The Union Budget 2024-25, presented by Finance Minister Nirmala Sitharaman, reflects the government’s commitment to transforming India into a developed nation by 2047. The budget prioritizes essential areas such as jobs, skill development, support for small businesses, and assistance for the middle class, laying a solid foundation for future growth.
The budget’s comprehensive support for youth, women, and entrepreneurs through well-structured schemes and substantial financial allocations highlights a strategic focus on inclusive development. It aims to create numerous opportunities for young individuals, enabling them to explore new horizons and excel in their careers. By elevating the standards of skilling and education, the government ensures that the youth are well-prepared to compete on a global scale. With a strong emphasis on innovation, research, and entrepreneurship, India is on track to achieve its goal of becoming a ‘Viksit Bharat’ before 2047.
Empowering the Youth
A standout feature of this budget is the robust support for higher education and skilling initiatives aimed at creating opportunities for the youth. The introduction of the Prime Minister’s package of five schemes dedicated to employment, skilling, and opportunities for the youth is a significant step forward. With a central outlay of Rs 2 lakh crore, these initiatives are set to benefit 4.1 crore youth over the next five years. This year alone, Rs 1.48 lakh crore has been allocated for education, employment, and skilling.
Scheme A: First Timers
The First Timers scheme supports new employees with a one-month wage subsidy up to Rs 15,000 in three instalments, easing their entry into the workforce and making the transition financially viable. This initiative is expected to benefit 2.1 crore youth over two years, promoting a culture of learning and productivity.
Scheme B: Job Creation in Manufacturing
Focusing on incentivizing additional employment in manufacturing, this scheme aims to bolster the sector and create jobs. It will benefit 30 lakh youth and their employers, fostering a robust manufacturing ecosystem crucial for economic growth.
Scheme C: Support to Employers
Supporting employers by reimbursing EPFO contributions up to Rs 3,000 per month for two years for each additional employee is designed to encourage job creation across all sectors. This scheme is projected to incentivize the employment of 50 lakh individuals, reducing unemployment and enhancing economic stability.
Industry-Relevant Skills
The budget’s emphasis on skilling is transformative. A new centrally sponsored scheme aims to skill 20 lakh youth over five years with an outlay of Rs 60,000 crore. By upgrading 1,000 Industrial Training Institutes (ITIs) in hub-and-spoke arrangements, the government ensures that the youth acquire industry-relevant skills. Aligning course content with industry needs and introducing new courses for emerging sectors will prepare a workforce ready to meet future demands.
Internship Opportunities
The budget introduces a scheme for providing internship opportunities in 500 top companies to 1 crore youth over five years. This initiative will offer exposure to real-life business environments and diverse professions, enhancing practical skills and employability. An internship allowance of Rs 5,000 per month, along with a one-time assistance of Rs 6,000, underscores the government’s commitment to supporting youth during their transition from education to employment.
Enhancing Women’s Participation
The budget’s focus on increasing women’s participation in the workforce is a crucial step towards gender equality. By establishing working women hostels, crèches, and women-specific skilling programmes, the government is creating a supportive environment for women’s professional growth. Additionally, promoting market access for women SHG enterprises will empower women entrepreneurs and contribute to economic growth.
Fostering Innovation
The operationalization of the Anusandhan National Research Fund for basic research and prototype development is a significant move towards fostering innovation. With a financing pool of Rs 1 lakh crore, this initiative will drive private sector-driven research and innovation, aligning with the government’s vision of making India a global leader in research and development.
Boost to Entrepreneurship
The abolition of the angel tax for all classes of investors and the introduction of a simpler tax regime for foreign shipping companies are measures designed to boost entrepreneurship and enhance the startup ecosystem in India. These steps will attract foreign capital, promote investment, and create job opportunities, contributing to overall economic growth.
The 2024-25 budget is a beacon of hope and a strategic blueprint for India’s future. Its focus on employment, skilling, MSMEs, and the middle class reflects a commitment to the holistic development of the country.
