FM Nirmala Sitharaman keeps skilling focus again in Budget 2023: AI, 5G, nursing and handicrafts receive boost

From new-age skills like Artificial Intelligence (AI) to traditional crafts skills to in-demand professions such as nursing, Finance Minister Nirmala Sitharaman continued her focus on skilling in the Union Budget for 2023-24 as well amid a skill deficit in the country’s workforce. 

With a 450-million-strong workforce and a median age of around 29 years, India has the advantage of a young talent pool. But most of them are in informal jobs. Several studies by the likes of National Skill Development Corporation and the National Policy on Skill Development and Entrepreneurship show a serious skill deficit in the population. Besides, India adds more than 10 million people to its workforce every year, making skilling crucial.   

In her last full-year Budget before the Assembly Elections in 2024 presented on Wednesday, the FM announced the setting up of three Centres of Excellence for AI in top educational institutes of the country. She also upgraded the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) scheme, launched in 2015, to PMKVY 4.0 which will include training lakhs of youth over the next three years in new-age courses like AI, Robotics and 3D printing.    

"The focus on AI is a step in the right direction. It'll accelerate the digitalization of the Indian economy. Indian companies in sectors like health tech, HR tech, fintech, etc. will compete globally if our human capital is skilled in AI,” said TeamLease HRtech CEO Sumit Sabharwal. 

Last year, Sitharaman announced a Digital Ecosystem for Skilling and Livelihood or DESH-Stack e-portal and allowed foreign universities to offer courses in FinTech, Financial Management, and Science and Technology. 

This year, she announced various other skilling initiatives across a seven-point agenda, such as labs for 5G services, 30 Skill India international centres for youth to explore opportunities abroad, 157 new nursing colleges, 38,000 teachers and support staff for 3.5 lakh tribal students, PM VIKAS (Pradhan Mantri Vishwakarma Kaushal Samman) to support those employed in various traditional and skilled professions through skilling, technology and credit.   

“When India intends to be the superpower of the world, it is required to invest in new technologies. 5G services and AI are the new technologies that the world is talking about and the government putting money into training the youth would give out a positive outcome,” said Lovely Professional University Vice-President Aman Mittal. 

"The direct benefit transfer scheme to the youth will incentivise more youth to take up apprenticeships to make themselves job-ready. Initiatives such as the National digital library and AI centres of excellence will go a long way in redefining learning outcomes," said Rohit Manglik, Founder& CEO, EduGorilla.

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