Union Finance Minister Nirmala Sitharaman unveiled the Union Budget 2024-25, following its approval by the Cabinet. The budget introduces several initiatives aimed at job creation, focusing on internships, youth skilling, employment incentives, and targeted schemes. Here’s a detailed look at the government’s strategic steps for boosting employment in India.
Table of Contents
Paid Internship Programme: Empowering Youth with Practical Experience
In a significant move, the Finance Minister announced a paid internship programme targeting one crore youth. The initiative involves partnerships with 500 top companies, designed to provide valuable work experience to young Indians.
Internship Benefits:
- Monthly Allowance: Each intern will receive a monthly stipend of ₹5,000.
- One-time Assistance: An additional one-time assistance of ₹6,000 will be provided.
- Training Costs: Participating companies will cover training expenses through their Corporate Social Responsibility (CSR) funds.
This programme aims to enhance employability by offering hands-on experience and financial support, bridging the gap between academic knowledge and industry requirements.
Youth Skilling Scheme: Enhancing Competencies with Financial Support
The budget emphasizes the importance of skill development through the enhanced Youth Skilling Scheme. The revised Model Skill Loan Scheme is a cornerstone of this initiative.
Key Features:
- Increased Loan Provision: The scheme facilitates loans up to ₹7.5 lakh, guaranteed by a government-promoted fund.
- Beneficiaries: An estimated 25,000 students will benefit annually, enabling them to pursue advanced skill training without financial burden.
By providing access to financial resources, the government aims to empower young individuals to acquire specialized skills, thus improving their job prospects in a competitive market.
Roadmap for Job Growth: Incentivizing Employment
The budget outlines a comprehensive roadmap for job growth, focusing on incentives for both employees and employers during the initial years of employment.
Incentive Structure:
- Salary Bracket: All employment with salaries up to ₹1 lakh per month will be considered.
- Employer Reimbursement: The government will reimburse employers ₹3,000 per month towards the Employees’ Provident Fund Organisation (EPFO) contribution for each additional employee for two years.
- Employee Benefits: This incentive is expected to encourage companies to hire more employees, thereby boosting overall employment rates.
These measures aim to stimulate job creation by reducing the financial burden on employers and promoting sustained employment.
Three Schemes for Employment Generation: Comprehensive Support for New Entrants
To further drive job creation, the government will introduce three dedicated schemes, each targeting specific aspects of employment generation.
Scheme for First-Timers:
- Wage Support: The scheme will provide a one-month wage to all individuals entering the workforce for the first time across various sectors.
- Beneficiaries: Expected to benefit 2.1 crore youth, this initiative will offer financial stability to new employees and encourage their integration into the workforce.
Conclusion: A Strategic Approach to Job Creation
The Union Budget 2024-25 demonstrates a strategic and multifaceted approach to job creation in India. By focusing on internships, skill development, employment incentives, and targeted schemes, the government aims to create a robust employment ecosystem. These initiatives not only address immediate employment needs but also lay the foundation for sustainable economic growth and workforce development.
In summary, the budget’s emphasis on job creation reflects a commitment to empowering the youth, enhancing skills, and stimulating economic activity. Through these measures, the government envisions a future where every young Indian has the opportunity to thrive in a dynamic and growing economy.