Internships, education loans and more: How 2024 Union Budget benefits Indian youth

Union Finance Minister Nirmala Sitharaman announced several interesting initiatives for the Indian youth. The section was one of the four castes Sitharaman mentioned that needs to be in focus. The other three castes were, poor, women and farmers.

In the speech, Sitharaman recalled that the interim budget which was presented on February 1, 2024, emphasised the importance of the development of these castes. “As mentioned in the interim Budget, we need to focus on 4 different castes, the poor, women, youth and the farmer,” the Finance Minister averred in her address to the Lok Sabha.

On Tuesday, the finance minister tabled the 2024 Union Budget in the parliament. What makes the sacrosanct document so significant is the fact that this is the first budget of the Modi 3.0 government that came to power in the 2024 Lok Sabha General Elections.

It is pertinent to note that this will be the seventh budget presented by Sitharaman, the most by any Indian finance minister in the country’s history. Here’s a look at what’s in store for the Indian youth.

Internship opportunities for 1 Cr youth

In her address, the Finance Minister announced that the government will launch an internship scheme to provide opportunities to one crore youth in the top 500 companies over the next five years.

“They (the youth) will gain exposure for 12 months to real-life business environments, varied professions and employment opportunities,” Sitharaman mentioned in her address. The finance minister also stated that an internship allowance of Rs 5,000 per month along with a one-time assistance of Rs 6,000 will be provided to the youth under this scheme. “Companies will be expected to bear the training cost and 10 per cent of the internship cost from their CSR funds,” she added.

Much more in store 

While elucidating the main themes of the 2024 Budget, the finance minister mentioned that the Prime Minister’s package of 5 schemes and initiatives to facilitate employment, skilling and other opportunities will benefit 4.1 crore youths across the country.

Sitharaman also took time to introduce initiatives for youth who have not been eligible for any benefit under the host of government schemes and policies. For them, the government announced financial support for loans up to Rs 10 lakh for higher education in domestic institutions.

The finance minister assured that E-vouchers for this purpose will be given directly to one lakh students every year for annual interest subvention of 3 per cent of the loan amount.

Benefits for ‘First Timers’

For the first timers, Sitharaman introduced a scheme which will provide a one-month wage to all people newly entering the workforce in all formal sectors. “The direct benefit transfer of one-month salary in 3 instalments to first-time employees, as registered in the EPFO, will be up to ` 15,000. The eligibility limit will be a salary of Rs 1 lakh per month. The scheme is expected to benefit 210 lakh youth,” the finance minister averred.

The finance minister also proposed to introduce a scheme which will boost job creation in the manufacturing sector. “This scheme will incentivize additional employment in the manufacturing sector, linked to the employment of first-time employees. An incentive will be provided at a specified scale directly both to the employee and the employer with respect to their EPFO contribution in the first 4 years of employment,” the Finance Minister said in the parliament. “The scheme is expected to benefit 30 lakh youth entering employment, and their employers,” she added.

‘The budget uplifts the youth’

Rohin Kapoor, Partner, Education and Skilling, Management Consulting, BDO India, said that the budget provided much-needed impetus to the employment, education & skilling sector. He noted that the budget will indeed provide upliftment to the youth.

“Heartening to note the much-needed impetus provided to the employment, education & skilling sector. The announcement of INR 1.48 lakh crore provision along with inclusion in the list of 9 priorities of the Government spells out an intention to truly transform the sector for the upliftment of the society, especially youth & women,” Kapoor explained.

“Announcing three employment-linked incentive schemes covering first-timers in manufacturing & other sectors has the potential to generate millions of job-related opportunities in the formal sector,” he added.

While commenting on the internship scheme, Kapoor mentioned that the initiative will open doors to more employment opportunities. “Offering paid internship opportunities in top companies to over 1 crore youth is likely to open multiple doors to employment whilst bridging the gap between academia/skilling institutions & the corporate world,” said Kapoor.