Finance Minister announced the Prime Minister’s package of 5 schemes and initiatives to facilitate employment, skilling and other opportunities for 4.1 crore youth over a 5-year period with a central outlay of ₹2 lakh crore
Minister of Finance and Corporate Affairs, Nirmala Sitharaman, presented the Union Budget 2024-25 in Parliament today (July 23). The Finance Minister said that as mentioned in the interim budget, the focus is on 4 major castes, namely ‘Garib’ (Poor), ‘Mahilayen’ (Women), ‘Yuva’ (Youth) and ‘Annadata’ (Farmer).
Sitharaman said, turning attention to the full year and beyond, in this budget, we particularly focus on employment, skilling, MSMEs, and the middle class. She announced the Prime Minister’s package of 5 schemes and initiatives to facilitate employment, skilling and other opportunities for 4.1 crore youth over a 5-year period with a central outlay of ₹2 lakh crore. This year, ₹1.48 lakh crore has been allocated for education, employment and skilling.
As part of the Prime Minister’s package, 3 schemes for ‘Employment Linked Incentive’ to be implemented – Scheme A – First Timers; Scheme B – Job Creation in manufacturing; Scheme C – Support to employers.
Referring to the Skilling programme, the Finance Minister announced a new centrally sponsored scheme, as the 4th scheme under the Prime Minister’s package, for skilling in collaboration with state governments and Industry. 20 lakh youth will be skilled over a 5-year period and 1,000 Industrial Training Institutes will be upgraded in hub and spoke arrangements with outcome orientation.
She also announced that the Model Skill Loan Scheme will be revised to facilitate loans up to
₹7.5 lakh with a guarantee from a government promoted Fund, which is expected to help 25,000 students every year.
For helping the youth, who have not been eligible for any benefit under government schemes and policies, she announced a financial support for loans upto ₹10 lakh for higher education in domestic institutions. E-vouchers for this purpose will be given directly to 1 lakh students every year for annual interest subvention of 3 per cent of the loan amount.
Talking about the Saturation approach, the Finance Minister emphasised that implementation of schemes meant for supporting economic activities by craftsmen, artisans, self-help groups, scheduled caste, schedule tribe and women entrepreneurs, and street vendors, such as PM Vishwakarma, PM SVANidhi, National Livelihood Missions, and Stand-Up India will be stepped up.
The Finance Minister said that government will operationalize the Anusandhan National Research Fund for basic research and prototype development and set up a mechanism for spurring private sector-driven research and innovation at commercial scale with a financing pool of ₹1 lakh crore in line with the announcement in the interim budget.
The Government will launch a comprehensive scheme for providing internship opportunities in top companies. This will be the 5th scheme under the Prime Minister’s package.
While presenting the Union Budget 2024-25, the Union Finance Minister, Smt. Nirmala Sitharaman announced that the scheme will provide internship opportunities in 500 top companies to 1 crore youth in 5 years. They will gain exposure for 12 months to real-life business environment, varied professions and employment opportunities, she said.
To facilitate higher participation of women in the workforce, the Budget has proposed working women hostels and crèches to be established with industrial collaboration, women-specific skilling programmes to be organized and market access for women SHG enterprises to be promoted.
In his budget reaction, Union Education Minister, Dharmendra Pradhan wrote on social media platform X: “Prioritising education, skilling, employment generation, research and innovation like never before, #BudgetForViksitBharat paves the way for strengthening Bharat’s credentials as the talent basket, skill hub and solution provider for the world. This budget will further facilitate ease-of-living, boost socio-economic conditions, fuel green growth, strengthen social justice, improve business climate, realise dreams, bring prosperity in every home and accelerate the groundwork to achieve the next phase of economic growth.”
“Budget 2024-25 will boost StartUps and the StartUp ecosystem through bold and innovative proposals like ending “Angel Tax” and introducing paid Internship,” said the Union Minister for Science & Technology Dr Jitendra Singh on the budget.
Expert, Academica & Industry leadership Reactions: Overall Budget 2024-25 hailed as forward-thinking but reforms not addressed
The Budget 2024-25 on education initiatives reflects a strategic shift towards employability-focused learning. The introduction of employment-linked incentives stands out. By incentivizing first-time hires and supporting employers, the focus is moving from supply-side to demand-side interventions in education feels Dr. Monika Soni Assistant Professor, JK Lakshmipat University. The budget is a game-changer for India’s industrial sector, delivering a powerful focus on skill development and job creation. With an allocation of Rs 1.48 lakh crore aimed at skilling 20 lakh youth over five years and upgrading 1,000 industrial training institutes, the initiative is poised to address the sector’s pressing need for a highly skilled workforce.
Upgrading 1,000 ITIs and introducing extensive internship programs demonstrate an understanding that our traditional academic model is not fully aligning with industry requirements. The provision of financial support for higher education loans is a commendable move, as it will alleviate financial pressures on students and their families, thereby encouraging more young people to pursue higher education. “Nevertheless, there are concerns about execution, particularly in coordinating large-scale internship programs with industry. The success of these initiatives will depend on how well we can bridge the gap between classroom learning and workplace demands. This is an ambitious plan, but if implemented effectively, it could profoundly transform our educational landscape,” adds Dr Soni.
“The introduction of a one-time wage incentive for first-time employees, delivered through Direct Benefit Transfer (DBT), is set to boost formal employment by making it more attractive for industries to hire and train new talent. Additionally, the launch of internship programs in 500 companies, providing real-life exposure and a monthly allowance of Rs 5000, will create direct pathways to employment for young professionals. Companies will benefit from these programs through reduced recruitment and training costs, with 10 percent of the training expenses covered by CSR funds,” says Dhriti Prasanna Mahanta, Vice President & Business Head, TeamLease Degree Apprenticeship.
The budget has introduced e-vouchers for Education loans to increase GER in Higher Education which presently stands at 28%. As only 4.4% of youths in age group 15-29 years have received formal training, the Budget has introduced Revised Model Skill loan scheme to improve skill sets of youths according to Abhishek Gupta, CEO, Rau’s IAS Study Circle.
At the same time, expectations towards massive reform in education remain unfulfilled. Given the very high expectations towards massive reform in education, the budget presented by the Finance Minister is a bit disappointing overall as per Vinesh Menon, Co-Chair, CII National Education Committee & CEO, AMPERSAND Group. When analyzed into specific areas of intervention, the budget shows not enough is there. For example, research & innovation needs a much higher allocation than 355 Cr for tech enabled last mile delivery of education to the masses. There is no mention of the much talked about PM SHRI model schools or the allocation for the implementation of the NEP which on paper is supposed to be a game charger for school & higher education. “I maintain that while this budget seems to have allocated the highest ever rupee value for education, given that the country’s education system is in an ICU stage, the emphasis must be on increasing the budget to at least 4 to 5% of the GDP and simultaneously lay a road map on specific usage of this budget to make an impact to the diversity of the education ecosystem covering private schools, public schools, Open Schooling, technology, the attrition concerns beyond 9th grade in govt schools, the teacher student imbalance in ratio, etc.,” says Vinesh Menon.
“The provision of financial support of loans up to ₹10 lakh for higher education in domestic institutions and the introduction of e-vouchers for interest subvention will significantly alleviate the financial burden on students, enabling them to pursue their academic goals. Furthermore, the ambitious plan to skill one crore youth in collaboration with India’s top companies and the Prime Minister’s Internship initiative are commendable steps towards enhancing employability and bridging the skills gap. These measures are poised to empower our youth, fostering a more inclusive and prosperous society,” opines Prof. Fr. (Dr.) K S Casimir, Director, XLRI Delhi-NCR.
Skilling landscape has undergone a major transformation in the country in the past ten years. Ambitious targets of skilling have been set by the governments since then, at both Centre and state level. The actual results on ground remain far from the targets. A big reason for this status, according to Ajay Khanna, Chairman, PHDCCI Committee on Skill Development, is the Government’s insistence on jobs at the end of skilling. Training providers baulk away from committing big numbers for fear of not being able to provide placements to all trained candidates. “The way forward is delinking of skilling with jobs and more focus on entrepreneurship and self-employment. PHDCCI stands committed to working with the Government in strengthening the skill ecosystem in the country,” he suggests.
Prof. (Dr.) Madhu Veeraraghavan, Pro VC, MAHE is of the view that Public Sector Units (PSUs) are the single biggest repositories of industrial skills and their divestment could have been strategically used to fund skill development clusters in emerging sectors such as Fintech, Logistics, Textiles, and Defence Production. Additionally, lenders to students possess critical insights into the employability of their borrowers and could be incentivized to align education and skills training with industry needs, enhancing efficiencies. “Domestic educational institutions would benefit from increased lending ceilings for local education, while creating more opportunities for the return of talent educated abroad could prevent dis-incentivization of such loans. States, having the best scope to create jobs, should be given GST incentives to invest in education and skills, particularly in regional languages,” he adds.
More Reactions:
“The announcement to offer internship opportunities to 1 crore students at 500 top companies over the next five years is a welcome move to foster industry-academia collaboration and produce industry-ready professionals. The decision will facilitate B Schools to forge ties with industry leaders, design a more targeted curriculum and align academic programs with existing industry trends and demands.” – Dr. Prabhat Pankaj, Director, Jaipuria Institute of Management, Jaipur
“The Union Budget 2024’s focus on women’s workforce participation is commendable. Establishing hostels and women-specific skilling programs, alongside promoting internships in top companies, shows a strong commitment to gender equality. The provision of a ₹5,000 internship allowance and ₹6,000 one-time assistance, along with skilling 20 lakh youth over five years, will significantly boost opportunities. These measures, coupled with enhanced educational support, will empower women and youth, driving India’s economic and social progress forward.” Rashmi Mittal, Pro Chancellor, LPU
” The government has come forward with a scheme of providing loan assistance of up to ₹10 lakh for higher education in a domestic institution, therefore making the access to an MBA program easier and more accessible to a larger range of talent who dream of pursuing it. The most promising thing for MBA colleges is the introduction of a centrally funded scheme to train 20 lakh youth in five years in association with state governments and companies. This shall ensure that our students acquire industry-relevant skills to fill the gap between academia and professional practice.” – Dr Srinivasan.K, Director -MBA ESG India
“The focus areas of budget are very much in line with the FICCI’s key priorities for the industry and we are happy to note that many of FICCI’s suggestions have been considered in this budget, as seen in the proposals for accelerating agriculture research, enhancing participation of women workforce in manufacturing, factor market reforms for improving manufacturing competitiveness as well as measures to promote green economy,” Dr Anish Shah, President, FICCI .
“The scheme for skilling students, in collaboration with State Governments and the Private Sector will help in making them industry-ready. . It is to be seen as to how the Finance Minister would ensure that the industry responds positively by allocating resources from their CSR funds,” – Prof. Dr. M.S. Moodithaya, Vice Chancellor, NITTE Deemed to be University
“The proposal outlined by the finance minister, such as simplifying the FDI rules, facilitating term loans for MSMEs, and abolishing angel tax will boost domestic and startup industries in the country. The budget’s focus on increasing the participation of women in the workforce is also a very welcome measure. Initiatives aimed at skilling and upskilling women, as well as providing support for women entrepreneurs, are expected to enhance economic growth and social development.”- CA. Ranjeet Kumar Agarwal, President of ICAI
” E-vouchers will be given to 1 lakh students with interest subvention of 3 per cent of the loan amount from the government. We are hopeful that public expenditure on education will rise towards 6% in years to come.’ Shreevats Jaipuria, Chairman, Education Committee, PHDCCI.
“Higher education has a crucial role in executing these next-generation initiatives. EdTech platforms, in particular, have proven to be key differentiators in democratising education through innovative and cutting-edge technology. They are significantly upskilling Indian youth to enhance employability and contribute to executive learning, thereby creating a substantial upskilled workforce to power the economy and we look forward to Edtech’s continued participation in India’s growth narrative.” –Anish Srikrishna, CEO, TimesPro
“The 2024 Union Budget has taken bold steps to boost the economy and promote growth across various sectors. However, to fully realize AI’s potential and ensure India captures a larger share of global AI investments, a more focused approach is necessary. Further emphasis on R&D grants and tax credits is essential. These steps will catalyze the development of cutting-edge solutions and significantly impact employment by creating millions of new jobs and transforming existing roles. While the government’s initiatives are a step in the right direction, a concentrated effort on AI will ensure India not only keeps pace with global advancements but also becomes a frontrunner in the AI and analytics space. It is now imperative for the government, universities, and corporates to collaborate and leverage these initiatives to drive sustained economic growth and innovation.”- Pratap Daruka – Chief Financial Officer, Tredence
“The Union Budget 2024 stresses the critical importance of holistic development and higher education in driving inclusive and sustainable growth. There is a clear focus on empowering women through skilling programmes, increased workforce participation, and collaborative industry initiatives. The introduction of E-vouchers for higher education loans is a transformative step towards ensuring equal access to quality education. We remain committed to partnering the Government and working together to create opportunities that enable and empower all young people to thrive and contribute significantly to local and global progress,” said Alison Barrett MBE, Director India, British Council.
“The importance of agility in courses and technology to enhance students’ industry readiness; and, highlighting the need for collaboration between academic institutions, the government, and corporate giants to create opportunities in growing fields like Fin-Tech and Artificial Intelligence must be prioritized’ was quoted following the presentation of the Economic Survey amid Budget.” –Dr. Bijal Zaveri, Dean, Faculty of Management Studies, Parul University
“The commitment to upgrading over 1,000 ITIs is a welcome step forward in recognizing the importance of vocational training and upskilling to address the skill gap. This budget underscores the critical role of youth upskilling as an economic driver, providing a much-needed boost to India’s growing workforce and empowering the government’s Make in India initiatives. At Tata Technologies, we are committed to engineering a better world for our youth by supporting and enhancing these upskilling efforts, ensuring a future-ready workforce with the skills necessary to thrive in an evolving industrial landscape. With our established record in transforming government ITIs to technology hubs for upskilling youth on in-demand skills including Industry 4.0, we are keen to collaborate with the government to design and implement effective STEM-focused skill development programs. Our expertise in industry-specific training courses will be invaluable in this initiative.” – Warren Harris, CEO & MD, Tata Technologies
“The provision for internships with top 500 companies, coupled with an internship allowance, will empower our youth with the necessary skills and experience for the ever-evolving job market. Furthermore, the creation of industrial parks in 100 new cities along with the establishment of dormitories and women’s hostels will ensure that companies have access to the right talent, while also enhancing women’s participation in the workforce. The decision to allow companies to use their CSR funds for training and internships is a commendable move, reinforcing the commitment to fostering a skilled and employable generation. All in all, there are a lot of positive takeaways for both employers and the talent community from the announcements made in this budget. It is indeed a significant milestone in driving employment-led growth and shaping a prosperous future for India.” –Viswanath PS, MD & CEO, Randstad India, a talent company
“The revision of the model skill loan scheme to facilitate loans up to ₹7.5 lakh, guaranteed by a government-promoted fund, will enable more students to access quality education and skill development programs, enhancing their employability and contributing to the country’s economic growth. The proposed three schemes to encourage employment for new candidates will boost the country’s employment scenario. The wage subsidy for employees and support for employers will motivate them to hire fresh candidates, and linking these to EPFO registration will help formalize jobs.At ESSCI, we are ready to support these initiatives and contribute to the nation’s progress. We align our efforts with the government’s vision to drive economic growth, social justice, and sustainable development.”- Dr Abhilasha Gaur, CEO, Electronics Sector Skills Council Of India (ESSCI)
“The Union Budget 2024-2025 showcases a crucial commitment to boosting education, employment, and skill-building capacity, perfectly aligning with the Government’s vision of Viksit Bharat by 2047. I am particularly excited about the provision for 1 crore youth to gain industry experience through internships with 500 top companies – this will bridge the gap between theory and practice. The cross-sector collaboration can address the rapidly growing skills gap and social inequities, ensuring students transition smoothly into high-demand job roles. Businesses will also benefit from a diverse and skilled talent pool, reducing recruitment time and costs.In today’s digital era, where talent can emerge from anywhere, access to digital skills will be a game changer. We’re excited to support these initiatives and provide millions of Indians a gateway to more equal opportunities, all while unlocking our demographic dividend and accelerating our journey towards a $5 trillion economy.” –Raghav Gupta, Managing Director, APAC and India, Coursera.
“The scheme, designed to encourage the employment of first-time employees, will offer incentives related to EPFO contributions for the initial four years of their employment. This initiative will benefit 30 lakh young individuals and generate supplementary job opportunities across various sectors. Additionally, it aims to promote white-collar jobs in the formal sector, significantly contributing to job creation in the manufacturing sector.” – Dr A. Sakthivel AMHSSC
“The emphasis on vocational training and apprenticeships is particularly noteworthy, as it will enable practical, hands-on experience that aligns with industry demands. Furthermore, the allocation of resources for digital skill training will ensure that our workforce remains competitive in an increasingly digital global economy. Overall, this budget reflects a forward-thinking approach to building a resilient and skilled workforce, which is essential for the sustained growth and prosperity of our country.”- Pratham Barot, CEO & Co-Founder of Zell Education
“We see tremendous potential in integrating these initiatives with digital learning solutions. This budget sets a positive tone for collaboration between the government and ed-tech companies to deliver quality education at scale. With these bold steps, India is poised to create an educated, skilled, and employable youth force that will drive our nation’s growth.”- Rohit Gupta, COO & Co-founder, College Vidya,
“Skillible commends the introduction of E-vouchers for 1 lakh students, facilitating a 3% interest subvention on loans, and the ambitious plan to upgrade 1,000 industrial training institutes.” –Ankur Goel, CEO & Founder of Skillible
“IESA Academy welcomes various initiatives announced in the Budget for Skilling and Employment. As India’s Clean Tech and Energy Storage sector is gradually becoming the biggest employment generation sector, the announcement of a scheme for internships in the top 500 companies to 1 crore youth will play a vital role in empowering the nation’s youth. IESA is willing to work with members to see if we can launch such efforts for women-specific skilling programs through the IESA Academy under the IESA -WE (Women in Energy) Initiative.” – Rahul Walawalkar, President of India Energy Storage Alliance (IESA) and IESA Academy
“The increased allocation towards education, employment, and skilling initiatives underscores a strategic commitment to job creation and aligning educational programs with industry needs. This proactive focus on upskilling youth and modernizing industrial training institutes is a forward-thinking approach that will effectively address evolving market demands and support sustainable economic growth.” – Veerasundar V, Chief Financial Officer, Simplilearn
“GatewAI commends the government’s commitment to advancing women through substantial initiatives such as the provision of ₹30 crore in Mudra Yojana loans, aimed at fostering entrepreneurship and providing financial support to women entrepreneurs. This move will significantly ease the path for women to start and scale their own businesses. Moreover, the focus on STEM education, with girls and women constituting 43% of enrolments, reflects a progressive approach to bridging the gender gap in technology and innovation sectors. This investment in education not only prepares women for the future but also drives their increased participation in the workforce.” – Suchita Vishnoi, Co-Founder & CMO, GatewAI
“PM’s comprehensive package of five schemes will inject vitality into the job market and fostering a skilled workforce. Such strategic investments are pivotal in nurturing a robust education sector and driving economic growth through empowered, skilled individuals.” –Er. Koneru Satyanarayana, President at KL Deemed to be University
Much of this seems vocational. The budget missed out on allocating more towards research and research partnerships. In this new age, I would have expected more funding for research and academic collaborations in AI, Sustainability and other advanced fields. – Suneet Singh Kochar, CEO of Fateh Education
“The internship opportunities for one crore youth in top companies will provide valuable experience and financial support. These measures will create a robust and inclusive educational ecosystem, fostering growth and development. At GD Goenka Group, we are enthusiastic about these positive changes and look forward to contributing to the nation’s educational and skill development goals.” – Nipun Goenka, Managing Director, GD Goenka Group
“Young men and women will be placed for internships in 500 top companies in India. Companies are expected to pay INR 5000 to each intern through their CSR funds, skilling up to ten million youth through this over five years. This will inspire young people to pursue and complete their education at leading academic institutions, create a better life for themselves, and contribute to building India’s trillion-dollar economy.”- Dr. Shuchi Gautam , Director, Thakur Global Business School (TGBS)
“The Budget 2024-25 introduces an extensive scheme to offer internship opportunities with 500 leading companies for one crore youth, providing students with practical experience to address real-world corporate challenges. “ Dr. Prof Anand Achari, Principal, Vivekanand Education Society’s College of Architecture
“The abolition of Angel Tax will help the overall EdTech sector significantly through a unique opportunity to ensure scalability and growth, and attract investments simultaneously.”- Arun Prakash, CEO and Founder of GUVI
“This 2024-25 Union Budget is highly influential to ensure long-term success in the startup ecosystem. By doing away with the Angel Tax, startups have been enabled to encourage a renewed business approach and enhance valuation. This will enable startups to undertake expansion initiatives without concerns about taxation, while also attracting increased funding from angel investors. Furthermore, the centre’s emphasis on upskilling will provide a viable pipeline of trained professionals for startups, ensuring long-term growth and scalability.”- Ravi Mittal, Founder & CEO of QuackQuack
“The budgetary allocation of over 3 lakh crore for initiatives benefiting girls and women aims to enhance access to quality education. It will aid by funding scholarships, building girl-centric schools, and establishing mentorship programs that inspire young women to pursue careers in fields traditionally dominated by men, such as science, technology, engineering, and mathematics (STEM).” – Dr. Maithili Tambe, CEO, The Academy School (TAS), Pune
“I am pleased with the Union Budget 2024’s revisions to tax slabs and the increased standard deduction. These give parents more disposable income to invest in their children’s early education, a critical developmental stage. This financial relief will support access to quality preschools, enhancing overall development and future success.” – Raj Singhal, Co-founder & CEO of Footprints Childcare
“At Kuhoo, an education loan platform, we are dedicated to supporting these transformative initiatives and empowering students to achieve their educational and career goals.” – Prashant Bhonsle, Founder of Kuhoo Edufintech
“The launch of the National Digital Education Architecture (NDEAR) aims to support teaching and learning activities and will play a pivotal role in bridging the digital divide, especially in rural areas.’’ – Dr. Malini Saba, Founder, Saba Group & Anannke Foundation
“We were expecting a higher investment in digital infrastructure and, a special allocation of the budget for teacher professional development for further enhancement and access to quality education. Government must focus on creating a robust skill development infrastructure at K-12 or school level as this is the entry point for creating a future-ready workforce.” -Naman Jain, Vice Chairman at Silverline Prestige School
