By Rahul Goyal, Managing Director, ADP India and Southeast Asia
“The Union Budget 2026-2027 signals a more coordinated push to strengthen India’s workforce and employment ecosystem spanning future-ready skilling, the scaling of services-led growth, simplified tax administration, and deeper formalisation through social security and labour compliance reforms. Together, these measures point to a more outcomes-driven policymaking, where success will ultimately depend on how effectively intent translates into execution on the ground.
Initiatives such as the education-to-employment standing committee, expanded AVGC and creative technology labs across schools and colleges, and the rollout of AI-enabled tools to support productivity and risk reduction point to a more integrated education-to-work pipeline. Sector-focused skilling initiatives in healthcare, hospitality, and allied services, alongside targeted measures for women-led enterprises and persons with disabilities indicate an effort to widen participation while improving job readiness and quality. Simultaneously, steps to support services-led growth, including a common safe-harbour framework for IT services and incentives for global cloud operations from India, point towards the intent to anchor high-value, globally integrated jobs in the country.
With a clear emphasis on AI-enabled skilling, services-led job creation, and simplified tax administration, the Budget sets the direction for a more productive and inclusive labour market. The real test will be how quickly these initiatives convert into sustainable employment, higher-quality jobs, and greater confidence for both workers and employers navigating an increasingly complex world of work.”
