The Union Budget 2024 has brought a sigh of relief for the unemployed youth of India, with a slew of initiatives aimed at providing employment opportunities and skilling programs. The government has announced four schemes under the Prime Minister’s package, which are expected to benefit over 2.5 crore youth.
Employment Linked Incentive
The government has introduced three schemes under the Employment Linked Incentive, which are designed to provide a boost to employment opportunities in the country. The schemes are:
Scheme A: First Timers – This scheme will provide a one-month wage to all persons newly entering the workforce in all formal sectors. The direct benefit transfer of one-month salary in three instalments to first-time employees, as registered in the EPFO, will be up to 15,000. The eligibility limit will be a salary of 1 lakh per month. The scheme is expected to benefit 210 lakh youth.
Scheme B: Job Creation in Manufacturing – 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 four years of employment. The scheme is expected to benefit 30 lakh youth entering employment, and their employers.
Scheme C: Support to Employers – This employer-focused scheme will cover additional employment in all sectors. All additional employment within a salary of 1 lakh per month will be counted. The government will reimburse to employers up to 3,000 per month for two years towards their EPFO contribution for each additional employee. The scheme is expected to incentivize additional employment of 50 lakh persons.
Skilling Programme
The government has also announced a new centrally sponsored scheme for skilling in collaboration with state governments and industry. The scheme aims to skill 20 lakh youth over a five-year period. 1,000 Industrial Training Institutes will be upgraded in hub and spoke arrangements with outcome orientation. The course content and design will be aligned to the skill needs of industry, and new courses will be introduced for emerging needs.
Skilling Loan
The Model Skill Loan Scheme will be revised to facilitate loans up to ` 7.5 lakh with a guarantee from a government-promoted fund. This measure is expected to help 25,000 students every year.
Education Loans
The government has also announced financial support for loans up to ` 10 lakh for higher education in domestic institutions. E-vouchers for this purpose will be given directly to 1 lakh students every year for annual interest subvention of 3 per cent of the loan amount.
Participation of Women in the Workforce
The government has also announced initiatives to facilitate higher participation of women in the workforce. Working women hostels will be set up in collaboration with industry, and creches will be established. Women-specific skilling programs will be organized, and market access will be promoted for women SHG enterprises.
Conclusion
The Budget 2024 has brought a ray of hope for the unemployed youth of India. The government’s initiatives on employment and skilling are expected to benefit over 2.5 crore youth. The schemes announced are designed to provide a boost to employment opportunities, skilling, and education. The government’s focus on women’s participation in the workforce is also a welcome move. Overall, the Budget 2024 has taken a significant step towards addressing the issue of unemployment in India.
