2024-25 Budget Praised For Vision, But Experts Warn Of Implementation Hurdles

Press Release

Sana Ansari

Employment :- Experts Question if Government Programs Are Creating Real Jobs?

#IMPRI Center for Work and Welfare (CWW) , impact and policy research institution, New Delhi, hosted an interactive panel discussion on the topic “Employment, Livelihoods & Interim 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 #WebPolicyTalk.

The program on “Employment, Livelihood, and the Union Budget 2024-25,” chaired by Prof. Suchita Krishnaprasand ji, brought together several distinguished speakers, including Mr. Sandeep Chachra ji, Prof. Randhir Singh Rathore ji, Prof. Swara Sadasivam Vepa ji, Prof. Sarthi Acharya ji, and Prof. Ashok Pankaj ji. The discussion highlighted various critical aspects of the budget, focusing on nominal GDP growth, food inflation, employment, and skill development.

Prof. Suchita ji delved into the critical issue of employment in India. Despite the impressive financial performance of Indian corporates in recent years, the panel questioned the effectiveness of government programs in generating employment. Prof. Krishnaprasand ji highlighted that these programs often create push factors rather than pull factors for employment. The panellists emphasised the hesitation in the private sector to recruit due to low skill levels, reflecting a broader state failure to utilise resources effectively.

Prof. Sarthi Acharya ji emphasised the importance of the manufacturing and MSME sectors in employment generation, noting the 11% growth in unpaid labour. He pointed out that while the budget allocates 2 lakh crores for employment, the efficacy of incentives and internships in creating long-term job opportunities remains questionable. He also critiqued the contradiction in the Atmanirbhar Bharat initiative, highlighting the continued reliance on imports from China.

Mr. Sandeep Chachra ji analysed the budget from a political and social class perspective, suggesting that the budget reflects the government’s response to the upcoming 2024 elections. He highlighted the budget’s focus on employment, particularly for the youth, but criticised the over-reliance on the private sector for job creation. He argued for a more substantial role for the state as a welfare provider and main employer, emphasizing the need for an employment-centric growth policy for inclusive development.

Skill Development :- Bridging the Skill Gap: How India’s Youth Can Be Made Job-Ready

A central theme of the discussion was the need for skill development to address the employment crisis. The panellists pointed out that the low skill levels among the youth hinder their employability, reflecting the state’s failure to provide adequate training. Prof. Krishnaprasand ji emphasised that unemployable engineers are a waste for the country, as they lack the necessary skills for engineering jobs.

Prof. Randhir Singh Rathore ji addressed the quality of internships and educational resources. He emphasised the need for better quality education and practical training in industries. He pointed out that while internships in top companies could provide valuable exposure and entrepreneurial perspectives, there are significant challenges in scaling these opportunities to meet the needs of a vast population. He also highlighted the importance of skill generation programs for practical trades like carpentry and laptop repair, which are often overlooked.

Prof. Swara Sadasivam Vepa ji discussed the impact of technology on employment, noting that new job markets have emerged while traditional ones have declined. She highlighted the polarisation of jobs, with a rise in high-skilled formal sector jobs and a decline in middle and low-skilled jobs. She stressed the importance of addressing the needs of the unorganised sector, which employs 70% of the workforce, and the gig economy, where low-skilled workers often migrate for convenience.

Internships in Top Companies: Panacea or Pipedream for India’s Youth?

The panellists critically examined the government’s internship programs for youth. Prof. Randhir Singh Rathore ji took points from Sarthi Acharya ji, Sandeep Chachra ji, and Ashok Pankaj ji, stating that the quality of resources and the operational challenges in providing internships must be carefully considered. He noted that internships in top 500 companies could enhance students’ entrepreneurial perspectives, but there are significant challenges in implementation, such as ensuring that the internships lead to actual job opportunities.

Prof. Ashok Pankaj ji pointed out that while the budget allocates funds for internships and incentives, the actual implementation and impact of these programs remain uncertain. He emphasised that skill generation and employment programs should be seen from a holistic approach, ensuring that there are no leakages and that intentions are translated into reality. The panellists agreed that the focus should also be on providing good quality education at least until higher secondary education.

Public Sector vs. Private Sector: Where Does India’s Employment Solution Lie?

In conclusion, the panellists collectively emphasised that the solution to India’s employment challenges lies in skill development and employment generation in the public sector rather than relying solely on the private sector. They noted that sectors like health and others often charge high fees, making public sector intervention crucial. The discussion highlighted the need for a holistic approach to tackling unemployment, with a focus on uniform policy cooperation similar to Japan’s “one village one product” strategy. However, the panellists acknowledged that caste dynamics play a significant role in India, complicating the implementation of such policies.

The panel also stressed the importance of concentrating efforts on job creation in the unorganised and informal sectors. While the budget presents promising initiatives, the panellists agreed that the real challenge lies in effective implementation. Ensuring that the budget’s provisions translate into tangible results will require careful planning, execution, and monitoring.

Watch the event at IMPRI #Web Policy Talk