Game for skill: Budget 2024 draws road map for industry-ready workforce

Internship opportunities, easy skilling loans, new centrally sponsored scheme, ITI upgradation announced

A year-long paid internship opportunity to 10 million youth in India’s top 500 companies over the next five years. An industry collaboration to upgrade 1,000 industrial training institutes (ITIs). These were some of the measures announced in the Union Budget 2024 to skill the youth and make them job-ready.  

To bridge the gap between the skill-development ecosystem and employment opportunities, Finance Minister Nirmala Sitharaman also announced a new centrally sponsored scheme as part of the Rs 2 trillion Prime Minister’s package aimed at addressing this issue.

This scheme, with an outlay of Rs 60,000 crore, aims to skill over 2 million youth over the next five years in collaboration with state governments and the industry. The focus is on outcome and quality of skilling, with course content and design aligned to the needs of the industry. 

 

Of the Rs 60,000 crore, state governments will contribute Rs 20,000 crore and the industry Rs 10,000 crore, including from its corporate social responsibility (CSR) funds.

Meanwhile, ITIs will also be upgraded at a cost of Rs 30,000 crore over the next five years. 

The ITIs, she said, would be upgraded in a hub-and-spoke arrangement after redesigning and reviewing the existing courses. 

“In this Budget, we particularly focus on employment, skilling, MSMEs, and the middle-class,” Sitharaman said. “This year, I have made a provision of  Rs 1.48 lakh crore for education, employment and skilling.”

Apart from this, the Finance Minister announced the revision of the model Skill Loan Scheme to facilitate loans up to Rs 7.5 lakh for each student with a guarantee from a government-promoted fund. The measure is expected to benefit 25,000 students every year. 

She also announced financial support for loans up to Rs 10 lakh for higher education in domestic institutions to students not eligible for any benefit under government schemes and policies.

“E-vouchers for this purpose will be given directly to 100,000 students every year for annual interest subvention of 3 per cent of the loan amount,” she said. 

To strengthen the link between industry and academia, the Finance Minister announced a comprehensive internship scheme at a total cost of Rs 63,000 crore for providing internship opportunities at 500 top companies to 10 million youth over the next five years. 

“They will gain exposure for 12 months to real-life business environments, varied professions and employment opportunities,” she said. “An internship allowance of Rs 5,000 per month along with a one-time assistance of Rs 6,000 will be provided. Companies will be expected to bear the training cost and 10 per cent of the internship cost from their CSR funds.”

In his post-Budget remarks, Prime Minister Narendra Modi said these measures will enable young people from villages and impoverished backgrounds to work in top companies, opening new doors of possibility for them.

Voices from the industry echoed the sentiment. 

Sumit Kumar, chief strategy officer of staffing firm TeamLease Degree Apprenticeship, said the upgraded skilling programme, such as revised model skill loans and financial support for higher education through e-vouchers, would enhance and foster skill development tailored to market demands. 

“The comprehensive internship scheme, offering real-world experience and supported by CSR funding, is a welcome addition that bridges the gap between education and practical experience,” he said. Integrating apprenticeships could further strengthen the link between education and employment by offering structured, hands-on training opportunities, Kumar added. “Together, these initiatives are set to address skill gaps, boost youth employability, and cultivate a more skilled and inclusive workforce."

Building competence
 

 New centrally sponsored scheme with an outlay of Rs 60,000 crore to skill over 2 million youth 

 1,000 ITIs to be upgraded with industry collaboration at Rs 30,000 crore 

 Revision of the model Skill Loan Scheme to facilitate loans up to Rs 7.5 lakh for 25,000 students every year
 

 Rs 63,000 crore scheme for providing internship opportunities in 500 top companies to 10 million youth 
 

 100,000 students to get financial support annually for loans up to Rs 10 lakh for higher education in domestic institutions