The pre-budget buzz was that the budget would be focused on jobs in order to check the soaring unemployment amid abysmal economic conditions. As per the data collected by the Centre for Monitoring Indian Economy, the unemployment rate in January 2020 was at 7.16 per cent, whereas the rate among the fresh graduate rose over 60 per cent.
Thus, Finance Minister Nirmala Sitharaman on 1st February, presented the Union Budget 2020 around the theme of Aspirational India, Economic Development, and Caring Society. Though the budget has not suggested any concrete solution to check the growing unemployment level, a cursory look reveals that some measures can generate jobs. Let’s look into those.
Giving the impression that the government is keen on improving the quality and quantity of the education system, the budget provided special attention to the sector. Many proposals including the allocation of a whopping Rs 99,300 crore – an increase of Rs 4,500 crore – to the education sector are suggested in the budget.
Deviating from the conventional classroom learning system, the budget announced the commencement of the full-fledged online degree programs at the top 100 institutions. This will enable quality education to underprivileged students, who quit education after schooling due to financial constraints.
To attract students from Asian and African countries, the government plans to introduce IND-SAT, an aptitude test to study on scholarships in India. These countries see India as an educational hub to pursue inexpensive quality education. Foreign students’ influx is set to increase under the scheme.
Finance Minister also announced that the establishment of a national policy university and a national forensic science university.
The budget reveals that there will be a 0.7 per cent increase in jobs in the public sector. That means a total of 24,000 government jobs will be generated in the financial year 2020-21. However, the budget will help to create jobs in the private sector.
Establishing privately owned data centers as proposed in the budget would generate multiple jobs and both experienced and fresh candidates can fill the positions. Additionally, the emphasis on quantum computing and allocation of Rs 8,000 crore for the development and application of quantum technologies necessitates more talents in this field.
As India is one of the largest markets for smartphones, the proposal to boost the production of desi mobile phones and other electronic equipment aims to generate employment. Specialized talents are required for the manufacturing of semiconductors and electronics.
Relaxation of tax burden under the Employee Stock Ownership Plans (ESOP) will boost the confidence of current and prospective employees who are likely to enter the start-ups. Prospering start-ups are the solution to reducing unemployment.
Apart from funds for education, Rs 3,000 crore has been specifically allocated for skill development as skills get prominence over the knowledge in today’s job market. To improve the skills of nurses, teachers and paramedical staff to meet the global parameters, health and skill development ministries are designing special bridge courses.
Commencement of apprenticeship-embedded courses in the 150 educational institutions can improve the employability of the students. This will enable them to begin their career with skill sets required by the market.
The proposal to provide internship for fresh engineering graduate under urban local bodies is seen as the opportunity for youngsters to improve their employability and start their career with the required skill sets. Setting up of proposed Project Preparation Facility for the infrastructure projects mandate the active involvement of young engineers and management graduates.
All these points highlight the importance of the employability of young talents who enter the job market every year. Integrating employability with higher education is one solution for producing talents. On the other hand, the fresh graduates can undertake job-oriented upskilling and reskilling trainings.
As we discussed above, the upcoming jobs require high skills and many are in the new-age technologies such as data science, artificial intelligence, machine learning, cloud computing, cybersecurity etc. Hence, fresh graduates should have these skill sets to meet the requirements. Only proper training can create such talents to fill the gaps. Courses provided by Jigsaw Academy will help you to find career paths in emerging technologies.