The extensive skill mismatch, along with the limited adoption of technical and vocational education, has exacerbated the issue
- Social Safety Net: It provides a crucial buffer for the unemployed and underemployed, particularly in urban and semi-urban areas, mitigating distress and poverty.
- Demand Stimulation: By putting money directly into the hands of people, it can boost consumption and revive local economies, creating a virtuous cycle of demand.
- Skill Development: If designed well, the scheme can be linked to skilling and reskilling initiatives, preparing the workforce for emerging job roles.
- Fiscal Burden: A large-scale, state-funded scheme puts immense pressure on public finances, potentially crowding out essential capital expenditure in infrastructure and other productive assets.
- Market Distortion: It does not create sustainable, market-driven jobs. It risks creating a dependency on state support rather than fostering a dynamic job market.
- Addresses Symptoms, Not Causes: It tackles the problem of joblessness but fails to address the root causes, such as rigid labour markets, a weak manufacturing base, and a mismatch between skills and industry demand.
- Modernising Curricula: Integrating vocational training, digital literacy, and critical thinking skills from the school level.
- Strengthening Apprenticeships: Expanding and promoting schemes like the National Apprenticeship Promotion Scheme (NAPS) to provide on-the-job training and bridge the skill gap.
- Industry-Academia Collaboration: Creating a dynamic partnership to ensure that training programmes are aligned with current and future industry requirements, including in sunrise sectors like AI, green energy, and advanced manufacturing.
