In a significant move aimed at boosting youth employment and skill development, Union Finance Minister Nirmala Sitharaman announced a new internship scheme in her Budget 2024 speech on July 23, 2024.
The scheme is set to provide on job training to one crore young individuals over the next five years, marking a major initiative to integrate youth into the professional world.
Under the scheme, interns will receive a monthly allowance of ₹5,000, designed to support them financially as they gain valuable real-world experience.
This initiative is part of a broader government strategy to enhance job readiness and facilitate smoother transitions into the workforce.
The internship program will be implemented in partnership with the top 500 companies across various sectors.
These companies will not only host the interns but will also contribute 10% of the training costs from their Corporate Social Responsibility (CSR) funds.
This approach leverages the existing CSR requirements mandated by Section 135 of the Companies Act 2013, which requires companies of a certain size to allocate 2% of their average net profit over the last three years towards social causes.
The announcement aligns with the government’s broader employment creation goals, which include generating 4.1 crore jobs over the next five years.
To support this objective, the Finance Minister highlighted an allocation of ₹2 lakh crore specifically earmarked for employment generation initiatives.
Additionally, a substantial investment of ₹1.48 crore will be directed towards skilling youth, with a target of training 20 lakh individuals over the same period.
In a related effort, the government plans to upgrade 1,000 industrial training institutes, enhancing their capability to provide high-quality vocational education and training.
This initiative is expected to play a crucial role in equipping the youth with the necessary skills and qualifications to meet the demands of the evolving job market.
Further supporting employment efforts, Sitharaman proposed a one-time wage incentive for first-time employees across all sectors.
This incentive will be distributed through a Direct Benefit Transfer (DBT) system, aimed at encouraging businesses to hire and integrate new entrants into the workforce.
The Budget 2024 focuses on several key areas, including employment, skilling, and support for micro, small, and medium enterprises (MSMEs).
By targeting these sectors, the government aims to foster economic growth, reduce unemployment, and enhance the overall skill level of the workforce.
