Prime Minister’s package worth US$ 23.88 billion (Rs. 2 lakh crore) to boost employment and skilling for 4.1 crore youth

The Union Budget 2024-25, presented by the finance minister, strongly emphasizes enhancing employment and skill development. A significant component of this budget is the Prime Minister’s package, which allocates US$ 23.88 billion (Rs. 2 lakh crore) to support 5 key schemes to provide employment, skilling, and other opportunities to 4.1 crore youth over the next five years. This package focuses on Employment Linked Incentives, improving skilling, boosting women’s workforce participation, supporting MSMEs, and strengthening capital infrastructure. Notably, 3 schemes will be implemented through the Employee Provident Fund Organisation (EPFO), designed to incentivize first-time employees and support employees and employers with various financial benefits.

Additional reforms include integrating E-shram portals for a comprehensive solution to skill requirements and job roles and revamping the Shram Suvidha and Samadhan portals to enhance industry compliance and grievance redressal. Other initiatives include a new scheme to skill 20 lakh youth, an upgrade to 1,000 industrial training institutes, and an internship program offering opportunities to one crore youth with financial support. The Budget also promotes women’s workforce participation by proposing working women hostels and crèches. It supports entrepreneurship through financial aid and tax benefits for start-ups and MSMEs. An 11% increase in capital expenditure to US$ 132.64 billion (Rs. 11.11 lakh crore) will create jobs in various sectors, and increased funding for MGNREGA will support rural employment. The Budget aims to foster sustainable growth and lay a robust foundation for Viksit Bharat.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.