New Delhi – The Indian government has announced a massive $24 billion investment in creating employment opportunities for the country’s youth, as job creation becomes the biggest challenge for Prime Minister Narendra Modi in his third term. The government has also promised financial support for development projects in two states governed by its regional allies.
The Bharatiya Janata Party, led by Modi, failed to secure a clear majority in the recent elections and has formed a coalition government. While the Indian economy is growing at a rapid pace, high unemployment and distress in rural areas were cited as the main reasons for the party’s loss of support.
In her budget speech in parliament on Tuesday, Finance Minister Nirmala Sitharaman announced that the government will “facilitate employment, skilling and other opportunities” for over 40 million young people in the next five years. This move is expected to provide a much-needed boost to job seekers in the country.
One of the key initiatives announced by the government is the provision of paid internships in the top 500 companies in India. This will not only provide valuable work experience to young graduates but also improve their chances of securing a job in the future.
India recorded a growth rate of 8.2% last year, making it the fastest-growing major economy in the world. However, critics argue that the benefits of this growth have not been evenly distributed, leaving millions struggling to make a living.
The government’s decision to increase spending on loans for small and medium-sized businesses to promote job creation has been welcomed by economists. Opposition parties have long criticized the Modi government for providing subsidies to big businesses while neglecting smaller ones.
Economist Santosh Mehrotra believes that supporting smaller businesses is crucial as they are the ones that create jobs. He also commended the government for acknowledging the jobless crisis and taking steps to address it.
The provision of internships is seen as a crucial step in tackling the unemployment problem. However, the success of these initiatives will depend on their implementation.
Experts point out that the lack of job growth in India is due to the relatively small size of the manufacturing sector, which only accounts for 17% of the country’s GDP.
Official figures put the unemployment rate at around 6%, but the Center for Monitoring Indian Economy, an economic research group, estimates it to be closer to 9%. The youth, especially graduates, are the most affected, with an unemployment rate of 29%. In a country with the world’s youngest population, around 10 million people enter the workforce every year.
A recent World Bank report titled “Jobs for Resilience” highlighted that while economic growth in South Asian countries like India is strong, the region is not creating enough jobs to keep up with the rapidly increasing working-age population. The report also revealed that the employment ratio in South Asia is only 59%, compared to 70% in other emerging market and developing economies.
Despite the lower growth rate projected for this year, the Indian economy is expected to continue expanding at a brisk pace, according to government estimates. Finance Minister Sitharaman stated that India’s economic growth will remain a shining exception in the face of global economic uncertainties.
Modi also expressed confidence that the budget will lead India towards better growth and a bright future. The government’s focus on job creation and economic growth is a positive sign for the country’s future.
In addition to boosting the economy and creating jobs, the government has also announced financial assistance for two states – Andhra Pradesh and Bihar. These states are governed by regional parties that have pledged their support to Modi and are crucial for his coalition government to stay in power.
The Indian government’s commitment to addressing the issue of unemployment and promoting economic growth is commendable. With the right implementation and support from all stakeholders, these initiatives have the potential to transform the lives of millions of young people in the country. As Finance Minister Sitharaman rightly said, India’s economic growth will continue to be a shining exception and pave the way for a brighter future for all.
