Budget 2025: Skilling, jobs and inclusive growth

As India gears up for its Union Budget 2025-26, the focus is sharply aimed at leveraging its human capital to power the nation’s economic growth. HR and business leaders believe the budget will outline a roadmap for India’s future workforce, focusing on skilling, job creation, fostering innovation, and advancing emerging technologies. They believe the upcoming budget will be a key moment in shaping India’s workforce, tackling the changing needs of the labour market and ensuring the country remains competitive in an AI-driven world.
Skill development and employment generation
Skill development continues to be a key priority. Sumit Sabharwal, Country Leader for India at Deel, believes the Union Budget 2025-26 should focus on aligning with the government’s Viksit Bharat initiative. "Targeted measures should emphasise high-demand skills like cloud computing, AI, machine learning, and cybersecurity," he stated. Referring to the Economic Survey 2023-24, Sabharwal pointed out that just 51% of Indian graduates are employable due to a lack of relevant skills. Bridging this gap is vital as India strives to build a workforce capable of meeting the demands of a fast-evolving job market.
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Puneet Arora, Managing Partner at Biz Staffing Comrade, echoes the sentiment, calling for greater investments in structured skilling programs. “As new technologies such as AI reshape industries, the Union Budget should focus on upskilling and reskilling, encouraging lifelong learning,” Arora remarked. He also emphasised the need for targeted incentives for industries that support sustainable employment generation and micro-entrepreneurship, alongside measures that support women’s participation in the workforce.
As India targets strong economic growth in 2025, the upcoming budget will focus on skill development, vocational training, and job creation to ensure a competitive workforce. "These initiatives are essential for keeping India’s talent globally competitive," says Sheetal Bhanot Shetty, CHRO of Infra.Market.
Gender equality and inclusive growth
Gender equity is also expected to be a central theme in the upcoming budget. Sabharwal anticipates policies that focus on closing the gender pay gap, with initiatives like mandatory gender pay audits and leadership programs for women. This aligns with the broader objective of building an inclusive workforce where both men and women can thrive equally.
In addition to gender-specific initiatives, Sumit Kumar, Chief Strategy Officer at TeamLease Degree Apprenticeship, advocates for targeted financial incentives to promote women’s participation in apprenticeships. “The government should ensure that women, particularly in rural and underserved areas, are equipped with the skills needed for formal sector jobs,” Kumar said. By offering financial support to employers who engage with women apprentices, the government can facilitate greater gender diversity across industries.
Empowering startups and digital transformation
The role of startups in India’s economic landscape is undeniable, and Amit Ramani, Chairman and MD of Awfis Space Solutions, sees the upcoming budget as an opportunity to support their growth. “With the coworking segment expanding, we urge the government to create startup hubs and simplify business regulations, particularly in Tier-II cities,” Ramani said. By fostering an environment that encourages innovation and entrepreneurship, the budget can help India become a global hub for startups, creating jobs and driving economic growth.
Pradyumn Sharma, CEO of Pragati Software, is equally optimistic about India’s digital economy. He calls for enhanced support for the IT sector, with a focus on upskilling and reskilling programs in emerging fields like AI and blockchain. “The government should prioritise investments in digital infrastructure, especially in Tier-II and Tier-III cities, to unlock new talent pools and decentralise growth,” Sharma said. This could also support the growing demand for remote work, contributing to a more agile and flexible workforce.
Bridging the skills gap
With skill development at the heart of the national agenda, the budget is expected to allocate resources to apprenticeships, a key mechanism for bridging the skills gap. Dr. Rumki Majumdar, Partner at Deloitte India, points out the need for continued investments in the labour-intensive manufacturing sectors, such as textiles and food processing. She also advocates for the expansion of apprenticeships, with a focus on blue-collar jobs. “Creating a comprehensive database to address skill gaps and aligning market needs with available talent will be crucial in enhancing job creation,” Majumdar added.
Kumar from TeamLease stresses the need for more robust policies to make apprenticeships more inclusive, particularly for women and marginalised communities. “The introduction of a one-time allowance for candidate mobilization could ensure that apprenticeships reach disadvantaged groups, particularly in rural areas,” he suggested.
A budget for India’s future workforce
As the government prepares to announce the Union Budget for 2025-26, the pressure is on to create policies that will empower India’s workforce for the future. Industry leaders are hopeful that the budget will align investments in skills, gender equality, and technological advancement with India’s broader economic goals. These initiatives not only promise to boost employability but also foster innovation, making India a hub for digital transformation and entrepreneurship.
The Union Budget 2025 has the potential to address several critical areas, including skilling, job creation, digital economy growth, and workforce inclusivity. By prioritising long-term economic sustainability, the government can pave the way for a more dynamic, diverse, and future-ready workforce in India.