Govt also hopes to create over 4.1 crore new jobs in the next five years.
Union Education Minister Dharmendra Pradhan hailed the 2024-25 Budget as a pivotal milestone on India’s path to becoming a developed nation by 2047.
Expressing his gratitude to Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for their relentless focus and concrete measures for the well-being and empowerment of “Garib, Mahila, Yuva and Annadata”, he mentioned that the Budget for Viksit Bharat is truly a people-oriented, growth-inducing, inclusive, and progressive budget.
He said that by prioritizing education, skilling, employment generation, research, and innovation like never before, the Budget for Viksit Bharat paves the way for strengthening Bharat’s credentials as the talent basket, skill hub, and solution provider for the world.
He mentioned that this budget would further facilitate ease of living, boost socio-economic conditions, fuel green growth, strengthen social justice, improve the business climate, realize dreams, bring prosperity to every home, and accelerate the groundwork to achieve the next phase of economic growth.
He emphasized that empowering the youth and fulfilling their dreams is at the heart of the government. The Budget for Viksit Bharat continues the Government’s trend of keeping the youth’s aspirations at the centre of policy-making, he added.
Shri Pradhan also highlighted out the ₹1.48 lakh crore allocation to education, employment, and skilling. He elaborated on the Prime Minister’s Package, which includes:
– Strengthening the skilling and apprenticeship ecosystem;
– Skill development and internship opportunities for 1 crore youth by India’s top companies;
– Providing employment-linked incentives to first-time employees across sectors;
– Providing incentives to both employees and employers for EPFO contributions; and
– Providing Model Skill Loans up to ₹7.5 lakh to 25,000 students annually and education loans up to ₹10 lakh for pursuing education in domestic HEIs to 1 lakh students every year with an annual interest subvention of 3%.
He noted that these are comprehensive and concrete measures by Nirmala Sitharaman that will be a win-win for all stakeholders—students, academia, and industry. This is going to fulfil the aspirations of our youth, empower people with more livelihood opportunities, increase accessibility to quality education and skills, and create over 4.1 crore new jobs in the next five years.
Here are some reactions from the industry:
Akash Sharma, Director of Admissions and Outreach at Noida International University(NIU)- I am thrilled to see the Union Budget 2024 prioritize education and skills along with internship opportunities for students. The introduction of financial support for higher education and the e-voucher system will greatly benefit our students, making quality education more accessible and affordable. It will also encourage students to pursue a career of their choice. This initiative is a significant step forward in empowering the youth and ensuring a skilled workforce for the future. The direct benefit transfers for first-time employees will also incentivize formal employment and provide much-needed support during their transition into the workforce.
The internship opportunity scheme for youth upskilling will help them enhance their skills and the provision of a small amount of ₹5,000 will boost their motivation as they work in top-notch companies. These measures will have a positive impact on the education industry and contribute to the nation’s growth and development.
The Union Budget 2024’s strong focus on employment and skilling, with the announcement of five schemes targeting 4.1 crore youth over the next five years with a central outlay of ₹2 lakh crore, demonstrates a clear commitment to empowering our young population. The financial support for loans up to ₹10 lakhs for higher education will open doors for countless students to pursue their academic aspirations within our domestic institutions.
This will provide essential support and motivation for fresh graduates entering the workforce. These measures will not only enhance the employability of our youth but also contribute significantly to the nation’s economic growth and equip students with the skills needed for the evolving job market. This comprehensive approach to education and employment is a positive development for the entire education sector and the future of our youth.”
Pravesh Dudani, Chancellor and Founder. Medhavi Skill University, Sikkim The Centre’s allocation of Rs 1.48 lakh crore for the education and skilling sector, emphasizing education, employment, and skilling initiatives, marks a pivotal step towards empowering institutions. This financial commitment creates robust employment opportunities for the youth of the country. The provision of e-vouchers for student loans up to Rs 10 lakh further democratizes access to education, fostering inclusivity. The long-awaited upgrade of 1000 ITIs, coupled with curriculum alignment with industry trends under NEP 2020, signifies a significant boost to its implementation. The announcement of internships for one crore youth, supported by industry-aligned skill universities like Medhavi Skills University, underscores a promising avenue for practical education. Moreover, the provision for companies to fund internships through CSR initiatives will catalyze impactful collaborations between industry and academia.”
Kuldip Sarma, MSU’s Co-Founder and Pro-Chancellor, Medhavi Skill University, Sikkim: The implementation of NEP2020 will be bolstered with Education Budget 2024 highlighting productivity, employment and skilling, and manufacturing and services as priorities. In addition to the budget allocation of Rs 1.48 lakh crore to the education, employment, and skilling initiatives, specific initiatives like job assistance for benefiting 30 lakh youth, incentives for new jobs in the manufacturing sector and upgradation of 1000 ITIs will bring skill development and practical learning to the fore.
The new centrally funded scheme in partnership with state governments and companies and announced paid internships in top firms will aid in achieving the goal of skilling 20 lakh youth in the next 5 years.
Dr. Kokil, Dean – Research & Outreach, at FIIB (Fortune Institute of International Business)- This year’s budget announcements will be revolutionizing for the education sector. The Prime Minister’s package, with its massive ₹2 lakh crore outlay, shows a strong commitment to our youth. The plan to skill 20 lakh young people over the next five years is such a crucial step. It means more of our youth will have the skills they need to succeed in today’s job market.
And the support for education loans up to ₹10 lakhs? That’s a game-changer. It will make higher education accessible to so many more students, helping them to pursue their dreams without the heavy burden of financial constraints. Overall, these initiatives are a huge leap towards a more inclusive and dynamic future for our country.”
Dr. Alka Kapur, Principal, Modern Public School, Shalimar Bagh: The Union Finance Minister has made commendable decisions in allocating funds for education and skill development. The allocation of ₹1.48 lakh crore for education, employment, and skill development represents a forward-thinking investment in human capital development. This substantial investment, channeled through the Employees’ Provident Fund Organization (EPFO), underscores the government’s recognition of the critical link between education, skills, and employment.
Additionally, the announcement of five schemes targeting 41 million youth over five years with a central outlay of ₹2 lakh crore is a significant step towards achieving our “Viksit Bharat” (Developed India) ambition. Furthermore, the provision of financial support for loans up to ₹10 lakh for higher education in domestic institutions, along with the upgrade of 1,000 Industrial Training Institutes (ITIs) using the hub-and-spoke model, are strategic initiatives aimed at elevating India’s education sector to the next level.
Dr Prabhu Aggarwal, Dean BSM (Badruka School of Management): “The Union Budget 2024 is a landmark initiative that promises to reshape the landscape of education and employment in our country. By prioritising education, skills development, and internships, it addresses critical gaps in the current system. The introduction of financial support for higher education and direct benefit transfers is set to make quality education more inclusive. Additionally, the provision for internships for 1 crore youth in top companies will provide invaluable hands-on experience and practical skills. This initiative not only supports students financially with a monthly stipend of Rs 5,000 but also equips them with the experience needed for successful careers. Ensuring that students have access to both world-class education and real-world training is essential for their future success.”
Dr Bipin Sony, Assistant Professor of Economics and Finance in the School of Liberal Arts and Design Studies at the Vidyashilp University (VU): The union budget 2024-25 continues the previous themes aimed at achieving a Viksit Bharat, emphasizing capital expenditure while maintaining fiscal discipline. While the dynamics of a coalition government are apparent, the budget remained fiscally prudent budget with a revised fiscal deficit of 4.9 instead of 5.1 shows the belief in the robust macroeconomic fundamentals of the economy. The FM also gave slight tax relief to the salaried class burdened by higher levels of inflation if opting for the new tax regime.
Importantly, it is heartening to see a focus on youth, employment, research, and upskilling within the budget. The government is taking the aspirations of young people seriously, with a multifaceted approach that includes enhancing skills, promoting job creation, and fostering industry collaboration. The necessity for workforce upskilling is urgent, as demonstrated by the plan to upskill 2 million youth and the financial support for upgrading 1,000 Industrial Training Institutes in partnership with industry. Additionally, in line with the National Education Policy, students will be encouraged to undertake industrial internships, with a comprehensive scheme providing internship opportunities with financial aid at 500 leading companies for 10 million youth over five years, which deserves commendation. Thought the allocation to education, education, employment and skilling received 1.48 lakh crore, a careful examination of the budget document shows that the proposed expenditure for education hasn’t changed much from the interim budget.
Prateek Maheshwari, Co-Founder of PW and Chair of the India EdTech Consortium (IEC): I appreciate the Budget 2024 announcements and see them as positive steps towards Viksit Bharat. The government’s focus on closing the skill gap is clear with five new schemes. One key scheme promotes collaboration between the government, academia, and industry to upskill youth by matching course content with industry needs and adding new courses for emerging demands. This is a crucial development, and the EdTech sector can play a big role in expanding this initiative across Bharat. For students who are not eligible under any scheme or policy, the announcement of a loan of Rs 10 Lakh to pursue higher education at any domestic institution is in line with NEP 2020’s vision of improving the Gross Enrolment Ratio of the nation and the government should also look at introducing academic performance-linked models of funding for Educational programs. Additionally, loans for skilling and schemes supporting women and girls will help harness the country’s demographic and gender dividend, boosting economic growth. However, it’s important to remember that the budget allocation is only part of the solution. The real challenge will be how all stakeholders come together and execute this to pave the way to larger economic progress.
