisis to be durable and resilient, it is critical for India to take the skill-building of youth to the next level. 

Technical Skill development of rural India’s young population can contribute to structural transformation and economic growth by enhancing employability and labor productivity. The launch of DESH STACK will certainly boost India’s prestigious Skill India Mission and help in the creation of a future-ready and industry-oriented skilled workforce. "Realignment" of the National Skill Qualification Framework with dynamic industry needs will give the much-needed impetus to employment growth in these tough times and help industries to recover faster. 

Look forward towards a better India!