Can Budget 2024 Fuel India's Growth Engines?
The Union Budget 2024 has been recognised for its strategic focus on women, youth and job creation, crucial for equipping the future workforce with the skills needed to thrive. Programmes for employment, internships, and skills development could be a game-changer in tackling the challenge of job creation for the nation's massive youth population.
The budget acknowledges the critical role of small and medium-sized enterprises (SMEs), the backbone of India’s economy. Easier access to credit for SMEs, which contribute over 29% to GDP, is expected to fuel further job creation nationwide.
However, it is essential to monitor how these initiatives might impact the informal sector, which has faced significant challenges in recent years due to demonetisation and pandemic lockdowns.
Industry leaders offer mixed reactions. Arundhati Bhattacharya, Chairperson & CEO of Salesforce India, sees promise in the budget, highlighting its focus on “women, youth and job creation, along with skilling and women’s workforce participation” as a potential driver of future economic growth.
Puneet Chandok, President of Microsoft India and South Asia, lauds the Union Budget 2024 and Economic Survey for prioritising technological innovation and digitisation to establish India as an “AI-first nation.”
Prabhakar Azad of Ashwin Sheth Group and Srinivasa Addepalli of GlobalGyan Leadership Academy praised the investment in human capital. Azad highlighted the focus on skill development, while Addepalli welcomed corporate internships for bridging academia and industry. Sekhar Garisa, CEO of foundit, remarked, “We are encouraged by the strong emphasis on productivity and job creation.”
Somdutta Singh, Founder & CEO of Assiduus, sees the budget as a catalyst for MSME-driven growth. Pallavi Jha, Chairperson & MD of Dale Carnegie India, fears the ₹1.48 lakh crore may fall short of addressing regional disparities and job market needs.
Sachin Alug, CEO of NLB Services, sees the focus on youth, women, MSMEs, and tourism as beneficial for long-term economic stability, echoing Singh’s view on entrepreneurial growth. Arun Balasubramanian, VP & MD at UiPath, highlights skill development and employment-linked incentives as key to addressing workforce skill gaps.
Hardika Shah, Founder & CEO of Kinara Capital, commends the budget’s advances in women’s economic empowerment, particularly the abolition of the Angel Tax, which could enhance investment in women-led startups.
Bridging the skills chasm
The government is investing ₹2 lakh crore over five years to bridge the skills gap. Shantanu Rooj, CEO of TeamLease Edtech, highlights the budget’s three-pronged approach: wage subsidies, onboarding support, and linking new hires to the EPFO system.
Sonal Arora, Country Manager at GI Group Holding, describes the nationwide internship programme as pivotal: “It will equip individuals with practical skills, boost economic growth, and create a strong talent pipeline for future hiring needs.”
Rooj highlights that “upgrading 1000 ITIs will help students secure their first jobs faster.” However, he advocates for broader implementation: “This initiative should extend to all ITIs across the country, not just the selected 1000, as it requires no significant additional investment.”
MSMEs and startups
The Credit Guarantee Scheme, offering collateral-free guarantees of up to ₹100 crore, is praised for easing growth for manufacturing sector MSMEs. Karthik Kondepudi, Partner at Herbochem states it will “significantly ease growth for MSMEs.”
The budget’s proposal to assess MSME creditworthiness through digital footprints could broaden credit access for many businesses.
For startups, the abolition of the Angel Tax is a significant boost. V Ramankumar, Founder & Chairman CASHe, describes it as “a crucial relief that will attract investments and drive innovation.”
The Internet and Mobile Association of India (IAMAI) also welcomed the change, noting, “The abolition of the Angel Tax has been a longstanding demand and will undoubtedly enhance investments and innovation in India’s startups.”
The road ahead
The Union Budget 2024 has sparked a mix of optimism and caution. While initiatives like skilling programmes, internship opportunities, and MSME support hold promise for fueling India’s growth engines, challenges remain.
Industry leaders have pointed out areas for improvement. Expanding the reach of programmes like wage subsidies to encompass beyond the top 500 companies could significantly improve their impact. Addressing long-standing structural issues like factor productivity and land reforms is crucial, as Dr. Rumki Majumdar, Economist, Deloitte India rightly emphasises.
Ultimately, success will hinge on its implementation. Ensuring effective rollout and monitoring progress will be essential. As Smita Shetty Kapoor, CEO and co-founder of Kelp highlights, developing a truly skilled and industry-ready workforce requires sustained commitment.
The coming years will be a test. The true impact of these measures on job creation, economic growth, and India’s global standing will become clearer. While challenges exist, Budget 2024’s focus on human capital and entrepreneurship offers a roadmap for potential future growth.
About Gi Group Holding
Headquartered in Milan, and with over 6000 employees, Gi Group Holding is active in more than 100 countries, thanks to its direct presence and strategic partnerships. Through its key brands, the company provides a full and comprehensive suite of recruitment and HR solutions to more than 20,000 companies worldwide, generating revenues of €3.2 billion*, and making it both the 5th largest recruitment and HR Services company in Europe, and the 16th largest worldwide.
Gi Group Holding is uniquely committed to the creation of social and economic value for both employers and candidates alike. Called “More than Work”, the Group’s aims are two-fold: firstly, to ensure that employees experience enjoyable and life-changing work environments; and secondly, to enable a sustainable, streamlined, and harmonious labour market for employers and employees alike—one that reflects the ever-changing needs of candidates and companies. gigroupholding.com.
