Yojana Magazine September 2024 - 2 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

 Page 1


The Finance Minister's Budget Speech unveiled the Govemment's priorities
with a focus on employment, shilling, and MSMEs. Key initiatives include
a Rs 2 lalth crore package to benefit 4.1 crore youth and the introduction
of the First Timers Scheme, offering financial support to new workers.
The revamped National Career Services (NCS2.0) and Shram Suvidha
portalsaimtobiidgegapsbetweenjobs=aekersandemp]oyers,whilenew
i
schemes will boost job creation in manufacturing and support for SMEs.
Thesameasuresrepresentacomprehensiveapproachtoaddressinglabour
market challenges and fostering economic growth.
UsheringEnhancedEmpleymentopportunities
through Emplnymemt Linked Incentive
The  Finance  Minister  in  her  Budget  Speech
laid down the Government's priorities to focus on
employment, skilling, MSMEs and the middle class
with  the  announcement  of the  Prime  Minister's
package of 5 schemes and initiatives to facilitate
employment,   skilling   and   other   opportunities
for 4.1  crore  youth  over  a .t5-year  period  with  a
central outlay of Rs 2 Iakh crore. The Ministry of
Labour and Employment has been tasked with the
creation of an environment through Employment
Linked Incentive (ELI) to foster employment in the
country. A series Of innovative schemes focused
on  job  creation  and  youth  employment  while
ensuring  that  the  informal  sector also  benefits
from the various Government Schemes. The next
generation job  portal,  National  Career  Services
YOJANA SEREMBER 20Z4
Page 2


The Finance Minister's Budget Speech unveiled the Govemment's priorities
with a focus on employment, shilling, and MSMEs. Key initiatives include
a Rs 2 lalth crore package to benefit 4.1 crore youth and the introduction
of the First Timers Scheme, offering financial support to new workers.
The revamped National Career Services (NCS2.0) and Shram Suvidha
portalsaimtobiidgegapsbetweenjobs=aekersandemp]oyers,whilenew
i
schemes will boost job creation in manufacturing and support for SMEs.
Thesameasuresrepresentacomprehensiveapproachtoaddressinglabour
market challenges and fostering economic growth.
UsheringEnhancedEmpleymentopportunities
through Emplnymemt Linked Incentive
The  Finance  Minister  in  her  Budget  Speech
laid down the Government's priorities to focus on
employment, skilling, MSMEs and the middle class
with  the  announcement  of the  Prime  Minister's
package of 5 schemes and initiatives to facilitate
employment,   skilling   and   other   opportunities
for 4.1  crore  youth  over  a .t5-year  period  with  a
central outlay of Rs 2 Iakh crore. The Ministry of
Labour and Employment has been tasked with the
creation of an environment through Employment
Linked Incentive (ELI) to foster employment in the
country. A series Of innovative schemes focused
on  job  creation  and  youth  employment  while
ensuring  that  the  informal  sector also  benefits
from the various Government Schemes. The next
generation job  portal,  National  Career  Services
YOJANA SEREMBER 20Z4
(NCS2.0), will significantly aid in bridging the gap
between employers and job seekers. The revival
of the 5hram 5uvi.dha and Samadhan portals will
facilitate ease of doing business for employers and
lead to faster resolution of labour disputes.
As   we   get   into   the   specifics   of   these
announcements, it is clear that they ar
to  address  challenges  for  preparin
market today and in the future.
First Timers: A Lifeline for Youth
Workforce
lndia's  demographic  dividend
tering the
realised  if our youth  are  successfully integrated
into the workforce. Whether it's a lack of relevant
skills, insufficient work experience, or simply the
challenge of finding a job in a competitive market,
the process of transitionining from education to
employment for youth can be daunting.
The First Timers Scheme is a direct response to
these challenges. By offering a one-month wage
to all individuals newly entering the formal sector,
the  Government  is  providing  a  crucial  financial
cushion to help young workers get started. This
support will be disbursed through direct benefit
transfers, with up to Rs 15,000 provided in three
instalments  to  first-time  employees  registered
with the Employees' Provident Fund Organisation
(EPFO).  With  an  eligibility  limit  of  a  salary  of
Rs 1  lakh per month, this scheme is expected to
benefit 210 Iakh youth across the country.
The  importance  of  this  initiative  cannot  be
overstated.   By  easing   the  financial   burden   of
starting a new job, the First Timers Scheme helps
kickstart the journey 'of young workers,  many of
whom  come  from  economically  disadvantaged
backgrounds.   It   encourages  them   to  take   up
formal employment, where they can benefit from
job security, social security and opportunities for
career growth.  Moreover,  by incentivising young
people to enter the formal workforce, the scheme
also contributes to the broader goal of formalising
lndia's labour market.
Job Creation  in  Manufacturing: Revitalising a
Critical Sector
While   the   services   sector   has   been   the
dominant'driver  of  lndia's  economic  growth  in
recent decades, the manufacturing sector remains
a  critical  pillar  of the  economy.  It  is  not  only  a
major contributor to GDP  but also a  key source
of employment,  particularly for semi-skilled  and
unskilled workers.
In    recognition    of   these    challenges,    the
government  has  introduced  a  new  scheme  to
incentivise  job   creation   in   the   manufacturing
sector,    with    a    specific    focus    on    first-time
employees.  This  initiative  ties  incentives  to  the
employment  of these  workers,  providing  direct
benefits  to  both  employees  and  employers  in
relation to their EPFO contributions during the first
fouryearsofemployment.Theschemeisexpected
to benefit approximately 30 lakh youth entering
the workforce in the manufacturing sector while
at the same time incentivising their employers.
This is a strategic move that addresses multiple
objectives.   First,   it   encourages   manufacturers
to hire more workers, thereby helping to reduce
unemployment   and   underemployment   in   the
economy.  Second,  it  supports the  development
of a skilled workforce in the manufacturing sector,
which is essential for enhancing productivity and
competitiveness.  And  third,   it  aligns  with  the
Government's broader push to make India a global
manufacturing hub, particularly in  key industries
such as electronics, textiles, and automotive.
The  potential  impact of this  initiative  in  the
manufacturing  sector  is  significant,  along  with
related   announcements   including   the   credit
guarantee  scheme  for  MSMEs  and   internships
at  top  companies,  coupled  with  infrastructure
SEPTEMBER 2024
YOJALNA
Page 3


The Finance Minister's Budget Speech unveiled the Govemment's priorities
with a focus on employment, shilling, and MSMEs. Key initiatives include
a Rs 2 lalth crore package to benefit 4.1 crore youth and the introduction
of the First Timers Scheme, offering financial support to new workers.
The revamped National Career Services (NCS2.0) and Shram Suvidha
portalsaimtobiidgegapsbetweenjobs=aekersandemp]oyers,whilenew
i
schemes will boost job creation in manufacturing and support for SMEs.
Thesameasuresrepresentacomprehensiveapproachtoaddressinglabour
market challenges and fostering economic growth.
UsheringEnhancedEmpleymentopportunities
through Emplnymemt Linked Incentive
The  Finance  Minister  in  her  Budget  Speech
laid down the Government's priorities to focus on
employment, skilling, MSMEs and the middle class
with  the  announcement  of the  Prime  Minister's
package of 5 schemes and initiatives to facilitate
employment,   skilling   and   other   opportunities
for 4.1  crore  youth  over  a .t5-year  period  with  a
central outlay of Rs 2 Iakh crore. The Ministry of
Labour and Employment has been tasked with the
creation of an environment through Employment
Linked Incentive (ELI) to foster employment in the
country. A series Of innovative schemes focused
on  job  creation  and  youth  employment  while
ensuring  that  the  informal  sector also  benefits
from the various Government Schemes. The next
generation job  portal,  National  Career  Services
YOJANA SEREMBER 20Z4
(NCS2.0), will significantly aid in bridging the gap
between employers and job seekers. The revival
of the 5hram 5uvi.dha and Samadhan portals will
facilitate ease of doing business for employers and
lead to faster resolution of labour disputes.
As   we   get   into   the   specifics   of   these
announcements, it is clear that they ar
to  address  challenges  for  preparin
market today and in the future.
First Timers: A Lifeline for Youth
Workforce
lndia's  demographic  dividend
tering the
realised  if our youth  are  successfully integrated
into the workforce. Whether it's a lack of relevant
skills, insufficient work experience, or simply the
challenge of finding a job in a competitive market,
the process of transitionining from education to
employment for youth can be daunting.
The First Timers Scheme is a direct response to
these challenges. By offering a one-month wage
to all individuals newly entering the formal sector,
the  Government  is  providing  a  crucial  financial
cushion to help young workers get started. This
support will be disbursed through direct benefit
transfers, with up to Rs 15,000 provided in three
instalments  to  first-time  employees  registered
with the Employees' Provident Fund Organisation
(EPFO).  With  an  eligibility  limit  of  a  salary  of
Rs 1  lakh per month, this scheme is expected to
benefit 210 Iakh youth across the country.
The  importance  of  this  initiative  cannot  be
overstated.   By  easing   the  financial   burden   of
starting a new job, the First Timers Scheme helps
kickstart the journey 'of young workers,  many of
whom  come  from  economically  disadvantaged
backgrounds.   It   encourages  them   to  take   up
formal employment, where they can benefit from
job security, social security and opportunities for
career growth.  Moreover,  by incentivising young
people to enter the formal workforce, the scheme
also contributes to the broader goal of formalising
lndia's labour market.
Job Creation  in  Manufacturing: Revitalising a
Critical Sector
While   the   services   sector   has   been   the
dominant'driver  of  lndia's  economic  growth  in
recent decades, the manufacturing sector remains
a  critical  pillar  of the  economy.  It  is  not  only  a
major contributor to GDP  but also a  key source
of employment,  particularly for semi-skilled  and
unskilled workers.
In    recognition    of   these    challenges,    the
government  has  introduced  a  new  scheme  to
incentivise  job   creation   in   the   manufacturing
sector,    with    a    specific    focus    on    first-time
employees.  This  initiative  ties  incentives  to  the
employment  of these  workers,  providing  direct
benefits  to  both  employees  and  employers  in
relation to their EPFO contributions during the first
fouryearsofemployment.Theschemeisexpected
to benefit approximately 30 lakh youth entering
the workforce in the manufacturing sector while
at the same time incentivising their employers.
This is a strategic move that addresses multiple
objectives.   First,   it   encourages   manufacturers
to hire more workers, thereby helping to reduce
unemployment   and   underemployment   in   the
economy.  Second,  it  supports the  development
of a skilled workforce in the manufacturing sector,
which is essential for enhancing productivity and
competitiveness.  And  third,   it  aligns  with  the
Government's broader push to make India a global
manufacturing hub, particularly in  key industries
such as electronics, textiles, and automotive.
The  potential  impact of this  initiative  in  the
manufacturing  sector  is  significant,  along  with
related   announcements   including   the   credit
guarantee  scheme  for  MSMEs  and   internships
at  top  companies,  coupled  with  infrastructure
SEPTEMBER 2024
YOJALNA
investment by the Central Government. The new
centrally  sponsored  scheme  for  skilling  will  also
help  bridge  a  critical  gap felt  by employers  and
will   benefit  20   lakh  youth   who  will   be  skilled
over  a  5-year  period.  By  boosting  employment
in   the   manufacturing   sector,   the   government
is   not   only   creating   jobs   but   also   laying   the
groundwork  for  long-term  economic  growth.
vibrant  manufacturing  sector  can  drive  expor
attract  foreign   investment,  and   create  a   ripp
effect   of  economic   benefits   across   the   supp
chain.   Moreover,   by   linking   incentives  to   EPF
contributions,  the  scheme  also  promotes  greater
social  security  coverage  for  workers,  which  is  a
crucial aspect of building a more inclusive economy.
Support  for  Employers:  Easing
Expansion
For  any  economy  to   thrive,
that  businesses,  particularly  smal
enterprises  (SMEs),  have  the  supp
to  grow  and  expand.  SMEs  are  the
essential
d  mediu
the  Indian  economy,  accounting  for a  significant
share   of   employment   and   economic   activity.
However,  they  often  face  significant  challenges
when  it  comes  to  scaling  up,  including  financial
constraints,   regulatory   burdens,   and   a   lack  of
access to skilled labour.
To  support  employers,  a  scheme  has  been
designed to address these challenges by providing
targeted financial assistance to businesses that are
expanding their workforce. Under this scheme, the
Government  will  reimburse  employers  up  to  Rs
3,000 per month for two years towards their EPFO
contribution for every additional employee hired
with  a  salary of up to  Rs  1  lakh  per month. This
initiative is expected to incentivise the additional
employment of 50 lakh people across the country.
This scheme is a win-win for both employers
and employees. For employers, it reduces the cost
of hiring new workers, making it easier for them to
expand their operations and increase production.
For employees, it creates more job opportunities
and enhances their access to formal employment,
with all the associated benefits such asjob security,
social security, and career development.
Services to Labour
The    Budget   envisages   e5hram    portal   as
`one-stop-solution'  for  unorganised  workers  by
integrating  a  wide  array  of  services  to  labour
through  integration  of the  e-5hram  portal  with
other   existing   platforms,   creating   a   one-stop
solution  for  workers  seeking  employment,  skills
training, and career guidance, besides facilitating
access to various government schemes.
The next generation National Career Services
(NCS2.0), set to be developed on Open  Network
principles,  will   enable  faster  job  searches  and
provide  end-to-end  services  by  opening  up  the
job  market. This  data-driven  approach  will  help
workers  stay  ahead  of the  curve  by  identifying
YOJANA SEPTEMBER 2024
Page 4


The Finance Minister's Budget Speech unveiled the Govemment's priorities
with a focus on employment, shilling, and MSMEs. Key initiatives include
a Rs 2 lalth crore package to benefit 4.1 crore youth and the introduction
of the First Timers Scheme, offering financial support to new workers.
The revamped National Career Services (NCS2.0) and Shram Suvidha
portalsaimtobiidgegapsbetweenjobs=aekersandemp]oyers,whilenew
i
schemes will boost job creation in manufacturing and support for SMEs.
Thesameasuresrepresentacomprehensiveapproachtoaddressinglabour
market challenges and fostering economic growth.
UsheringEnhancedEmpleymentopportunities
through Emplnymemt Linked Incentive
The  Finance  Minister  in  her  Budget  Speech
laid down the Government's priorities to focus on
employment, skilling, MSMEs and the middle class
with  the  announcement  of the  Prime  Minister's
package of 5 schemes and initiatives to facilitate
employment,   skilling   and   other   opportunities
for 4.1  crore  youth  over  a .t5-year  period  with  a
central outlay of Rs 2 Iakh crore. The Ministry of
Labour and Employment has been tasked with the
creation of an environment through Employment
Linked Incentive (ELI) to foster employment in the
country. A series Of innovative schemes focused
on  job  creation  and  youth  employment  while
ensuring  that  the  informal  sector also  benefits
from the various Government Schemes. The next
generation job  portal,  National  Career  Services
YOJANA SEREMBER 20Z4
(NCS2.0), will significantly aid in bridging the gap
between employers and job seekers. The revival
of the 5hram 5uvi.dha and Samadhan portals will
facilitate ease of doing business for employers and
lead to faster resolution of labour disputes.
As   we   get   into   the   specifics   of   these
announcements, it is clear that they ar
to  address  challenges  for  preparin
market today and in the future.
First Timers: A Lifeline for Youth
Workforce
lndia's  demographic  dividend
tering the
realised  if our youth  are  successfully integrated
into the workforce. Whether it's a lack of relevant
skills, insufficient work experience, or simply the
challenge of finding a job in a competitive market,
the process of transitionining from education to
employment for youth can be daunting.
The First Timers Scheme is a direct response to
these challenges. By offering a one-month wage
to all individuals newly entering the formal sector,
the  Government  is  providing  a  crucial  financial
cushion to help young workers get started. This
support will be disbursed through direct benefit
transfers, with up to Rs 15,000 provided in three
instalments  to  first-time  employees  registered
with the Employees' Provident Fund Organisation
(EPFO).  With  an  eligibility  limit  of  a  salary  of
Rs 1  lakh per month, this scheme is expected to
benefit 210 Iakh youth across the country.
The  importance  of  this  initiative  cannot  be
overstated.   By  easing   the  financial   burden   of
starting a new job, the First Timers Scheme helps
kickstart the journey 'of young workers,  many of
whom  come  from  economically  disadvantaged
backgrounds.   It   encourages  them   to  take   up
formal employment, where they can benefit from
job security, social security and opportunities for
career growth.  Moreover,  by incentivising young
people to enter the formal workforce, the scheme
also contributes to the broader goal of formalising
lndia's labour market.
Job Creation  in  Manufacturing: Revitalising a
Critical Sector
While   the   services   sector   has   been   the
dominant'driver  of  lndia's  economic  growth  in
recent decades, the manufacturing sector remains
a  critical  pillar  of the  economy.  It  is  not  only  a
major contributor to GDP  but also a  key source
of employment,  particularly for semi-skilled  and
unskilled workers.
In    recognition    of   these    challenges,    the
government  has  introduced  a  new  scheme  to
incentivise  job   creation   in   the   manufacturing
sector,    with    a    specific    focus    on    first-time
employees.  This  initiative  ties  incentives  to  the
employment  of these  workers,  providing  direct
benefits  to  both  employees  and  employers  in
relation to their EPFO contributions during the first
fouryearsofemployment.Theschemeisexpected
to benefit approximately 30 lakh youth entering
the workforce in the manufacturing sector while
at the same time incentivising their employers.
This is a strategic move that addresses multiple
objectives.   First,   it   encourages   manufacturers
to hire more workers, thereby helping to reduce
unemployment   and   underemployment   in   the
economy.  Second,  it  supports the  development
of a skilled workforce in the manufacturing sector,
which is essential for enhancing productivity and
competitiveness.  And  third,   it  aligns  with  the
Government's broader push to make India a global
manufacturing hub, particularly in  key industries
such as electronics, textiles, and automotive.
The  potential  impact of this  initiative  in  the
manufacturing  sector  is  significant,  along  with
related   announcements   including   the   credit
guarantee  scheme  for  MSMEs  and   internships
at  top  companies,  coupled  with  infrastructure
SEPTEMBER 2024
YOJALNA
investment by the Central Government. The new
centrally  sponsored  scheme  for  skilling  will  also
help  bridge  a  critical  gap felt  by employers  and
will   benefit  20   lakh  youth   who  will   be  skilled
over  a  5-year  period.  By  boosting  employment
in   the   manufacturing   sector,   the   government
is   not   only   creating   jobs   but   also   laying   the
groundwork  for  long-term  economic  growth.
vibrant  manufacturing  sector  can  drive  expor
attract  foreign   investment,  and   create  a   ripp
effect   of  economic   benefits   across   the   supp
chain.   Moreover,   by   linking   incentives  to   EPF
contributions,  the  scheme  also  promotes  greater
social  security  coverage  for  workers,  which  is  a
crucial aspect of building a more inclusive economy.
Support  for  Employers:  Easing
Expansion
For  any  economy  to   thrive,
that  businesses,  particularly  smal
enterprises  (SMEs),  have  the  supp
to  grow  and  expand.  SMEs  are  the
essential
d  mediu
the  Indian  economy,  accounting  for a  significant
share   of   employment   and   economic   activity.
However,  they  often  face  significant  challenges
when  it  comes  to  scaling  up,  including  financial
constraints,   regulatory   burdens,   and   a   lack  of
access to skilled labour.
To  support  employers,  a  scheme  has  been
designed to address these challenges by providing
targeted financial assistance to businesses that are
expanding their workforce. Under this scheme, the
Government  will  reimburse  employers  up  to  Rs
3,000 per month for two years towards their EPFO
contribution for every additional employee hired
with  a  salary of up to  Rs  1  lakh  per month. This
initiative is expected to incentivise the additional
employment of 50 lakh people across the country.
This scheme is a win-win for both employers
and employees. For employers, it reduces the cost
of hiring new workers, making it easier for them to
expand their operations and increase production.
For employees, it creates more job opportunities
and enhances their access to formal employment,
with all the associated benefits such asjob security,
social security, and career development.
Services to Labour
The    Budget   envisages   e5hram    portal   as
`one-stop-solution'  for  unorganised  workers  by
integrating  a  wide  array  of  services  to  labour
through  integration  of the  e-5hram  portal  with
other   existing   platforms,   creating   a   one-stop
solution  for  workers  seeking  employment,  skills
training, and career guidance, besides facilitating
access to various government schemes.
The next generation National Career Services
(NCS2.0), set to be developed on Open  Network
principles,  will   enable  faster  job  searches  and
provide  end-to-end  services  by  opening  up  the
job  market. This  data-driven  approach  will  help
workers  stay  ahead  of the  curve  by  identifying
YOJANA SEPTEMBER 2024
emerging  trends  and  matching  their  skills  with
the  demands  of the  market.  It  will  also  enable
policymakers  to  make  more  informed  decisions
about workforce development, ensuring that our
education and training systems are aligned with
the needs of the economy.
Shram     Suvidha     and     Samadhan     Portal:
Streamlining Compliance for Businesses
The  Shram  Suvidha  and  Samadhan  portals,
two  key  platforms  that  have  been  instrumental
in enhancing ease of compliance for industry and
trade, will be revamped. These portals have played
a crucial role in simplifying labour law compliance,
particularly for small and medium-sized
that often lack the resources to naviga
regulatory requirements.
The   revamped   portals  will   o
features and functionalities, making
for businesses to comply with labou
Bystreamliningtheseprocesses,thec
businesses
improved
ten easier
reducing the administrative burden on businesses,
freeing them up to focus on what they do best-
creating jobs and driving economic growth.
This  initiative  is  part  of  a  broader  effort  to
create  a  business-friendly  environment  in  India.
By  making  it  easier  for  businesses  to  operate,
the   Government    is    encouraging    investment,
innovation,  and  j.ob  creation.  It  also  aligns  with
the Government's vision of making  India  a  more
attractive   destination   for   both   domestic   and
foreign investors by ensuring that the regulatory
environment     is     transparent,     efficient,     and
conducive to growth.
Conclusion
The  budget  announcements  made  for  the
Ministry  of  Labour  and   Employment  mark  the
beginning of a new chapter in lndia's employment
story.   The   whole-of-government   approach    is
ly  reflected  in  the  budget  announcements.
hey    reflect   a    deep    understanding    of   the
hallenges facing our labour market and address
hem  in  a  holistic  and  comprehensive  manner.
By focussing on job creation, youth employment,
support for employers, and the empowerment of
workers, these initiatives are laying the foundation
for a more prosperous and equitable economy. I
SEPTEMBER 2024 YOJALNA
Page 5


The Finance Minister's Budget Speech unveiled the Govemment's priorities
with a focus on employment, shilling, and MSMEs. Key initiatives include
a Rs 2 lalth crore package to benefit 4.1 crore youth and the introduction
of the First Timers Scheme, offering financial support to new workers.
The revamped National Career Services (NCS2.0) and Shram Suvidha
portalsaimtobiidgegapsbetweenjobs=aekersandemp]oyers,whilenew
i
schemes will boost job creation in manufacturing and support for SMEs.
Thesameasuresrepresentacomprehensiveapproachtoaddressinglabour
market challenges and fostering economic growth.
UsheringEnhancedEmpleymentopportunities
through Emplnymemt Linked Incentive
The  Finance  Minister  in  her  Budget  Speech
laid down the Government's priorities to focus on
employment, skilling, MSMEs and the middle class
with  the  announcement  of the  Prime  Minister's
package of 5 schemes and initiatives to facilitate
employment,   skilling   and   other   opportunities
for 4.1  crore  youth  over  a .t5-year  period  with  a
central outlay of Rs 2 Iakh crore. The Ministry of
Labour and Employment has been tasked with the
creation of an environment through Employment
Linked Incentive (ELI) to foster employment in the
country. A series Of innovative schemes focused
on  job  creation  and  youth  employment  while
ensuring  that  the  informal  sector also  benefits
from the various Government Schemes. The next
generation job  portal,  National  Career  Services
YOJANA SEREMBER 20Z4
(NCS2.0), will significantly aid in bridging the gap
between employers and job seekers. The revival
of the 5hram 5uvi.dha and Samadhan portals will
facilitate ease of doing business for employers and
lead to faster resolution of labour disputes.
As   we   get   into   the   specifics   of   these
announcements, it is clear that they ar
to  address  challenges  for  preparin
market today and in the future.
First Timers: A Lifeline for Youth
Workforce
lndia's  demographic  dividend
tering the
realised  if our youth  are  successfully integrated
into the workforce. Whether it's a lack of relevant
skills, insufficient work experience, or simply the
challenge of finding a job in a competitive market,
the process of transitionining from education to
employment for youth can be daunting.
The First Timers Scheme is a direct response to
these challenges. By offering a one-month wage
to all individuals newly entering the formal sector,
the  Government  is  providing  a  crucial  financial
cushion to help young workers get started. This
support will be disbursed through direct benefit
transfers, with up to Rs 15,000 provided in three
instalments  to  first-time  employees  registered
with the Employees' Provident Fund Organisation
(EPFO).  With  an  eligibility  limit  of  a  salary  of
Rs 1  lakh per month, this scheme is expected to
benefit 210 Iakh youth across the country.
The  importance  of  this  initiative  cannot  be
overstated.   By  easing   the  financial   burden   of
starting a new job, the First Timers Scheme helps
kickstart the journey 'of young workers,  many of
whom  come  from  economically  disadvantaged
backgrounds.   It   encourages  them   to  take   up
formal employment, where they can benefit from
job security, social security and opportunities for
career growth.  Moreover,  by incentivising young
people to enter the formal workforce, the scheme
also contributes to the broader goal of formalising
lndia's labour market.
Job Creation  in  Manufacturing: Revitalising a
Critical Sector
While   the   services   sector   has   been   the
dominant'driver  of  lndia's  economic  growth  in
recent decades, the manufacturing sector remains
a  critical  pillar  of the  economy.  It  is  not  only  a
major contributor to GDP  but also a  key source
of employment,  particularly for semi-skilled  and
unskilled workers.
In    recognition    of   these    challenges,    the
government  has  introduced  a  new  scheme  to
incentivise  job   creation   in   the   manufacturing
sector,    with    a    specific    focus    on    first-time
employees.  This  initiative  ties  incentives  to  the
employment  of these  workers,  providing  direct
benefits  to  both  employees  and  employers  in
relation to their EPFO contributions during the first
fouryearsofemployment.Theschemeisexpected
to benefit approximately 30 lakh youth entering
the workforce in the manufacturing sector while
at the same time incentivising their employers.
This is a strategic move that addresses multiple
objectives.   First,   it   encourages   manufacturers
to hire more workers, thereby helping to reduce
unemployment   and   underemployment   in   the
economy.  Second,  it  supports the  development
of a skilled workforce in the manufacturing sector,
which is essential for enhancing productivity and
competitiveness.  And  third,   it  aligns  with  the
Government's broader push to make India a global
manufacturing hub, particularly in  key industries
such as electronics, textiles, and automotive.
The  potential  impact of this  initiative  in  the
manufacturing  sector  is  significant,  along  with
related   announcements   including   the   credit
guarantee  scheme  for  MSMEs  and   internships
at  top  companies,  coupled  with  infrastructure
SEPTEMBER 2024
YOJALNA
investment by the Central Government. The new
centrally  sponsored  scheme  for  skilling  will  also
help  bridge  a  critical  gap felt  by employers  and
will   benefit  20   lakh  youth   who  will   be  skilled
over  a  5-year  period.  By  boosting  employment
in   the   manufacturing   sector,   the   government
is   not   only   creating   jobs   but   also   laying   the
groundwork  for  long-term  economic  growth.
vibrant  manufacturing  sector  can  drive  expor
attract  foreign   investment,  and   create  a   ripp
effect   of  economic   benefits   across   the   supp
chain.   Moreover,   by   linking   incentives  to   EPF
contributions,  the  scheme  also  promotes  greater
social  security  coverage  for  workers,  which  is  a
crucial aspect of building a more inclusive economy.
Support  for  Employers:  Easing
Expansion
For  any  economy  to   thrive,
that  businesses,  particularly  smal
enterprises  (SMEs),  have  the  supp
to  grow  and  expand.  SMEs  are  the
essential
d  mediu
the  Indian  economy,  accounting  for a  significant
share   of   employment   and   economic   activity.
However,  they  often  face  significant  challenges
when  it  comes  to  scaling  up,  including  financial
constraints,   regulatory   burdens,   and   a   lack  of
access to skilled labour.
To  support  employers,  a  scheme  has  been
designed to address these challenges by providing
targeted financial assistance to businesses that are
expanding their workforce. Under this scheme, the
Government  will  reimburse  employers  up  to  Rs
3,000 per month for two years towards their EPFO
contribution for every additional employee hired
with  a  salary of up to  Rs  1  lakh  per month. This
initiative is expected to incentivise the additional
employment of 50 lakh people across the country.
This scheme is a win-win for both employers
and employees. For employers, it reduces the cost
of hiring new workers, making it easier for them to
expand their operations and increase production.
For employees, it creates more job opportunities
and enhances their access to formal employment,
with all the associated benefits such asjob security,
social security, and career development.
Services to Labour
The    Budget   envisages   e5hram    portal   as
`one-stop-solution'  for  unorganised  workers  by
integrating  a  wide  array  of  services  to  labour
through  integration  of the  e-5hram  portal  with
other   existing   platforms,   creating   a   one-stop
solution  for  workers  seeking  employment,  skills
training, and career guidance, besides facilitating
access to various government schemes.
The next generation National Career Services
(NCS2.0), set to be developed on Open  Network
principles,  will   enable  faster  job  searches  and
provide  end-to-end  services  by  opening  up  the
job  market. This  data-driven  approach  will  help
workers  stay  ahead  of the  curve  by  identifying
YOJANA SEPTEMBER 2024
emerging  trends  and  matching  their  skills  with
the  demands  of the  market.  It  will  also  enable
policymakers  to  make  more  informed  decisions
about workforce development, ensuring that our
education and training systems are aligned with
the needs of the economy.
Shram     Suvidha     and     Samadhan     Portal:
Streamlining Compliance for Businesses
The  Shram  Suvidha  and  Samadhan  portals,
two  key  platforms  that  have  been  instrumental
in enhancing ease of compliance for industry and
trade, will be revamped. These portals have played
a crucial role in simplifying labour law compliance,
particularly for small and medium-sized
that often lack the resources to naviga
regulatory requirements.
The   revamped   portals  will   o
features and functionalities, making
for businesses to comply with labou
Bystreamliningtheseprocesses,thec
businesses
improved
ten easier
reducing the administrative burden on businesses,
freeing them up to focus on what they do best-
creating jobs and driving economic growth.
This  initiative  is  part  of  a  broader  effort  to
create  a  business-friendly  environment  in  India.
By  making  it  easier  for  businesses  to  operate,
the   Government    is    encouraging    investment,
innovation,  and  j.ob  creation.  It  also  aligns  with
the Government's vision of making  India  a  more
attractive   destination   for   both   domestic   and
foreign investors by ensuring that the regulatory
environment     is     transparent,     efficient,     and
conducive to growth.
Conclusion
The  budget  announcements  made  for  the
Ministry  of  Labour  and   Employment  mark  the
beginning of a new chapter in lndia's employment
story.   The   whole-of-government   approach    is
ly  reflected  in  the  budget  announcements.
hey    reflect   a    deep    understanding    of   the
hallenges facing our labour market and address
hem  in  a  holistic  and  comprehensive  manner.
By focussing on job creation, youth employment,
support for employers, and the empowerment of
workers, these initiatives are laying the foundation
for a more prosperous and equitable economy. I
SEPTEMBER 2024 YOJALNA
ThdasyaediREyG:pby:03:
salaried individuals and consumers. Key measures include raising the standard
deduction, changing tax slabs, introducing the Employment Linked Incentive
(ELI) Scheme, and a Paid Internships Scheme. For consumers, the budget aims
to increase disposable income and reduce prices, with actions such as reduced
customs duties and plans for GST rate rationalisation. The budget emphasises
enhancing regular income and consumption to support economic growth.
SHISHIR SIIIHA
The author is a senior business journalist. Email: hblshishir@gmail.com
"T7o Pecpme a developed nation, we need to strive to be a USS 30 trillion economy by 2047 with a per
ca.p_i.ta incoTe of uS$ 18,000 per annum. The GDP would have to grow 9 times from today's USS 3.36
trillion, and the per capita income would need to rise 8 times from today's USS 2,392 per annum."
-Vision for Viksit Bharat@2047: An Approach Paper by NITI Aayog, released on 27 July 2024
E"
hen  a  nation  aims  to  become  the
third-largest  economy  in  the  world
with  a  GDP of $5 trillion  in the  next
three  years,  $7  trillion  by  2030,  $10
trillion by 2033, and set a higher goal of becoming a
'developed country' by 2047, then it needs a strong
virtuous cycle. This is the cycle where one positive
leads to another positive, and the process continues
for  betterment,  first  at  the  micro-level  and  then
at  the  macro-level.  In  this  entire  cycle,  there  are
two  important  categories  of  people:  salaried  and
consumers. Are these two different? The answer is
that all salaried people could be consumers, but not
all consumers need to be salaried.
YOJANA SEPTEMBER 2024