Press Release
Geetam Acharya
Center for the Study of Finance and Economics (CSFE), Center for Work and Welfare (CWW), Generation Alpha Data Center (GenAlpha DC) IMPRI Impact and Policy Research Institute, New Delhi, hosted an interactive panel discussion on the topic of Employment, Livelihoods, and Union Budget 2024-25. On 25th July 2024, under the IMPRI 5th Annual Series of Thematic Deliberations and Analysis of Union Budget 2024-25, as part of IMPRI #WebPolicy .
Talk the budget panel discussion was chaired by Professor Suchita Krishnaprasad, Visiting Professor, IMPRI; Former Associate Professor and Head of, the Dept of Economics, Elphinstone College, Mumbai. To start, Prof. Krishnaprasad provided an overview of the budget, which included insights on how the post-COVID recovery has resulted in a significant growth rate, yet jobs in the manufacturing sector have declined. She emphasized on this paradox and highlighted the need for a deeper analysis of job quality. She emphasized the disparity between economic growth and actual job creation, particularly in the service sector, where employment conditions are often precarious.
Prof . Krishnaprasad, also, touches on the role of the private sector in sustaining growth, noting that despite government efforts, private investment has not fully materialized and underlines the necessity for a collaborative approach to economic development. She acknowledges that the government is making efforts to boost private-sector employment through incentive schemes aimed at recruiting young graduates. However, she lamented the focus should also be on creating meaningful and productive jobs.
The first panelist Prof Sarthi Acharya, Professor (Delhi Chair), Institute for Human Development, New Delhi; Former Director, Institute of Development Studies (IDS), Jaipur puts his focus on India’s MSME sector highlighting the significant challenges including low innovation and high mortality rates, which hinder its potential for job creation and economic growth. Addressing these issues, He argues, requires improved education, skill development, and technological advancement. He argues that the lack of research and development in the MSME sector leads to reliance on outdated technologies, impacting competitiveness and sustainability in the market. This stagnation is a major concern.
Moreover, He lamented Women’s mobility and access to work being severely restricted by socio-economic factors, preventing them from participating in the workforce and limiting overall job creation in the MSME sector.
The next panelist, Mr Sandeep Chachra, Executive Director, ActionAid Association, India and Ex Co-Chair, World Urban Campaign, UN-HABITAT; Advisor, IMPRI begins his discussion on the necessity of a comprehensive analysis of the recent budget focusing on social class and gender to understand its implications for employment and livelihoods. He highlights that the budget reflects social concerns voiced during a closely contested election, emphasizing job creation and labor-intensive industrialization. He argues that the budget responds to political pressures and the demands of working people, reflecting a shift towards addressing concerns raised during the election cycle. This recognition is crucial for democratic politics.
He, also, emphasized that current labor rights in India are facing significant challenges, particularly with the rise of contractualization and a lack of effective government intervention. Wage depression is prevalent across both formal and informal sectors, exacerbating the issue. Wage depression is notably severe in the informal sector, where many workers are left without adequate compensation or protections. This situation highlights the widening gap in income equality. These were his closing remarks.
Prof Ashok Pankaj, Professor, Council for Social Development (CSD), New Delhi highlights the importance of targeting specific social groups, such as Scheduled Castes and Scheduled Tribes, which is crucial for promoting inclusive growth in India. This focus helps address historical disparities. He argues that the budget emphasizes employment-centric policies to tackle unemployment and promote economic inclusion, especially in rural areas where the ruling party faced electoral challenges. Prof Pankaj also highlights the informal sector’s reluctance to normalize poses significant challenges for skill development initiatives. Effective incentives are necessary, but the current measures may not be enough to attract participation.
He completes his discussion by arguing that the government is implementing measures to facilitate loans for MSMEs by reducing collateral requirements and introducing a credit guarantee fund. These initiatives aim to enhance working capital access and support economic growth.
Prof Randhir Singh Rathore, Professor of Policy Planning and Research & Dean Academics Affairs, Shri Vishwakarma Skill University, Haryana; Visiting Professor, IMPRI, the next panelist, highlights the government plans to create one crore jobs over five years through various schemes, focusing on improving the quality of education and training for employability in industries. Addressing the quality of resources is crucial, he argues, as there are challenges in finding employable graduates, including engineers, in the current job market.
He emphasized that Internships are vital for students aged 21 to 24, as exposure to real work environments enhances their skills and prepares them for future employment in MSMEs.
Prof Swarna Sadasivam Vepa, Visiting Professor, Madras School of Economics (MSE); Visiting Professor, IMPRI, argued that niche areas like pump storage projects and smaller nuclear power plants present unique employment opportunities in clean energy. Investment in these sectors can lead to specialized job creation. She lamented that the job market is significantly affected by automation, reducing opportunities in both organized and unorganized sectors. Despite the growth of service aggregators, low-skilled jobs dominate the employment landscape. Moreover, Low participation in the labor force, especially among women, primarily results from the prevalence of unpaid labor. The rise of gig economy workers, often treated as partners, exacerbates job security issues
To sum up, the panel discussion on “Employment, Livelihoods, and Union Budget 2024-25” brought together distinguished experts to analyze the current state of the Indian economy, focusing on employment generation and the impact of the Union Budget. Key topics included the challenges of job creation in both organized and unorganized sectors, the importance of skill development, and the need for effective policies to address rising unemployment, particularly among youth.
Panelists emphasized the significance of enhancing the quality of education and vocational training to improve employability, while also highlighting the role of MSMEs and the gig economy in shaping the labor market. The discussion underscored the necessity for a holistic approach to economic policy that prioritizes inclusive growth and equitable distribution of resources, alongside the need for collaboration among various stakeholders to foster sustainable development.
IMPRI’s 5th Annual Series of Thematic Deliberations and Analysis of Union Budget 2024-25
IMPRI’s 5th Annual Series of Thematic Deliberations and Analysis of Union Budget 2024-25
Watch the event at IMPRI #Web Policy Talk
Employment, Livelihoods, and Union Budget 2024-25
Acknowledgement- This article was written by Geetam Acharya, a Research Intern at IMPRI and an undergraduate student at Sri Venkateswara College, University of Delhi with a keen interest in Political Science and International Relations.
