Will Indian Government be able to Fulfill the Promise of Job Creation?
In order to create employment, Jaitley said that 70 lakh formal jobs have been created this year.
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
The youth are the backbone of every country making youth employment a matter of great concern.
Finance Minister Arun Jaitley announced in his Budget 2018 speech that creating job opportunities and facilitating generation of employment has been at the core of government's policy-making.
This promise however is not a new one.
In 2013, Prime Minister Narendra Modi at an election rally committed to create 1 crore jobs every year. Five years on, the government is still facing flak with not enough jobs on the anvil.
In its latest report, The International Labour Organisation (ILO) said that India could witness a higher unemployment rate of 3.5 per cent in 2018, a little more than the 3.4 per cent projected earlier. The study further highlighted that the number of jobless in the country will increase to 18.6 million in 2018 and 18.9 million in 2019, against 18.3 million in 2017.
With the General Election a year away, BJP may have to toe the line on job creation. How does the government intend to do it this time? Here's a quick look:-
Creating Job Opportunities:
In order to encourage employment, Jaitley announced that 70 lakh formal jobs have been created this year.
"The two new initiatives under the Ayushman Bharat programme-setting up of 1.5 lakh Health and Wellness Centres and the flagship National Health Protection Scheme-are not only expected to address health care but also "generate lakhs of jobs, particularly for women," he said.
To further boost job creation in the formal sector, Jaitley has announced that the government will contribute 12% of the wages of the new employees in the EPF for all the sectors-instead of a select few at present-for next three years.
Big Boost to SMEs:
The government also proposed to set a target of INR 3 lakh crore for lending under MUDRA for 2018-19 after having successfully exceeded the targets in all previous years. The Pradhan Mantri MUDRA Yojana will help all small businesses and entrepreneurs gain easy access to finance and spur jobs growth. In the last two years, the scheme has led to 5.5 crore jobs.
Thumbs-up From Start-ups :
Some startups have come out in support of the government and have pinned their hopes on job creation triggered by Budget 2018 announcements.
"I hope the Budget spurs the job market and I'm glad to see that the creation of job opportunities has been at the core of policy-making as nearly 70 lakh formal jobs have been created last year. I am also happy that the Government has encouraged women entrepreneurship by increasing loans to self-help groups to INR 75,000 cr," shared Neha Bagaria, CEO & Founder, JobsForHer
Commenting on the budget, Manu Jolly, CEO & Founder, Digiperform.com said that government's vision and initiatives to focus on the creation of jobs is great news on the employment front.
"Nearly 70 lakh formal jobs have been created this year. Through Digital India Initiative, the government has empowered the people of our country digitally and through Skill India, they have worked on their skill development," said Jolly.