Union Budget and Job Creation: A Pathway to Viksit Bharat

Introduction

The Union Budget plays a vital role in shaping India’s economy, especially in employment generation. While short-term measures like tax relief can boost consumer spending, long-term structural reforms are essential for sustained job creation and real wage growth.

In the 2024 Union Budget, the government introduced Employment Linked Incentives (ELI) under the Prime Minister’s five-scheme initiative, aiming to create over four crore jobs in five years. However, achieving the vision of Viksit Bharat (Developed India) requires a deeper focus on what types of jobs are needed for long-term growth.

Key Areas of Employment for Viksit Bharat

India’s future job market must focus on three critical categories to ensure economic stability and social progress:

1. Jobs That Support Climate Resilience

Why is this important?

• Climate change is already affecting agriculture, industries, and overall productivity.
• In 2019, India was the 7th most-affected country by climate change.
• The Reserve Bank of India (RBI) estimates that climate adaptation costs could reach $1 trillion by 2030.
• India lost $159 billion in income in 2021 due to climate-related issues.

How can India create climate-resilient jobs?

• Expanding Renewable Energy – Meeting the target of 500GW non-fossil energy capacity could generate over one million jobs, especially in solar and wind energy.
• Sustainable Transportation – Providing state-subsidized e-rickshaws in six lakh villages could create two million jobs, particularly for women, while improving last-mile connectivity.
• Waste-to-Energy Projects – Increasing the number of compressed biogas plants from the current 82 to 5,000 (2018 target) could provide employment in waste management and green energy sectors.

Impact

These initiatives will not only generate employment but also help India achieve its Net-Zero 2070 target while strengthening rural and urban economies.

2. Jobs That Can Withstand the Impact of Artificial Intelligence (AI)

Why is this important?

• Automation and AI are replacing jobs, particularly in the IT and business services sectors, which contribute over 70% of India’s service exports.
• A McKinsey Global Institute report predicts that 50% of India’s jobs could be automated in the next 10 years.
• Technologies like metaGPT, AI-powered coding, and chatbot-driven customer service are already affecting traditional employment.

How can India create AI-resilient jobs?

• Expanding Education and Healthcare Sectors – Addressing the shortage of teachers and healthcare professionals will create stable, AI-resistant jobs.
• Supporting Rural Livelihoods – Strengthening the National Rural Livelihood Mission (NRLM) can help artisans, farmers, and craftspersons by linking them to urban and global markets.
• Developing AI-Augmented Roles – Instead of replacing human jobs, AI should be used to assist workers in areas like legal research, medical diagnostics, and financial services.

Impact

Focusing on AI-resilient jobs will ensure that India’s workforce remains competitive, innovative, and less vulnerable to job losses due to automation.

3. Jobs That Match the Aspirations of India’s Youth

Why is this important?

• India’s youth population is growing, and their career aspirations are evolving.
• Many young Indians, particularly in rural areas, still depend on government job exams, which are often delayed or uncertain.
• The gap between education quality and job market needs makes it difficult for many youth to find well-paying jobs.

How can India create aspiration-driven jobs?

• Strengthening Agricultural Supply Chains – Constructing 70,000 integrated pack-houses can reduce post-harvest losses and create over two million jobs.
• Promoting Local Agri-Input Manufacturing – Encouraging domestic production of fertilizers, pesticides, and organic products can reduce imports and create stable jobs.
• Modernizing Rural Industries – Leveraging digital platforms and social media to promote traditional crafts and businesses can turn them into attractive career options.
• Public-Private Partnerships (PPPs) – Collaborating with industries for structured employment pathways can help reduce youth frustration caused by exam leaks and low recruitment vacancies.

Impact

Aligning job creation with youth aspirations will ensure that young Indians find meaningful, fulfilling careers that contribute to the country’s economic growth.

Conclusion

While short-term measures like tax relief provide temporary economic benefits, long-term structural reforms are necessary to create a robust and future-ready workforce.

Key Areas for Job Creation in Viksit Bharat

• Climate-Resilient Jobs – To support sustainability and environmental goals.
• AI-Resilient Jobs – To protect human creativity and traditional industries.
• Aspiration-Centric Jobs – To match employment opportunities with youth ambitions.

By strategically focusing on these employment categories, India can safeguard its workforce from future challenges, ensure sustained economic growth, and achieve its goal of Viksit Bharat – a fully developed and self-reliant nation.