Education
Internships in Top 500 Companies, Rs 5k Stipend for Youth: Key Highlights from the Education Budget 2024
Finance Minister Nirmala Sitharaman presented the Budget 2024 yesterday, marking the first budget of the BJP-led NDA after Prime Minister Narendra Modi began his third term. The budget introduced significant allocations aimed at bolstering education, employment, and skilling, with a notable allocation of Rs 1.48 lakh crore for these sectors.
Education Budget 2024: Rs 1.48 Lakh Crore Allocated
A new scheme offering internship opportunities at 500 top companies for 1 crore students over the next five years was one of the major highlights. Each student will receive a monthly stipend of Rs 5,000 and a one-time assistance payment of Rs 6,000. This initiative is designed to bridge the gap between academia and industry, providing practical experience to young learners.
“The government’s initiative to provide financial support for higher education loans up to Rs 10 lakh is commendable. This move will enhance accessibility to quality education,” said Dilip Gangaramani, Founder Director & CEO of Target Publications Pvt. Ltd. “The allocation of Rs 2 lakh crore for employment and skilling initiatives is also a positive step towards addressing youth unemployment.”
Major Employment and Skilling Schemes
The Finance Minister announced a substantial PM Package consisting of five programmes aimed at boosting employment and skilling, with a total allocation of Rs 2 lakh crore. Among these, Rs 1.48 lakh crore has been specifically allocated for education, employment, and skilling. The initiatives will skill 20 lakh youth over a five-year period, significantly contributing to the nation’s workforce by equipping young individuals with necessary skills to thrive in various industries.
25,000 Students to Avail Loan Benefits Every Year
The budget also introduced model skill loans. “Skilling loans – model skill loans schemes for up to 7 lakh rupees will benefit 25,000 students every year,” stated Finance Minister Sitharaman. This initiative aims to support students financially in acquiring necessary skills, thus enhancing their employability and career prospects.
“This year’s budget strikes a fine balance between fiscal discipline and drivers of economic and social growth. Enhanced initiatives on women empowerment and education underscore the focus on welfare schemes,” noted Dr Rakesh K Singh, Professor and Associate Dean – Academics at IMT Ghaziabad. “Structural reforms propose new policies to foster innovation and skill development in emerging areas such as AI and renewable energy.”
Comparison with Previous Budget
In the Union Budget 2023, the central government’s allocation for the education sector was Rs 1,12,898.97 crore, the highest allocation granted to the Ministry of Education at the time. The Union Budget 2024 reflects a strong focus on education, employment, and skilling, with significant investments aimed at creating a more skilled and educated workforce. The announced programmes and allocations are expected to drive improvements in educational infrastructure, job creation, and skill development across the nation.
“The government will also offer internships in 500 of India’s top companies. The companies can employ these interns through their CSR funds. As a support to employers, reimbursement of up to Rs 3,000 per month for two years towards their EPFO contribution for each additional employee will be provided,” stated Balkishan Sharma, Chairman & Founder at FVEG. “These new schemes aim to create new jobs and provide employment to well-educated youth.”
A Step Towards a Skilled Workforce
“The proposed comprehensive internship programme for one crore youth is a commendable initiative,” added Gangaramani. “These measures, if implemented effectively, can significantly boost India’s human capital development and contribute to a more skilled and employable workforce.”
The Budget 2024, with its focus on education, employment, and skilling, aligns with the nation’s developmental goals and is a welcome step forward in building a robust and future-ready workforce.