Considering that the unemployment rate reached 8.30% in November 2024, a few months ahead of the Union Budget 2025-26, what steps will Finance Minister Nirmala Sitharaman take to create more jobs?
Will she increase allocations for skill development, education, MNREGS, innovation, and new cutting-edge technologies like green energy and electronic vehicles?
Will she take steps to augment programmes and schemes that may create more jobs? Will a woman finance minister improve job opportunities for women?
Though Prime Minister Narendra Modi promised to create two crore jobs every year in 2014, he failed miserably, and the number of unemployed people continued to burgeon.
Unemployment Rate Reaches 8.3%
According to data revealed by the Centre for Monitoring the Indian Economy (CMIE), the unemployment rate in India increased to 9.2% in June 2024, up from 7% in May 2024. This is an increase compared to 8.5% in June 2023. However, the rate of unemployment fell to 8.3% in November 2024.
The Finance Minister will present the Union Budget 2025 with this background.
Skill India Mission
Under the Skill India Mission, the government has launched Pradhanmantri Kausahl Vikas Yojana, and the short- term Pradhan Mantri Kaushal Kendra.
The government also launched Jan Shiksha Kendra for illiterate people.
Besides, it also runs the Pradhan Mantri YUVA yojana to promote entrepreneurship.
The basic aim of the government is to provide training so that people could get jobs of their choice and ability.
Also Read: Union Budget 2025: Will Nirmala Sitharaman Put Dalal Street On Fire? Know How Will BSE, NSE Soar?
The government explained the reason behind the Skill India Mission and revealed that only 52% of the graduates were employable in 2024.
However, the situation was much improved compared to 2014, when only 31% of the graduates were fit for any job.
The union government launched a Pilot Project on October 3, 2024, to give internships to 1.25 lakh people in the FY 2024-25.
Nirmala Sitharaman allocated Rs 1.48 lakh crore for skill development, education and employment in Union budget 2024-25.
The government has claimed that about 17.5 lakh people applied for apprenticeships between November 2023 and November 2024. The training was imparted across 37 sectors and 790 job roles.
Will Nirmala Sitharaman Give More Money To ITIs?
Nirmala Sitharaman allocated Rs 60,000 crore to upgrade, uplift and provide the latest equipment to 1,000 ITIs in the next five years in the country.
The Industrial Technical Institutes provide vocational training programmes and impart specific practical training required for specific purpose.
This programme will benefit 20 lakh students across the country in five years.
Will Nirmala Sitharman Focus On AI, EV, Green Energy?
The skill development also included cutting-edge technologies such as robotics, Artificial Intelligence, mechatronics, drone technology, IoT, and other related fields.
All eyes are set on how much money is allocated for this sector. Analysts believe at least a hike of 5% is expected over last year’s allocation of Rs 1.48 lakh crore.
Also Read: Union Budget 2025: Rs 10 Lakh Income May Soon Be Tax-Free, New Slab at 25% Expected
Another question being asked is- if the Finance Minister will put special emphasis on getting the youth ready for new technologies like green energy, including green hydrogen and renewable energy, electric vehicles, automation, Artificial Intelligence, robotics, and related fields.
An amount of Rs 13,500 crore was earmarked especially for electric vehicles (EVs) as the target has been set that EVs should constitute 30% of total vehicles in next five years.
More Funds For School Education?
Finance Minister Nirmala Sitharama allocated 73,498 crore for FY 2024-25 for school education. It was 19.5% more compared the allocation made in 2023-24.
The union government allocated Rs 47,619.77 crore for higher edcuation for FY 2024-25. Will she give more money in Union Budget 2025-26.
India spends about 4% of its GDP on education. It is much less compated to developed nations. Will the Finance Minister increase it?
Will it increase the allocation for FY 2025-26?
Will FinMin Increase MNREGS Allocation?
On the other end of the spectrum lies the people working for Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS).
Finance Minister Nirmala Sitharaman allocated Rs 86,000 crore for MNREGS for FY 2024-25, Rs 26,000 crore more than what she allocated for FY 2023-24.
She earmarked Rs 1.05 lakh crore for this scheme for FY 2022-23.
This allocation gave positive results, and as of November 29, 2024, as many as 25.17 crore people were registered. Under the scheme, at least one member of every household in rural areas will get at least one hundred days of employment every year.
Women Empowerment?
According to government data, more than 6.7 crore workers from about 5 crore families across the country got jobs from April to December in FY 2024-25. Half of them were women.
All eyes will also be on Nirmala Sitharaman’s efforts to empower women and give them more jobs. According to government data, 10.05 crore rural households were mobilised into 90.87 lakh self-help groups in the country in FY 2024-25.
