Budget 2024 expectations: The NDA government may introduce an employment-linked incentive scheme to promote job creation in the labour intensive sectors. Based on production-linked incentive (PLI) programme, the scheme would apply to a few labour-intensive sectors, including toys, textiles, apparel, furniture, tourism, and logistics, among others, a report in the Financial Express said.
The scheme's potential benefits could include tax breaks for companies hiring new employees and wage subsidies for additional job opportunities created over a specified timeframe. In addition to financial perks, non-monetary advantages such as streamlining regulatory processes and funding skill development initiatives may form integral components of this comprehensive initiative. Beyond revamping the employment landscape, the government envisions the ELI scheme as a catalyst to stimulate domestic manufacturing and bolster economic growth.
The scheme would be an important initiative for the Modi 3.0 government after the Opposition criticised the current administration for not creating enough jobs in its last two terms. Several experts have raised concerns about the phenomenon of 'jobless growth' in India during Prime Minister Narendra Modi's tenure. An investigation conducted earlier this year by the International Labour Organisation (ILO) highlighted that employment growth was extremely minimal, at only 0.01 percent.
The report further emphasised that this figure was notably lower compared to the period spanning 2000 to 2012, during which employment opportunities experienced a growth rate of 1.6%.
Last week, even Goldman Sachs noted that it expects the NDA government to increase welfare spending, focusing on the rural economy and job creation. It said, "We see an emphasis on job creation through labour-intensive manufacturing."
The job market has experienced ups and downs due to technological advancements and global influences.
With an enhanced GDP forecast, the job market appears to be on track for stability, potentially transitioning into a phase of growth. The rise in demand for skilled individuals and increased consumer spending in India create a promising outlook for both job seekers and employers.
Anticipations for the forthcoming Union Budget 2024 indicate a targeted approach towards enhancing employee welfare, refining taxation policies, streamlining the employment process, fostering formal job creation avenues, simplifying compliance procedures, implementing adaptable labor codes to suit contemporary work environments, and tackling the prevailing skill-gap predicament in the nation.
The urgency for upskilling and reskilling has surged considerably, far surpassing the trends observed in previous years. Prioritizing job generation and providing individuals with the requisite competencies, particularly in the realm of technology, are poised to be central themes in the imminent budget, aligning the workforce with the evolving needs of the market.
Given the growing necessity for proficiency in new and advancing technologies across various sectors, an increase in budgetary allocation towards organized and comprehensive skilling initiatives is anticipated in the Union Budget 2024.
Amit Basole, Professor of Economics and Head, Centre for Sustainable Employment, Azim Premji University, wrote in a column that the Indian economy is in need of generating a minimum of 10 million fresh regular wage employment opportunities annually.
He said it is crucial to highlight the significance of consistent wage-based or salaried positions.
"Note the emphasis on regular wage or salaried employment. Creating opportunities for self-employment is not sufficient unless we also create an ecosystem that enables growth of enterprises which in turn creates demand for more workers," he said.