According to IANS, business leader and former Infosys board member TV Mohandas Pai said that Budget 2026-27 must prioritise job creation, as India’s growing workforce and youth population make employment policy critical for sustained economic growth.
What changed in budget 2026-27 priorities
Budget 2026-27 discussions have shifted toward employment as workforce participation rises. Pai said the Indian economy remains stable, with current-year growth expected at 7.5% or higher.
He pointed to EPFO data showing 1.2 to 1.4 crore new Aadhaar-linked contributors. This, he said, reflects ongoing job creation rather than job loss.
However, workforce expansion continues at a faster pace.
India youth employment pressures are rising
Pai highlighted that India is experiencing a youth bulge. Between 1990 and 2010, about 50 crore children were born. Many are now entering the labour market.
Each year, around 2.5 crore young people join the workforce. Pai estimated that nearly 1.82 crore actively seek jobs annually. He noted that most available jobs pay under ₹20,000 a month.
As a result, Budget 2026-27 must focus on higher-paying urban employment.
Policy proposals linked to job creation
Pai supported expanding the Centre’s Kaushal scheme. He proposed designating 350 poor districts as special employment zones.
Under his suggestion, employers creating jobs in these districts would receive ₹2,000 per month per worker for two years. The government would also cover ESI and PF contributions during this period.
He said these steps would reduce hiring and training costs in rural areas.
Budget 2026-27 infrastructure and cities outlook
Pai also called for infrastructure investment across 5,000 smaller towns. He said better roads, water supply, and services would encourage small industries and balanced urbanisation.
For large cities, he suggested annual grants of ₹5,000–10,000 crore for five years. These funds would target transport, sanitation, and air quality.
He added that the banking sector remains healthy and investment is rising. Total investment this year may reach ₹95 lakh crore. For startups, Pai urged higher funding for innovation, AI, and deep technology.
