Only 4.4% of India’s young workforce is formally skilled, said the Economic Survey 2023-24. File
| Photo Credit: M. Moorthy

With only 4.4% of India’s young workforce formally skilled, linking skill development with production Linked Incentive (PLI) and employment-linked incentive schemes in high-growth potential sectors like toy, apparel, tourism, logistics and textiles would aid upgrading of skills as production moves up the value chain, the Economic Survey said on July 22.

The Survey for 2023-24 tabled in the Parliament stated, “in order to reap the demographic advantage, it is necessary to equip the workforce with employable skills and knowledge that meet the requirements of the globalised labour market”.

Currently, the PLI scheme is available for 14 sectors. Industry bodies have been demanding introduction of an employment-linked incentive scheme to promote job creation in the economy, in the face of a growing young population amidst concerns about jobless growth.

Also Read:Economic Survey 2023-24 LIVE updates

According to the Survey, to maximise the outcomes from skilling initiatives, convergence, and utilisation of synergies with other employment-centric programmes would mutually benefit the two verticals.

“Measures are being taken by government to translate India’s demographic dividend into a productivity dividend by enabling job and entrepreneurial opportunities that are in sync with the aspirations and abilities of India’s youth. It is partnering with the industry to enhance skilling with employability,” said the Survey.

Click here to download Economic Survey 2023-24

It further stated that “linking skill development with PLI scheme and employment-linked incentive schemes in high-growth potential sectors like toy, apparel, tourism, logistics, textiles, leather sector etc. would aid upgrading of skills as production moves up the value chain”.

National Education Policy expected to yield foundational literacy and numeracy for every child passing the third standard in the near future. File (representational image)
| Photo Credit: The Hindu

Convergence of efforts across the Centre, States, and local bodies is needed to improve the quality of education, especially primary education, the Economic Survey has suggested.

The National Education Policy (NEP) 2020 is expected to yield foundational literacy and numeracy for every child passing the third standard in the near future, said the Survey for 2023-24 tabled in Parliament on July 22.

Also Read:Economic Survey 2023-24 LIVE updates

The Survey noted education is one of the most critical areas for India’s development, and mission-mode and cost-effective implementation of well-designed and well-intentioned programmes is essential to improve the quality of education, especially primary education, without which further years of education add little value.

“To realise the same, unity of purpose and convergence of efforts across the Centre, State, and local governments is called for, as ‘public education’ is a concurrent list subject,” the Survey document said.

Click here to download Economic Survey 2023-24

According to the Survey, the government’s spending on social services including education rose by 9.36% to ₹23.50 lakh crore in FY24 from ₹21.49 lakh crore in FY23. Of the total, ₹8.28 lakh crore was spent on education alone during FY24, around 8% higher from ₹7.68 lakh crore in FY23.

Finance Minister Nirmala Sitharaman tables the Financial Survey 2023-24. File
| Photo Credit: PTI

“A higher level of private sector financing and resource mobilisation from new sources will be crucial for India to build quality infrastructure,” according to the Economic Survey 2023-24.

The Economic Survey 2023-24 was tabled in the Parliament by Finance Minister Nirmala Sitharaman on July 22. According to the survey, facilitating this would not only require policy and institutional support from the Central Government, but State and local governments would have to play an equally important role.

Also Read:Economic Survey 2023-24 LIVE updates

The survey noted that there is a need to improve data capture and reporting mechanisms for investments in infrastructure across instruments and sectors as well as its composition across various projects at a granular level.

The Economic Survey is an annual document presented by the government ahead of the Union Budget to review the state of the economy. The document also provides an overview of the short-to-medium-term prospects of the economy.

Click here to download Economic Survey 2023-24

The Economic Survey is prepared by the Economic Division of the Department of Economic Affairs in the Ministry of Finance under the supervision of the Chief Economic Advisor.