Economics Presentation

India's Economic
Journey
Progress, Challenges, and the Path Forward
 INTRODUCTION
WHAT IS TRANSITION ECONOMY?
A transition economy refers to a nation that is shifting from a centrally
planned economy to a more market-oriented economic system. This
transformation typically involves moving away from government control over
production, distribution, and pricing of goods and services, allowing for
increased private enterprise, competition, and market mechanisms.
INDIA’S CURRENT ECONOMIC
STRUCTURE
ANALYZING THE GROWTH AND CHALLENGES:

India's current economic structure is characterized by a mixed economy, which combines elements of
both capitalism and socialism. The economy is characterized by a strong private sector that
contributes significantly to growth and innovation, alongside a public sector that includes
government-owned enterprises and services.

Key Features:
1. Agriculture: A significant portion of the population is engaged in agriculture, which still plays a
vital role in the economy, providing employment and food security.
2. Industry: India has a diverse industrial base, including manufacturing, textiles, and technology.
The government is promoting initiatives like "Make in India" to boost manufacturing and attract
foreign investment.
3.Services: The services sector is the largest contributor
to India's GDP, encompassing IT, telecommunications,
finance, and hospitality. India is known globally for its IT
services and business process outsourcing.

4.Startups and Entrepreneurship: India has a thriving

startup ecosystem, with many young entrepreneurs
launching innovative businesses, particularly in
technology and e-commerce.

5.Government Policies: The Indian government

implements various policies to encourage growth, improve
infrastructure, and reduce poverty, including initiatives
like "Digital India" and "Skill India."
ECONOMIC PROGRESS OF INDIA
India's recent economic progress has been marked by a strong recovery and ongoing growth.

GDP Growth:

-India is projected to maintain its position as the fastest-growing major economy with a GDP growth
of 6.8% in fiscal 2025. The economy is expected to cross $5 trillion by 2025 and approach $7 trillion
by 2031, driven by robust consumption, investments, and private sector capital expenditures.

Sectoral Growth:

-Industry: The industrial sector grew by 9.5% in 2023-24, with electronics manufacturing seeing
notable expansion. Pharmaceuticals, chemicals, and automobiles have also gained prominence.

-Services: The services sector, constituting 55% of the economy, continues to thrive with growing
demand for education, healthcare, and finance. AI-driven transformations are influencing future
business services.
ECONOMIC PROGRESS OF INDIA
Exports and Trade: Exports, particularly services,
played a key role in the economic recovery post-
COVID, with projections to reach $1 trillion by 2030.
However, global economic slowdowns may affect this
momentum.

Foreign Investment: India has witnessed increased

foreign direct investment (FDI) inflows, with
cumulative investments reaching $97 billion by
March 2024.

Inflation: Retail inflation stood at 5.08% in mid-

2024, and GST collections reached record highs,
reflecting economic recovery and demand stability.
 01. 02.
DEMOGRAPHIC
DIVIDEND: INDIA’S TECHNOLOGICAL
YOUTHFUL ADVANCEMENTS
POPULATION
India’s
Strengths and
03. Opportunities 04.
EMERGING MIDDLE STRATEGIC GLOBAL
CLASS & CONSUMER POSITIONING
MARKET (GEOPOLITICAL
ROLE)
01. DEMOGRAPHIC 02. TECHNOLOGICAL
DIVIDEND ADVANCEMENTS
Youthful Workforce: Over 50% of India's population is IT Services: India leads globally, with TCS, Infosys, and Wipro
under 30, offering a vast, young workforce driving driving growth, job creation, and GDP contribution.
growth in sectors like IT and manufacturing.
Digital Transformation: 'Digital India' promotes digital
Competitive Edge: The expanding working-age inclusion, connectivity, and literacy, boosting e-commerce,
population strengthens industries reliant on human fintech, and telemedicine.
capital, positioning India as a global leader.
Startup Ecosystem: A thriving hub with investments in AI,
Innovation Potential: A young demographic is blockchain, and renewables, fueling innovation and economic
adaptable to new technologies, making India an ideal growth.
hub for innovation.
Digital India Initiative: Launched in 2015 to enhance online
Leveraging Demographic Dividend: Infosys and TCS infrastructure, it boosted digital payment platforms like
have utilized India's young workforce, creating a Paytm, UPI, and BHIM. UPI now drives over 10 billion monthly
robust tech talent pool through strong training transactions, promoting financial inclusion.
programs.
Bengaluru - India's Silicon Valley: A tech startup hub, home to
Skill India Initiative: Aims to train 400 million people unicorns like Flipkart, Ola, and Byju’s, exemplifying how tech
by 2025, boosting IT, manufacturing, and reducing advancements spur entrepreneurship and economic growth.
unemployment.
03. EMERGING 04. GLOBAL
MARKET POSITIONING
Rising Disposable Income: A growing middle class with Favorable Trade Agreements: India's strategic location
increased purchasing power boosts consumer and luxury and growing economy foster strong trade relations with
goods demand. major economies like the US, Japan, and EU.

Consumer Market Growth: India is set to become a Manufacturing Hub: Many government initiatives aims to
leading global consumer market, opening opportunities position India as a global manufacturing hub by
in retail, automotive, and real estate. incentivizing local and foreign investment, reducing
import dependency, and boosting exports.
Urbanization: Rapid urbanization drives consumption,
improves infrastructure, and supports smart city Geopolitical Influence: India's strategic positioning
development, fueling economic growth. enhances its role in global trade routes and supply
chains, bridging the East and West.
Reliance Jio: Disrupted telecom by offering affordable
internet, driving a digital revolution in e-commerce, 'Make in India' Initiative: Launched in 2014 to establish
entertainment, and fintech. India as a global manufacturing hub, attracting
companies like Apple, Samsung, etc.
E-commerce Growth: Amazon India and Flipkart saw
sales surges, with e-commerce revenue set to hit $100 Strategic Trade Agreements strengthened ties with the
billion by 2025, driven by a growing middle class and US, Japan, and ASEAN, with the India-Japan CEPA
better internet access. boosting Japanese investments in infrastructure and
technology.
 01. 02.
INFRASTRUCTURE
INCOME INEQUALITY
GAPS

Challenges and
Risks to
Economic
03. Growth 04.
ENVIRONMENTAL BUREAUCRACY AND
SUSTAINABILITY REGULATORY
HURDLES
01. INCOME INEQUALITY
02. INFRASTRUCTURE
GAPS
Significant disparities hinder economic
progress, limiting access to education
and healthcare for lower-income groups, Inadequate Infrastructure: India still
which reduces productivity and faces issues in transportation,
participation. energy, and urban facilities, leading
to inefficiencies in logistics and
Urban vs. Rural Divide: Rapid growth in reduced competitiveness.
cities like Bengaluru and Delhi contrasts
with lower income and access to services Logistics Challenges: Poor roads,
in rural areas, leading to potential social ports, and railways hamper economic
unrest and economic imbalance. growth, as highlighted by the World
Bank's Logistics Performance Index.
Unemployment Issues: Despite growth,
India faces unemployment and Power Supply Issues: Frequent
underemployment, with the top 10% outages and inconsistent electricity
holding 57% of national income, in rural areas disrupt business
highlighting the need for targeted rural operations. Initiatives like the
development and social welfare Saubhagya scheme need faster
programs. implementation to meet industrial
demand.
03. ENVIRONMENTAL
SUSTAINABILITY
04. INFRASTRUCTURE
GAPS
Environmental Degradation: Rapid
industrialization and urbanization
Regulatory Challenges: Complex
have harmed public health and quality
regulations and bureaucratic red tape
of life, highlighting the need to
deter investment and slow economic
balance economic growth with
reforms, complicating business
sustainability.
navigation.

Air Pollution: Urban areas like Delhi

Infrastructure Delays: Projects like Navi
face critical air quality issues that
Mumbai airport face delays from
affect public health and productivity.
bureaucratic inefficiencies and land
acquisition issues, undermining growth
Greenhouse Gas Emissions: As a major
and investor confidence.
emitter due to coal reliance, India
faces environmental challenges. The
Ease of Doing Business: Despite ranking
National Solar Mission aims to boost
improvements, excessive paperwork
renewable energy, but stronger
and lengthy approvals persist,
execution is necessary.
especially at the state level.
Streamlining processes is crucial for
attracting foreign investment and
fostering domestic entrepreneurship.
ROLE OF GOVERNMENT IN
ENSURING ECONOMIC
PROSPERITY: INVESTMENTS,
REFORMS, AND INNOVATION
ROLE OF GOVERNMENT
1. Reforms for Efficiency

Key reforms, such as the Goods and Services Tax (GST) and the
Insolvency and Bankruptcy Code (IBC), improved business
efficiency. GST simplified the taxation system by unifying multiple
state and central taxes, reducing the cascading effect of taxes, and
promoting smoother interstate trade. IBC, introduced in 2016,
created a systematic framework to resolve insolvency in a timely
manner, improving credit recovery and reducing the stress in the
banking sector.

2. Banking Sector Reforms

The government undertook a recapitalization of banks, injecting

significant capital to address bad loans and non-performing assets
(NPAs). This strengthened the banking system and improved credit
availability.
3. Infrastructure Development

Programs like Make in India promoted domestic manufacturing,

while Digital India focused on expanding digital infrastructure and
services. Atmanirbhar Bharat (Self-reliant India) aimed at reducing
dependency on imports and encouraging local production across
sectors. Infrastructure investments, including highway
construction, modernization of ports, and public transport systems,
enhanced India’s logistical capacity, boosting overall productivity.

4. Inclusive Growth Initiatives

The government implemented several social programs to promote

inclusive growth. For example, Pradhan Mantri Jan Dhan Yojana
provided banking access to millions of unbanked individuals,
improving financial inclusion.

Ayushman Bharat improved access to healthcare, and initiatives in

education contributed to improving literacy rates and skill
development. These efforts helped lift millions of people out of
poverty.
5. Foreign Exchange Reserves

India significantly increased its foreign exchange reserves, which contributed to greater
economic stability and made the country more resilient to external shocks, such as fluctuations in
oil prices or global financial crises.

6. Collaborative Federalism

The central government worked closely with state governments to ensure regional development.
The emphasis was placed on addressing regional disparities by encouraging state-level reforms,
fostering competition between states through rankings like the Ease of Doing Business, and
distributing resources efficiently.

7. Global Integration

India increased its global economic integration through trade agreements, partnerships, and by
attracting foreign direct investment (FDI). The government also focused on increasing India’s
share in global value chains, with particular attention to the technology and pharmaceutical
sectors.
8. Sustainability and Green Initiatives

The government also prioritized renewable energy

and environmental sustainability. India set
ambitious renewable energy targets, including
significant investments in solar and wind power.
The emphasis on green growth also included
improving waste management, reducing carbon
emissions, and increasing forest cover.

9.Technological Advancements

The government promoted the use of technology to

improve governance and service delivery. This
included the expansion of e-governance platforms,
digital payments through platforms like UPI, and
biometric-based identification systems like
Aadhaar.
INDIAS GROWING ROLE IN THE
ECONOMY
India has built strong protections, or "buffers," to guard against
global economic problems, like geopolitical tensions or trade
disputes.
Buffers could be:
- foreign exchange reserves (money a country holds in foreign
currencies)
-A low current account deficit (A measure of how much a country
owns the rest of the world). These help protect the economy from
global risks.
1. India’s Strong Buffers:
India’s current account deficit has dropped (from 2% to 0.7%
of GPD - it imports less than before and owes less to other
countries.
India has over US$650 billion in foreign reserves, which helps
stabilize the economy and ensures India can pay for imports
even if there are global problems.
2. Fiscal Consolidation: The government is also reducing its debt,
which adds to the country's financial strength.
3. Why It Matters: These protections make India more resilient to
global issues, so the economy can handle tough times better than
many other countries.
India has reduced its debts, large reserves of foreign money, and
is managing its finances well to protect against global challenges.
BUDGET 2024 HIGHLIGHTS
Focus on Economic Growth-The budget aims
for a GDP growth rate of 6.3% in the fiscal year
2024. This projection reflects confidence in
the country's economic recovery and resilience
against global challenges.

Tax Reforms-The income tax slabs were

revised, increasing the standard deduction
from ₹50,000 to ₹75,000. The new income tax
rates aim to provide relief to the middle class.

Fiscal Deficit-The fiscal deficit target is set at

5.9% of GDP, down from 6.4% in the previous
year. This reduction signifies the government’s
commitment to fiscal discipline and reducing
public debt.
Employment Generation-A substantial allocation of ₹2
lakh crore is earmarked for job creation, focusing on new
employment linked to various sectors, particularly
manufacturing and services.

Infrastructure Development-The government allocated

₹11.11 lakh crore for capital expenditure, emphasizing
infrastructure development across various sectors, which
is expected to create jobs and stimulate economic growth.

Support for Agriculture-A focus on transitioning 1 crore

farmers to natural farming methods is planned, alongside
an allocation of ₹1.52 lakh crore for agricultural
initiatives.

Start-Up Ecosystem Support-The controversial angel tax

on investments in start-ups has been abolished, promoting
investment in the start-up ecosystem.
WILL INDIA’S ECONOMY
FLOURISH OR STAGNATE?
ANALYZING THE GROWTH AND CHALLENGES:

Reasons for Optimism

1. Strong Economic Growth and Global Standing:

India’s economy is currently outpacing other major economies in growth. It has become the
fifth-largest economy, surpassing the UK, and is projected to surpass Japan and Germany by
2027.

Major accomplishments like hosting the G20, becoming the first country to land a rocket near
the Moon’s south pole, and fostering dozens of unicorn companies indicate that India is
positioning itself as a global player.

India’s large and growing middle class, bolstered by rising stock markets, contributes to
consumer spending, which fuels further economic growth.
2. Digital Revolution and Financial Inclusion:

India’s push for digital governance has

transformed the way Indians access and
manage money, especially in remote areas.
The introduction of digital payments and the
linking of bank accounts have reduced
corruption, made financial transactions
easier, and saved a significant amount of
money for the government.

The move towards a digital economy has

enhanced the delivery of social subsidies
and infrastructure spending without
incurring high deficits, a unique advantage
in improving public welfare without
destabilizing finances.
3. Reforms and Policy Improvements:

The Indian government has implemented various reforms, such as the Goods and Services Tax
(GST), to simplify the tax structure and improve business ease. Land and labor reforms could
further unlock growth potential.

Foreign Direct Investment (FDI): India is one of the top destinations for FDI, especially in sectors
like technology, manufacturing, and energy. Strong FDI inflows can fuel long-term growth by
providing capital and expertise.

4. Infrastructure Development:

Massive infrastructure projects, such as the construction of highways, airports, and metros, signal
a long-term commitment to modernizing the country’s infrastructure. These investments are
expected to yield long-term dividends, attracting more foreign investment and boosting domestic
production capacity.
5. Potential to Mirror China’s Growth Path:

Some analysts compare India’s current

trajectory to China’s hyper-growth phase in the
early 2000s. With its young demographic,
geopolitical advantage (as countries diversify
away from China), and the clean-up of
problematic sectors like real estate, India is
being primed for future growth.
WILL INDIA’S ECONOMY
FLOURISH OR STAGNATE?
Challenges and Potential Stagnation:

1. Uneven Distribution of Economic Growth:

While India is making significant strides, the growth has not been
inclusive. The economic gains are mostly benefiting the wealthy
and urban middle class, while large portions of the population,
especially in rural areas, are still struggling.

Despite being the fifth-largest economy overall, India ranks

140th in terms of per capita income, highlighting significant
income inequality. Research also suggests that inequality is at
its highest in a century, reflecting a K-shaped recovery where the
rich have thrived while the poor remain stagnant or worse off.
2. Manufacturing and Job Creation Failures:

Modi's "Make in India" initiative has not met its

objectives. While some companies have shifted
production to India as part of a "China plus
one" strategy, manufacturing's share of GDP
has remained stagnant over the last decade.

The lack of large-scale industrial growth

hampers India's economic expansion, with
nearly half of the population still dependent on
agriculture, which is becoming less profitable.

Job creation remains a critical problem. Despite

initiatives, unemployment is still high,
particularly among educated youth. This failure
to generate enough jobs risks squandering
India's demographic dividend, a key factor that
could otherwise drive future growth.
3. Underfunding of Education and Healthcare:

While India is improving its physical infrastructure, its human capital is lagging. Education and
healthcare remain underfunded, and COVID-19 further exacerbated the situation. Poor learning
outcomes among children and a lack of investment in building future-ready human capital (critical in an
AI-driven world) could be a long-term stumbling block for sustainable growth.

India’s ability to compete on a global scale, particularly in tech, innovation, and advanced manufacturing,
depends on how well it can develop and educate its younger generations.

4. Private Investment and Consumption Slowdown:

Private investment as a proportion of GDP has decreased significantly, from 27.5% in 2007-08 to 19.6%
in 2020-21, indicating that the private sector is still wary of committing to India’s growth story.

Consumer spending, which is a key driver of growth, has also been sluggish, growing at the slowest rate
in 20 years. Household debt is at an all-time high, and savings rates are at their lowest. This signals that
much of India’s population is feeling financially strained, limiting their ability to contribute to economic
growth through spending.
5. Environmental Challenges
India faces significant environmental challenges, including air pollution, water scarcity, and vulnerability to
climate change. Environmental degradation could hurt agricultural productivity and public health, reducing
economic output.

India’s reliance on fossil fuels, particularly imported oil, makes it vulnerable to price fluctuations and could
hinder long-term sustainable growth unless renewable energy initiatives are accelerated.

6. Fiscal Deficits and Public Debt

India’s fiscal deficit remains high due to large public spending commitments, especially on subsidies and
welfare programs. Managing this deficit without cutting essential infrastructure or development spending is a
delicate balancing act.

7. Geopolitical Risks and Global Slowdowns

Geopolitical Tensions: India is situated in a complex geopolitical region with challenges from neighboring
countries, particularly China and Pakistan. Border tensions or geopolitical instability could disrupt trade and
investment flows.
 India’s Economic Potential and Challenges:
Path to Flourishing:
India stands at a pivotal moment in its
economic journey, with several factors Despite these challenges, India’s
CONCLUSION
poised to propel it into becoming a global economy is well-positioned to flourish.
economic powerhouse.
The country’s impressive growth rates,
Favourable demographics, digital
rapid digital transformation, and
advancements, major infrastructure
improvements, and shifting geopolitical infrastructure development provide a
dynamics are laying a strong foundation. solid base for future expansion.
However, key challenges remain.
By focusing on more inclusive growth,
Unresolved issues such as insufficient job strengthening human capital, and
creation, stagnation in the manufacturing encouraging private investment and
sector, rising inequality, and industrial expansion, India can turn
underinvestment in human capital threaten these opportunities into lasting sucess.
to limit India’s ability to fully capitalize on
its economic potential. Addressing these
With continued strategic efforts, India
gaps is crucial for sustaining long-term
growth. is on track to realise its ambitious goal
of becoming a developed nation by
2047, fulfilling the vision of a “Viksit
Bharat.”
POLICY REFORMS FOR THE
UPCOMING FINANCIAL BUDGET
As the Finance Minister, the focus is to ensure balanced
economic growth by addressing three key pillars:

1) Taxation
2) Employment
3) Exports

Together, these reforms will foster sustainable growth,

enhance job creation, and position India as a global economic
leader.
INCREASE IN CONSUMPTION
BASED TAX
An Increase in consumption based tax and reduction in income tax increased taxes on luxury
consumption while lowering the tax burden on income, especially for low to middle-income earners.

Introduce higher taxes on luxury goods, high-end services, and non-essential imports, while
keeping essentials (food, medicines) taxed at lower rates

India has a small income tax base (about 5% of the population), increasing the burden on limited
taxpayers.

A consumption tax-based model/economy increases the bracket of tax payers according to what
they consume, thus broadening the tax base
Implementation:

Gradual shift in income tax relief for low and middle-income earners, reducing their direct tax
burdens
5% Increase in Consumption based tax on Luxury goods (moderate to increase revenue without
being overly burdensome on consumers)

5% Reduction in Income Tax for below the 15 Lakh earning bracket Per Annum. (significant enough
to increase disposable income, and not so large to cause a drastic drop in overall tax revenue)
Benefits :

1. Broadening the Tax Base :

5-6% of the population pay income tax, placing a disproportionate burden on a small number of
individuals.

Consumption based Tax will capture tax revenue from a broader section, including informal
economy who do not earn taxable incomes

2. Reducing Tax Burden :

The burden falls on Middle/high income earners, leaving a large portion of the population

Lowering income Tax, increases Disposable income, leading to greater economic growth
3. Reduce Evasion and Infirmity

Underreporting of income (informal economy)

4. Increased Fairness

Contribution based on Consumption

Aligns taxation with lifestyle and spending patterns

5. Boosting Economic Activity

Stimulating Domestic Demand, thus, capturing more revenue from high spenders while
stimulating overall demand among lower income groups.

Increase in Disposable income, leading to increase in consumption, and thereby, domestic

demand.
EXPORT POLICY FOR SMALL
AND MEDIUM SIZED
ENTERPRISES
Objective:
To foster the growth of small and medium-sized enterprises (SMEs) in India by encouraging the
export of innovative products to niche international markets, thereby accelerating economic growth
and diversification of the export basket.

How It Works?

Establishment of Innovation Hubs:

The government will establish a fund to create innovation hubs across key districts, focusing on
high-potential export products.
Each hub will specialize in a specific sector (e.g., textiles, electronics, organic products, artisanal
crafts), allowing SMEs to tap into specialized knowledge and resources tailored to their export
needs.
The hubs will provide:
R&D Support: Access to technical expertise and resources for product innovation.
Market Studies: Research to identify potential international markets and trends.
Logistical Assistance: Guidance on supply chain management and export procedures.

Financial Incentives/Grants:

To stimulate growth and innovation, the policy will include various financial grants:

Direct Financial Subsidies: For example, if a company achieves a 10% increase in exports, it will
receive a 5% subsidy on the additional export revenue.

Tax Rebates or Concessions: If a company increases exports by 15% year-over-year, it may

receive a 10% rebate on import duties for raw materials used in production, effectively lowering
costs.

R&D Grants: Financial support for SMEs that engage in research and development activities,
potentially covering up to 30% of R&D costs.

Matching Grants: For every rupee invested by private sector exporters, the government could
match it with an equal amount, incentivizing collaboration.
Targeted Export Growth Grants:

The government will offer grants to businesses that demonstrate the capacity to innovate and
find new markets, especially targeting underexplored regions like Africa, South America, and
Central Asia. For example, a company successfully entering a new market could receive a grant
equal to 20% of the new revenue generated from that market.

Benefits:

Fosters Innovation: Provides resources and expertise to help SMEs create competitive products.
Diversifies Exports: Focuses on niche markets, reducing dependence on traditional exports.
Strengthens Local Economies: Supports regional industries, promoting development and job
creation.
Enhances Competitiveness: Equips SMEs to compete globally, driving economic growth.

Conclusion: This export policy uniquely targets small and medium-sized enterprises (SMEs) and
emphasizes innovation in niche markets. Unlike existing policies focused on traditional exports, it
promotes diversification and equips SMEs with specialized hubs for R&D, market insights, and
logistical support. By fostering innovation and enhancing regional development, this policy aims to
boost export growth and strengthen India’s competitiveness in the global market.
SKILL BASED EMPLOYMENT
QUOTA AND CREDIT SYSTEM
Incentivizes businesses to hire individuals based on their skill sets and qualifications. Companies
would receive credits for employing degree-holders and certified professionals, especially in sectors
with significant employment gaps (IT, Engineering, healthcare)

Credit Allocation and skill recognition

Companies are given credits for hiring individuals with relevant qualifications that match industry
demands

The higher the number of degrees or skills an employee possesses, the more credits the company
earns. This helps companies favor employees who are not only degree-holders but also multi-
skilled
Financial Incentives for Hiring: tax deductions or credits, reducing their financial burden.

Rewarding Skill Development: Companies can further invest in upskilling their employees,
knowing they will be rewarded through tax benefits and credits. This encourages continuous
professional development, improving overall productivity and innovation.
SKILL BASED EMPLOYMENT
QUOTA AND CREDIT SYSTEM
Implementation:
Establishing a credit system : Framework to track and manage credits (online platform)
Cross Industry Trading :
-Allowing businesses to trade credits across industries
-Fosters collaboration and investment in training programs
-For instance, companies that have exceeded the hiring quota in a sector, can sell their credits to
another and offer to assist with training programs for current employees.

Benefits:
Aligning skills with market needs:
- Enhanced Workforce Competitiveness, directly addresses skill gaps in high-demand sectors like IT,
engineering, and healthcare. Companies will prioritize employees whose qualifications match current
market demands, creating a more competitive and skilled workforce.
-This leads to better alignment between industry needs and the skills available in the market.
 Tax Benefits for companies

-Financial Incentives for Hiring: tax deductions or credits, reducing their financial burden
.
-Rewarding Skill Development: Companies can further invest in upskilling their employees,
knowing they will be rewarded through tax benefits and credits. This encourages
continuous professional development, improving overall productivity and innovation.

Reduced Skilled Unemployment

-Filling Employment Gaps: Helps reduce skilled unemployment by channeling labor to

sectors where there is a demand for highly trained individuals.
Thank you
very much!