The recent Union Budget announcement has sparked discussions on India’s economic future. While boosting consumer spending is crucial, the real challenge lies in creating stable, well-paying jobs across all sectors. With nearly 1.4 billion people and a growing workforce, India needs strategic job creation to ensure long-term prosperity.
In 2024, the government introduced the Employment Linked Incentives (ELI) scheme under the Prime Minister’s five-scheme initiative. The ambitious plan aims to generate over 40 million jobs within five years, backed by a ₹2 lakh crore budget. The Prime Minister’s Internship Scheme received overwhelming interest, with 6.21 lakh applications for just 1.27 lakh positions. However, progress on other employment initiatives remains unclear. To achieve the vision of Viksit Bharat (Developed India), job creation must focus on three crucial areas:
1. Climate-Resilient Jobs
- Why It Matters :
India is highly vulnerable to climate change. In 2019, it ranked as the seventh most affected country, and by 2021, climate-related disasters caused economic losses amounting to $159 billion. The Reserve Bank of India (RBI) estimates that India will require $1 trillion for climate adaptation by 2030.
- How to Create Climate-Resilient Jobs :
– Green Transport: Subsidizing e-rickshaws, particularly for women drivers in 6 lakh villages, can generate 2 million jobs and improve rural connectivity.
– Biogas Plants: Private investment in compressed biogas plants can help bridge the gap between the existing 82 plants and the 5,000 initially planned in 2018.
– Renewable Energy: India aims to achieve 500GW of non-fossil fuel energy capacity. Investing in solar and wind projects could create over 1 million jobs. Rooftop solar installations, in particular, generate seven times more employment than large-scale solar farms.
- Case Study:
Germany’s Energiewende (energy transition) policy has created over 300,000 green jobs by expanding its renewable energy sector. A similar model in India could ensure employment while addressing climate concerns.
2. AI-Resilient Jobs
- Why It Matters:
Artificial Intelligence (AI) is transforming the job market. Studies suggest that 50% of India’s jobs could be automated within the next decade. While the IT sector has been a job creator, AI-driven automation poses a threat. For instance, Google now uses AI to write 25% of its code, reducing dependency on human programmers.
- How to Create AI-Resilient Jobs:
– Expanding Healthcare & Education: India has only 1 doctor per 1,511 people, far below the WHO’s recommended 1:1,000 ratio. Investing in healthcare and education can create millions of jobs while improving essential services.
– Empowering Local Artisans & Farmers: Financial aid under the National Rural Livelihood Mission can help artisans and farmers sell their products in global markets, preserving traditional skills and generating employment.
- Expert Opinion:
“AI should complement human labor, not replace it. The key is to upskill workers in sectors where human expertise remains irreplaceable,” says Dr. Ramesh Chand, an economist at NITI Aayog.
3. Aspiration-Centric Jobs
- Why It Matters:
Despite increased access to digital platforms and entrepreneurship opportunities, many rural youth lack the skills and confidence to enter competitive job markets. The preference for government jobs remains strong, but limited opportunities force migration or unemployment.
- How to Create Aspiration-Centric Jobs:
– Infrastructure Development: Setting up 70,000 integrated pack-houses (storage and processing units for farm produce) can address a 95% infrastructure gap and create over 2 million jobs.
– Boosting Local Manufacturing: Encouraging local production of agricultural machinery and high-demand farm products can create employment in rural areas.
– Reviving the Edible Oil Industry: India imports 57% of its edible oils. Promoting the National Mission on Edible Oils and reviving oilseed processing (e.g., soybean, sunflower) could reduce dependence on imports while generating jobs.
- Example:
Indonesia successfully reduced edible oil imports by investing in palm oil plantations, which provided employment to millions. India can adopt a similar approach with oilseeds.
The Way Forward :
Short-term tax relief can stimulate consumer spending, but sustainable economic growth requires structural reforms that prioritize climate-resilient, AI-resilient, and aspiration-centric jobs. By strategically investing in these areas, India can ensure long-term stability and progress toward becoming a Viksit Bharat.