Finance Minister Nirmala Sitharaman said the approach of the government would be to give a "nudge" and not enforce anything on the top 500 corporates to take in interns as part of the employment-related package announced in the Union Budget 2024-25.
"I will have to have the Budget passed post which the details will be worked out... We still think it will be a nudge, we won't be enforcing anything on anybody," the finance minister said on Saturday at the India Today- Business Today Budget Round Table 2024.
Noting that the industry has often said that they don't have the right skilled people for jobs, the minister said that they will have to "ramp up on training people. "For them, they may have to recruit a few of these people but in the market, you need to have the right skilled people who can be hired," she underlined, adding that skilling, apprenticeship, and getting to know what is happening in these companies and such exposure is very important for these candidates.
As part of the Prime Minister's package on employment and skilling in the Union Budget 2024-25, the finance minister had announced that internships would be provided to 1 crore youth by India's top 500 companies.
She also announced three schemes that are employment-linked incentives and based on enrolment in the Employees’ Provident Fund Organisation, that would focus on recognition of first-time employees, and support to employees and employers. Addressing the Round Table, the FM expressed confidence that these schemes would see a good response from employers and employees and said the government would be able to check the new additions to the workforce through the EPFO data as each new entrant is allocated a Unique Account Number.
Meanwhile, when asked about the removal of indexation benefits from real estate, the finance minister underlined that the decision to rationalise and simplify the capital gains tax regime was based on suggestions from the middle class. " Haven't we as a country kept saying why there is a difference between different asset classes," she asked.
The minister also said that the decision to hike the securities transaction tax rate for the F&O segment should be seen as a "little nudge" and underlined that the rates have not been hiked very significantly.
She also said that she strongly believes that SEBI is very well-equipped to take care of any concerns in the F&O market.
She also remained optimistic about working with state governments when asked about the concept of the tripartite compact that was put up in the Economic Survey.
While many Opposition parties boycotted the NITI Aayog meeting on Saturday, the FM said that she remains "very confident that aside from all this filibustering, states and Centre will work together," she said.
While there will be some irritants, the minister however said, that beyond the political differences, people do work together.
She also said that state governments should make a case with the Finance Commission as the Finance Ministry is not empowered to make such decisions.
The minister also underlined that the government has not changed its philosophy on disinvestment of public sector enterprises. Nothing that disinvestments don't just happen, she said that there is a lot of preparatory work involved and issues that have to be sorted for each firm.