Jobs & security: Gig workers to skilling, Union Budget's broad strokes

The vulnerability of gig workers and the need to skill the country’s youth had Finance Minister Nirmala Sitharaman’s attention as she presented the Budget for the financial year 2025-26 (FY26) on Saturday.

 

The government, Sitharaman announced, would extend health cover under the PM Jan Arogya Yojana to nearly 10 million workers in the gig and platform economy. In addition to health insurance, gig workers will receive identity cards and registration on the E-Shram portal, ensuring better access to social security and welfare schemes. 

 

Besides, the Centre will also set up five national centres of excellence, with global expertise and partnerships to impart world-class skills training to the youth and equip them with the skills required for ‘Make for India, Make for the World’ manufacturing. 

 

“The partnerships will cover curriculum design, training of trainers, a skills certification framework, and periodic reviews,” Sitharaman said. 

 

In an effort to strengthen education and its link to new employment opportunities, the minister announced an expansion in infrastructure at existing Indian Institutes of Technology (IITs), adding 6,500 more seats across five IITs set up post-2014.

 

Additionally, a centre of excellence in artificial intelligence (AI) for education will be created with a budget of Rs 500 crore. The finance minister also highlighted plans to increase medical college seats, with 10,000 additional seats to be added next year, contributing to a broader goal of 75,000 seats in the next five years.

 

Over the next five years, 50,000 Atal Tinkering Labs will also be established in government schools to nurture curiosity, innovation, and scientific thinking among young students, she said.

 

Sumit Kumar, chief strategy officer at TeamLease Degree Apprenticeship, emphasised the importance of upskilling the workforce to meet the future demands of industries shaped by AI, automation, digitalisation, and climate change.

 

“India's skilling roadmap must focus on industry-academia collaborations,” he said. “The government's emphasis on industry-aligned skills, enhanced apprenticeship adoption, and the integration of AI, automation, and sustainability training will be crucial for developing a competitive, future-ready workforce.”

 

Building on the employment-linked incentive (ELI) schemes announced in the previous Budget, the government will promote employment and entrepreneurship in labour-intensive sectors like footwear, leather, and toys. The scheme for footwear aims to generate 2.2 million jobs and drive a turnover of Rs 4 trillion.

 

“The scheme will support design capacity, component manufacturing, and machinery for non-leather footwear production, while also supporting leather footwear and products,” Sitharaman said. “Meanwhile, the National Action Plan for Toys will focus on cluster development, skills enhancement, and creating a sustainable manufacturing ecosystem for high-quality, innovative toys.” 

 

Besides this, top 50 tourist destination sites in the country will be developed in partnership with states through a challenge mode, as a means to create job opportunities for young people. Land for building key infrastructure will have to be provided by states, and hotels in those destinations will be included in the infrastructure,” the finance minister said. 

 

Sitharaman also announced a revamp of the PM SVANidhi scheme for unorganised workers, which will offer enhanced bank loans, UPI-linked credit cards with a Rs 30,000 limit, and capacity-building support.

 

The extension of the Jal Jeevan Mission until 2028 was also unveiled, with the mission targeting 100 per cent coverage. The focus will be on improving infrastructure quality and managing rural piped water supply schemes through a “Jan Bhagidhari”, or  public participation, approach.