PM Modi calls first national conference of chief secretaries in third term; employment, skilling on agenda | Mint Mediainsights.in

New Delhi: The fourth national conference of chief secretaries, scheduled for November, will prioritize employment, entrepreneurship, skilling creating an enabling ecosystem for services in tier-2 and tier-3 cities, two persons directly involved in the process said.

The apex meeting of the country’s top federal bureaucracy assumes importance against the backdrop of slowing growth and increasing employment concerns.

The meeting, chaired by Prime Minister Narendra Modi, will be the first such conference of his third term. It will help chalk out a playbook for leveraging the potential of India’s young population and driving economic growth in underserved areas.

The date and location of the high-stakes meeting have not yet been decided.

Agenda of the meet

The high-level meeting will also deliberate upon expanding the services sector, and addressing infrastructure deficiencies such as unreliable power supply, inefficient transportation, and poor internet connectivity, among others, in tier-2 and tier-3 cities to push growth in these areas, the first among the two persons mentioned above said.

“The meeting will also seek to find solutions for issues such as limited access to affordable funding and market opportunities,” this person said.

The first conference of chief secretaries was held in June 2022 in Dharamshala, the second in January 2023 in Delhi, and the third was also held in Delhi in December 2023.

These conferences serve as a platform for open dialogue, collaboration, and the exchange of ideas, ensuring that the Centre and states work together effectively to address key national issues and implement policies that benefit the entire country.

“The theme of the fourth such conference is focused on “promoting entrepreneurship, employment, and skilling – leveraging the demographic dividend,” the second person said.

In the Union Budget 2024-25, the government has prioritized employment and skilling as a key focus area. The plan aims to provide skill development training and create employment opportunities for 41 million people over the next five years, with an allocated outlay of ₹2 trillion.

“The government’s focus on skilling, entrepreneurship, and employment is evident in its efforts to tap into the service sector in tier-2 and tier-3 cities. These often-overlooked cities have a substantial population that stands to benefit from skill development programmes tied to employment and entrepreneurial initiatives,” said Suchita Dutta, executive director, Indian Staffing Federation (ISF), a workforce advocacy firm.

“This focus on the service segment in tier-2 and tier-3 cities has the potential to bridge the urban-rural divide and bring about inclusive growth in the country. It also aligns with the government’s goal of making India a skilled and self-reliant nation,” Dutta said.

“With special emphasis on easy access to welfare schemes and quality in service delivery, there will be discussions on agriculture, health, education, electricity, cybersecurity, emerging challenges, and perspectives on AI, among others.” the second person cited above said.

Political experts view this as an opportunity for states to push their demands, especially since the BJP lacks a majority, ensuring the meeting won’t be dominated by a single party.

“The fourth high-level meeting will take place amid changed political dynamics. Unlike the previous three meetings, where states mainly played a listening role, this time they are expected to have a more active say in the discussions,” said Arvind Mohan, a political commentator.

Queries emailed to spokespersons of the Prime Minister’s Office, ministries of commerce and MeitY remained unanswered till press time.

The key focus will be on harnessing the untapped potential of the service sector, which offers significant export opportunities compared to merchandise trade.

This is important because while the labour force in developed countries is expected to shrink by 4%, India’s workforce is projected to grow by 32%, offering a significant opportunity to expand the service sector, according to a concept note submitted by the Ministry of Electronics and IT (MeitY).

As per the MeitY report, the service sector currently employs about 30% of the workforce and contributes 55% to India’s GDP. This sector adds a minimum of 4 million new jobs each year. In the fiscal year 2024, the service sector contributed nearly 40% to the country’s total exports, with most of this contribution—about 73%—coming from the exports of computer services and business services.

According to the World Trade Organization’s (WTO) Statistical Review, India ranks fifth in services exports, following the European Union, United States, United Kingdom, and China.

Currently, India accounts for 6% of global exports of digitally driven services. The growth and employment generated in the services sector are primarily concentrated in tier-1 cities, with Bengaluru, Mumbai/Pune, Delhi NCR, and Hyderabad housing 75% of the 4.5 million IT employees.

While the country’s overall merchandise exports experienced a 3% decline to $437.1 billion in the previous fiscal year (2022-23), services exports increased by 5% to $341.1 billion in 2023-24, up from $325.3 billion in 2022-23, the commerce ministry data showed.