Budget 2024-25 Allows Youth to Lead Path of Growth in India

Why in News?

• Swami Vivekananda said, “Give me 100 energetic young men and I will transform India” and this statement underscores the power of skill and energy in achieving transformative change.
• History offers several instances where skill has triumphed over sheer numbers but what if skill and scale could be combined.
• The 2024-25 Budget envisions just that, proposing measures to merge skill and scale, particularly through the empowerment of India’s youth.

The Demographic Dividend and its Challenges

• India stands on the brink of a demographic dividend with a median age of 28, as highlighted in the Economic Survey 2023-24.
• This youthful workforce presents an unparalleled opportunity for economic growth. However, a significant challenge remains: employability.
• While 51 percent of Indian graduates are currently deemed employable, this is an improvement from 34 percent in 2017-18, owing to government-led skill development initiatives.
• Despite these advancements, vocational training still struggles for societal acceptance, often perceived as a fallback for those who do not excel in formal education.
• The Ministry of Skill Development’s 2022-23 report underscores this issue, indicating that vocational training is still seen as a last resort.

Budget Initiatives to Bridge the Skill Gap and Employability Among India’s Youth

• Financial Incentives for Internships
  • By offering financial incentives, the government aims to make internships more appealing to graduates, thereby encouraging them to pursue skill development opportunities.
  • This helps in shifting the perception of internships from being an unpaid, often undervalued experience to a lucrative and valuable career step.
  • The training expenses for these internships will be covered by the CSR funds of participating companies.
  • This not only alleviates the financial burden on the government but also encourages companies to actively participate in the nation-building process by investing in the future workforce.
• Enhancing the Social Perception of Vocational Training
  • Efforts are being made to integrate vocational training with mainstream education systems.
  • This includes creating pathways where students can pursue vocational training alongside their regular studies, thereby normalizing it as a viable and respectable career option.
  • Introducing standardised certification processes for vocational training ensures that skills acquired are formally recognised, making it easier for graduates to demonstrate their competencies to potential employers.
• Collaboration with Industry
  • By creating partnerships between industry leaders and educational institutions, the Budget seeks to ensure that the curriculum is aligned with industry needs.
  • This helps in keeping the training programs relevant and up-to-date with current market demands.
  • Encouraging companies to offer on-the-job training programs as part of their hiring process ensures that new employees are not only theoretically knowledgeable but also practically skilled.
  • This reduces the training burden on companies and enhances productivity from the get-go.
• Skill Development Through Digital Infrastructure
  • Investment in online learning platforms enables a wider reach, allowing students from remote and rural areas to access quality education and training.
  • These platforms can offer a variety of courses, from basic skills to advanced technical training.
  • Developing e-learning resources and modules tailored to various industries and skill levels helps in providing flexible learning options.
  • This is particularly beneficial for working professionals looking to upgrade their skills without taking a break from their careers.
• Incentivising Employment and Industrial Growth
  • To boost employment and industrial productivity, the Budget announces three new schemes related to the Employee Provident Fund Organisation (EPFO).
  • These schemes offer direct benefit transfers of one month’s salary, up to Rs 15,000, to first-time employees in three instalments, and reimburse employer EPFO contributions up to Rs 3,000 per month for new hires.
  • Such incentives are designed to encourage industries to prioritise hiring, manufacturing, and expansion.
• Skill Development with a Focus on Emerging Sectors
  • With the global economy increasingly relying on digital services, there is a strong focus on training graduates in IT, cybersecurity, data analysis, and other related fields.
  • This prepares them for the high-demand jobs of the future.
  • In line with global sustainability goals, there is an emphasis on training in green technologies, renewable energy, and environmental management.
  • This not only addresses the employability gap but also supports the country’s environmental objectives.
  • Post-pandemic, the healthcare sector has seen an increased demand for skilled professionals.
  • Training programs for medical technicians, healthcare workers, and support staff are being prioritised to meet this demand.

Some Other Key Announcement of Budget 2024-25

• Agricultural Innovations and Climate Resilience
  • The Budget also emphasises agricultural resilience in the face of climate change.
  • It proposes developing climate-resistant varieties of 32 crops and supports Farmer Producer Organisations (FPOs) through the National Policy for Co-operation for FPOs.
  • Other measures include promoting self-sufficiency in oilseeds and vegetables, encouraging natural farming among one crore farmers, and developing digital infrastructure for agriculture.
  • These initiatives aim to safeguard the agricultural sector against climate-induced disruptions and ensure food security.
• Housing, Healthcare, and Social Welfare
  • The Budget makes significant allocations for housing, aiming to construct 3 crore houses under the PM Awas Yojana (Rural)and 1 crore houses in urban areas for the poor and middle class.
  • The PM Surya Ghar Muft Bijli Yojana aims to provide free electricity up to 300 units to one crore households.
  • In healthcare, essential cancer medicines are exempted from customs duty, making them more affordable for millions of patients.
  • Women's empowerment receives a substantial boost with a 218.8 percent increase in funding compared to a decade ago, alongside the establishment of women’s hostels to increase female workforce participation.
  • The middle-class benefits from a comprehensive review of the Income Tax Act 1961, with the standard deduction increasing from Rs 50,000 to Rs 75,000, enhancing savings for middle-class families.
• Regional Development and Cultural Promotion
  • The Prime Minister’s focus on developing eastern states is reflected in the new Purvodaya Scheme, which includes initiatives to develop Odisha as a tourist destination.
  • It will attract tourists to historical sites like Nalanda, Rajgir, Bodh Gaya, and the Vishnupad temple

Conclusion

• The 2024-25 Budget presents a visionary approach to combining skill and scale and by focusing on employment and providing opportunities for the youth to lead, the Budget sets a pathway for India’s growth.

The integration of comprehensive skill development, agricultural resilience, industrial incentives, social welfare measures, and regional development initiatives collectively aims to harness the full potential of India’s demographic dividend, positioning the country for a prosperous future. 

Q) What is a demographic dividend?

A demographic dividend is the economic growth potential that can result from shifts in a population’s age structure, mainly when the working-age population (15 to 64) is larger than the non-working-age population (14 and younger, and 65 and older). This occurs typically when a country transitions from high birth and death rates to lower birth and death rates, leading to a higher proportion of working-age individuals.

Q) How can countries benefit from a demographic dividend?

Countries can benefit from a demographic dividend by investing in education, healthcare, and job creation to maximise the productivity of their working-age population. Effective policies and investments can lead to higher economic growth, improved standards of living, and reduced poverty levels. Additionally, empowering women and ensuring gender equality can further enhance the benefits of a demographic dividend.

Source:The Indian Express