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The Union Budget 2024-25 unveiled a robust package aimed at enhancing skilling opportunities and fostering collaboration among state governments, industries, and aspiring youth. Recognising the significant challenge faced by young people transitioning from education to their first jobs, the initiative offers incentives such as covering the first month's salary for both employers and employees to address this gap.
In addition to the existing ecosystem and central to this initiative, is the goal of skilling 20 lakh youth over the next five years, highlighting the government's commitment to equipping the workforce with contemporary skills aligned with industry demands. The employment-linked scheme has the potential to generate hundreds of thousands of jobs, enabling inclusive growth.
The initiative to modernise 1000 Industrial Training Institutes (ITIs) with a new allocation of INR 1000 crores under a revamped Hub and Spoke model is commendable. This will elevate selected ITIs into centres of excellence equipped with modern infrastructure and industry-relevant curricula. Emphasis on outcome-oriented training aims to enhance employability, addressing the shortage of skilled workforce, especially for MSMEs. Additionally, offering internship opportunities to 1 crore young individuals in top 500 organisations will provide firsthand industry exposure, enhancing their readiness for the global workforce. Moreover, financial incentives through EPFO and the flexibility to recover stipends under CSR funds will encourage private sector institutions to invest further in their human resources.
In parallel, the Government has bolstered the skilling ecosystem by enhancing the Model Skill Loan Scheme, now offering loans up to INR 7.5 lakh with a government-promoted fund guarantee. This measure aims to support 25,000 students annually by reducing barriers to skill development and facilitating easier access to funding aligned with market needs and aspirations.
Furthermore, the budget introduced significant support for higher education, addressing gaps in accessibility to quality education through financial assistance for loans up to INR 10 lakh, specifically targeting youth who have not previously benefitted from government schemes. This provision aims to democratise access to higher education, empowering more individuals to pursue advanced studies and enhance their career prospects.
The overarching goal of these initiatives is to harness India's demographic dividend by nurturing a skilled and educated workforce capable of driving economic growth and innovation. By aligning skill development with industry requirements and expanding educational opportunities, the Government aims to equip youth with the necessary tools to thrive in a rapidly evolving global economy.
To enhance women's participation in the workforce, the budget has provisioned for the establishment of working women’s hostels and creches in collaboration with industry partners.
The Union Budget 2024's focus on skilling and education underscores a strategic vision aimed at positioning India as a competitive force on the world stage. By investing in human capital development, the Government has not only addressed current workforce challenges but also laid the foundation for sustained economic progress and inclusive development.
In conclusion, the initiatives announced under the Prime Minister's package for skilling and collaboration represent a pivotal step towards realising India's potential as a global economic powerhouse by leveraging the demographic dividend effectively.
This article first appeared in ETGovernment on 04 September 2024.