Union Budget 2024 proposes Rs 1.48 lakh crore for education, employment, skilling

Finance minister Nirmala Sitharaman’s proposal to provide Rs 1.48 lakh crore for education, employment and skilling outlines the government’s focus on enhancing education opportunities, nurturing talent and boosting employment by providing industry-specific skills and training.

In her Budget speech, Sitharaman said 2 million youths will be skilled over a five-year period in collaboration with state governments and industry. She also said a thousand industrial training institutes (ITIs) will be upgraded in hub-and-spoke arrangements with outcome orientation. Course content and design will be aligned to the skill needs of industry and new courses will be introduced for emerging needs, she said.

Sitharaman said the Model Skill Loan Scheme will be revised to facilitate loans up to Rs 7.5 lakh with a guarantee from a government-promoted fund, which will help 25,000 students every year.


For students who were not eligible for any benefit under government schemes and policies, the Budget proposed financial support for loans up to Rs 10 lakh for higher education in domestic institutions. E-vouchers for this purpose will be given directly to 100,000 students every year for annual interest subvention of 3% of the loan amount, the finance minister said.

“The Budget demonstrates an emphasis on skilling and employment, taking an inclusive approach to boosting employment, benefiting employers and employees. It reflects a strategic approach to addressing workforce challenges and fostering economic growth across sectors,” said Guruprasad Srinivasan, CEO of business services provider Quess Corp.

Mayank Kumar, MD of upGrad, also commended the emphasis on skilling and employment and bridging the talent-academia gap. “GOI's allocations—to fuel aspirations of 4.1 crore youths, empower women to join the workforce, and provide tax benefits and loans like skilling loan and education loan—is a masterstroke, set to unlock India's demographic dividend and drive growth,” he said.