With the Periodic Labour Force Survey (PLFS) 2021 clearly showing job loss in the age-group of 15-29 years, where the drop in worker-population ratio has been a high of 1.6 percent in the first quarter of 2021, the Union Budget 2022-23 is highly expected of delivering a booster shot to 'champion' job creation.
As per the CareEdge Budget Survey released recently, a massive 58 percent of the respondents expect employment generation to be the main focus of Union Budget 2022-23. The top research agency has conducted a survey during the period January 12-17 with 330 industry experts and analysts to forecast the upcoming budget's main thrust.
The survey by CareEdge finds that in order to give a fillip to the employment generation, the upcoming budget will go for multiple therapeutic measures. They are detailed below.
- 50 percent of the respondents are of the view that the allocation to the rural employment guarantee scheme - MGNREGA - will post a significant rise in this year's budget.
- Half of the respondents surveyed believed that this budget will announce the incentive of concessional capital to entrepreneurs.
- 49 percent are of the view that the budget may roll out schemes to create jobs in urban areas.
- 46 percent feel that the budget will extend the tax holiday for Start-ups beyond March 2022.
- 16 percent think that the budget will focus on infra creation and increase in PLI (Production Linked Incentive) schemes.
Finance Minister's Champions
In the Union Budget 2021-22, the government has committed nearly Rs 1.97 lakh crore over 5 years starting FY 2021-22 for 13 sectors, under the PLI scheme.
The 13 sectors are as follows.
- Automobiles and auto components
- Drone and drone components
- Advanced Chemical Cell batteries
- Electronics systems and technologies
- Food Processing
- Medical devices
- Speciality steel (coated/plated steel products, high strength/wear-resistant steel, speciality rails, alloy steel products and steel wires and electrical steel)
- White goods (AC and LED)
- Solar Photovoltaic Modules
- Telecom and networking products
- Textiles and Apparels
As per the analysis of FM Sitharaman's statements, the Budget 2022-23 is likely to give incentives to the following 'Champion' or 'Sunrise' manufacturing sectors that have a high job creation potential.
- Gems and Jewellery
- Chemicals and petro-chemicals
- Leather and footwear
- As per the ICICI Direct report, The government may also review the existing PLI of IT hardware to increase the incentive from Rs 7,325 crore to Rs 20,000 crore to attract
Odisha In Job Map
A detailed glance at the 'Champion' sectors shows that jobseekers from Odisha will get job opportunities outside the State. Because the sectors that are believed to create huge jobs have no footprint in Odisha, except petrochemicals and food processing.
A look at the Industrial Entrepreneurial Memorandum (IEM) filed in Odisha during 2021 revealed the following sectors' footprints.
- Solar Energy
- Aluminium manufacturing
- Ferro-alloys manufacturing
- Ethanol manufacturing
- CO2 plant
- Fermentation industry (alcohol manufacturing)
- Sponge iron manufacturing
- Steel Billets
- Captive power plant
- Cement Plaster
- Paper and pulp
The investment commitments Odisha received in 2021 don't cater to the champion or sunrise sectors outlined by Union Finance Minister in her budget speech of 2020-21 and 2021-22.