Budget 2024: Right recipe prepared for jobs with proposals to facilitate employment, skilling of youth

The Economic Survey 2023-24 estimates that India needs to generate about 78.5 lakh non-farm jobs annually until 2030 to gainfully employ the Indian youth entering the workforce. With proposals to facilitate employment, skilling and other opportunities for 4.1 crore youth over the next five years, the Union Budget 2024-25 will help fulfil this need.

Resonance with CII’s Themes for Employment Generation

Many of CII’s themes for employment generation and enhancing employability find a strong resonance in the Union Budget 2024-25 proposals. These include launching of an Employment Linked Incentive Scheme; support to manufacturing, MSMEs and tourism; creating rural business hubs and industrial parks; and industry engagement with skill development and education to create an industry ready workforce.

EPFO Based Support for Additional Employment

The EPFO based support to both employers and employees for additional employment across sectors, under the Employment Linked Incentive Scheme is a welcome step. The announcement for encouraging additional jobs in the manufacturing sector, which will apply over a period of 4 years, will create jobs for youth looking to migrate from the agriculture sector to more productive jobs.

Facilitating Women’s Employment

Getting more women into employment is critical for income generation. Building working women hostels in collaboration with industry and setting up creches will help address key constraints to women employment. Women specific skilling programs and higher loans under the Mudra scheme, where around 68 per cent of the beneficiaries are women, will also boost women’s participation in economic activity.

Boost for MSMEs and Tourism

MSMEs are engines of employment generation, and the Union Budget provides a big boost to MSMEs, through an integrated approach. This includes support for financing and technology and introducing regulatory changes. Tourism is another employment intensive sector, and the Budget has announced many measures to boost tourism, specially in the eastern region.

Impetus to Livelihood and Employment in Rural Areas

The proposed National Cooperative Policy will provide an impetus to livelihood and employment generation in the rural areas. Substantial attention has also been accorded to agriculture through vegetable clusters and digitalisation of farms and land registry. Setting up of industrial parks and the scheme for development of 100 weekly ‘haats’ or street food hubs in select cities will also aid in employment and livelihood generation.

Development of Industrial Parks and Worker Housing

Development of industrial parks and the move to encourage worker housing development along with significant measures such as affordable urban housing and transit programs for cities over 3 million population are also geared towards generating manufacturing employment.

Programs for Enhancing Employability

On the employability front, programs such as the internship program with top companies for 1 crore youth over five years and upgradation of 1,000 Industrial Training Institutes (ITIs) in collaboration with States and Industry will facilitate alignment between the industry needs and skill sets of potential employees.

Catering to both sides of the employment equation, this Budget marks a fresh milestone in job creation for the youth.

This article was written by Mr Chandrajit Banerjee, Director General, Confederation on Indian Industry. It was first published on 25^th July 2024 in The Telegraph online