The Modi government has introduced ‘Customized Credit Cards’ for microenterprises registered on the Udyam portal to support small businesses and promote self-employment. These credit cards will have a limit of ₹5 lakh, allowing small businesses to access much-needed financial support. In the first year, 10 lakh such cards will be issued, marking a significant step toward empowering microentrepreneurs and improving access to credit.
The government has announced a new Fund of Funds for Startups with an initial contribution of ₹10,000 crore. This initiative is aimed at fostering innovation, providing capital to emerging businesses, and encouraging entrepreneurship. The Fund of Funds is expected to create more employment opportunities by helping startups scale their operations and expand into new markets.
Employment Opportunties and Support for Women and Marginalized Communities
A new scheme has been introduced to support first-time entrepreneurs from Scheduled Castes, Scheduled Tribes, and women. Under this initiative, term loans of up to ₹2 crore will be provided over the next five years to help five lakh entrepreneurs from these communities start and grow their businesses. This move is expected to enhance economic inclusion and drive job creation in traditionally underrepresented segments.
Employment Opportunities in the Leather and Footwear Sector
The government has announced a focus product scheme for the footwear and leather industry. This scheme is projected to generate employment for 22 lakh individuals, facilitate a turnover of ₹4 lakh crore, and boost exports beyond ₹1.1 lakh crore. Additionally, the basic customs duty on Wet Blue leather has been fully exempted to encourage imports that support domestic value addition and create jobs in the sector.
Investment in Clean Tech Manufacturing
To support the clean technology sector, the government will invest in manufacturing solar PV cells, electric vehicle batteries, motors, controllers, electrolyzers, wind turbines, high-voltage transmission equipment, and grid-scale batteries. This investment aims to increase domestic production, generate jobs, and strengthen India’s position in the renewable energy sector.
National Centres of Excellence for Skilling
Five National Centres of Excellence for Skilling will be established in partnership with global experts. These centres will focus on advanced training programs designed to equip workers with the skills required in emerging industries, ensuring a more competent workforce for the future.
The government has allocated ₹860 billion ($9.94 billion) for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) for the upcoming financial year. This amount remains unchanged from the previous year’s revised allocation. The MGNREGA program, which was first introduced in 2006, guarantees a minimum wage for at least 100 days each year for individuals working on rural infrastructure projects, such as road construction and well digging.
Addressing Unemployment Amid Economic Slowdown
Finance Minister Nirmala Sitharaman presented the Budget 2025 amid concerns over slowing economic growth and rising global uncertainties. While rural employment is showing signs of recovery, urban consumption remains weak, and private sector investments are sluggish. India’s unemployment rate stood at 7.8% in December 2024, up slightly from 7.7% in the previous month, according to data from the Centre for Monitoring Indian Economy (CMIE). In absolute numbers, the unemployed population increased from 34.7 million to 35.6 million.