Finance Minister Arun Jaitley on Thursday fulfilled the promise made by Prime Minister Narendra Modi during his election campaigns about creating new jobs for the one million youth who are added to India’s workforce every month.
During his budget speech in Parliament, Jaitely said, “India today needs a boost for job creation and the manufacturing sector needs a push in this regard.”
Data released by NSSO recently showed that 76 million jobs were created, of which employment in agriculture sector declined by 6 million but rose by 17 million in industry.
On the basis of measures proposed in the 2014 budget, experts expect that the proposals will help create 5-8 million jobs in the next three-four years in various fields.
The government has also announced that soon seven new industrial cities will be made. This will generate new job opportunities for the youth. The government will also simplify the rule for opening new private banks and several are slated to come up in the next few years.
Soon, there are likely to be new openings in sectors like power, transport, infrastructure, etc. The growth in the infrastructure and construction sector is necessary to revive the economy and generate jobs for millions of youth. For instance, the government has extended the 10-year tax holiday to the power companies which commence generation, distribution and transmission of power by March 31, 2017.
Similarly, the budgetary announcement has provided necessary incentives for REITS which will be a boost for realty sector. Sixteen new port projects are proposed to be awarded this year with a focus on port connectivity.
During his election campaigns, Modi had promised that he will develop 100 new smart cities. Jaitley has allotted Rs 7,060 crore in the current fiscal year for this project. Even this will help generate new jobs in various sectors.
In another major move, the limit of foreign direct investment (FDI) has increased from 26 per cent to 49 per cent in insurance and defence sectors. This will also boost the Indian employment market in the future.
For the betterment of youth, government also announced “Skill India” programme. It will equip youth with skill with an emphasis on entrepreneurship as well as employability.
Jaitley said that Shyama Prasad Mukherji Rurban Mission will be launched to deliver integrated project-based infrastructure in rural areas, which will also include development of economic activities and skill development.
A National Rural Internet and Technology Mission for services in villages and schools, training in IT skills and E-Kranti for government service delivery and governance scheme has also been proposed. A sum of Rs 500 crore has been provided for this purpose.
The two abovementioned moves will provide employment for rural people.
Wage employment would be provided under MGNREGA through works that are more productive, asset creating and substantially linked to agriculture and allied activities.
Employment exchanges will be transformed into career centers, in addition to providing information about job availability. These centers will also extend counseling facilities to the youth for selecting the jobs best suited to their ability and aptitude.