A Visionary Budget for a Prosperous and Skilled India: Prof. TG Sitharam, Chairman, AICTE

"This year alone, ₹1.48 lakh crore has been allocated for education, employment, and skilling. These investments are not just monetary but are investments in the future of our country."

The Union Budget 2024-25 presented by Finance Minister Nirmala Sitharaman in Parliament exemplifies the government's visionary approach and steadfast commitment to transforming India into a developed nation by 2047. By addressing crucial areas such as employment, skilling, MSMEs, and the middle class, the budget lays a robust foundation for a prosperous future. The comprehensive support for youth, women, and entrepreneurs through well-structured schemes and substantial financial allocations underscores a strategic focus on inclusive growth and development.

This budget will open numerous opportunities for young individuals, enabling them to explore new horizons and excel in their careers. The government's relentless efforts to elevate the standards of skilling and education will ensure that our youth are equipped to compete on a global scale. With a concerted focus on innovation, research, and entrepreneurship, India is well on its way to achieving its goal of becoming a 'Viksit Bharat' before 2047.

Empowering the Youth: A Catalyst for Change

One of the most remarkable aspects of this budget is the robust support for higher education and skilling initiatives to create unparalleled opportunities for youths. The announcement of Prime Minister’s package of five schemes dedicated to employment, skilling, and opportunities for the youth is an excellent step. With a central outlay of ₹2 lakh crore, these initiatives are set to benefit 4.1 crore youth over the next five years. This year alone, ₹1.48 lakh crore has been allocated for education, employment, and skilling. These investments are not just monetary but are investments in the future of our country.

Scheme A: First Timers This scheme, designed to support first-time employees, is a masterstroke. By providing a one-month wage subsidy up to ₹15,000 in three installments, it eases the entry of new employees into the workforce, making the transition smoother and more financially viable. This initiative is expected to benefit 2.1 crore youth over two years, fostering a culture of learning and productivity.

Scheme B: Job Creation in Manufacturing The focus on incentivizing additional employment in manufacturing is a strategic move to bolster the sector and create jobs. This scheme will benefit 30 lakh youth and their employers, promoting a robust manufacturing ecosystem essential for economic growth.

Scheme C: Support to Employers Supporting employers by reimbursing EPFO contributions up to ₹3,000 per month for two years for each additional employee is an innovative approach to encourage job creation across all sectors. This scheme is projected to incentivize the employment of 50 lakh individuals, thereby reducing unemployment and enhancing economic stability.

Skilling and Education: Building a Knowledge Economy

The budget’s emphasis on skilling is a game-changer. The new centrally sponsored scheme aims to skill 20 lakh youth over five years with an outlay of ₹60,000 crore. By upgrading 1,000 Industrial Training Institutes (ITIs) in hub-and-spoke arrangements, the government is ensuring that our youth are equipped with industry-relevant skills. The alignment of course content with the needs of the industry and the introduction of new courses for emerging sectors will create a workforce ready to meet the demands of the future.

Internship Opportunities: Bridging the Gap

The budget introduces a comprehensive scheme for providing internship opportunities in 500 top companies to 1 crore youth over five years. This initiative will offer young individuals exposure to real-life business environments and varied professions, equipping them with practical skills and enhancing their employability. An internship allowance of ₹5,000 per month, along with a one-time assistance of ₹6,000, demonstrates the government's commitment to supporting our youth during their transition from education to employment.

Enhancing Women's Participation in the Workforce

The budget's focus on increasing women's participation in the workforce is a significant step towards gender equality. By setting up working women hostels, crèches, and women-specific skilling programs, the government is creating a supportive environment for women to thrive professionally. Additionally, promoting market access for women SHG enterprises will empower women entrepreneurs and contribute to economic growth.

Investment in Research and Innovation

The operationalization of the Anusandhan National Research Fund for basic research and prototype development is a significant step towards fostering innovation. With a financing pool of ₹1 lakh crore, this initiative will spur 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 and Start-ups

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 that will boost the entrepreneurial spirit and enhance the start-up ecosystem in India. These steps will attract foreign capital, promote investment, and create job opportunities, contributing to the overall economic growth.

The 2024-25 budget is a beacon of hope and a strategic blueprint for India’s future. The budget particularly focused on Employment, Skilling, MSMEs, and the Middle Class underscores a commitment to holistic development and a brighter future for our nation. This budget is not just a financial statement; it is a visionary document aimed at propelling India towards becoming a 'Viksit Bharat'—a developed and prosperous nation.

By: Prof. TG Sitharam, Chairman, All India Council for Technical Education (AICTE)

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