Following the union budget 2024 announcement, TeamLease Services has analysed the detailed provisions and identified the top sectors with the maximum potential for job creation in the coming year. The budget's focus on job creation has paved the way for significant employment opportunities across various industries, promising robust economic growth.
Top Sectors with Maximum Job Creation Potential:
Financial Services:
The budget presents several employment opportunities in the BFSI sector through various initiatives. These include ₹10 lakh crore under PMAY-U 2.0 for affordable housing, expected to drive a 15-20 per cent growth in job opportunities. Establishing over 100 new branches of India Post Payments Bank in the North Eastern region could result in an 8-10 per cent increase in jobs within the payments bank sector. Additionally, a credit guarantee scheme for MSMEs, an increase in Mudra loan limits to ₹20 lakh, financial support for shrimp farming through NABARD, and new branches of SIDBI are set to boost rural and MSME employment, particularly in roles related to credit, sales, and relationship management, with an anticipated 10-15 per cent increase in business loan-related positions. The budget's emphasis on technology adoption, digitization, and GST simplification is expected to drive increased demand for fintech and digital banking specialists.
Power & Energy:
The government’s PM Surya Ghar Muft Bijli Yojana will provide free electricity to 1 crore households via rooftop solar installations, generating approximately 2000+ jobs in manufacturing, installation, and maintenance. Significant funding for the National Green Hydrogen Mission will create employment in research, production, and infrastructure. Developing Bharat Small Reactors and AUSC thermal power plants will also generate jobs in construction, operation, and maintenance. Power projects, including setting up of a new 2400 MW power plant at Pirpainti, and NTPC and BHEL will set up a full-scale 800 MW commercial plant using AUSC technology, creating approximately 1200-1500 jobs.
Infrastructure:
The budget lays a strong foundation for job creation and skill development through significant infrastructure investments. Projects like the Amritsar Kolkata Industrial Corridor, major road projects, and new power, airport, and medical facilities will drive regional development and create around 20 lakhs direct & indirect jobs in functions like industrial construction, manufacturing, logistics, civil engineering, plant construction, operation, maintenance etc. in eastern India, including states like West Bengal, Bihar, and Punjab. With funds provided for Visakhapatnam-Chennai Industrial Corridor and Orvakal node on Hyderabad-Bengaluru Industrial Corridor, it will eventually create jobs in the southern region as well. The ₹1.5 lakh crore interest-free loans to States and a total capital expenditure of ₹11,11,111 crore emphasise the government's commitment to fostering employment and economic growth.
Manufacturing:
The credit guarantee scheme for MSMEs will facilitate term loans for machinery without requiring collateral, aiding in small business expansion. This will boost employment in states such as Maharashtra, Gujarat, Uttar Pradesh, and Madhya Pradesh. With nearly 50 per cent of MSMEs based in rural areas, job opportunities in these regions will also see a significant increase.
The budget has allocated resources to facilitate the creation of investment-ready "plug and play" industrial parks with fully established infrastructure in or around 100 urban centers. By attracting diverse enterprises, these parks generate demand for a wide range of skills, thereby creating opportunities for both skilled and unskilled positions. Consequently, there is a potential to mitigate local unemployment rates significantly
The Employment Linked Incentive scheme aims to incentivize additional employment of 50 lakh jobs and benefit 30 lakh youth by reimbursing EPFO contributions. The three schemes under Employment-linked incentives include an allocation of Rs 1.09 lakh crore for job creation over the next five years, promising to generate additional job opportunities especially for the formal workforce across various sectors. Additionally, 1 crore youth will receive valuable exposure through internships in 500 top companies including Manufacturing industry over five years. These measures collectively promise a significant boost to employment and skill development.
Healthcare and Pharmaceuticals:
The government has proposed the exemption of customs duties on three cancer medicines and the reduction of duties on certain medical technologies like x-ray tubes and flat panel detectors under the Phased Manufacturing program, which is a significant move to enhance domestic healthcare capabilities. Although these measures fall short of expectations, they will make advanced cancer treatments more affordable and accessible, addressing a critical need due to the high costs of such treatments. The government has also allocated ₹2,143 crore for PLI for the pharmaceutical industry. Additionally, this initiative is expected to stimulate job creation in the healthcare sector, particularly in roles such as medical technologists, healthcare manufacturing workers, and supply chain coordinators. Major cities like Bangalore, Hyderabad, and Pune are likely to see a boost in employment opportunities, driving growth in medical technology and related industries.
Agriculture and Agri-Tech:
The Union Budget 2024-25 will significantly impact job creation in agriculture. Over two years, 1 crore farmers will be trained in natural farming, creating a minimum of 1 lakh jobs in training and bio-input centers. A review of agriculture research will generate roles in R&D, supported by private sector funding. The rollout of Digital Public Infrastructure (DPI) will also create jobs in IT, data management, and digital training as a digital crop survey is conducted in 400 districts. Effectively, the Agri-tech industry is likely to have about 20 per cent job growth vis-à-vis last year.
Retail and E-commerce:
The establishment of dedicated e-commerce export hubs aims to boost online trade. Additionally, the Govt has reduced TDS on e-commerce from 1 per cent to 0.1 per cent. Currently, India's e-commerce exports stand at a modest $2 billion compared to China's $350 billion. The potential for growth is immense, with estimates suggesting that India's e-commerce exports could reach $350 billion by 2030. While challenges such as banking issues persist, the government initiative is a crucial step towards tapping into this massive opportunity. The development of these hubs will not only enhance India's global trade presence but also generate significant employment opportunities in logistics, technology, customer service, and marketing sectors. By fostering a robust e-commerce export ecosystem, India can create a multitude of jobs, driving economic growth and prosperity.
Tourism and Hospitality:
The government's initiatives to enhance key religious and historical sites aim to boost tourism and create jobs across various sectors. Inspired by the successful Kashi Vishwanath Temple model, development projects at Vishnupad and Mahabodhi Temple corridors will boost tourism, creating jobs in hospitality, guiding tourists, and local services. Rajgir's comprehensive development will create jobs in hospitality, retail, and local tourism services. Supporting Nalanda as a major tourist center will generate roles in tour operations, cultural preservation, and local crafts. These developments will significantly impact Gaya, Bodh Gaya, Rajgir, Nalanda, and various parts of Orissa, creating numerous job opportunities in these regions.
Education and Skill Development:
The Union Budget for 2024-25, with an allocation of ₹1.48 lakh crore for education, employment, and skilling, is set to create diverse job roles and boost employment in various cities. Key initiatives include: upgrading 1,000 ITIs, launching a new skill development scheme to train 20 lakh youth, and revising the Model Skill Loan Scheme to aid 25,000 students annually. Financial support for higher education loans will benefit 1 lakh students each year. This will generate roles such as vocational training instructors, content writers and developers, and skill development trainers. Major cities like Delhi, Mumbai, Bangalore, and Chennai, along with educational hubs like Pune and Hyderabad, will see significant job growth. Industrial towns and tourist centers like Rajgir and Nalanda will benefit, creating jobs in manufacturing, MSMEs, tourism, and hospitality. The initiative aims to enhance job security, foster a skilled workforce, and drive economic growth across urban and rural areas.
"The union budget has effectively addressed the need for job creation across several key sectors. The introduction of the employment-linked incentive scheme in the budget marks a significant advancement in reducing informal employment in the country. TeamLease Services is committed to supporting these initiatives and implementing strategies that will translate these policies into tangible employment opportunities, driving sustained economic growth," said Kartik Narayan, CEO- Staffing, TeamLease Services.
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