The Union Budget 2024-25, presented by the Finance Minister, underscores a strong commitment to enhancing employment and skill development across India. A centerpiece of this budget is the Prime Minister’s package, which allocates US$ 23.88 billion (Rs. 2 lakh crore) towards supporting five key schemes aimed at providing employment, skilling, and other opportunities to 4.1 crore youth over the next five years. This comprehensive package focuses on Employment Linked Incentives, improving skilling, boosting women’s workforce participation, supporting MSMEs, and strengthening capital infrastructure.

Prime Minister's Package: Key Focus Areas

The Prime Minister’s package targets critical areas to ensure substantial progress in employment and skill development:

Employment Linked Incentives: Designed to create job opportunities by providing financial incentives to employers who hire new employees, particularly those entering the workforce for the first time.

Improving Skilling: Enhancing skill development programs to ensure that youth are equipped with the necessary skills to meet industry demands.

Boosting Women’s Workforce Participation: Initiatives to encourage more women to join and remain in the workforce, including supportive measures such as working women hostels and crèches.

Supporting MSMEs: Providing financial aid and tax benefits to Micro, Small, and Medium Enterprises (MSMEs) to foster entrepreneurship and job creation.

Also Read : India Sees Significant Growth in Women-Owned MSMEs, Thanks to Government Initiatives

Strengthening Capital Infrastructure: Investing in infrastructure projects to create jobs and stimulate economic growth.

EPFO Schemes: Incentivizing Employment

A notable aspect of the budget is the implementation of three schemes through the Employee Provident Fund Organisation (EPFO). These schemes are designed to incentivize first-time employees and offer various financial benefits to both employees and employers. By providing these incentives, the government aims to encourage formal employment and ensure job security for millions of workers.

Digital Integration and Industry Compliance

The budget also emphasizes digital integration to streamline employment and skilling processes. This includes:

Integrating E-shram Portals: Creating a comprehensive solution to match skill requirements with job roles, ensuring that the right talent meets industry needs.

Revamping Shram Suvidha and Samadhan Portals: Enhancing these portals to improve industry compliance and address grievances effectively.

Additional Initiatives for Youth and Women

Further initiatives to support youth and women in the workforce include:

Skilling 20 Lakh Youth: A new scheme aimed at skilling 20 lakh youth, providing them with the necessary training to secure employment.

Upgrading Industrial Training Institutes (ITIs): Upgrading 1,000 ITIs to improve the quality of training and ensure they meet current industry standards.

Internship Program: Offering internships to one crore youth, coupled with financial support, to provide practical work experience and enhance employability.

Supporting Entrepreneurship and MSMEs

To foster entrepreneurship, the budget proposes financial aid and tax benefits for start-ups and MSMEs. This support aims to encourage innovation and job creation, vital components for sustained economic growth.

Boosting Capital Expenditure

An 11% increase in capital expenditure, amounting to US$ 132.64 billion (Rs. 11.11 lakh crore), is expected to create jobs across various sectors. This increased investment in infrastructure projects will stimulate economic activity and provide employment opportunities in construction, manufacturing, and related industries.

Rural Employment through MGNREGA

Increased funding for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) will support rural employment. This program ensures that rural households have access to employment opportunities, contributing to poverty alleviation and economic stability in rural areas.

Fostering Sustainable Growth and Viksit Bharat

The overarching goal of the Union Budget 2024-25 is to foster sustainable growth and lay a robust foundation for Viksit Bharat (Developed India). By focusing on employment, skilling, and infrastructure development, the budget aims to create a more inclusive and prosperous economy.

Conclusion

The Union Budget 2024-25 presents a comprehensive approach to tackling employment and skill development challenges in India. With significant allocations and well-structured initiatives, the budget aims to empower 4.1 crore youth, support women’s workforce participation, boost MSMEs, and strengthen the country’s infrastructure. The focus on digital integration and compliance further ensures that these initiatives are effectively implemented, fostering a more robust and inclusive economy. By investing in human capital and infrastructure, the government is paving the way for a prosperous and developed India, aligning with the vision of Viksit Bharat.

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