Union Budget 2024-25: New Internship Scheme for Youth in 500 top companies over 5 years

Finance Minister Nirmala Sitharaman presents the Union Budget 2024-25 today i.e. on 23 July 2024. The focus of this budget is expected to include changes to the income tax structure and initiatives to improve the ease of doing business in India. It is also expected to focus on the growing unemployment in the country.

This budget is the first major economic document of Prime Minister Narendra Modi’s third term in office. This year's Budget envisages sustained efforts on nine priorities: productivity & resilience in agri, employment & skilling, inclusive human resource development & social justice, manufacturing & services, urban dev, energy securities, infra, innovation, R&D, next gen reforms.

Foucusing on the education sector, Finance Minister Nirmala Sitharaman says, "I am happy to announce the Prime Minister's package of 5 schemes and initiatives to facilitate employment, skilling and other opportunities for 4.1 crore youth over 5 years with a central outlay of ₹2 lakh crores. This year we have made a provision of ₹1.48 lakh crores for education, employment and skilling..."

“Govt to provide financial support for loans up to Rs 10 lakhs for higher education in domestic institutions," Finance Minister added.

The govt announced employment-linked skilling through schemes as part of the PM's package. These schemes- Scheme A: First Timers, Scheme B: Job Creation in manufacturing, Scheme C: Support to employers will be based on enrolment in the EPFO.

First-timers will receive one month's wage upon entering the workforce in all formal sectors. A direct benefit transfer (DBT) of one month's salary, up to Rs 15,000, will be provided in three instalments. The eligibility limit for this benefit will be a salary of Rs 1 lakh per month, and it is expected to benefit 2.1 lakh youth.

Addressing unemployment, govt to focus on internship opportunities to one crore youths in 500 top companies across the country in a span of five years. This opportunity will come with an internship allowance of Rs 5000 oer month along with one-time assistance of Rs 6000

With the government’s move for women in the workforce, Finance Minister said, “Increasing the participation of women in the workforce will be a priority. This will be facilitated by setting up hostels and creating partnerships to organise women-specific skilling programs.”