India's frigid job market is finally expecting a warm up. The government believes that the policy measures taken over the last three years have started showing results. Quoting an independent study, Finance Minister Arun Jaitley during his budget speech said that ‘the measures have started showing results and a recent study has shown that 70 lakh formal jobs will be created this year’.
Apart from the measures taken, the boost to medium, small and micro enterprises (MSMEs) could also boost the employment opportunities further, experts noted. The government has allocated Rs 3794 crore to MSME sector for giving credit support, capital and interest subsidy and innovations.
The government has put a conscious effort to boost job creation by making a calibrated departure from the underlying policy in the last two decades, wherein the trend largely was to reduce the customs duty. “There is substantial potential for domestic value addition in certain sectors, like food processing, electronics, auto components, footwear and furniture,” FM said.
To further incentivise the domestic value addition and Make in India in some such sectors, the government has proposed to increase customs duty on certain items such as mobile phones (parts and accessories) and certain parts of TVs. This measure will promote the creation of more jobs in the country.
Moreover, the initiatives under the Ayushman Bharat and National Health Protection Scheme will generate lakhs of jobs, particularly for women. Also, the lower corporate income tax rate will leave companies with a higher investible surplus which in turn will create more jobs.