India's production-linked incentive (PLI) scheme in 14 sectors for Aatmanirbhar Bharat (self-reliant India) will create 6 million jobs, Finance Minister Nirmala Sitharaman said in her Budget 2022-23 speech today.
She said that the PLI scheme would account for additional new production of Rs 30 trillion.
Industry experts say the vision outlined in the union budget 2022 will give the much needed boost to employment generation in the country.
“PLI scheme of 30 lakh crore GVA to be added in five years and Gathi Shakti focussing on modern infrastructure will create more employment opportunities in construction and manufacturing space. PLI in telecom, especially the 5G auction rollout in FY 23 will accelerate digital initiatives across the country and create more tech and non tech jobs. Animation, visual effects, gaming, and comics (AVGC) is a new interesting initiative which will not only employ more professional talent but will also bring in digital mix of technology more robustly,” says Guruprasad Srinivasan, chief operating officer, Quess Corp.
Srinivasan says one key element for this budget investment is access to the right talent. “The focus on compliances through AmritKaal will also bring in ease of doing business, which is a welcome move as well,” he adds.
Sai Srinivas, co-founder and CEO of eSports and mobile gaming platform Mobile Premier League says it is very encouraging to see that the Union Budget has taken into consideration some of the long-pending suggestions for the AVGC sector, while noting the strong potential this industry holds for employment-generation as well as taking ‘Made in India’ game titles global.
“We welcome the finance minister's announcement to set up an AVGC Promotion Task Force to provide a much-needed boost to the sector. This announcement highlights the need to build capacity to serve both domestic and global markets, and is a strong indicator of the impetus that the government is willing to provide for its growth. A progressive tax regime, predictable regulatory framework and supportive funding policies will allow the industry to compete on the world stage and fulfill the prime minister’s vision for the Indian digital gaming sector to be a global powerhouse. Moreover, it will also help develop a workforce of young and employable AVGC professionals to usher in the next tech revolution from within India,” he adds.
Viswanath PS, MD and CEO, Randstad India says Budget 2022 is a bold step into the future to pilot India’s economy on an upward growth trajectory.
“What excites us is the much-needed boost and purposeful focus that has been given for employment generation and skilling. Specifically, the productivity-linked incentive schemes in 14 sectors with the potential to create 60 lakh new jobs will be a definite game-changer. The setting up of a world-class Digital University and the DESH-Stack e-portal for upskilling, reskilling and cross-skilling will place India as a global hub for talent,” he says.
Viswanath adds the onus is now on the government to ensure seamless execution of these key initiatives announced to understand how they will impact in the short term.
"As per today's budget announcement by the FM, there will be creation of 60 lakh new jobs. Using a capital investment approach to do so and not making much alterations would work considering how well the corporate sector is doing. Introducing Desh Stack e-portal should be a help in creating and stimulating the environment for skill development,” says Sidharth Agarwal, director, Spectrum Talent Management .
Sarbojit Mallick, founder and CBO, Instahyre says the PLI scheme across 14 sectors, including IT hardware manufacturing, has the potential to generate at least 60 lakh new job opportunities in covering key sectors like pharmaceuticals, medical devices, large-scale electronics manufacturing, food products, solar EV modules, automobiles/auto components, ACC battery and textile products among others.
“The Digital university on the hub and spoke model to provide skill-based education will smoothen the overall recruitment process," he adds.
India's government has so far identified 14 sectors under the PLI scheme, which aims to boost domestic manufacturing base and attract large investments in the value chains of the identified industries, including mobile phones manufacturing, medical devices, specific electronic components, automobiles and auto components, drones and drones components.
The PLI scheme, announced in the Budget for 2021-22, has set aside nearly Rs 2 trillion in incentives over 5 years to encourage local production and exports, and was initially meant for sectors such as telecom, electronics, and automotives, before gradually including some others.