Explained National

Budget 2019: Focus On Job Creation

Budget 2019 employment generation

In an earlier article, we had explained as to how the jobs have been created in the country. In the first five years of Modi government, MUDRA scheme had an impact on employment in India. Along with Start-Up India, MUDRA has promoted the spirit of entrepreneurship in the country.

However, amidst the series of negative campaigns against the government, the unemployment narrative was also built. EPFO data, apart from other studies, have often shown healthy formal employment. The ultimate rejection of these narratives came from the people themselves when Prime Minister Narendra Modi won another decisive mandate and that too with more seats.

The government of India continues with its focus on more jobs. The initial blueprint of this is reflected in the Budget 2019. Let’s take a look at those announcements in the Budget which will help in employment creation.

Mega Manufacturing Hubs

Government has planned for a scheme to be launched to invite global companies through transparent competitive bidding to set up mega-manufacturing plants. This is an important step. Manufacturing is always seen as a sector which creates a greater number of jobs than the agriculture and services sector. In India, agriculture continues to witness the problem of disguised labour (more people employed than required to do a job) and services sector only employs highly skilled people. Thus, it is only the manufacturing sector which can attract people from agriculture after some skilling and semi-skilled people from other areas.


Self-employment for any economy is seen to be job-amplifier as it does not only create jobs for the entrepreneurs themselves but also for others when their ventures or start-ups start expanding. Towards this end, the government has further relaxed norms for start-ups in India. In the Budget 2019, it has been announced that the funds raised by start-ups, filing requisite declaration, will not require any kind of scrutiny of their raised funds from the Income Tax Department. To further promote the start-up culture, a TV program exclusively for start-ups within the DD Bouquet of Channels has been announced.


In the first five years, a lot of jobs were created due to the construction of more than 9 crore toilets and over 1 crore houses under Awas Yojana. To continue with the momentum, in the Budget 2019, 1.95 crore houses are proposed to be provided to the eligible beneficiaries during 2019-2022. Besides, affordable housing has been given further encouragement in the form of additional tax deduction of Rs.1.5 lakh beyond Rs. 2 lakh of interest paid on loans borrowed upto 31st March 2020 for purchase of an affordable house valued up to Rs. 45 lakh. This will boost the construction of more houses and hence jobs.

Massive Push to Infrastructure

In the budget 2019, the government has announced its intention to invest Rs. 100 lakh crores in infrastructure over the next five years. The building of infrastructure acts as a force multiplier in the sense that more you build; more will be the capacity to build further. And, this can set the virtuous cycle of job creation. Interestingly, in addition to thousands of jobs, the nation gets the infrastructure which can increase the size of its economy leading to more jobs. It seems to one of the reasons why such a massive investment has been announced.

The government has already been working on big programs like Pradhan Mantri Gram Sadak Yojana, Industrial Corridors, Dedicated Freight Corridors, Bhartamala, Sagarmala, Jal Marg Vikas and UDAN, etc. These programs not only aim at connecting India better but also developing an efficient supply-chain system which will also add to jobs apart from those already working in these big programs.

Other Announcements

The Budget 2019 proposes setting up 100 new clusters during 2019-20 which should enable 50,000 artisans to join the economic value chain under the Scheme of Fund for Upgradation and Regeneration of Traditional Industries’ (SFURTI). This is a visionary move as far as quality employment is concerned. This will add value to the skills of the people and enhance their prospects of getting better jobs.

Further, Budget 2019 also proposes setting up of 80 Livelihood Business Incubators (TBIs) and 20 Technology Business Incubators (TBIs) in 2019-20 to develop 75,000 skilled entrepreneurs in agro-rural industry sectors under the Scheme for Promotion of Innovation, Rural Industry, and Entrepreneurship’ (ASPIRE). Even if 75,000 skilled entrepreneurs in the agri-rural industry employ one more person at the very least, this will double the number of employed people.

Thus, the Budget 2019 truly focuses on more job creation in the country.