The Union Budget for FY2024-25 has been met with widespread acclaim for its strategic focus on job creation, education, skill development, and economic growth. Industry leaders from various sectors have shared their insights, highlighting the budget’s far-reaching impacts.
Nirmit Parikh, CEO & Founder of apna.co, praised the budget’s emphasis on job creation and skilling. “The substantial Rs. 1.48 lakh crore allocation for education, employment, and skill development marks a significant stride forward,” Parikh noted. He emphasized the introduction of five schemes aimed at skilling over 40 million youth within five years, backed by an outlay of Rs. 2 lakh crore, as a monumental step towards creating a skilled and future-ready workforce.
Parikh also commended the initiative to establish working women hostels and crèches in collaboration with industry, viewing it as a progressive move to enhance women’s workforce participation and promote gender equity. He highlighted the partnerships for women-centric skills programs and the provision of market access for female SHG businesses, which he believes will empower women to play a more significant role in the economy. The three employment-linked incentive schemes supporting first-time job seekers, job creation in manufacturing, and employee support are poised to drive significant employment growth. Parikh concluded by emphasizing the budget’s comprehensive approach to accelerating rural economic growth, supporting MSMEs, and promoting tourism, which he believes will amplify employment opportunities across diverse sectors.
Dr. Jaskiran Arora, Dean of Education Quality at BML Munjal University, remarked that the budget marks a pivotal moment for India’s education sector. “The allocation of Rs. 1.48 lakh crore for education, employment, and skilling underscores a strategic shift towards holistic development,” she stated. Dr. Arora highlighted the introduction of financial support for loans up to ₹10 lakhs for higher education, particularly for those excluded from existing government schemes, as a game-changer. The e-vouchers offering a 3% annual interest subvention for one lakh students will make higher education more accessible and affordable, potentially transforming countless futures.
Dr. Arora also emphasized the proposal to open working women hostels in collaboration with industry as a strong commitment to supporting female workforce participation. The budget’s focus on upskilling, with a revised Model Skilling Loan scheme and the upgrading of 1,000 industrial training institutes, reflects a clear intent to enhance employability. By aiming to skill 20 lakh youth over the next five years, this budget sets the stage for a more skilled, competitive workforce, ultimately driving economic growth and innovation.
Dr. Abhilasha Gaur, CEO of the Electronics Sector Skills Council of India (ESSCI), sees the budget as emphasizing continuity and forward-looking initiatives. “By focusing on employment, skilling, inclusiveness, infrastructure, innovation, and reforms, it addresses current challenges and lays the groundwork for a knowledge-based economy,” she remarked. Dr. Gaur highlighted the budget’s commitment to skilling 20 lakh youth over five years, demonstrating the government’s dedication to nurturing young talent. Initiatives like providing internships to 1 crore youth in top companies, with financial support, bridge the gap between education and employment.
The revision of the model skill loan scheme to facilitate loans up to ₹7.5 lakh, guaranteed by a government-promoted fund, will enable more students to access quality education and skill development programs, enhancing their employability and contributing to the country’s economic growth. The proposed three schemes to encourage employment for new candidates will boost the country’s employment scenario. Dr. Gaur stated that ESSCI is ready to support these initiatives and align efforts with the government’s vision to drive economic growth, social justice, and sustainable development.
Mr. Madhavan Menon, Executive Chairman of Thomas Cook (India) Limited, highlighted the budget’s potential for domestic and inbound tourism development. “The focus on special development funds for iconic temple corridors and other significant religious and tourist sites will position India as a vibrant global tourism destination,” he noted. Menon praised the allocation of INR 11.11 lakh crore towards infrastructure development, which he believes will boost access, connectivity, and affordability, benefiting tourism and allied sectors.
Menon also noted the government’s support for the domestic cruise segment with a simpler tax regime. However, he expressed disappointment that key pillars in India’s Tourism agenda – Aviation & Hospitality – were not addressed in the budget. He highlighted the need for standardization of GST rates on hotel tariffs to 12% and the reduction of ATF, which could have further supported the tourism sector.
Subin Mitra, Co-founder & CEO of Groyyo, welcomed the government’s renewed focus on MSMEs. “The commitment to ensure timely and adequate financing, coupled with the push for technological adoption and skill training, is precisely what MSMEs need,” he stated. Mitra emphasized that facilitating term loans without third-party collateral for MSMEs to purchase machinery and equipment will act as a catalyst, motivating young entrepreneurs to set up production units, significantly enhancing India’s manufacturing capabilities.
Mitra also highlighted the credit guarantee scheme, which addresses one of the biggest pain points for small manufacturers—managing net working capital. By providing relief and financial runway, this scheme ensures businesses can sustain and grow their operations effectively.
The Union Budget FY2024-25 presents a comprehensive blueprint for job creation, education, and economic growth. The strategic focus on skilling, women’s workforce participation, infrastructure development, and support for MSMEs reflects a visionary strategy to build a robust, inclusive, and dynamic economy for the future.
Mr. Sanjay Dighe, CEO & Director of Krystal Integrated Service Ltd The Union Budget 2024 presented by the Finance Minister demonstrates a comprehensive and forward-thinking approach, significantly impacting various sectors.
The government’s partnership with State Governments and Multilateral Development Banks to promote water supply, sewage treatment, and solid waste management projects in 100 large cities will fuel the demand for facility management services. These projects will require specialized skills and expertise in managing complex systems and infrastructure, aligning perfectly with the goals of skilling and employment outlined in the budget.
Moreover, the focus on industrial development, particularly the establishment of an industrial node in Gaya as part of the Amritsar-Kolkata industrial corridor, will drive the need for comprehensive facility management solutions to support the burgeoning industrial activities. This will not only involve managing and maintaining industrial facilities but also ensuring compliance with environmental and safety standards.
We are particularly optimistic about the focus on creating employment opportunities. The one-time wage incentive for first-time employees through DBT and the internship program launching in 500 companies for one crore youth over five years are commendable initiatives. Additionally, clarity on tax exemptions for services provided to government entities would be highly beneficial.
Overall, the strategic priorities set forth in the Union Budget will create a robust demand for facility management services, as the industry will play a critical role in supporting the growth and sustainability of India’s economic infrastructure.
