Budget 2024: Skill Development, Job Creation Key for Youth - Experts

New Delhi, Jul 23 (PTI) HR and Ed-tech industry experts on Tuesday said budget proposals on skilling, internship and job creation will help address the need for a skilled workforce and boost employment generation for youth.

Experts termed the Budget for 2024-25 presented by Finance Minister Nirmala Sitharaman as forward-thinking which aligns with the vision of a 'Viksit Bharat'.

Direct Benefit Transfer (DBT) of up to Rs 15,000 is set to boost formal employment by making it more attractive for industries to hire new talent, they added.

Sitharaman in the budget announced an outlay of Rs 2 lakh crore for several schemes targeting 4.1 crore youth. The minister announced a provision of Rs 1.48 lakh crore for education, employment and skilling programmes.

TeamLease Degree Apprenticeship Chief Strategy Officer Sumit Kumar said with targeted outreach to 4.1 crore youth over five years, the initiative is poised to make a significant impact by seamlessly integrating education, skill development and employment.

"Up to Rs 15,000 in direct benefits will facilitate the transition of new entrants into the formal workforce, while additional incentives for job creation in the manufacturing sector and support for employers across various industries aim to promote widespread job creation and bolster economic activity. This forward-thinking approach aligns with the vision of a 'Viksit Bharat'," he stated.

Quess Corp ED and CEO Guruprasad Srinivasan said, "It demonstrates a commendable emphasis on skilling and employment, with 2.1 crore of our youth benefiting. It also takes an inclusive approach to boosting employment, benefiting employers and employees. It also strongly focuses on women's workforce participation, empowering and recognising their crucial role in our economy."

Pearl Academy President Aditi Srivastava said that the government continues to recognise the imperative need for substantial support in addressing the skills gap and social inequities, ensuring students transition smoothly into high-demand job roles.

Sitharaman in the budget also announced to provide financial support for loans up to Rs 10 lakh for higher education in domestic institutions. The government has also revised the model skilling loan scheme to facilitate loans up to Rs 7.5 lakh.

Kraftshala Founder and CEO Varun Satia said that the government will have to ensure accessibility for all deserving candidates as it plans to offer higher education loans of up to Rs 10 lakh to the youth.

"The revised Model Skilling Loan Scheme is another positive move but must ensure targeted delivery," he said.

Pearson India Country Head Vinay Kumar Swamy said, "The commitment to provide skilling opportunities to 20 lakh youth over the next 5 years and internships for 1 crore young individuals is a significant step towards empowering the next generation and addressing the skills gap in our country."

The finance minister in the budget announced a new scheme to provide a one-month wage to all persons newly entering the workforce in all formal sectors.

The direct benefit transfer of one month's salary in three instalments to first-time employees, as registered in the EPFO, will be up to Rs 15,000. The eligibility limit will be a salary of Rs 1 lakh per month.

TeamLease Degree Apprenticeship Vice President and Business Head Dhriti Prasanna Mahanta said, "The initiative is poised to address the industrial sector's pressing need for a highly skilled workforce. The introduction of a one-time wage incentive for first-time employees, delivered through Direct Benefit Transfer (DBT), is set to boost formal employment by making it more attractive for industries to hire and train new talent."

Genius Consultants CMD R P Yadav said this current budget will bolster job creation, particularly in the manufacturing sector.

"The focus on employment-linked skills, with direct benefits for first-time formal sector entrants, is an equally promising step towards nurturing India's workforce. The provision of one month's wage for first-time entrants into formal sectors, complemented by a Direct Benefit Transfer of up to Rs 15,000 in three instalments, is a transformative step towards empowering 2.1 lakh young individuals," he said.