Union Budget: Internship opportunities announced for 1 crore youth in 'top companies' with allowance of Rs 5,000 per month

Union Finance Minister Nirmala Sitharaman, in her Budget 2024 speech, announced a major internship scheme to provide on-job training opportunities to the youth. The program will target 1 crore young individuals over the next five years, collaborating with 500 top companies across India. Each intern will receive a monthly stipend of Rs 5000 to ensure they get exposure to a real-life work environment.

"The Government will launch a scheme to provide internship opportunities to 1 crore youth in 500 top companies with Rs 5000 per month as internship allowance and one-time assistance of Rs 6000," said Sitharaman.

Funding and Corporate Responsibility

Participating companies will cover the training costs, with 10 percent of these expenses funded through their Corporate Social Responsibility (CSR) contributions. This is in line with Section 135 of the Companies Act 2013, which mandates that companies with certain turnover and profitability levels spend 2 percent of their average net profit from the previous three years on CSR activities.

Job Creation and Financial Allocation
To support these initiatives, the government has allocated Rs 2 lakh crore, aiming to create 4.1 crore jobs over the next five years. This significant funding underscores the government's commitment to reducing unemployment and boosting employability among the youth.

Skill Development Program
Sitharaman also announced a new centrally sponsored skill development initiative designed to enhance the skills of the country's youth. Over the next five years, this program will train 20 lakh young individuals, providing them with the necessary skills to secure job opportunities.

"New centrally-sponsored scheme for skilling in collaboration with states, industry; 20 lakh youth to be skilled over 5 years," Sitharaman stated.

Support for First-Time Employees
The government will also provide a one-time wage assistance to all first-time employees across various sectors through Direct Benefit Transfer (DBT). This initiative aims to encourage youth participation in the workforce by easing the financial burden associated with starting a new job.

These initiatives are part of a broader effort to address employment, skilling, MSMEs, and the middle class. The government's strategy includes upgrading 1,000 industrial training institutes and proposing Rs 1.48 crore for skilling youth to generate job opportunities.

In her speech, Sitharaman highlighted the importance of these measures, stating that employment, skilling, MSME, and middle class are among the key focus areas of this Budget.