Ankit Aggarwal, Founder & CEO, Unstop on the budget announced by the FM of India today.
"I am glad to see Budget 2024's focus on youth employment and skilling. The Rs 2 lakh crore allocation for employment schemes is the beginning to a brighter future.
The incentives for job creation and the plan to skill 20 lakh youth over five years is what we needed.The support for higher education loans and the push for women in the workforce is also a big plus. It feels good to see the government recognising the need to focus on key areas that can make our journey towards a skill based economy smoother.
It's a great time to be young and skilled in India!"
Mr. Ramesh Alluri Reddy, CEO at TeamLease Degree Apprenticeship.
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This budget's emphasis on skill development is a game-changer for India's employment landscape, especially with the central theme being centered around employment, skilling, and MSMEs. With over 4 crore jobs for youth set to be created over five years under five schemes with an outlay of ₹2 lakh crore, the government's initiative is poised to transform the workforce. A provision of Rs 1.48 lakh crore has been made for education, employment, and skilling, highlighting a robust commitment to addressing the skills gap and improving employability. The introduction of a new central scheme to skill 20 lakh youth over a five-year period is particularly noteworthy. By focusing on enrolment in the EPFO and recognizing first-time employees, this scheme aims to provide essential support to newcomers in the job market. First-timers will receive one month's wage upon entering the workforce in all formal sectors, with a direct benefit transfer (DBT) of one month's salary, up to Rs 15,000, provided in three installments. This initiative, with an eligibility limit of a Rs 1 lakh per month salary, is expected to benefit 2.1 lakh youths. By aligning educational outcomes with industry needs, the budget ensures that the youth are equipped with the relevant skills demanded by the market, thus enhancing their employability and career prospects. This not only empowers the youth but also provides industries with a steady stream of well-trained, competent employees, driving productivity and growth.
The impact of these measures on skilling, employment, and job creation will be profound. By incentivizing job creation in the manufacturing sector through a scheme linked to the employment of first-time employees, the budget addresses a critical need for fresh talent in a vital industry. The comprehensive approach ensures that the youth are not only equipped with the necessary skills but also provided with financial support as they transition into formal employment. This dual focus on skilling and financial assistance will help bridge the gap between education and employability, making the workforce more competitive and resilient. Furthermore, the substantial financial outlay underscores the government's commitment to long-term economic growth and stability. By fostering a well-skilled, employable, and financially supported workforce, these initiatives will drive productivity, innovation, and overall economic development, positioning India as a global leader in the manufacturing and services sectors.
Manufacturing and Services - MSME -
Deepthi Alexander, Partner, Indirect Tax, BDO India
"The Budget has emphasized on the importance of manufacturing and services. The introduction of the Credit guarantee scheme for MSMEs, enhancement of mudra loans and the introduction of E-commerce hubs under the PPP model will not only boost revenue in these sectors but also fuel employment and provide for higher wage opportunities."
Variable Capital Company (VCC) -
Nitesh Mehta, Partner, M&A Tax and Regulatory Services, BDO India
"The introduction of Variable Capital Company (VCC) structure for Private Equity could be a game changer for the Fund community. This structure is prevalent in countries like Singapore and the introduction of VCC coupled with the existing GIFT city structure could certainly bring India a step closer to becoming a financial hub like Singapore."
Variable Capital Company (VCC) -
Manoj Purohit, Partner & Leader, Financial Services Tax, Tax & Regulatory Services, BDO India
"The announcement for rolling out the Variable Capital Company (VCC) regulations primarily will aid in assisting the aircraft and shipping companies in their leasing activities. This will bring India in line with countries like Singapore and Mauritius. This will also incentivise entities to carry out business in India by taking advantage of the flexibility of the VCC model."
12 new Industrial Parks
Manoj Purohit, Partner & Leader, Financial Services Tax, Tax & Regulatory Services, BDO India
"The announcement for the set-up of 12 new Industrial Parks will boost the manufacturing sector and encourage new entrants to get easy entry into the space with much-needed financial support. It will also enhance employment opportunities and enable the Banking sector to participate while financing the working capital needs.
Announcement on IBC -
Samir Sheth, Partner & Head, Deal Advisory Services, BDO India
"One of the hindrances to the success of IBC was the delays from the judiciary system. Setting up additional tribunals to deal with IBC cases is a welcome step which will expedite the resolution process. While the details are yet to be released, an integrated technology platform will also help in the timely dissemination of information and bring in efficiencies in the IBC process"
