New Delhi, Jan 9 (NationPress) The Indian economy is thriving, projected to grow by 7.5 percent or more this fiscal year, with job creation accelerating. Thus, the Budget for 2026-27 must emphasize jobs, jobs, and jobs, asserts business leader and former Infosys board member TV Mohandas Pai.

In a conversation with IANS, Pai highlighted that 1.2 to 1.4 crore new individuals are enrolling in the EPFO, contributing funds via Aadhaar. He urged, "Do not heed the narratives from certain leftist groups claiming there are no jobs. Employment is indeed being generated," he stated.

He lamented that India is facing a youth bulge, with approximately 50 crore children born between 1990 and 2010 now entering the workforce. Every year, 2.5 crore youth are entering the job market, the majority of whom are seeking employment.

Pai noted that while around 1.82 crore people desire jobs annually, 80 percent of these positions offer salaries below Rs 20,000. Therefore, it is crucial to foster high-paying jobs, particularly in urban settings.

He strongly advocated for expanding the Kaushal scheme, initiated by the government to incentivize the private sector in generating more employment.

"Initially, designate 350 impoverished districts as special employment zones (SEZ). Offer an incentive of Rs 2,000 per month for 24 months for each employee created there, provided the employer contributes to ESI and PF," he proposed.

Pai argued that this would help cover the expenses of hiring and training workers locally, as rural hires often require significant training.

"While there may be claims of existing skills, the reality often differs. Additionally, the government should cover the ESI and PF contributions for these employees for two years, as already outlined in the Kaushal scheme. This will significantly enhance job creation in the country's 350 poorest districts," he noted.

He further emphasized the necessity of investing in infrastructure across 5,000 smaller towns throughout India, which would encourage the establishment of small industries. As the quality of life improves in these towns, urbanization will naturally rise.

"Job opportunities will emerge in these smaller cities. Moreover, as we won't have an excess supply of labor in larger cities, wages will increase across the board," Pai asserted.

He also urged the government to select the top 10 cities in India and allocate Rs 5,000 to 10,000 crore annually for the next five years to enhance roads, sewage systems, water supply, and air quality.

Pai pointed out that the country's banking sector is robust, and investment is on the rise, with next year's GDP growth expected to be between 6.5 and 7 percent, despite global uncertainties.

This year, investments are projected to reach Rs 95 lakh crore, translating to over a trillion dollars.

On the subject of the IT sector, Pai mentioned that RBI regulations need to be relaxed to propel the sector to a valuation of Rs 10 trillion, and emphasized the necessity for funding for startups.

"In the past 11 years, India's startups have attracted $160 billion in funding, compared to $845 billion in China and $2.35 trillion in the United States. We require additional funding. A Rs 1 lakh crore fund for R&D has been established in both public and private sectors, but it's primarily managed by government officials," he observed.

Pai noted that the startup fund initiated in 2015 has been effective due to the Rs 10,000 crore capital.

"It is crucial for the government to execute this correctly. Funding is essential for IT startups and deep technology, and I remain hopeful. Why can’t we allocate Rs 50,000 crore annually for innovation? China invested $150 billion in AI over the past seven years and $300 billion in EVs over the past decade, achieving global dominance," Pai pointed out.

"We currently have an Rs 11,000 to 12,000 crore AI fund, but it is being distributed among numerous smaller companies. The pace of global advancement is swift. We should allocate Rs 40,000 to 50,000 crore for startups, allowing venture capitalists to manage it and foster innovation," he concluded.