Union Budget 2024-25: Union Budget 2024-25: In the Union Budget 2024-25, Finance Minister Nirmala Sitharaman announced a series of initiatives focused on employment and skilling as part of the Prime Minister’s package, aiming to boost job creation and enhance the workforce’s capabilities.
Employment Linked Incentive schemes
Scheme A: First timers – To support newcomers in the workforce, this scheme will provide a direct benefit transfer of up to INR 15,000 in three instalments, covering one month’s wage. It targets first-time employees with a salary cap of INR 1 lakh per month, expected to benefit 2.1 crore youth.
Scheme B: Job creation in manufacturing – This scheme incentivises employment in the manufacturing sector by offering incentives for first-time employees’ EPFO contributions over the first four years of employment. It is projected to benefit 30 lakh youth and their employers.
Scheme C: Support to employers – Aimed at encouraging employers to create additional jobs across all sectors, this scheme offers reimbursement of up to INR 3,000 per month for two years towards employers’ EPFO contributions for each new employee. It is expected to incentivise the employment of 50 lakh individuals.
FADA President Manish Raj Singhania said, “The budget’s emphasis on employment, skilling, MSMEs, and the middle class is particularly relevant for our industry. The Employment Linked Incentive scheme and the enhancement of Mudra loans are encouraging developments that will support job creation and entrepreneurship, leading to increased consumer spending power.”
Women’s workforce participationThe Union government plans to increase women’s participation in the workforce through the establishment of working women hostels, crèches, women-specific skilling programs, and market access promotion for women Self Help Group (SHG) enterprises.
New skilling programme
A new centrally sponsored skilling scheme will skill 20 lakh youth over five years. This initiative will upgrade 1,000 Industrial Training Institutes (ITIs) in a hub-and-spoke model, aligning course content with industry needs and introducing new courses for emerging sectors.
Skilling Loans: The Model Skill Loan Scheme will be revised, offering loans up to INR 7.5 lakh with government-guaranteed funds, expected to assist 25,000 students annually.
Education Loans:– To support students not previously eligible for government benefits, the budget includes financial support for education loans up to INR 10 lakh for domestic institutions. E-vouchers for annual interest subvention of 3% will be provided to 1 lakh students each year.
These comprehensive measures highlight the government’s commitment to creating a robust job market and equipping the youth with necessary skills for future opportunities.
“The aviation union budget of 2024 is a landmark for the manufacturing industry, addressing critical supply concerns for labour, land, and logistics. The government’s subsidy for formal employment, covering one month’s salary for new hires and EPFO contributions for two years, along with a focus on skilling and relaxed internship rules, is a significant positive, Anuj Jhunjhunwala, CEO, JJG Machining Group, said.
Dr Vijay Kalantri, Chairman, WTC Mumbai, and President, All India Association of Industries, stated, “I welcome the Union Budget for its thrust on increasing Mudra loan limit, enhancing credit guarantee fund for MSMEs, expanding SIDBI’s branches in MSME clusters operation, skilling of 4.1 crore youth and financing small scale labour intensive units, along with relaxation of fresh credit disbursement norms for stressed MSME loans. By taking these actions, Indian MSMEs will become more competitive worldwide. By introducing a skilling programme for 4.1 crore youngsters, energy security measures, recycling of vital minerals, and reforms to accelerate insolvency proceedings under the Insolvency and Bankruptcy Code, the Union Budget FY25 has established the path for a USD 40 trillion GDP vision.”
