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

New Delhi: The fourth national conference of chief secretaries, scheduled for November, will prioritise employment, entrepreneurship and capacity building for an enabling ecosystem for services in second- and third-tier cities, said two people directly involved in the process.

The summit meeting of the country’s top federal bureaucracy takes on significance amid slowing growth and growing concerns about jobs.

The meeting, chaired by Prime Minister Narendra Modi, will be the first such conference of his third term and will help chart out an action plan to harness the potential of India’s youth population and boost economic growth in underserved areas.

The date and place of the important meeting have not yet been decided.

Agenda of the meeting

The high-level meeting will also deliberate on expanding the services sector and addressing infrastructure shortcomings such as unreliable power supply, inefficient transportation and poor internet connectivity, among others, in second- and third-tier cities to boost growth in these areas, the first of the two people mentioned above said.

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

The first Chief Secretaries Conference 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 exchange of ideas, ensuring that the Centre and the 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 ‘promoting entrepreneurship, employment and training, taking advantage of the demographic dividend,'” the second person said.

In the Union Budget 2024-25, the government has prioritised employment and training as a key focus area. The scheme 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 billion.

“The government’s focus on skills training, entrepreneurship and employment is evident in its efforts to tap the service sector in second- and third-tier cities. These often overlooked cities have a substantial population that would benefit from employment-linked skill development programmes and entrepreneurship initiatives,” said Suchita Dutta, CEO of Indian Staffing Federation (ISF), a workforce advocacy firm.

“This focus on the services segment in tier two and tier three cities has the potential to bridge the gap between urban and rural areas and bring about inclusive growth in the country. It is also in line with the government’s objective of making India an empowered 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,” said the second person cited above.

Political pundits see this as an opportunity for states to push their demands, especially since the BJP lacks a majority, ensuring that the meeting will not be dominated by a single party.

“The fourth high-level meeting will be held against a backdrop of changing political dynamics. Unlike the previous three meetings, where states played mostly a listening role, this time they are expected to take a more active role in the discussions,” said Arvind Mohan, a political commentator.

Emailed queries to spokespersons of the Prime Minister’s Office, Commerce Ministries and MeitY remained unanswered till the time of going to press.

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

This is important because while the workforce 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 services sector, according to a concept note submitted by the Ministry of Electronics and IT (MeitY).

According to the MeitY report, the services sector currently employs around 30% of the workforce and contributes 55% to India’s GDP. This sector adds a minimum of 4 million new jobs every year. In FY2024, the services sector contributed nearly 40% of the country’s total exports, with the bulk of this contribution, around 73%, coming from IT and business services exports.

According to the statistical analysis of the World Trade Organization (WTO), India ranks fifth in services exports, after the European Union, the United States, the United Kingdom and China.

India currently accounts for 6% of global digital services exports. Growth and employment generated in the services sector are concentrated mainly in Tier 1 cities, where Bengaluru, Mumbai/Pune, Delhi NCR and Hyderabad are home to 75% of the 4.5 million IT employees.

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