Budget 2024: Key Highlights on Education and Job Creation

In her seventh consecutive Union Budget for the fiscal year 2024-25, Finance Minister Nirmala Sitharaman outlined the government’s major priorities. The budget focuses on nine main areas: enhancing productivity and resilience in agriculture, boosting employment and skills development, promoting inclusive human resource development and social justice, advancing manufacturing and services sectors, fostering urban development, ensuring energy security, improving infrastructure, encouraging innovation, research, and development, and implementing next-generation reforms.

Significant allocations and initiatives aim to transform India’s education and employment landscape. With a total allocation of ₹1.48 lakh crore for education and skill development, the budget emphasizes enhancing higher education accessibility, promoting skill training, and creating job opportunities for the youth.

Key initiatives include financial support for internships, employment-linked incentives, and targeted programs for first-time job seekers, reflecting the government’s commitment to addressing the pressing challenges of youth unemployment and skill gaps, especially considering that the Economic Survey tabled in Parliament yesterday noted that only 51% of India’s youth are employable.

Key Budget 2024 Announcements on Education and Jobs

Education Budget Highlights

• Total Allocation: ₹1.48 lakh crore allocated for education, employment, and skilling.
• Higher Education Loans: Introduction of financial support for loans up to ₹10 lakh for higher education in domestic institutions, with e-vouchers provided to one lakh students annually, featuring a 3% interest subvention.
• Skill Development Initiatives:
  • A new centrally sponsored scheme to skill 20 lakh youth over five years.
  • Upgrade of 1,000 Industrial Training Institutes (ITIs) using a hub-and-spoke model to better align course content with industry needs.
• Revised Skill Loan Scheme: The model skill loan scheme will be revised to facilitate loans up to ₹7.5 lakh, expected to assist 25,000 students annually.

Jobs Budget Highlights

• Announcement of Three New Schemes:
  • First Timers: Incentives for first-time job seekers.
  • Job Creation in Manufacturing: Focus on generating jobs in the manufacturing sector.
  • Support to Employers: Financial support for employers hiring new employees.
• Direct Salary Support: Introduction of a scheme for the direct transfer of one month’s salary (up to ₹15,000) in three installments for first-time employees registered with the Employees’ Provident Fund Organisation (EPFO).
• Employment-linked Incentives:
  • Incentives for both employees and employers based on EPFO contributions during the first four years of employment.
  • Reimbursement of up to ₹3,000 per month for two years for employers hiring additional employees.
• Internship Opportunities:
  • Announcement of internships for 1 crore students in top companies, offering a monthly allowance of ₹5,000 for a 12-month period.
  • Companies will bear the training costs through their Corporate Social Responsibility (CSR) funds.
  • Additionally, interns will receive a one-time support of ₹6,000.
• Women’s Hostels:
  • Establishment of women’s hostels for working women to support their employment needs.

These announcements reflect the government’s focus on enhancing educational opportunities, promoting skill development, and creating job opportunities for the youth in India. With these measures, the budget aims to address the critical issues of employability and skill gaps, ensuring a more robust and inclusive economic growth trajectory.

ALSO READ: Budget 2024: Relief for New Regime Taxpayers and Major Boost to Job Creation