The Union Budget 2024-25 offers a good package to enhance employment opportunities and skills for youth. It also promises financial support for students.
With slogans like “We will reduce poverty” and “Eradicate hunger,” the budget has once again been presented to the nation. However, as always, the budget appears promising and proposes improvements for the youth.
Rest assured, the Union Budget 2024-25 outcomes will reveal its actual effectiveness.
Key Schemes and Funds for Youth and Students
Employment Linked Incentives
The government introduces three pivotal schemes under the Employment Linked Incentive:
Scheme A: First Timers
This scheme targets individuals entering the workforce for the first time in formal sectors. In three installments, it offers a direct benefit transfer of one month’s salary, up to ₹15,000. First-time employees registered in the EPFO will get the benefits. With a salary eligibility limit of ₹1 lakh per month, the scheme will benefit 210 lakh youth.
Scheme B: Job Creation in Manufacturing
Union Budget 2024-25 also focuses on the manufacturing sector. Scheme B incentivizes additional employment linked to first-time employees. It provides incentives directly to employees and employers concerning their EPF contributions for the first four years. The scheme will benefit 30 lakh youth.
Scheme C: Support to Employers
This employer-centric scheme covers additional employment across all sectors. The government will reimburse up to ₹3,000 per month for two years towards employers’ EPFO contributions for each additional employee earning up to ₹1 lakh per month. This initiative in Union Budget 2024-25 will incentivize the employment of 50 lakh persons.
Enhancing Women’s Workforce Participation
To encourage women’s higher participation in the workforce, the government plans to set up working women’s hostels and creches in collaboration with industry. Furthermore, women’s-specific skilling programs and market access promotion for women’s SHG enterprises are on the agenda.
Skilling Programs
A new centrally sponsored skilling scheme will be launched in collaboration with state governments and industry. The scheme aims to skill 20 lakh youth over five years. Additionally, 1,000 Industrial Training Institutes will be upgraded into hub and spoke arrangements.
Financial Support through Loans
Skilling Loans
The revised Model Skill Loan Scheme will offer loans up to ₹7.5 lakh with a guarantee from a government-promoted fund. This initiative is expected to benefit 25,000 students annually.
Education Loans
The government will provide financial support for loans up to ₹10 lakh for higher education in domestic institutions. E-vouchers offering a 3 percent annual interest subsidy will be given directly to 1 lakh students each year.
Benefits of the Schemes
The proposed schemes collectively aim to:
- Facilitate the entry of fresh talent into the formal workforce.
- Boost job creation in the manufacturing sector, enhancing economic growth.
- Support employers financially, encouraging them to hire more employees.
- Increase women’s participation in the workforce through supportive infrastructure and targeted programs.
- Enhance skill development, aligning education with industry requirements.
Critical Analysis
While the initiatives present significant opportunities, their success will depend on practical implementation. Additionally, the union budget 2024-25 does not address challenges such as the existing skills gap in detail, which may require more focused strategies.
The emphasis on EPFO registration might exclude informal sector workers, a substantial part of India’s workforce.
Furthermore, though beneficial, the allocation for skilling and education loans may need augmentation to meet the vast demand. Collaboration between the government, industry, and educational institutions will be vital for the success of these programs.
Also read: Budget 2024-2025: Key Highlights and Impact on Indian Farmers
