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What Budget 2023 Would Mean For The Indian Workforce

India has a strong talent pool, with 60% of the population between the ages of 18 and 64. As a result, we have an exceptional chance to reshape our nation's economic demographics over the next several decades. However, policy backing, a competent human pool, and the availability of finance and technological dissemination are critical building blocks for capitalizing on this once-in-a-lifetime opportunity.

As we know, the Industrial Revolution aided the development of various economies. India must capitalize on the "Digital Revolution" while pursuing human capital non-linearity. We must reject all current productivity baselines and rethink how to raise the bar to generate the multiplier effect. The penetration of technology in all main sectors - industry, agriculture and services - has provided the ideal environment for combining technology-enabled high productivity, innovation, and skill development.

Finance Minister Nirmala Sitharaman declared last year at the Budget presentation session that India will create six million jobs in five years. But, in reality, it does not seem to be easy, and it will not suffice. To increase the number of employment, India remains business-friendly by facilitating capital investments, attracting investments, expanding the startup ecosystem, and emphasizing partnership pathways to generate self-reliance. However, to accelerate the job market, efforts must be directed toward three areas: increasing the gross enrolment ratio (GER) for higher education, ensuring the employability of graduates coming out of university gates, and providing incentives for businesses to invest in the continuous development of technology and core skills.

By 2021, it was anticipated that 25% of our population would be under the age of 14. As students reach the threshold of higher education, we must ensure that the circumstances for further learning are met. Economic assistance, gender equality and access to higher education are all issues that must be addressed. Digital platforms offer an excellent approach to closing the gap, decreasing the expense of higher education, and making high-quality education accessible to students in the most distant places on demand.

Firms continue to have problems with our graduates' level of work preparedness. They must spend between four and twenty-four weeks to achieve basic production. Developing programmes that promote 'learning by doing' and include 'on-the-job learning' throughout the undergraduate term would give much-needed experience. It is a method for corporations to develop long-term talent supply networks.

Every rupee invested in talent development returns 12-17 times its cost throughout its lifespan, resulting in a positive spiral for our GDP growth. While companies do their part, workers in information technology, services, and the new economy must invest in re-skilling and learning new skills to remain competitive. Businesses must approach skill development costs on par with R&D and capital investments. Individuals' higher education and skill development costs should be tax deductible.

Global challenges may slow growth, but the overall economy remains robust and is anticipated to increase. However, layoffs in certain areas are possible when organizations modify the capital-talent relationship. In short, the budget must give opportunities to reinvest retained profits to fuel growth, as well as policy support for innovation in enhancing GER and incentives for capital committed toward human skill development.

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