Infrastructure, Startup, Edtech Sector Heads Call For Incentives To Boost Job Creation

The government should provide investments and incentives in infrastructure, hospitality, startup ecosystem, edtech and MSME sectors in the General Budget to boost employment and skill development, say industry experts.

Finance Minister Nirmala Sitharaman will present the General Budget 2025 in the Lok Sabha on Feb. 1.

On expectations from the forthcoming budget, Noormahal Group Chairman and Managing Director Manbeer Choudhary said the hospitality sector in India plays a crucial role in job creation and is one of the largest contributors to the economy.

The Union Budget 2025 could be pivotal in enhancing the industry and significantly contributing to the vision of a $3 trillion tourism GDP by 2047, he added.

Choudhary stated that one of the long-standing demands is granting industry status to the hospitality sector, as this recognition could lead to improved access to finance, regularised policies, and a more strategic approach to tourism development.

The special allocation for infrastructure development, especially in tier-II and tier-III cities can boost tourism in the regional areas while generating employment opportunities for youth in their native place, he said.

T9L QUBE founder Gaurav Gaggar said the government will continue to prioritise the needs of startups and venture studios this year.

Currently, one of the pressing concerns of the sector that persists is funding. Although removing the angel tax was one of the revolutionary steps toward easing investment flows, more such initiatives are expected this year, he pointed out.

Venture studios serve as one of the key factors contributing towards nation-building by boosting the startup ecosystem in the country, he said.

The government should focus on simplifying foreign investment regulations and improving access to credit, which will bolster the financial landscape of the industry, he suggested.

The budget, he said, should also prioritise investment in research and development for sustained innovation.

The government-backed funds, tax incentives and benefits to venture capitalists dedicated to fostering startup companies could elevate India's dynamic startup ecosystem to unprecedented levels, he added.

As the Indian startup ecosystem has become one of the biggest employment generators, levelling up the ecosystem will support the government in addressing skill development and unemployment issues, he stated.

Naman Jain, education policy expert and vice chairman of Silverline Prestige School, suggested that the government should focus on the need for skilling in emerging sectors like data science, renewable energy, and AI.

Increased investment in skill development and training programmes can play a crucial role in fostering sustained economic growth, he opined.

Currently, the country is facing the issue of unemployment due to the lack of skilled employees, he noted.

Gagan Arora, founder and chief executive officer of Vertex Global Services and trade commissioner of the India Africa Trade Council, said a recent analysis by McKinsey indicates that India must improve its employment figures to meet its ambitious GDP growth target of 7% to 8% annually.

To achieve the nation's goal of becoming the third-largest economy by 2030, the government should prioritise job creation and skill development, he suggested.

Enhancing access to vocational training and higher education through targeted investments in skill development is one of the major things to watch out for in the budget 2025, he added.