Industry experts in Human Resources (HR) and EdTech have unanimously hailed the Union Budget 2024-25, presented by the Finance Minister of India, Nirmala Sitharaman, as a transformative roadmap. This budget, with its strong focus on education, training, and industry collaboration, is set to reshape India’s workforce and drive economic growth by tackling the nation’s persistent skill gaps and boosting employment opportunities.
One of the key announcements in the budget was the significant increase in funding for skill development programs. The government has allocated ₹10,000 crores to the Ministry of Skill Development and Entrepreneurship (MSDE), marking a 25% increase from the previous year. This enhanced funding is directed towards expanding the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) and other vocational training initiatives.
The union budget also announced the introduction of the National Apprenticeship Promotion Scheme (NAPS) 2.0, with an allocation of ₹5,000 crores. This revamped scheme focuses on providing on-the-job training to 5 million youth over the next five years in collaboration with industry partners.
Recognizing the growing importance of digital skills, the union budget has earmarked ₹3,000 crores to establish Digital Skill Hubs in 100 cities. The Digital Skill Hubs will offer courses in emerging technologies such as artificial intelligence, machine learning, blockchain, and cybersecurity.
The union budget boosted the Skill India Mission with an allocation of ₹8,000 crores. The funds will support the creation of new skill development centers and the upgrade of existing ones, focusing on industry-aligned curricula and training methodologies.
The union budget announced a credit guarantee scheme for micro, small, and medium enterprises (MSMEs) with an allocation of ₹20,000 crores. Additionally, a ₹5,000 crore fund has been set up to support startups focused on innovation and employment generation.
The budget has allocated ₹15,000 crores for higher education, focusing on enhancing the quality of institutions, promoting research and development, and encouraging international collaborations.
From an industry perspective, the Union Budget 2024-25 has been widely received as a positive step towards addressing the skill gap and enhancing employment opportunities. HR professionals and industry leaders collectively view these budgetary measures as crucial for building a skilled, employable, and future-ready workforce. The collaborative nature of these measures makes everyone feel included in the collective effort to shape the future of India’s workforce.
The emphasis on industry-aligned training programs and apprenticeships addresses the gap between education and employment. The collaboration between educational institutions and industries ensures that the curriculum remains relevant, thus preparing students for real-world job requirements. This alignment is expected to reduce companies’ time and resources to train new employees, leading to increased productivity.
The allocation for digital skill hubs highlights the growing recognition of the importance of digital literacy in the modern job market. As industries across sectors increasingly adopt digital technologies, the demand for professionals skilled in areas such as AI, machine learning, and cybersecurity continues to rise. These hubs are expected to produce a steady stream of talented professionals proficient in these cutting-edge technologies, thereby supporting the digital transformation of businesses.
The HR industry views support for MSMEs and startups as critical for job creation. These entities are often the breeding grounds for innovation and new job roles. By providing financial backing, the government is promoting entrepreneurship and ensuring that these businesses can scale and create more job opportunities. The focus on startups also encourages a culture of continuous learning and skill development among employees.
The expanded reach of the Skill India Mission and the inclusive approach to skill development are significant steps towards promoting diversity and inclusion in the workforce. These initiatives aim to create a more balanced and equitable job market by targeting marginalized groups, women, and differently abled individuals. This inclusive growth is crucial for tapping into the full potential of the country’s human resources.
The budget’s focus on higher education and research is expected to have a long-term positive impact on workforce quality. Enhanced research capabilities and international collaborations will likely lead to innovations and advancements in various fields. This translates to a more qualified and competitive talent pool for HR professionals, which is essential for sustaining economic growth and maintaining global competitiveness.
The Union Budget 2024-25 has laid out a strategic vision to tackle the pressing issues of skill gaps and unemployment in India. With substantial investments in skill development, digital literacy, higher education, and support for MSMEs and startups, the budget aims to create a workforce equipped for the future. From the HR industry perspective, these measures are crucial for developing a skilled, diverse, and future-ready workforce that can drive economic growth and innovation. As these initiatives take shape, the collective optimism is that India will witness a significant boost in employment opportunities and economic growth driven by a skilled and empowered workforce.
Originally published August 2 2024, Updated August 5 2024
Harsh Vardhan Sharma, with 6 years of content writing expertise across diverse B2B and B2C verticals, excels in crafting impactful content for broad audiences. Beyond work, he finds joy in reading, traveling, and watching movies.
The accelerated pace at which businesses are rushing toward digitization has primarily established that digital skills are an enabler. It has also established the ever-changing nature of digital skills, and created a need for continuous digital upskilling and reskilling to protect the workforce from becoming obsolete.
Thanks for submitting the comment. We’ll post the comment once its verified.
Behavioral Competencies
Cognitive Competencies
Coding Competencies
Domain Competencies
Would you like to comment?