Boosting India's Workforce: Skill Development Linked to PLI and Employment Incentives

The 2023-24 Economic Survey emphasizes the necessity to equip India's young workforce with relevant skills. Linking skill development with Production Linked Incentive (PLI) and employment-linked incentive schemes in sectors like toy, apparel, tourism and textiles is crucial to transform the nation's demographic dividend into productivity gains.

With merely 4.4 per cent of India's young workforce formally skilled, the Economic Survey for 2023-24 advocates linking skill development with Production Linked Incentive (PLI) and employment-linked incentive schemes in burgeoning sectors such as toy, apparel, tourism, logistics, and textiles.

To leverage the demographic advantage, the Survey underscores equipping the workforce with employable skills and knowledge tailored to the globalised labour market.

Currently, the PLI scheme spans 14 sectors, but industry bodies are calling for employment-linked incentives to spur job creation amidst concerns of jobless growth.

The Survey emphasizes that converging skilling initiatives with other employment-centric programs will mutually enhance outcomes.

According to the Survey, the government is actively working to convert India's demographic dividend into a productivity dividend by creating job and entrepreneurial opportunities aligned with the youth's aspirations and abilities, in partnership with the industry.

It also states that linking skill development with PLI and employment-linked incentive schemes in high-growth potential sectors will aid in skill upgradation as production ascends the value chain.

(With inputs from agencies.)