Budget focuses on creating jobs through growth and investment: Sumita Dawra

Budget 2025-26 prioritises job creation through growth and investments, introducing several employment-focused initiatives across multiple sectors. Building on the Employment Linked Incentives (ELI) announced in Union Budget of July 2024-25, this budget takes a comprehensive approach to employment-led development.

Employment-Led Development
Enabling employment-led development is one of the ten core areas outlined in the budget, with many of the other areas of development also contributing to job creation. In fact, the 'four powerful engines' identified for development are agriculture, micro, small and medium enterprises (MSME), investment, and exports, all of which by their very nature impact employment positively.


Sector-wise Initiatives
Agriculture: The budget addresses underemployment in agriculture through skilling, investment, and technology to foster enterprise development and job creation. A strong focus on pulses, edible oils, vegetables, fruits, makhana, cotton, and fisheries is expected to generate employment not just in production but also in processing, value addition, marketing, and exports.

MSMEs: As per Udyam portal of the Government, there are about 5.9 crore All MSMEs will benefit from enhanced investment and turnover limits, allowing them to expand and create more jobs. Increased credit availability for micro and small firms, startups, and exporters will further drive employment growth.

Manufacturing: A focus product scheme for footwear and leather, and the measures for positioning India as a 'global hub for toys' are both expected to further spur the growth of these sectors, thereby enhancing production and exports, bringing significant job creation. The proposed scheme for footwear and leather alone is expected to promote employment for 22 lakh persons. Similarly, support to food processing activities in the eastern region will bring new technologies, promote entrepreneurship and exports.

Skilling & Education: National Centres of Excellence will equip youth with skills for "Make in India, Make for the World" industries. 50,000 school labs to encourage innovation and technical skills and focus on medical education expansion with more medical seats in colleges and hospitals in 2025-26 will enhance employability of our youth and further attract investments in the country, leading to growth and jobs.

Exports & Global Supply Chains: The budget announces upgradation of facilities in warehousing & air cargo for perishables. This, coupled with user-friendly cargo screening and custom protocols, will expand exports, spur job creation in logistics and supply chain management.

Regulatory Reforms & Investment
The commitment to a light-touch regulatory framework and removal of outdated laws will improve ease of doing business, encouraging both domestic and foreign investments-leading to job growth.

Direct Tax Reforms
FM's announcements on direct taxes aim to promote employment, investment, and ease of doing business, among other objectives. Key proposals include tax certainty for electronics manufacturing schemes, a tax scheme for inland vessels to enhance inland water transport, and support for startups-all major drivers of employment growth.

Allocation for New jobs Scheme
For the New Employment Generation scheme (ELI), the budgetary allocation has been doubled from ₹10,000 cr to ₹20,000 cr, and the Ministry of Labour and Employment has been allocated a historic budget of ₹32,646 cr in FY 2025-26 for both labour welfare and employment.

( The author is Secretary, Ministry of Labour & Employment, GoI)