The Budget 2024-25 has addressed several critical areas, aiming to balance economic growth with fiscal prudence, social welfare with infrastructure development, and environmental sustainability with industrial progress.
Stakeholders across sectors are of the view that this year’s budget will strive to support immediate economic recovery but also lays a strong foundation for long-term prosperity.
According to Mohit Malhotra, CEO, Dabur India, “Increased allocation in the budget towards Education, Skilling and Employment and special employment-linked incentive schemes for employees and employers aptly demonstrated the government mindset to significantly improve employment and employability in the country. These steps will go a long way in driving consumerism. The support for higher education loans and the push for women in the workforce are other big pluses.
The nine priorities stated by Finance Minister Nirmala Sitharaman focuses on generating ample opportunities for all -- productivity and resilience in agriculture, employment and skilling, inclusive human resource development and social justice, manufacturing and services, urban development, emergency security, infrastructure, innovation R&D, next-gen reforms. Subsequent Budgets will build on these and more priorities and actions,” she said.
Women Empowerment, Government’s Prime Agenda!
This year’s Economic Survey clearly highlights the importance of women-led development. The government’s decision to enable working women’s accommodation facilities is a significant step towards enhancing women’s participation in the workforce.
Viswanath PS, MD & CEO, Randstad India explains the deep-rooted connection behind this firm provision, “It addresses several deep-rooted issues including parents’ interest in investing in girls’ higher education and being comfortable with them shifting to other cities for employment opportunities. Safety is one of the major concerns in this regard, and the government’s move to invest in accommodation infrastructure is a progressive move toward improving gender diversity in the workforce.”
Navneet Ahluwalia, Head-HR, FUJIFILM India is of the view that, “the establishment of working women hostels in this year’s budget, collaborating with industries for creches, and women-specific skilling programs promote higher workforce participation. These initiatives ensure a supportive environment for women, fostering empowerment and economic independence.”
Apart from providing a major push to India Inc.’s inclusivity goals, this move also addresses the critical issue of talent mobility asserts Vishwanath. Employers now have the opportunity to tap into larger talent pools, offer them meaningful employment opportunities, and leverage their skill sets. At the same time, the announcement will empower women to become more independent and earn a dignified living, while also being assured of their safety and comfort. It is fair to say that this initiative by the government is a testament to ‘Diversity in Action’.
Moving Towards A Skill-based Economy
This budget's emphasis on skill development is a game-changer for India's employment landscape, especially with the central theme being centered around employment, skilling, and MSMEs. With over 4 crore jobs for youth set to be created over five years under five schemes with an outlay of ₹2 lakh crore, Ramesh Alluri Reddy, CEO at TeamLease Degree Apprenticeship states that , the government's initiative is poised to transform the workforce.
“A provision of Rs 1.48 lakh crore has been made for education, employment, and skilling, highlighting a robust commitment to addressing the skills gap and improving employability. The introduction of a new central scheme to skill 20 lakh youth over a five-year period is particularly noteworthy. By focusing on enrolment in the EPFO and recognizing first-time employees, this scheme aims to provide essential support to newcomers in the job market.”
According to FM, “first-timers will receive one month's wage upon entering the workforce in all formal sectors, with a direct benefit transfer (DBT) of one month's salary, up to Rs 15,000, provided in three installments.”
Reddy claims that this initiative, with an eligibility limit of Rs 1 lakh per month salary, is expected to benefit 2.1 lakh youths. By aligning educational outcomes with industry needs, the budget ensures that the youthis equipped with the relevant skills demanded by the market, thus enhancing their employability and career prospects. This not only empowers the youth but also provides industries with a steady stream of well-trained, competent employees, driving productivity and growth.
The impact of these measures on skilling, employment, and job creation will be profound. “Job creation and opportunities for youth is the need of the hour, for a young country like India, where median age is just 28.5 years. I would rather emphasise it needs to be executed well, so the returns on this are realised in an effective and timely manner,” states Prem Singh, President, Group HR, JK Organisation & National President, National HRD Network.
The substantial allocation for AI-enabled learning demonstrates a strong commitment to innovation, transforming traditional methods and ensuring students are prepared for a tech-driven future. Additionally, several employment schemes are set to boost skill development.
Navneet Ahuja, head-HR, Fujifilm India, “The introduction of the internship opportunity scheme is commendable, significantly enhancing youth skills and motivation, and bridging the gap between academic learning and real-world application.”
Futuristic Lens
Overall, the 2024-25 Union Budget paves the way for a brighter, more skilled future for our youth and a more inclusive, empowered future for women, ensuring they are well-prepared to meet the demands of a dynamic and competitive world.
“The cross-sector collaboration can address the rapidly growing skills gap and social inequities, ensuring students transition smoothly into high-demand job roles. Businesses will also benefit from a diverse and skilled talent pool, reducing recruitment time and costs,” states Raghav Gupta, Managing Director, APAC and India, Coursera
“In today's digital era, where talent can emerge from anywhere, access to digital skills will be a game changer. We’re excited to support these initiatives and provide millions of Indians a gateway to more equal opportunities, all while unlocking our demographic dividend and accelerating our journey towards a $5 trillion economy."
