Article: Union Budget 2025: Focus on skilling, gig workers, boost for startups

Economy & Policy

Union Budget 2025: Focus on skilling, gig workers, boost for startups

Finance Minister Nirmala Sitharaman unveils key initiatives to boost AI-driven education, empowering gig workers with social security, and supporting startups through financial incentives.
Union Budget 2025: Focus on skilling, gig workers, boost for startups

Union Finance Minister Nirmala Sitharaman, in her eighth consecutive Budget presentation, announced a special focus on skilling, gig workers, and startups.

To enhance future-ready education Sitharaman announced the establishment of three centres of excellence in AI in education. Recognising startups as key drivers of economic growth, she also announced a credit boost for startups in India. 

The budget emphasizes education and digital empowerment, ensuring that India’s talent pipeline is built from the ground up. “The establishment of Centres of Excellence on AI for Education, with an outlay of Rs500 crore, will drive AI-integrated learning, research, and innovation, preparing students for next-generation careers in artificial intelligence and automation,” says Sumit Kumar, Chief Strategy Officer at TeamLease Degree Apprenticeship.

“The establishment of Centres of Excellence for Skilling, coupled with global skilling partnerships, will significantly enhance India's talent pool. These initiatives, combined with the implementation of 50,000 Atal Tinkering Laboratories, will create a robust ecosystem for blended learning and innovation," says Rohit Gupta, Co-Founder & COO College Vidya.

The government's announcement of a Rs500 crore outlay for an AI Centre of Excellence and the establishment of five national skilling centres reaffirms India’s commitment to an AI-driven future, says V Suresh, CEO, foundit. "We are witnessing a paradigm shift where AI is no longer just a futuristic concept but a critical driver of India's workforce transformation. These initiatives will not only accelerate AI adoption but also equip talent with the right skills to thrive in the digital economy."

Investment in AI-driven education will foster a future-ready workforce, equipping talent with the skills required for global innovation. "The push for GCCs in Tier-2 cities will unlock new talent pools, drive economic growth, and position India as a strategic hub for high-value capabilities," says Anitha Sarathy , India Head of People & Culture at Encora.

Also Read:

Union Budget 2025: Key takeaways you need to know

Union Budget 2025: Skilling, centralised GCC policy, sustainable infrastructure among industry wishlist

Acknowledging the vital role of gig and platform workers in the digital economy, Sitharaman announced new social security measures, including identity registration and health insurance under PM Jan Arogya Yojana, to provide much-needed stability to nearly 1 crore gig workers

Sonal Arora, Country Manager, GI Group Holding, views this as an important step toward social security and financial empowerment in the unorganised sector. “By raising loan limits and offering an Rs30,000 UPI-linked credit card, the government is helping gig workers and independent contractors grow their businesses and add jobs.”

According to Sonal, providing nearly 1 crore gig workers with identity registration and insurance coverage will bring much-needed stability, encouraging more people to work as gig workers and promoting greater workforce formalisation. “By increasing the accessibility and sustainability of work opportunities, these policies will encourage entrepreneurship, accelerate the growth of MSME's, and fortify India's gig economy."

Enabling coverage through the Jan Arogya Scheme for gig workers is a long-awaited step in the right direction. “It recognises them as part of the employment ecosystem and provides them with much-needed social security cover,” says Balasubramanian A, Senior VP and Business Head, TeamLease.

Breather for startups

The Budget 2025-26 is a significant step toward strengthening India's startup ecosystem and accelerating the growth of the electric vehicle industry. The government’s emphasis on clean-tech manufacturing, deep-tech funding, and expanding the Credit Guarantee Scheme is a strong signal of its commitment to fostering innovation and self-reliance," says Prashant Vashishtha, Chairman and Managing Director of Sokudo Electric India.

With these measures, the government aims to strengthen India’s digital economy, empower gig workers, and foster innovation-driven growth.

Read full story

Topics: Economy & Policy, Skilling, Entrepreneurship, Startups, #Budget2025, #GigEconomy

Did you find this story helpful?

Author

QUICK POLL

What will be the biggest impact of AI on HR in 2025?