The Economic Survey 2023-24 highlights India’s demographic opportunity.
The great Indian philosopher Swami Vivekananda is known to have said, “Give me 100 energetic young men and I will transform India”. Vivekananda’s belief wasn’t misplaced. Skill has defeated scale several times in history — be it a handful of skilled Macedonians led by Alexander who conquered almost all of Asia or the small group of highly motivated and trained Marathas under Chhatrapati Shivaji Maharaj who brought Aurangzeb’s massive army to its knees. But imagine what can happen if skill and scale were to be combined. For instance, think of Shivaji’s army being 10 times its size with each soldier being the most skilful. The Budget for 2024-25 is a vision document to bring skill and scale together. The workforce it envisions would be led by the youth.
The Economic Survey 2023-24 highlights India’s demographic opportunity: A median age of 28. Many young Indians are entering the workforce or are poised to do so. However, there is a significant challenge: Only 51 per cent of Indian graduates are employable. This figure is an improvement from 34 per cent in 2017-18, thanks to government-led skill development initiatives. However, vocational training still does not get the respect it deserves in society. The Ministry of Skill Development’s 2022-23 report reveals that skill training is often seen as a last resort for those who have failed to do well in the realm of formal education.
To address this, the Budget introduces a groundbreaking initiative: The government will provide Rs 5,000 per month to one crore graduates for interning with 500 top companies in India with training expenses covered by the CSR funds of these companies. This move aims to make skilling lucrative and socially acceptable while alleviating the challenges faced by industry. By incentivising such extensive skilling, the Budget seeks to position India as a global skill and manufacturing hub. This is the marriage of skill and scale, akin to Chhatrapati Shivaji Maharaj’s highly skilled soldiers but with their numbers in millions.
The Budget also tries to incentivise the development of climate-resistant varieties of 32 crops — a critical step given the country’s vulnerability against climate change-induced disasters. It also proposes measures to support Farmer Producer Organisations (FPOs) through the National Policy for Co-operation for FPO’s, self-sufficiency in oilseeds and vegetables, promotion of natural farming among one crore farmers and the development of digital infrastructure for agriculture.
A significant announcement to handhold industries to hire aggressively and increase their productivity is the announcement of three new schemes with regards to the Employee Provident Fund Organisation (EPFO). Like the production linked incentive, the government has come up with employment linked incentives — it will provide direct benefit transfers of one month’s salary, up to Rs 15,000, to first-time employees in three instalments. It will also reimburse employer EPFO contributions up to Rs 3,000 per month for any new hires. The schemes will encourage industries to shift their focus towards hiring, manufacturing and expansion on a priority basis.
On the housing front, the Budget has made significant allocations for constructing 3 crore houses under the Pradhan Mantri Awas Yojana (Rural) and for 1 crore houses in urban areas for the poor and middle class. The PM Surya Ghar Muft Bijli Yojana aims to provide free electricity up to 300 units to one crore households.
In healthcare, the Budget exempts three essential cancer medicines from customs duty, making them more affordable for millions of patients. Women’s empowerment sees a significant boost, with a 218.8 per cent increase in funding compared to a decade ago. The establishment of women’s hostels aims to increase female workforce participation.
The middle class, which has grown significantly over the last decade, will benefit from a comprehensive review of the Income Tax Act of 1961. The standard deduction will increase from Rs 50,000 to Rs 75,000, putting more savings into the hands of middle-class families.
Prime Minister Modi’s focus on developing eastern states is reflected in the new Purvodaya Scheme. The scheme comprises initiatives to develop Odisha as a tourist destination and attract more tourists to the Nalanda, Rajgir, Bodh Gaya, and Vishnupad temple complexes.
The vision of the Budget is to combine skill and scale. By focusing on employment and giving the youth the opportunity to lead, the Budget provides a pathway to growth
The writer is Union Minister of Culture and Tourism, Government of India, MP (Lok Sabha)
