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As the Union Budget 2024-25 approaches, India faces rising economic challenges, highlighted by an unemployment rate that reached an eight-month high of 9.2 per cent in June 2024. This increase, reported by the Centre for Monitoring Indian Economy (CMIE), comes at a critical time, just before Finance Minister Nirmala Sitharaman presents the first full budget of the Modi government's third term on 23 July.
Prime Minister Narendra Modi's BJP fell short of a majority in the recent Lok Sabha elections, with unemployment being a significant factor. Economists had forecasted that job creation would be one of the new government's major challenges. With the budget on the horizon, industry leaders and economists are voicing their expectations and concerns.
Job Creation and Economic Growth
Pranay Prakash, head of human resources at BluWheelz, emphasised the importance of government incentives for job creation in labor- intensive industries. “Job creation through skilling is pivotal in the long run. We look forward to new upskilling programmes under various sector skill councils. Additionally, reviving the MSME sector, a major employment source, is critical.”
Infosys has already indicated plans to hire 15,000-20,000 fresh graduates in FY25, following a year of reduced hiring. CFO Jayesh Sanghrajka highlighted the company's agile hiring model and the need for fresh talent as the company anticipates growth.
Focus on Inclusive Development & Technological Advancements
Prashant Kumar, MD & CEO of YES BANK, outlined key areas for the budget, including sustainable growth, financial sector reforms, and inclusive development. “The government is expected to balance fiscal discipline with economic growth, providing outlays for key social sector programmes and ensuring skill development to enhance the manufacturing sector.”
Sandeep Chaudhary, CEO of PeopleStrong, called for investments in skill development and employment generation, particularly in Tier 2 and 3 towns. “Developing a world-class education system is essential to prevent brain drain and retain talent within the country.”
Emphasis on Skilling & Digital Infrastructure
Jasvinder Bedi, Managing Partner at Biz Staffing Comrade, stressed the need for upskilling and reskilling to align the workforce with emerging market demands. “We expect the budget to allocate more funds to structured and comprehensive skilling programmes, including vocational training, STEM education, and digital upskilling.”
Manikanth Challa, Founder & CEO of Workruit, highlighted the gaps in educational technology and infrastructure. “The budget should prioritise investments in educational technology, upgrading computer labs and providing robust digital skills training to prepare the workforce for a tech-driven job market.”
Enhancing Workforce Management
Sonali Chowdhry, CEO of Officenet, called for policies to boost automation and digitalisation in the manufacturing sector. “We anticipate initiatives that encourage the adoption of advanced human resource management systems (HRMS) to enhance workforce management and drive innovation.”
Sonica Aron, Founder of Marching Sheep, underscored the need for schemes focusing on women’s economic independence, mental health resources, and the employment of persons with disabilities. “Allocating resources for these areas and ensuring strong governance will make a tangible positive difference to our citizens.”
A Pivotal Moment for Economic Reforms
President Droupadi Murmu, in her recent address to Parliament, indicated that the government would introduce historic steps to accelerate reforms. Sitharaman’s budget is expected to be an effective document outlining far-reaching policies and a futuristic vision for India’s economic development.
As the budget presentation nears, the nation anticipates measures that will address unemployment, foster inclusive growth and pave the way for India to become a developed nation by 2047. The upcoming budget holds the potential to drive significant economic reforms and create a robust, inclusive workforce, setting the stage for a brighter economic future.
