Finance Minister Nirmala Sitharaman’s unveiling of the Budget for 2024-25 marks a bold stride towards a more equitable and inclusive labour market. The newly-announced budget has been lauded as a strategic move by the Indian government to foster inclusive development across the country. It aims to empower every individual to contribute to and benefit from the nation’s economic progress. This forward-looking ambitious vision promises significant rewards in skilling, employability, inclusivity and entrepreneurship, setting the stage for a more prosperous and inclusive future.
Forward-looking perspective: Sharad Verma, CHRO, Iris Software, views the budget positively, especially for the HR and IT sectors. “The 2024 budget is forward-looking on many fronts, particularly with its focus on modern technologies such as AI, drones and cybersecurity,” Verma states. He praises the government’s push to reform labour laws and the emphasis on upskilling and employment generation through internship schemes.
“This budget aims to spur the next stage of job growth and foster a close partnership between government, academia and industry,” Verma explains. He believes the continued emphasis on the Make in India initiative will strengthen India’s position as a global economic leader.
Emphasis on skilling and employability: Praveer Priyadarshi, senior HR leader, appreciates the budget’s focus on skilling and employability. “The budget has given greater emphasis on employment generation, with skilling programmes geared towards outcome orientation,” he notes. Priyadarshi highlights the alignment of course content with industry needs, ensuring that the workforce is better prepared for contemporary challenges.
“The 2024 budget is forward-looking on many fronts, particularly with its focus on modern technologies such as AI, drones and cybersecurity.”
Sharad Verma, CHRO, Iris Software
The budget reflects the government’s aim to enhance human capital, a crucial aspect of Viksit Bharat, through initiatives in employment, education and skills development. An allocation of Rs 1.48 lakh crore for these areas aims to maximise human capital and capitalise on the demographic dividend. The introduction of wage subsidies for businesses hiring employees for the first time is expected to rejuvenate the employment sector. Additionally, the provision of education loans with interest-subvention schemes is designed to create a robust future talent pipeline.
“The proactive measures through new initiatives and incentives in PF provisions are commendable. These steps will help bridge the gap between the skills people have and the skills industries need,” explains Priyadarshi.
Enhanced human-resource development on all fronts: Amit Sharma, CHRO, Gokaldas Exports, believes the budget will spur employment generation, especially in the manufacturing sector. He highlights that the announcement of Rs 3 trillion for programmes supporting women and girls, including the establishment of working women’s hostels and crèches, is seen as a timely measure to boost women’s participation in the workforce and contribute to economic progress.
“The announcement of Rs 3 trillion for programmes supporting women and girls, including the establishment of working women’s hostels and crèches, is seen as a timely measure to boost women’s participation in the workforce and contribute to economic progress.”
Amit Sharma, CHRO, Gokaldas Exports
“The internship scheme will ensure that skilled youth get vital industry experience, making them ready for the corporate world,” highlights Sharma. Additionally, the government’s plan to incentivise 30 lakh youth entering the job market by offering a one-month PF contribution is seen as a positive move, easing the transition from education to employment. The internship allowance of Rs. 5,000 per month and a one-time assistance of Rs 6,000 are considered vital financial supports for young professionals starting their careers.
“The proactive measures through new initiatives and incentives in PF provisions are commendable. These steps will help bridge the gap between the skills people have and the skills industries need.”
Praveer Priyadarshi, senior HR leader
This budget underscores the vital role of youth upskilling as an economic driver, offering a crucial boost to India’s expanding workforce and supporting the government’s Make in India initiatives. Warren Harris, CEO & MD, Tata Technologies, shares, “With an established record in transforming government ITIs into technology hubs for upskilling youth in in-demand skills, including Industry 4.0, Tata Technologies is eager to collaborate with the government to design and implement effective STEM-focused skill-development programmes.” Their expertise in industry-specific training courses will be invaluable in this initiative.
“The removal of the angel tax will encourage more startups and innovation.”
Rajesh Rai, VP-people team & head-HR APAC, GlobalLogic
Boost for startups and skilling: Rajesh Rai, VP-people team & head-HR APAC, GlobalLogic, praises the budget for abolishing the angel tax, which he believes is a game-changer for the entrepreneurial IT start-up sector. “The removal of the angel tax will encourage more startups and innovation,” Rai states.
“The investment in 1,000 training institutes and the focus on skilling are in alignment with the changing landscape of the IT sector. The provision of internship opportunities and financial incentives for employers hiring additional employees is an innovative step that will foster job creation,” Rai explains.
“The increased tax burden on salaried employees, which is unfairly targeted compared to business owners.”
Tanaya Mishra, VP-HR, Endo International
Rai emphasises that integrating on-the-job training (OJT) as a mandatory inclusion in degrees, in association with the industry, will ensure students gain practical, ground-level experience. For students in domestic institutions, the government’s support for loans up to 10 lakh for higher education is also welcomed, particularly as it can be included under the CSR budget of companies, up to 10 per cent.
He lauds the innovative introduction of Rs 3,000 per month refund for two years towards EPFO contributions, for every additional employee with a salary of up to Rs 1 lakh per month. This move will aid job creation and reduce financial burdens for employers, even while providing social security from day one for new hires.
Frustration of the working class: While Rai is confident that the change in taxation slabs will also bring some relief to salaried taxpayers, Tanaya Mishra, VP-HR, Endo International, provides a stark and impassioned critique of the budget, voicing the concerns of the working class. Misra highlights the increased tax burden on salaried employees, who she believes are unfairly targeted compared to business owners.
“This budget underscores the vital role of youth upskilling as an economic driver, offering a crucial boost to India’s expanding workforce and supporting the government’s Make in India initiatives.”
Warren Harris, CEO & MD, Tata Technologies
“We are already taxed heavily, and now we are paying more taxes. The long-term capital-gains tax has risen from 10 per cent to 12.5 per cent, and the short-term tax from 15 per cent to 20 per cent. This additional rise may seem small, but it significantly impacts whatever little we earn and invest in mutual funds or other savings,” Mishra explains. She emphasises the disparity, pointing out that business people often evade taxes while salaried individuals bear the brunt.
She also criticises the push towards the new tax regime. “They want us to join the new regime, but why? Under the old regime, we got small benefits such as conveyance, petrol allowances, or meal coupons. Now, all these perks are being taxed heavily or eliminated,” Mishra adds.
Overall, the 2024-25 budget sets a visionary path for India’s economic progress, aiming to foster a close partnership between the government, academia and industry. While the budget is seen as a catalyst for growth and development, addressing concerns such as tax burdens on the working class will be crucial to ensure inclusive and equitable progress for all segments of society.