Union Budget Aims at Creating Job, Skilling Opportunities to Benefit 4.1cr Youth in 5 Years

Minister of State (Independent Charge), Ministry of Skill Development, and Entrepreneurship Jayant Chaudhary has described the Union Budget 2024 as forward-thinking as it focuses on inclusive growth and resilience in the face of global uncertainties. "This budget underscores the government's unwavering commitment to empowering every Indian, especially the Garib (poor), Mahilaye (women), Yuva (youth), and Annadata (farmers).

"The Union Budget 2024 is a comprehensive blueprint for a prosperous and inclusive India. It embodies our collective aspirations and commitment to ensuring that every Indian achieves their life goals and dreams. Together, we will continue to build a resilient, skilled, and empowered nation," he said in an official release.

Skilling and Employment Initiatives

Chaudhary said the budget reflects a forward-looking approach, prioritising critical sectors such as employment, skilling, MSMEs, and support for the middle class. He said Finance Minister Nirmala Sitharaman has unveiled the Prime Minister's package, comprising five key schemes and initiatives aimed at creating substantial employment and skilling opportunities. This ambitious package is set to benefit 4.1 crore youth over the next five years, backed by a central outlay of Rs.2 lakh crore.

The budget has also allocated Rs.1.48 lakh crore specifically for education, employment, and skilling, underscoring the government's commitment to these vital areas. One of the standout features of this year's budget is the introduction of three Employment Linked Incentive schemes. These schemes represent a pivotal move towards fostering collective growth and prosperity, as they are designed to directly link incentives with employment generation, thereby ensuring that the benefits of economic growth are widely shared.

By focusing on these strategic areas, the government aims to create a robust ecosystem that not only addresses current employment challenges but also equips the youth with the necessary skills to thrive in a rapidly evolving job market. The initiatives are poised to stimulate the MSME sector, enhance the employability of the workforce, and provide much-needed support to the middle class, ultimately driving inclusive growth and sustainable development for the nation.

Scheme A: One Month's Wage for Freshers

This initiative provides a one-month wage upon joining the formal workforce, supported by a direct benefit transfer (DBT) equivalent to one month's salary (up to Rs.15,000) disbursed in three instalments. With a salary cap of Rs.1 lakh per month, this scheme aims to support 210 lakh youth entering the workforce for the first time.

Scheme B: Job Creation in Manufacturing

By targeting first-time employees, this scheme incentivizes job creation in the manufacturing sector. It offers incentives related to Employees' PF Organization (EPFO) contributions for both employees and employers during the first four years of employment, driving substantial job growth in this critical sector.

Scheme C: Support to Employers

Expected to benefit 30 lakh youth and additional employment across all sectors, this scheme reimburses employers up to Rs.3,000 per month for two years for each additional employee's EPFO contribution. This initiative is set to incentivize the employment of 50 lakh people, boosting overall employment rates.

Bringing Scale and Speed to Skilling in India

• A centrally sponsored scheme under the PM's package will skill 20 lakh youth over the next five years.

• The recent budget announcement also marks a historic moment for Industrial Training Institutes (ITIs) with a substantial allocation aimed at their comprehensive upgrade and enhancement. Over the next five years, 1000 ITIs will be modernized through a hub-and-spoke model, supported by a total outlay of Rs.60,000 crore. This initiative includes a new Centrally Sponsored Scheme, developed in collaboration with states and industry, to ensure that skilling outcomes meet high standards of quality and relevance, he said.

• The budget breakdown is as follows: Rs.30,000 crore from the Government of India, Rs.20,000 crore from state governments, and Rs.10,000 crore from industry contributions, including CSR funding. The upgrade will involve redesigning existing courses, introducing new ones, and offering specialized short-term programs at hub ITIs. Additionally, the capacity of five national institutes for trainer training will be augmented. This program is set to benefit 20 lakh students, significantly enhancing the alignment of ITI training with industry needs and creating a robust pathway for workforce development.

• The Model Skill Loan Scheme will be revised to facilitate loans up to Rs.7.5 lakh, with a guarantee from a government promoted fund. This measure is expected to benefit 25,000 students annually.

Supporting Higher Education

• Furthermore, financial support for loans up to Rs.10 lakh for higher education in domestic institutions is announced, opening new avenues for our youth.

Internship in Top Companies

• The fifth scheme under the Prime Minister’s package is a strategic initiative to enhance youth employability and skill development by offering internships in 500 top companies to 1 crore youth over five years. This program provides 12 months of real-life business exposure, with an internship allowance of Rs.5,000 per month and a one-time assistance of Rs.6,000. Participating companies will cover training costs and 10% of the internship costs from their CSR funds.

• This scheme bridges the gap between academic knowledge and industry requirements, empowering young individuals with practical experience and financial support. It aligns with broader goals of improving employability, stimulating economic growth, and promoting sustainable development.

Empowering Women

Nari Shakti (women's power) has always been a cornerstone of the Narendra Modi-led government's vision. The Budget 2024 highlights the priority of increasing women's participation in the workforce through the establishment of hostels and partnerships to conduct women-specific skilling programs.

Critical Mineral Mission

There is a big opportunity to prepare a skilled workforce with the establishment of the Critical Mineral Mission announced in Budget 2024. This mission will significantly enhance our domestic production and recycling of critical minerals, as well as facilitate the acquisition of essential mineral assets overseas.

By focusing on advanced training and skill development, we aim to equip our workforce with the expertise needed to drive technology development and innovation in this critical sector. This mission will not only ensure mineral security but also create numerous job opportunities, fostering economic growth and sustainable development.

Services to Labour

Chaudhary also endorsed the government's commitment to enhancing services for labor, particularly in employment and skilling, as announced in Budget 2024. The comprehensive integration of the e-Shram portal with other platforms will provide a seamless one-stop solution for workers. This initiative will leverage open architecture databases to address the dynamic labor market, evolving skill requirements, and available job roles.

By creating a mechanism that connects job aspirants with potential employers and skill providers, we are paving the way for a more efficient and responsive workforce development system. This initiative not only supports our labor force but also drives economic growth and innovation across sectors.

Inclusive Human Resource Development and Social Justice

The Union Budget 2024’s Priority 3 focuses on Inclusive Human Resource Development and Social Justice, setting the stage for a transformative impact on our youth. The saturation approach ensures that all eligible individuals, including farmers, youth, women, and the poor, are empowered through comprehensive educational and health programs. By enhancing their capabilities, we open doors for our youth to gain skills and explore employment opportunities.

The intensified implementation of schemes supporting craftsmen, artisans, self-help groups, and entrepreneurs, such as PM Vishwakarma, PM SVANidhi, National Livelihood Missions, and Stand-Up India, will create a robust ecosystem for economic activities. Additionally, the Purvodaya initiative aims to drive all-round development in the eastern region, particularly benefiting states like Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh.

The development of an industrial node at Gaya on the Amritsar Kolkata Industrial Corridor will further catalyse industrial growth, combining cultural heritage with economic advancement.

These strategic measures will not only foster inclusive growth but also equip our youth with the necessary skills and opportunities to thrive in a modern economy.

Conclusion

For the first time ever, the Union Budget 2024 lays a significant focus on employment-linked schemes, setting a new precedent for prioritising job creation and skilling in our nation.This landmark budget introduces innovative approaches to directly link incentives with employment generation, ensuring that economic growth translates into real, tangible opportunities for our youth.