Nirmala Sitharaman says employability is the main challenge for India's economic growth

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In a recent fireside chat in New York, Union Finance Minister Nirmala Sitharaman addressed the pressing challenges facing the Indian economy, particularly focusing on employability. She pointed out that a significant hurdle is the gap between the skills possessed by graduates and the expectations of employers.

"The biggest challenge that we have is the employability level or the skill set that is so required," she stated, emphasising that while many students graduate with degrees, there is often a disconnect between their qualifications and the skills needed in the job market. The government is actively working to bridge this gap and equip the youth with essential skills, especially in emerging technologies such as artificial intelligence.

Sitharaman highlighted how the digitalisation of the Indian economy has formalised various sectors, allowing more citizens to engage in economic activities. During her talk at the Economic Club of New York, she praised the success of the Unified Payments Interface (UPI), noting the swift transition from plastic cards to QR codes. "The smallest vendor of vegetables or seasonal fruits uses a QR code," she remarked, underscoring how this shift has not only democratized payments but also reduced dependence on cash and enhanced transparency.

The Finance Minister also discussed India's commitment to achieving net zero emissions by 2070, pointing out the country's rapid transition from thermal power to renewable energy sources, particularly solar. India has already exceeded its solar energy targets ahead of schedule, despite not receiving the anticipated USD 100 billion global fund for green energy transitions. Sitharaman noted that the country is investing in solar, wind, and hybrid renewable projects, and is actively pursuing initiatives in green hydrogen production, advanced battery storage, electric mobility, and modular nuclear energy plants.

However, she acknowledged the challenges posed by high transitional costs, especially as natural gas prices soar. Despite these difficulties, Sitharaman expressed confidence that India's efforts would continue to progress, relying on public funding and homegrown solutions rather than foreign technology or investments.

Addressing geopolitical issues, she voiced concerns over rising insurance costs, uncertain shipping routes, and global supply chain disruptions impacting food, fertiliser, and fuel availability. "The geopolitical developments do cause a concern for me," she stated, highlighting the complexities that current global dynamics present for the Indian economy.

According to ANI, Sitharaman's remarks underscore the government's commitment to addressing employability challenges while navigating a rapidly evolving economic landscape.

(With Inputs from ANI)