(GIST OF YOJANA) Inclusive Human Resource Development and Social Justice

(SEPTEMBER-2024)

Inclusive Human Resource Development and Social Justice

The Economic Survey 2023-24 provides an in-depth analysis linking Viksit Bharat and Priority 3 of Budget 2024. It emphasises the need for robust social infrastructure to support economic growth. The survey highlights that sustained economic growth must be accompanied by social progress, including health, education and digital empowerment.

The survey also projects that India’s employment landscape is transforming with rising formalisation and skill development. For example, EPFO membership grew by an impressive 8.4 per cent CAGR between FY15 and FY24, reflecting increased formal employment. Moreover, initiatives like the Production Linked Incentive (PLI) scheme are expected to create millions of jobs in manufacturing, further boosting employment.

Inclusive Human Resource Development

Inclusive human resource development aims to equip every citizen with the skills and opportunities needed to contribute to and benefit from economic growth. The 2024 budget allocates a substantial Rs 1.48 lakh crore to education, employment and skilling initiatives. This significant allocation underscores the Government’s commitment to enhancing the capabilities of its workforce, particularly among the disadvantaged segments of society.

Employment-Linked Incentives

The budget outlines three employment-linked incentive schemes with a central outlay of Rs 2 lakh crore over five years. These schemes target different aspects of employment creation, each addressing specific needs within the labour market:

Scheme A: First Timers: This scheme provides a one-month wage subsidy of up to Rs 15,000 for first time employees. Expected to benefit 2.1 crore youth, this initiative aims to ease the entry of new workers into the formal sector, providing a crucial bridge between education and employment.

Scheme B: Job Creation in Manufacturing: This scheme incentivises employers to hire first-time employees in the manufacturing sector by covering a portion of their EPFO contributions. It targets the employment of 30 lakh youth, encouraging robust job creation in a sector crucial for economic growth. By focussing on manufacturing, the Government is bolstering a sector that has the potential to drive large-scale employment and spur industrial development.

Scheme C: Support to Employers: This scheme reimburses up to Rs 3,000 per month of EPFO contributions for new hires earning less than Rs 1 lakh per month. It aims to incentivise the creation of 50 lakh new jobs across various sectors, supporting broad-based employment growth and reducing barriers for employers to expand their workforce.

Challenges and Considerations

While the budget’s proposals are ambitious and well-intentioned, their successful implementation will require robust governance and effective coordination between the central and state governments.
Ensuring that allocated funds are utilised efficiently and reach the intended beneficiaries is crucial.
Transparency and accountability mechanisms must be strengthened to prevent leakages and corruption.
Additionally, the success of skilling and employment initiatives hinges on the active participation of the private sector
. Industry collaboration in designing curricula, providing internships, and creating job opportunities is essential.
The Government must foster an enabling environment for public-private partnerships, incentivising businesses to invest in human resource development.

Conclusion and anticipations

Looking ahead, the ambitious goals and comprehensive strategies outlined in the 2024 Union Budget signal a transformative trajectory for India’s socio-economic landscape. Projected GDP growth of 7 per cent annually could lift millions out of poverty, enhancing living standards nationwide. The Rs 1.48 lakh crore allocation for education, employment, and skills, including the Rs 60,000 crore upgrade of 1,000 ITIs, aims to bridge workforce skills gaps, fostering economic productivity.