Budget 2024: Want additional tax breaks or govt contracts? Train your workers

livemint.com:

NEW DELHI : Private companies spending lakhs of rupees on training their employees may receive an additional boost in the upcoming budget to ensure their workers are skilled enough to be among the world's best. The finance ministry is evaluating a proposal to incentivise private companies to train and upgrade the skills of their workers, two officials aware of the development told Mint.

The incentives may include tax benefits, financial assistance, or preference in government contracts to bidders with a higher percentage of skilled and certified workforce, one of them said. The proposals originated from the ministries of labour and employment, and skill development and entrepreneurship, along with government bodies such as the National Productivity Council, the officials said, requesting not to be named.

The plan is to facilitate a collaborative effort between the government and industry to ensure that India’s workforce is future-ready. “Private stakeholders train their workers at their own expense and for their own use, but skilled workers generally don’t stay long and often switch to different companies," the second official said.

“The proposed incentive scheme will not only help in reducing the widening gap in skilled manpower but also create a pool of skilled workers available for their units. Mint reported in May that the government was looking to “create a high-quality skilled workforce for the world", aiming to cater to a projected demand for millions of jobs in developed economies over the next five years.

The finance, labour and skill development ministries did not immediately reply to queries. A 'Global Skill Gap Study' prepared by the National Skill Development Corporation (NSDC) reveals a growing demand for