Building a robust talent pipeline: The future of job sector powered by Budget push

Finance Minister Nirmala Sitharaman’s Union Budget 2024-25 marks a significant stride towards a more inclusive and equitable labour market. With the government’s renewed focus on skill upgradation, the potential impact on the job sector in the coming years is immense. But how will this transformative initiative unfold?

As industries embrace the rapid adoption of artificial intelligence (AI), this technological revolution is being hailed as a double-edged sword. What opportunities and challenges will AI present to the job market, and are we truly prepared to face them?

Moreover, with new budget provisions in place, how is the HR sector gearing up to address these sweeping changes? Adgully delves deep into these pressing questions, exploring the far-reaching implications for the future of work.

The future of the job sector

Saurabh Deep Singla, CHRO, upGrad, asserted that India’s economic trajectory will greatly benefit from the focus on skilling, education, and jobs. “Incentivizing EPFO contributions will encourage formal employment and boost savings, driving investment and growth. By bridging the industry-curriculum gap and allocating resources to 4.1 crore youth, women, and providing skilling and education loans, the budget aims to prepare a future-ready workforce. Organizations are expected to prioritize skills over traditional qualifications through assessments and competency-based evaluations,” he added.

Singla also highlighted that new internship programs will offer first-time job seekers valuable hands-on experience, mentorship, and networking opportunities. “These initiatives will enhance hiring, create a dynamic workforce, and advance India's economic and innovative potential. This budget is a blueprint for a brighter future, ensuring that India’s youth are well-prepared for global job markets.”

Binu Philip, CHRO, Greater India, Schneider Electric, considered the FY25 Budget’s support for job creation in manufacturing and targeted skilling programs to be a significant milestone. He added, “Upgrading 1,000 ITIs and introducing industry-specific courses will create a future-ready workforce. The commitment to skill one crore youth through the Prime Minister’s Internships, with a focus on women, aligns with our diversity goals. These initiatives bridge the skills gap and create employment pathways, driving innovation and growth. Additionally, employment-linked incentives, including wage support for new workforce entrants and job creation incentives in manufacturing, underscore the budget’s comprehensive approach to fostering employment.”

Ruhie Pande, Group-CHRO and Head – Marketing and Communications, Sterlite Power, noted, “The Union Budget 2024’s focus on skill upgradation is set to significantly impact the job sector by creating a capable workforce and fostering transformative changes. The budget supports these initiatives through internship schemes and dedicated skilling programs, aiming for a ‘Viksit Bharat’ by 2047. Enhancing women’s participation in the workforce is a crucial aspect of this vision, contributing to a more diverse and balanced labour market. This focus on skills is expected to drive economic stability, growth, innovation, and inclusivity.”

The potential of AI

Mili Dutta, Head – HR, EverEnviro Resource Management, observed, “The government’s focus on skill upgradation and employment incentives, along with the rapid integration of AI in industries, is reshaping the job landscape with both opportunities and challenges. The emergence of AI is taking center stage across industries due to its potential to provide algorithm-based solutions. Given its rapid adoption, it is imperative to train talent to harness the potential of this new-age boom. Moreover, the announcement on the internship scheme to equip youth with future-proof skills will allow for private entities to align their business goals with economic growth, and we welcome the opportunity to develop a workforce for the future.”

Vinod Chaturvedi, CHRO, Shree Cement, mentioned, “While some jobs may be automated, AI also creates significant opportunities for new ones in terms of bringing innovation and creativity into daily work. We view AI as a tool to enhance human capabilities and improve efficiency. By embracing AI with a strategic and human-centric approach, we can harness its potential to create a more dynamic, inclusive, and resilient workforce. The challenge lies in preparing our workforce to adapt and work alongside AI. Continuous learning and skill development will be crucial to navigating this change. The evolving job market and budget provisions for employment incentives necessitate a proactive approach from the HR sector.”

Saurabh Deep Singla further elaborated, “Generative AI is transforming business operations, especially in HR, by revolutionizing recruitment, onboarding, and engagement with data-driven approaches. AI minimizes biases, enhances employee experiences, identifies skills gaps, and suggests personalized learning paths. While AI enhances efficiency and productivity, it also risks making routine jobs obsolete. To address this, robust reskilling and upskilling initiatives are critical. Investing in training programs for AI-driven roles such as development, data analysis, and cybersecurity is essential to ensure a dynamic and adaptable workforce.”

Ruhie Pande added here, “AI’s rapid adoption brings both opportunities and challenges. A recent survey indicates that around 55% of employees use generative AI at least once a week. While AI can transform work, concerns about job automation and integration risks such as cyberattacks remain. A balanced approach that combines human and machine intelligence, supported by constant reskilling and comprehensive AI education, is crucial for future readiness.”

HR strategy in a evolving jobs landscape

Speaking about upGrad’s strategies, Saurabh Deep Singla said, “The introduction of skilling and education loans up to Rs 10 lakh is transformative, providing access to quality education and advanced training. We are expanding our courses in high-demand fields like AI, data science, and ML/AI, ensuring that our learners acquire the latest skills.”

He added, “AI and automation are central to our HR strategy. We are investing in AI-driven tools for recruitment, onboarding, and employee engagement to identify skills gaps, provide real-time performance evaluations, and create personalized learning paths. By focusing on upskilling our workforce, we aim to mitigate job displacement and leverage government initiatives to prepare a future-ready workforce.”

Shree Cement’s Vinod Chaturvedi noted, “The evolving job market and budget provisions for employment incentives necessitate a proactive approach from the HR sector. We focus on identifying future-proof skills by analyzing industry trends and prioritizing upskilling through training programs. By fostering a culture of continuous learning, we ensure our employees are agile and adaptable to changing job requirements, driving organizational success and satisfaction.”

According to Ruhie Pande, “To address the evolving landscape, the HR sector must align recruitment, training, and development strategies with the needs of a diverse workforce. With Rs 1.48 lakh crore allocated towards human capital enhancement and schemes like wage subsidies for first-time hires, significant positive changes are anticipated in the employment sector. Collaboration between government, academia, and industry is crucial to foster innovation and build a robust talent pipeline.”

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