Gujarat Allocates ₹2,902 Crore for Skills, Jobs & Worker Welfare in Budget

The Gujarat government has allocated ₹2,902 crore in its 2026-27 budget for the Labour, Skill Development and Employment Department. Key initiatives include the Namo Gujarat Skill Mission, upgrades to Industrial Training Institutes, and expanded welfare schemes for workers' meals, housing, and healthcare. The state reports a low unemployment rate of 1.1% and highlights training over 4.27 lakh individuals in the last year. The budget aims to advance the long-term vision of 'Viksit Gujarat 2047' and contribute to national development goals.

Key Points: Gujarat's ₹2,902 Cr Budget for Skills & Labour Welfare

  • ₹226cr for Namo Skill Mission
  • ₹200cr for PM Setu ITI upgrade
  • ₹200cr for Shramik Annapurna meal booths
  • ₹150cr for Shramik Basera worker housing
4 min read

Gujarat govt allocates Rs 2,902 crore for skill development, employment, labour welfare in 2026-27 budget

Gujarat govt allocates ₹2,902 crore for skill development, employment, and labour welfare schemes in 2026-27 budget to boost Viksit Gujarat.

"The budget will play a vital role in realising the vision of 'Viksit Gujarat 2047' - Kunvarji Bavaliya"

Gandhinagar, March 14

Under the leadership of Gujarat Chief Minister Bhupendra Patel and Deputy Chief Minister Harsh Sanghavi, the state government has resolved to strengthen skill development among youth and ensure the comprehensive welfare of workers, the release said.

In line with this commitment, a significant allocation of Rs 2,902 crore has been made for the Labour, Skill Development and Employment Department in the 2026-27 budget, Labour Minister Kunvarji Bavaliya announced on Saturday.

The Gujarat Chief Minister's Office (CMO) stated that while addressing a press conference at the state Legislative Assembly, Bavaliya said the budget will play a vital role in realising the vision of 'Viksit Gujarat 2047' and contributing to Prime Minister Narendra Modi's national goals of 'Viksit Bharat 2047' and Atmanirbhar Bharat.

The Gujarat government has announced several new schemes and budget allocations aimed at strengthening skill development, employment opportunities, and labour welfare across the state.

The release stated that, under the Namo Gujarat Skill and Employment Mission, an allocation of Rs 226 crore has been made to enhance the employability of youth. The PM Setu Scheme has been allocated Rs 200 crore, under which Industrial Training Institutes (ITIs) will be upgraded through a hub-and-spoke model to strengthen the state's skill training infrastructure. In addition, the government has earmarked Rs 40 crore for the Namo Kaushalya Laxmi Scheme, which seeks to encourage female students to pursue courses in ITIs. Under the scheme, female students will receive financial assistance of Rs 15,000 for one-year courses and Rs 24,000 for two-year courses.

The state government has also expanded several labour welfare initiatives. Under the Shramik Annapurna Yojana, Rs 200 crore has been allocated to open 300 new Annapurna booths, where workers will be able to receive meals at Rs 5. A sum of Rs 150 crore has been earmarked for the Shramik Basera Yojana, which aims to provide affordable accommodation for construction workers. Additionally, Rs 160 crore has been allocated to expand the Dhanvantari Arogya Rath programme, enabling the addition of 50 mobile health units to improve healthcare services for workers.

Further, under the accident insurance, in case of death or permanent disability of a construction worker, financial assistance of Rs 3.5 lakh will be provided. Agariya Housing Scheme has earmarked Rs 25 crore to provide housing equipped with solar panels and basic amenities for salt pan workers (Agariyas).

For workers suffering from Silicosis, the government will provide Rs 3 lakh at the time of diagnosis and Rs 4 lakh to the family in case of death.

The department also highlighted several key achievements. Gujarat currently has 559 operational ITIs with a total training capacity of 2,18,516 seats, including 11,448 seats reserved for women, and 15 dedicated ITIs for persons with disabilities. Under the 2025-26 employment drive, 2,60,878 candidates were provided job opportunities through 1,215 job fairs held across the state up to February 2026.

According to a 2023-24 survey, India's unemployment rate stands at 3.2 per cent, while Gujarat's rate is significantly lower at 1.1 per cent. The state has also established six drone pilot training centres approved by the Directorate General of Civil Aviation. More than 600 drone pilots and 1,200 trainees in drone manufacturing have been trained by Kaushalya - The Skill University.

Under the Chief Minister Skill Development Initiative, a total of 4,27,861 trainees received skill training during 2025-26. Industrial growth has also been reflected in the rise in registered factories under the Factories Act, 1948, which increased from 50,017 in March 2025 to 51,033 by February 2026, marking an addition of 1,016 factories within a year.

During 2025, the Directorate of Boilers inspected and certified 8,447 boilers and 339 economisers, while 579 new boilers and 10 economisers were registered. No accidents were reported in certified boilers during the year.

The department also outlined its future targets aimed at strengthening the state's skill development framework. The government has plans to strengthen the skill ecosystem to achieve the long-term goal of Viksit Gujarat 2047. They are also providing skill training to more than 60,000 people over the next 4-5 years.

The press conference was attended by Minister of State for Rural Development Sanjaysinh Mahida, Rural Development Secretary Dhananjay Dwivedi, Labour, Employment and Skill Development Secretary Lochan Sehra, Director of Employment and Training Nitin Sangwan, Labour Commissioner K D Lakhani, and other senior officials.

- ANI

Share this article:

Reader Comments

P
Priya S
The Shramik Annapurna Yojana (₹5 meals) and Shramik Basera Yojana are much-needed welfare measures for our labour force. It shows the government is thinking about the basic dignity of workers. However, the real test will be in the implementation on the ground. I hope these schemes reach the actual beneficiaries without middlemen and corruption.
R
Rohit P
Drone pilot training and manufacturing! That's forward-thinking. Gujarat is rightly preparing its youth for the jobs of the future, not just the present. The hub-and-spoke model for upgrading ITIs is also a smart move to spread quality training infrastructure across the state, not just in big cities.
S
Sarah B
While the budget allocation sounds impressive, I have a respectful criticism. The article mentions training over 4 lakh people last year, but how many of them got *sustainable* employment with proper wages? Skill training is one part, but creating enough quality jobs in the market is another. The focus should be on outcomes, not just output numbers.
K
Karthik V
The support for Agariya (salt pan workers) and silicosis patients shows attention to marginalized sections of the workforce. Providing housing with solar panels is a thoughtful touch. Gujarat's industrial growth, with over 1000 new factories, creates the demand for these skilled workers. It's a holistic approach.
M
Meera T
As a parent, I'm most happy about the financial assistance for girls in ITIs. ₹15,000-24,000 can cover a lot of expenses and encourages families to let their daughters pursue technical education

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50