On July 23, 2024, the Finance Minister unveiled the Union Budget during the opening session of the 18th Lok Sabha, placing a significant emphasis on the development and empowerment of the nation’s youth. Recognizing the pivotal role that young people play in shaping India’s future, the government introduced several groundbreaking employment schemes aimed at fostering growth and prosperity in various industries.
Major Employment Schemes for Youth Development
Scheme A: First Timers
This innovative scheme aims to support individuals newly entering the formal workforce. The government will provide a direct benefit transfer equivalent to one month’s salary, disbursed in three installments, to first-time employees registered with the Employees’ Provident Fund Organisation (EPFO). The maximum benefit is capped at ₹15,000, with eligibility limited to those earning up to ₹1 lakh per month. This scheme is anticipated to benefit 210 lakh youth, offering a substantial boost to their initial career phases.
Scheme B: Job Creation in Manufacturing
To spur employment in the manufacturing sector, this scheme offers incentives for hiring first-time employees. Both employees and employers will receive incentives related to their EPFO contributions during the first four years of employment. This initiative is expected to benefit 30 lakh new employees and their employers, promoting substantial job creation within the sector.
Scheme C: Support to Employers
Focusing on additional employment across all sectors, this scheme reimburses employers up to ₹3,000 per month for two years towards their EPFO contributions for each new employee earning up to ₹1 lakh per month. The government aims to incentivize the employment of 50 lakh individuals through this employer-focused initiative.
Skilling and Education Initiatives
New Centrally Sponsored Skilling Programme
Under the Prime Minister’s package, a new centrally sponsored scheme will be launched in collaboration with state governments and industry partners. Over the next five years, 20 lakh youth will receive training, with 1,000 Industrial Training Institutes (ITIs) upgraded in a hub-and-spoke model focused on outcome orientation. The curriculum will be tailored to meet industry skill needs, including the introduction of new courses for emerging job markets.
Revised Model Skill Loan Scheme
To facilitate skill development, the Model Skill Loan Scheme will be revised to offer loans up to ₹7.5 lakh, backed by a government-promoted fund guarantee. This initiative is projected to assist 25,000 students annually, making skill acquisition more accessible.
Enhanced Education Loan Program
In a bid to support higher education, the government will provide financial assistance for loans up to ₹10 lakh for studies at domestic institutions. E-vouchers will be issued to 1 lakh students each year, covering a 3 percent annual interest subvention on the loan amount. This program aims to aid youth who have previously been ineligible for government benefits.
Internship Opportunities by private companies
The budget also introduced a comprehensive internship program, providing over one crore young individuals with 12-month internship opportunities at more than 500 top companies. Interns will receive a fixed stipend of ₹5,000 per month, along with a one-time direct transfer of ₹6,000. Companies participating in the program will bear up to 10% of the total cost, including training expenses, as part of their Corporate Social Responsibility (CSR) initiatives. Furthermore, innovative digital hubs will be established in over 100 cities to support this initiative.
By unveiling these forward-thinking schemes, the Finance Minister has underscored the government’s commitment to nurturing the potential of India’s youth. These measures are set to create a dynamic and skilled workforce, propelling the nation’s economic growth and ensuring a prosperous future for the next generation.
