“The youth of the country have abundant skills and it needs proper channelization”, said Finance Minister of India, Nirmala Sitharaman in her Budget 2021-22 speech.
Also in her speech the Finance Minister mentioned that the Budget 2021-22 rests on six pillars – health and well-being, physical, financial capital and infrastructure, inclusive development for aspirational India, re-invigorating human capital, innovation and R&D and minimum government and maximum governance, Aatmanirbhar Bharat.
From the budget presentation it is evident that job creation is going to get a boost among various industry sectors, namely, Shipping, Automobiles, Healthcare, Electronics, Textile, among others. With this backdrop, team NSN presents some of the highlights of Budget 2021-22 on education, skill development, entrepreneurship, gig economy and startups.
Skill Development – Rs. 3000 crores to boost apprenticeships
4th pillar – re-invigorating the human capital. The government plans to undertake targeted strategies towards skill development. The National Apprenticeship Promotion Scheme (NAPS) will be enhanced to provide apprenticeship opportunities for students.
The government also plans to re-align the existing scheme of National Apprenticeship Training Scheme (NATS) for training of graduates and Diploma holders in Engineering. Over Rs 3000 crores will be provided for this purpose.
An initiative is underway in partnership with United Arab Emirates (UAE) to benchmark skill qualifications, assessments and certification accompanied by deployment of certified workforce.
India also has a collaborative training, inter-training program with Japan to facilitate transfer to Japanese industrial and vocational skills, techniques and knowledge. India plans to take forward this initiative with many more countries.
Education – implementing NEP in schools, streamlining higher education institutions and a central university in Ladakh
Stressing upon the positive reception of the National Education Policy 2020, the Finance Minister announced that 15000 schools will be strengthened initially. These schools will mentor and work as a model to achieve the ideals of the policy.
100 new Sainik schools will be set up in partnership with NGOs, private schools and states.
Government will set up a Higher Education Commission which will be an umbrella body covering standard setting, accreditation, regulation and funding of the Colleges and Universities.
In nine cities a formal umbrella structure will be created, so that they can have better synergy while retaining their internal autonomy. A glue grant will be set aside for this purpose.
For making higher education accessible to the Ladakh region, a central university will be established in Leh.
SC – ST Welfare – Government will establish 750 Ekalavya Model Residential Schools in tribal areas. It proposed to increase the unit cost of each such school from Rs. 20 crores to Rs. 38 crores and for hilly and difficult areas it is Rs. 48 crores. The government also revamped post-metric scholarship schemes for SC students.
A total of Rs. 35219 crore is allocated for 6 years till 2026 which will benefit four crore SC students.
Unorganized, Gig workers and social security
Social security to be extended to gig and platform workers.
Minimum wages to now apply to all categories of workers under the Employees State Insurance Corporation.
Women to be allowed to work in all categories with adequate protection.
For the unorganized labor force it is proposed to launch a portal to collect relevant information on gig workers, building/construction workers among others. It’ll help formulate health, housing, skill, insurance credit and food schemes for migrant workers.
One Nation One Ration Card scheme for beneficiaries to claim rations anywhere in the country. Migrant workers to benefit the most. Scheme implementation so far covered 86% of beneficiaries across 32 States and UTs. Remaining 4 states to be integrated in next few months.
A portal to collect information on unorganized labor force, especially migrant workers to help formulate schemes for them
Implementation of 4 labor codes are underway
Compliance burden on employers reduced with single registration and licensing, and online returns
Entrepreneurship and Startups
Government proposes to reduce margin money requirements from 25% to 15% for startups.
Government proposes to incentivize incorporation of one person companies (OPCs).
No restriction on paid-up capital and turnover.
Conversion of one-person company to any other kind, reducing residency limit from 182 days to 120 days
Allow non-resident Indians to incorporate one-person companies in India
MSME and industry-wise highlights of the budget
MSME allocation to be doubled. Government to set aside Rs. 15,700 crore in FY22.
PM Aatmanirbhar Swasth Yojana with an outlay of Rs 64,180 crores over 6 years. This will strengthen the existing detection and curing centres and set up new centres in addition to the National Health Mission.
Government also sets aside Rs. 35,000 crore for Covid-19 vaccine in FY22
Government to spend Rs. 1.41 lakh crore for Urban Clean India Mission
An outlay of Rs. 1.18 lakh crore for Ministry of Road Transport and Highways
India will spend Rs. 1.1 lakh crore for Railways in FY22
Multipurpose seaweed park to be set up in Tamil Nadu soon to generate jobs
Automobile and Aviation
Government proposes a voluntary Vehicle Scrappage Policy. Vehicles to undergo fitness tests after 20 years for PVs, 15 years for CVs.
Next lot of airports to be privatized in tier 2 and 3 towns and cities.
Government to launch seven textile parks in three years. This will create world class infrastructure with plug and play facilities to enable global champions in exports.
Domestic electronic manufacturing has grown rapidly. For greater domestic value addition, the government will be withdrawing a few exemptions on part of chargers and sub-parts of mobiles. Further some parts of mobiles will move from nil rate to a moderate 2.5%.
Shipping and ports
Ship Recycling Capacities of around 4.5 million Light Displacement Tonnage to be doubled by 2024, expected to generate around 1.5 lakh jobs for our youth.
Seven port projects worth more than ₹ 2,000 crore to be offered by major ports in PPP Mode, in FY 2021-’22.
Five major fishing harbors to be developed as hubs for economic activity.
Also read : Budget 2020-21 – Highlights on skill development and education.https://www.nationalskillsnetwork.in/budget-2020-announces-rs-3000-crores-and-rs-99300-crores-for-skills-and-education-respectively/