Impact of Budget 2023 on HR

Human resource leaders call it a “smart” and “professionally-balanced” budget

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Finance Minister Nirmala Sitharaman unveiled the budget for 2023, which is the fifth budget of the Modi government’s second term. The newly- announced budget has been welcomed as a smart resolve of the government for inclusive development of India.

The major focus of budget 2023 is the heightened investment in infrastructure and upskilling facilites to the creation of more job opportunities and ultimately raises the standard of living for the citizens.

Job creation: “It’s a very professionally balanced budget without giving too much focus on political agenda,” says P. Dwarakanath, former non-executive chairman, GSK. The budget has ample opportunities from the HR perspective in terms of growth, empowerment, skill development and ultimately tackling unemployment.

“It’s a very professionally balanced budget without giving too much focus on political agenda.”

P. Dwarakanath, former non-executive chairman, GSK

“The budget has given a very holistic and futuristic view,” adds Dwarakanath. Building 50 airports will bring instant employment opportunities. Similarly, in terms of power, roads and ports have been in focus as a lot of capital outlay has been set for them.

Upskilling: Another area of focus of this budget is the upskilling and reskilling of government employees under the Government’s ‘Karm Yogi’ initiative. “In every sector, HR will have a tremendous role to play, in terms of helping the organisation to build their business, developing a talent pipeline and creating employability. “What excites me is the emphasis on skilling, reskilling and potential development, which is a first from any government,” shares Anil Gaur, group-CPO, Akums Pharmaceuticals.

This will create plenty of opportunities for the HR professionals in the private sector to ESU, which is one major boost.

“There is more focus on talent development. Under the PM Kaushal Vikas programme, the Government has come up with courses to create talent across fields. This not only helps build a fully-capable workforce, but also aligns the talent to their respective industries.”

Amit Sharma, CHRO, Volvo

“The ‘National Education Policy’ is a welcome move as it will place the much-needed emphasis on skill development, which will also facilitate job and livelihood opportunities. Besides, establishing Centres of Excellence for Artificial Intelligence across top educational institutions will play a pivotal role in preparing the workforce for the future. If rolled effectively, all these initiatives will act as a game-changer for the Indian economy and allow India to emerge as a global talent hub in the Amrit Kaal,” opines Binu Philip, CHRO, Greater India Zone, Schneider Electric.

“The attention and focus on skill development, job creation, and upskilling youth to become leaders of tomorrow are progressive moves by the govt. The increase in the Income Tax rebate limit is also a welcoming step in the right direction,” adds Parineeta Cecil Lakra, Country People and Culture Manager, IKEA India.

Tech & innovation: The Government’s emphasis on new and innovative technologies in Budget 2023 has been praised by experts. This emphasis includes the establishment of three artificial intelligence (AI) centres of excellence in prestigious educational institutions, training in fields such as machine learning (ML) and robotics, and the implementation of a national data governance framework.

“What excites me is the emphasis on skilling, reskilling and potential development, which is a first from any government.”

Anil Gaur, group-CPO, Akums Pharmaceuticals.

“The emphasis on upskilling the youth in cutting-edge technologies such as AI, Inter of Things (IOT), robotics and drones will equip them with the abilities required to embrace industry 4.0 and drive technological innovations and startups,” shares Harshvendra Soin, group CPO & Head Marketing, Tech Mahindra.

Amit Sharma, CHRO, Volvo, says, “There is more focus on talent development. Under the PM Kaushal Vikas programme, the Government has come up with courses to create talent across fields, such as medicine, robotics, mechatronics, IoT, and teacher’s training among others. This not only helps build a fully-capable workforce, but also aligns the talent to their respective industries.”

“The continued focus on job creation, women’s empowerment, and serving marginalised populations will lead India towards resilience.”

Harshvendra Soin, group CPO & head marketing, Tech Mahindra

The scheme also focuses on bridging the talent gap thorough apprenticeship programmes and on-the-job training.

Additionally, the allocation of resources towards in-demand careers, such as nursing, guarantees a steady supply of skilled medical professionals, points out Soin.

Contract labour: The government also talked about faster settlement of contractual disputes. This will mainly benefit the manufacturing sector, where the HR is responsible for the contract labour, points out Gaur. Some reliefs have been announced for the MSME sector along with a boost to domestic production. This means, the SME and MSME sectors will receive a much-required push, which will entail a lot of work for the HR.

“The ‘National Education Policy’ is a welcome move as it will place the much-needed emphasis on skill development, which will also facilitate job and livelihood opportunities.”

Binu Philip, CHRO, Greater India Zone, Schneider Electric

The Union Budget 2023, being the first budget of the Amrit Kaal era, offers important insights into the Government’s priorities for human resources development, women’s empowerment and sustainability,” says Soin.

Development and stability: Development and employability have certainly been in the spotlight for this budget.

“The continued focus on job creation, women’s empowerment, and serving marginalised populations will lead India towards resilience,” adds Soin.

“The attention and focus on skill development, job creation, and upskilling youth to become leaders of tomorrow are progressive moves by the govt. The increase in the Income Tax rebate limit is also a welcoming step in the right direction.”

Parineeta Cecil Lakra, Country People and Culture Manager, IKEA India

“But this is just on a macro level. At the personal level, it’s good to see there’s no rise in taxes. It is also heartening to see that the Government is keen to simplify all these exemptions and complications so that things become more clean, clear and straightforward. People are being slowly pushed towards accepting a new tax regime rather than sticking to the old,” opines Dwarakanath.

“It’s a very smart Budget 2023!! It will incite growth in the economy and manage inflation. The budget has been taken well by the common people, business leaders and the Stock Market.”

Dilip Ranjan Sahoo, SVP & CHRO, Vedanta

Finally, a stable government and good governance leads to a stable economy. When the economy does well, the country does well and so does everyone on the whole, he adds.

“It’s a very smart Budget 2023!! It will incite growth in the economy and manage inflation. The budget has been taken well by the common people, business leaders and the Stock Market,” says Dilip Ranjan Sahoo, SVP & CHRO, Vedanta.

There are incentives for startups in terms of tax exemption, and much more emphasis on research and digitisation. Hence, overall, when we say HR is always focused on people working in various setups, be it startups, corporates, or entrepreneurs. This budget has something for everyone,” concludes Dwarakanath.

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