New Delhi: The Union Budget has unveiled a series of initiatives aimed at fostering employment opportunities, enhancing skill development, and advancing social welfare programs, with the objective of realizing the vision of a "Vikasit Bharat" by 2024.
A central allocation of Rs 2 lakh crore has been dedicated as a component of the prime minister's comprehensive package, which encompasses five pivotal schemes and initiatives. These will be launched over the forthcoming five years.
The package is designed to facilitate employment, skill enhancement, and various opportunities for over 4.1 crore young individuals. It includes employment-linked incentives, alongside the enhancement of skill development, the participation of women in the workforce, and support for Micro, Small, and Medium Enterprises (MSMEs) in job creation. Additionally, it aims to strengthen capital infrastructure.
Among these five schemes, three will be executed through the Employee Provident Fund Organization (EPFO), by offering incentives to both employers and employees. These Employment-Linked Incentive Schemes are structured to acknowledge first-time employees and provide comprehensive support to both parties.
The initial scheme will be directed towards first-time formal sector employees registered with EPFO. This scheme provides a one-month wage (up to Rs. 15,000) in three installments.
The subsequent scheme will concentrate on job creation within the manufacturing sector, incentivizing both employees and employers for the addition of first-time employees. This scheme will offer benefits contingent upon their EPFO contributions over the initial four years of employment. Employees earning up to Rs. 1 lakh per month will be eligible for this scheme.
The third scheme under the Prime Minister's package will support employers by reimbursing Rs. 3,000 per month for two years towards their EPFO contributions for each additional employee earning up to Rs. 1 lakh per month.
Furthermore, the Budget has announced significant reforms in labor welfare, including the comprehensive integration of E-shram portals with other platforms. This integration will provide a unified solution for skill requirements, job roles, and facilitate the connection between job seekers and potential employers and skill providers.
The introduction of this e-shram platform is poised to serve as a comprehensive solution encompassing all aspects of labor welfare, employment, and skill development.
Furthermore, a notable development within the budget is the enhancement of the Shram Suvidha and Samadhan portals. These improvements aim to streamline compliance processes within industries and bolster grievance redressal mechanisms for employees, respectively.
Additionally, the two schemes under the Prime Minister's initiative are designed to expand skill acquisition and internship opportunities, thereby enhancing employability.
The fourth scheme represents a novel centrally sponsored program targeting the skill development of 20 lakh youths over a five-year period, in partnership with state governments and the industry. This initiative also includes the modernization of 1,000 Industrial Training Institutes to better meet industry skill requirements.
The fifth scheme, the final component of the Prime Minister's package, is dedicated to providing internship opportunities to one crore youth across 500 leading companies over the next five years. This scheme offers an internship allowance of Rs. 5,000 per month, along with a one-time assistance of Rs. 6,000, to provide real-world business and professional exposure.
To further encourage women's participation in the workforce, the budget has proposed the establishment of working women hostels and creches in collaboration with the industry. This initiative is complemented by the organization of women-specific skill development programs and the promotion of market access for women-owned self-help groups (SHG) enterprises.
Moreover, the budget announces other measures aimed at fostering a robust and diverse job market. The capital expenditure of Rs 11.11 lakh crore in infrastructure projects is anticipated to generate a multitude of job opportunities across sectors such as construction, transportation, and logistics. This is projected to address issues of unemployment and underemployment in both urban and rural areas.
The budget also encompasses provisions aimed at fostering entrepreneurship, which include financial assistance and tax incentives for start-ups and Micro, Small, and Medium Enterprises (MSMEs) with the objective of cultivating a culture of entrepreneurship and generating a variety of employment opportunities.
In an effort to stimulate rural employment and livelihoods, the budget has allocated increased funding to the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), ensuring enhanced employment prospects in rural regions.
To bolster manufacturing and services sectors, the budget introduces measures for the establishment of "plug and play" industrial parks, equipped with comprehensive infrastructure, in 100 cities. Among these, twelve industrial parks will be developed under the National Industrial Corridor Development Programme, aimed at fostering the growth of new industries, thereby generating millions of employment opportunities.
In summary, the budget for the fiscal year 2024-25 is a testament to the government's unwavering dedication to sustainable economic growth. It promises to create unprecedented opportunities for employment and self-employment, enhance skills, and improve social welfare, thereby laying a robust foundation for the vision of Viksit Bharat.
