The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, has put a spotlight on employment generation as a key priority for the government. With a substantial hike in allocations, new schemes, and ambitious job creation targets, the budget reflects the Centre’s intent to address unemployment and bolster economic growth across diverse sectors.
This comprehensive analysis explores the budget’s key provisions for employment generation, the allocation breakdown, targeted sectors, expected job numbers, and the potential impact on India’s workforce.
Key Budget Highlights for Employment Generation
- Total Allocation for Employment Generation: ₹32,646.19 crore, up from ₹18,307.22 crore in FY24-25 Revised Estimates.
- New Employment Generation Scheme: ₹20,000 crore allocated to create sustainable job opportunities nationwide.
- Targeted Job Creation: Over 21 lakh direct and indirect jobs expected in 2025-26.
The Union Budget 2025-26: Breakdown of Major Schemes and Allocations
1. New Employment Generation Scheme (NEGS)
- Allocation: ₹20,000 crore
- Focus: Employment creation in rural and urban sectors through skill development, micro-enterprises, and infrastructure projects.
- Target: To support job creation across manufacturing, services, and emerging industries.
2. Pradhan Mantri Matsya Sampada Yojana (PMMSY)
- Targeted Jobs: 11 lakh
- Objective: Boost the fisheries sector through modern techniques, cold storage facilities, and value-chain development.
3. Prime Minister Employment Generation Programme (PMEGP)
- Targeted Jobs: 5.8 lakh
- Scheme Overview: Credit-linked subsidy scheme administered by the Ministry of MSME to promote entrepreneurship and self-employment.
4. PM Vishwakarma Yojana
- Targeted Beneficiaries: 61 lakh artisans, including women, SC, ST, and OBC communities.
- Objective: Empower traditional artisans and craftspeople with skill development, financial support, and market access.
5. North-East Industrial Development Scheme (NEIDS)
- Allocation: Focus on completing 25 industrial infrastructure projects.
- Targeted Jobs: 1.2 lakh
- Focus: Enhancing industrialization and job creation in the North-East region.
6. Production-Linked Incentive (PLI) Scheme for Textiles
- Targeted Jobs: 35,000
- Objective: Promote high-value textiles, man-made fibers, and technical textiles.
7. Modified Special Incentive Package Scheme (M-SIPS)
- Targeted Jobs: 30,000
- Sector: Electronics System Design and Manufacturing (ESDM) industries.
8. Semiconductor and Chip Assembly Plants
- Targeted Jobs: 1,300 (100 in semiconductor fabs, 1,200 in chip assembly plants)
- Overview: Part of the ₹76,000 crore India Semiconductor Mission to boost domestic electronics manufacturing.
9. PM Internship Scheme
- Budget: ₹840 crore
- Target: 1.25 lakh internship opportunities with leading companies to enhance youth employability.
Sector-Wise Employment Targets
| Sector | Scheme/Program | Targeted Jobs (2025-26) |
|---|---|---|
| Fisheries | PM Matsya Sampada Yojana | 11,00,000 |
| MSMEs | PMEGP | 5,80,000 |
| Artisans & Craftspeople | PM Vishwakarma Yojana | 61,00,000 (self-employment) |
| North-East Development | NEIDS | 1,20,000 |
| Textiles | PLI Scheme for Textiles | 35,000 |
| Electronics Manufacturing | M-SIPS | 30,000 |
| Semiconductor Fabs | India Semiconductor Mission | 100 |
| Chip Assembly Plants | India Semiconductor Mission | 1,200 |
| Youth Employment | PM Internship Scheme | 1,25,000 (internships) |
The Union Budget 2025-26: Critical Analysis of the Budget Provisions
Strengths:
- Massive Budgetary Boost: The doubling of allocations signifies the government’s strong commitment to tackling unemployment.
- Diverse Sector Focus: From traditional sectors like fisheries and textiles to cutting-edge fields like semiconductors, the budget covers a wide range.
- Inclusivity: Emphasis on marginalized communities, artisans, and women promotes equitable growth.
- Regional Development: Special focus on North-East India enhances balanced regional growth.
Challenges:
- Execution Risks: Past performance in schemes like PLI for textiles has been underwhelming.
- Overdependence on Government Schemes: Sustainable job growth requires robust private sector participation.
- Quality vs. Quantity: The focus should shift from merely creating jobs to ensuring quality employment with fair wages.
Impact on Key Sectors
- Fisheries: Expected to be a major job generator, with modernization efforts enhancing productivity.
- MSMEs: Credit support under PMEGP will foster entrepreneurship and self-employment opportunities.
- Technology & Manufacturing: Although job targets are modest, the semiconductor mission lays the foundation for future high-tech employment.
- North-East India: Industrial projects and enhanced connectivity under the UDAN scheme will boost economic activity.
Frequently Asked Questions (FAQs) on The Union Budget 2025-26
1. How much has the employment generation budget increased in 2025-26?
The allocation has increased from ₹18,307.22 crore to ₹32,646.19 crore.
2. What is the New Employment Generation Scheme (NEGS)?
NEGS is a new initiative with a ₹20,000 crore allocation aimed at creating sustainable job opportunities nationwide.
3. How many jobs are expected to be created in 2025-26?
Over 21 lakh direct and indirect jobs are targeted across various sectors.
4. Which sector will create the most jobs?
The fisheries sector under the PM Matsya Sampada Yojana, targeting 11 lakh jobs.
5. What support is provided under PM Vishwakarma Yojana?
Skill development, financial assistance, and market linkages for over 61 lakh artisans.
6. Are there any schemes for youth employment?
Yes, the PM Internship Scheme aims to provide 1.25 lakh internship opportunities.
7. How does the budget support North-East India’s employment?
Focus on completing 25 industrial projects, targeting 1.2 lakh jobs.
8. What is the job target under the PLI scheme for textiles?
Over 35,000 jobs are targeted in 2025-26.
9. Are there any initiatives for the semiconductor industry?
Yes, with job targets for both semiconductor fabs (100 jobs) and chip assembly plants (1,200 jobs).
10. How will the budget impact women’s employment?
Schemes like PM Vishwakarma Yojana and MSME support include specific provisions for women’s self-employment and entrepreneurship.
Conclusion: The Road Ahead
The Union Budget 2025-26 marks a significant step towards addressing India’s employment challenges. With allocations nearly doubling for employment generation schemes, the government aims to create over 21 lakh jobs, targeting diverse sectors from fisheries to high-tech manufacturing.
While the budget presents ambitious goals, the real test lies in effective implementation and ensuring the quality of jobs created. If executed well, these measures could significantly reduce unemployment, promote inclusive growth, and strengthen India’s economic resilience in the years to come.
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