What do HR Tech companies expect from the Union Budget 2024?

With the increasing tech innovation in the Indian employment landscape, there is a growing demand for increased investment in vocational training programmes, incentives for startups and MSMEs and reforms that simplify compliance with labour laws.

On this note, during the Interim Budget presentation earlier this year, Finance Minister Nirmala Sitharaman said, “The Skill India Mission has trained 1.4 crore youth, upskilled and reskilled 54 lakh youth, and established 3000 new ITIs. A large number of new institutions of higher learning, namely 7 IITs, 16 IIITs, 7 IIMs, 15 AIIMS and 390 universities have been set up.”

According to her Interim Budget speech, the new age technologies and data are changing the lives of people and businesses. Such changes are also enabling new economic opportunities and facilitating provision of high-quality services at affordable prices for all, including those at “bottom of the pyramid”. Opportunities for India at the global level are 17 expanding. India is showing solutions through innovation and entrepreneurship of its people.

This has set expectation from the government around initiatives aimed at promoting digital skills and remote work capabilities are expected to receive attention, reflecting the post-pandemic shift in work dynamics.

However, instead of saturating investments in the Tier-1 cities, start-ups of the country are seeking more focus on the Tier-2 and Tier-3 cities to boost employment and entrepreneurship opportunities. Commenting on this, PeopleStrong’s CEO  Sandeep Chaudhary, “With India's economy projected to reach the $5 trillion mark, it is crucial to channel substantial investment into transforming Tier 2 & 3 towns into economic hubs, formalising labour participation, and increasing female workforce participation.”

While presenting the interim budget, the FM also noted, “Our prosperity depends on adequately equipping and empowering the youth. The National Education Policy 2020 is ushering in transformational reforms. PM ScHools for Rising India (PM SHRI) are delivering quality teaching, and nurturing holistic and well-rounded individuals.”

Stating that stronger education policy to retain talent in India is also a major expectation right now, Chaudhary added, “Developing a world-class education system is essential to preventing brain drain to foreign universities and retaining talent within the country. We anticipate a budget that prioritises economic advancement, employment generation, and technological investments, paving the way for a progressive and inclusive India."

Further adding to this, Sonica Aron, Founder of Marching Sheep said, “There needs to be allocation of resources and redoing curriculum so that new age students are employment ready.”

Stakeholders from across the spectrum, including industry leaders, small business owners, and job seekers, are keenly awaiting announcements that could drive economic growth and address the persistent challenges in the labor market.

Additionally, there is a strong demand for robust social security measures to support workers in the informal sector, who constitute a significant portion of the Indian workforce. On the note of creating a socially safe workforce, Aron said, “For persons with disabilities (PWDs), while we have the RPWD act, on ground implementation at the level of education and employment across 21 disabilities has a long way to go. It would be great if clear schemes on incentisation of firms could be brought into existence.

This budget presents a crucial opportunity for the government to chart a path towards sustainable and inclusive employment growth, ensuring that the benefits of economic development are widely shared.