The 2024 Budget introduced Employment Linked Incentives (ELI) under the Prime Minister’s five-scheme initiative, aiming to generate over four crore jobs in five years.

Role of the Union Budget in Job Creation

• Tax Relief: Tax cuts and relief measures in the Union Budget can stimulate consumer demand by increasing disposable income. This can encourage spending, thereby boosting sectors such as retail, manufacturing, and services, leading to temporary job creation.
• Incentives for Businesses: Providing businesses with temporary tax breaks or subsidies can encourage hiring and investment in the short term. However, such measures alone are not sufficient for sustainable employment growth.

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Categories of Employment That India Must Focus On

• Climate-Resilient Jobs: Climate change is an urgent and escalating concern. In 2019, India ranked as the seventh most-affected country by climate change, suffering a $159 billion income loss in 2021. 
  • The Reserve Bank of India (RBI) estimates that adaptation costs will reach nearly $1 trillion by 2030. 
  • The impact of climate change on agriculture, labour productivity, and livelihoods necessitates massive investments in rural and urban adaptation strategies.
• AI-Resilient Jobs: The rapid advancement of Artificial Intelligence (AI) poses a significant challenge to employment, particularly in the IT and business services sectors, which currently account for over 70% of India’s service exports. 
  • According to McKinsey Global Institute, 50% of automation adoption in India could take place within the next decade. 
  • Technologies such as metaGPT, AI-powered coding, and chatbot-driven customer service are already replacing human jobs, raising concerns about employment sustainability.
• Aspiration-Centric Jobs: India’s youth, particularly in rural areas, face a paradox. While exposure to digital media and startup culture has broadened their aspirations, their foundational education, particularly in English and technical skills, remains weak. 
  • Many still rely on government jobs and coaching institutes to secure employment, reflecting a deeper insecurity rooted in their socio-economic backgrounds.

Measures for India to Focus on Essential Categories of Employment

• Climate-Resilient Employment Initiatives: Addressing climate change while fostering job creation requires aligning economic growth with sustainability. 
  • The government has a crucial role in introducing large-scale programs that generate employment while also focusing on environmental resilience and sustainability.
• E-Rickshaw Program: A state-subsidized initiative to provide e-rickshaws in six lakh villages could generate approximately two million jobs, with a focus on women. 
  • This program would address the need for sustainable last-mile mobility, reducing carbon emissions while empowering rural women economically.
• Compressed Biogas Plants: Investments in the biogas sector are critical. The current infrastructure includes 82 plants, with a goal of scaling up to 5,000 plants by 2030. Expanding biogas production could create a significant number of jobs in rural areas, reduce agricultural waste, and support cleaner energy sources.
• Non-Fossil Energy Capacity: Accelerating India’s target of achieving 500GW of non-fossil energy capacity could have a profound impact on job creation. 
  • This expansion is especially crucial in decentralized and rooftop solar power, which is far more labor-intensive than conventional energy projects. 
  • By focusing on decentralized solar, India can generate over one million jobs, contributing to both the energy transition and employment growth.
• Net-Zero Targets: These initiatives will not only contribute to economic growth and job creation but also play a vital role in achieving India’s net-zero emissions target by 2070. Creating jobs in green energy and sustainable sectors directly supports long-term environmental goals while improving livelihoods and economic resilience.
• AI-Resilient Employment: As automation and AI technologies rapidly advance, it is crucial to focus on creating jobs that AI cannot easily replicate. 
  • These jobs should harness human creativity, physical engagement, and emotional intelligence, ensuring that employment remains secure in the face of technological disruption.
• Addressing Shortages: Expanding investment in the education and healthcare sectors offers a significant opportunity to create AI-resilient jobs. 
  • Both sectors face critical shortages of professionals—teachers and healthcare workers—across states. By focusing on these areas, India can address unmet needs, generate long-term employment, and ensure that vital services remain human-centric.
• Supporting Rural Livelihoods: Strengthening programs like the National Rural Livelihood Mission (NRLM) can provide crucial support to rural artisans, farmers, and craftspersons, enabling them to better access global and urban markets. 
  • Connecting these workers to broader economic opportunities ensures that traditional industries, such as handicrafts and organic farming, can thrive despite technological advancements.
• Agricultural Supply Chain Infrastructure: One of the most promising strategies to align job creation with youth aspirations is through large-scale infrastructure development.
  • For example, addressing the 95% infrastructure gap in agricultural supply chains by constructing 70,000 integrated pack-houses could generate over two million jobs. 
  • These pack-houses would not only improve the efficiency of agricultural logistics but also create new employment opportunities in rural areas, making agriculture a more attractive career option for youth.
• Boosting Agri-input Manufacturing: Promoting the local manufacturing of agricultural inputs, such as fertilizers, pesticides, and machinery, can further stimulate job creation.
  • This would reduce dependency on imports, increase local production capacity, and create off-farm employment opportunities in manufacturing, research, and supply chain management.
• Transforming Rural Jobs: Rebranding rural industries, such as oilseed processing, can make them more aspirational and appealing to the youth. 
  • For instance, accelerating the National Mission on Edible Oils – Oilseeds can help reduce India’s 57% import dependence on edible oils while revitalizing rural oilseed processing.
  • By introducing modern technologies, improving processing techniques, and utilizing digital marketing platforms, rural industries can be transformed into modern, attractive career paths.
• Public-Private Partnerships: To further support these initiatives, public-private partnerships (PPPs) can play a crucial role in establishing a structured employment ecosystem. 
  • By collaborating with private sector players, the government can create a more efficient and sustainable model for job creation in rural areas, addressing challenges such as low recruitment vacancies and dissatisfaction with traditional job opportunities.

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Conclusion

By strategically investing in these areas, India can not only mitigate the risks of climate change and automation but also unlock the full potential of its workforce, paving the way for a truly developed Viksit Bharat.

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