New Delhi, India

As we eagerly await the Union Budget 2024, we can reflect upon the profound impact that recent advancements in technology have had on the recruitment and startup ecosystem. The integration of AI and technology into the hiring process has revolutionised our industry, making recruitment more efficient, inclusive, and accessible.

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However, the upcoming budget must strike a crucial balance between skill development and job creation to sustain and amplify these advancements. Reflecting on last year’s budget, it is clear that a solid foundation was laid for digital transformation.

The allocation of about ₹3,000 crores for AI research, technology advancements and the promotion of start-up ecosystems were commendable steps. Additionally, the establishment of the National Digital University (NDU) aimed to bridge the skill gap by offering world-class education in emerging technologies. However, while these initiatives have set the stage for a tech-driven future, there remains a significant gap that must be addressed—upgrading the technology and infrastructure of skill providers. 

Many colleges, universities and other skill-providing institutions continue to struggle with outdated computer labs, limited access to high-speed internet, and insufficient training programs for both students and faculty. This lack of resources severely hampers the ability of these institutions to prepare students for a job market that increasingly demands digital proficiency. Without substantial improvements in educational infrastructure, the potential of our future workforce remains underutilised.

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For the upcoming budget to truly make a difference, it must prioritise substantial investments in technology and infrastructure for skill-providing institutions. We need to see a concerted effort to upgrade computer labs, ensure widespread access to high-speed internet, and provide robust training programs for digital skills. By doing so, we can better prepare our future workforce to meet the demands of a rapidly evolving job market.

Furthermore, it is crucial not only to enhance infrastructure but also to ensure that skill development initiatives are closely aligned with industry needs. The rapid pace of technological change means that the skills required today may not be the same as those needed tomorrow. Therefore, ongoing collaboration between skill-providing institutions and industry players is essential to keep curricula relevant and impactful.

Meanwhile, job creation remains a critical aspect that the budget must address. While skill development is paramount, these skills must translate into actual employment opportunities for the workforce. The government has made commendable strides in promoting start-ups and entrepreneurship. For instance, the budget 2023 introduced tax incentives for start-ups, including a three-year tax holiday for new companies and the extension of the period of incorporation for eligible start-ups by one year.

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Despite these efforts, more can be done to create a conducive environment for job creation. This includes providing additional incentives for businesses to expand and hire, supporting small and medium-sized enterprises (SMEs) with easier access to credit, and fostering innovation hubs that can incubate new ideas and ventures.

An integrated approach is essential for balancing skill development and job creation. Investments in digital infrastructure and educational technology will yield dividends in the form of a more skilled workforce. However, we must also ensure that there are ample opportunities for these skilled individuals to apply their talents. This requires a holistic strategy that supports both the supply and demand sides of the labour market.

In conclusion, the Union Budget 2024 presents a unique opportunity to address some of the most pressing challenges in the recruitment and start-up ecosystem. By prioritising investments in educational technology and infrastructure, and aligning skill development initiatives with industry needs, we can create a future-ready workforce. Simultaneously, fostering a favourable environment for job creation will ensure that these skills are effectively utilised, driving economic growth and innovation. Striking this balance is crucial for the sustained development of our economy and the realisation of our collective potential.

(Disclaimer: The views of the writer do not represent the views of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer.)