On July 23, Union Finance Minister Nirmala Sitharaman unveiled a comprehensive plan to provide on-job training to youth through an internship scheme. This initiative aims to offer opportunities to one crore youth in the top 500 companies over the next five years.
Internship Scheme
Real-Life Exposure
To ensure interns gain real-life work experience, the government will provide an internship allowance of ₹5,000 per month.
Corporate Contribution
Companies facilitating these internships will bear the training costs, with 10% of the expenses covered by their Corporate Social Responsibility (CSR) funds. According to Section 135 of the Companies Act 2013, companies with a certain turnover and profitability are required to spend 2% of their average net profit from the past three years on CSR activities.
Employment and Skilling Initiatives
Youth Employment
In her Budget speech, Sitharaman proposed the creation of employment for approximately 4.1 crore youth over the next five years. The government has allocated ₹2 lakh crore towards this goal.
Skilling Programs
To generate job opportunities through skill development, ₹1.48 lakh crore has been earmarked. The aim is to skill 20 lakh youth over a five-year period.
Industrial Training Institutes
The Finance Minister announced plans to upgrade a total of 1,000 industrial training institutes to enhance the quality of vocational education.
Incentives for First-Time Employees
A one-time wage incentive will be provided to all first-time employees across all sectors. This incentive will be disbursed through Direct Benefit Transfer (DBT).
Budget Focus Areas
Sitharaman emphasized that employment, skilling, MSMEs, and the middle class are key focus areas of this year’s Budget.
Conclusion
The initiatives announced in Budget 2024 demonstrate the government’s commitment to addressing youth employment and skill development, ensuring a brighter future for the next generation.
