Sitharaman does a good job to lure the angry young Indian. Will it work?

The latest Budget, unveiled by Finance Minister Nirmala Sitharaman, emphasizes job creation as its core priority. Highlighted by the acronym EMPLOYMENT on the backdrop of her post-Budget press conference, the Budget aims to address widespread dissatisfaction with job opportunities that contributed to the BJP’s loss of single-party majority in recent elections.

Focus on Employment in Budget

With the young population being the largest demographic in India, job creation has become a critical issue. Many young Indians, especially those with higher education, are less swayed by welfare schemes and more concerned about secure employment. To address this, the Finance Minister has introduced a series of incentives aimed at both large and small industries to boost job creation.

Budget job Schemes: Challenges and Expectations

The effectiveness of this Budget’s approach will depend on how well private sector companies respond to these incentives. If companies engage and hire more workers, the formal sector could see a significant increase in job opportunities. However, there is uncertainty about what will happen if companies do not fully utilize these incentives. Will the government introduce stronger measures to compel job creation?

The key issue is the number of jobs that will be generated. For the Budget to have a meaningful impact on the public’s perception of the Modi government’s efforts to tackle unemployment, a substantial number of new, stable jobs must be created. This concern is particularly pressing with regard to the new internship program. If the interns do not secure employment after their internships, the problem of unemployment may persist, and the political impact may be limited.

Skilling Initiatives

The Budget also builds on previous efforts to enhance skills training by announcing new schemes. Given the mixed success of past skilling programs, this Budget’s success in improving employment prospects for young people will be crucial. If these initiatives prove effective, they could positively influence the political landscape by offering young voters better opportunities for meaningful employment.