Finance Minister Nirmala Sitharaman did not announce any major job creation measures in her 77-minute Budget speech presenting the Union Budget 2025. However, she unveiled plans for the establishment of 5 National Centers for Skilling and 3 Centers of Excellence in AI for Education, focusing on upskilling the youth.
Additionally, Sitharaman announced provisions for gig workers, including the provision of ID cards, registration on the e-Shram portal, and access to benefits under the Jan Arogya Yojana for workers in platforms like Ola and Swiggy.
In 2024, five schemes were announced for the youth, out of which four are still under process, and one scheme is on hold. The updates on these five schemes are as follows:
Scheme 1: Skilling – Internships in top companies
- Announcement: The government will offer internships to 2 million youths each year in top 500 companies, with a monthly stipend of Rs 5,000. Over five years, 10 million youths will be skilled.
- Status: On Hold. Online registrations began on October 12, 2024, with 621,000 youths registered by November 15. The scheme was meant to launch on December 2 but was put on hold on the same day, with no restart date set yet.
Scheme 2: Job creation in manufacturing – Incentives for first jobs
- Announcement: First-time job seekers in the manufacturing sector will receive incentives, both for the job seeker and the employer. The incentives will depend on the first four years of EPFO deposits, benefiting 3 million youths.
- Status: Not started yet. The registration deadline for employees to join EPFO was extended multiple times but no details on the incentive amount or medium have been announced.
Scheme 3: First-time employment – Bonus equal to first salary
- Announcement: The government will provide Rs 15,000 as a bonus to those registering for the first time with EPFO, with payments in three installments. This scheme will benefit youths earning less than Rs 1 lakh per month and will support 2.1 crore youths.
- Status: Not started yet. EPFO registration for first-time employees was extended to January 15, 2025. No first installment has been credited to accounts yet.
Scheme 4: Support to employers – EPF reimbursement
- Announcement: Employers will receive a reimbursement of Rs 3,000 per month for two years for hiring new employees earning less than Rs 1 lakh, provided they are added to EPFO.
- Status: Not started yet. The deadline for EPFO registration of new employees was January 15, 2025, but employers have not yet started receiving reimbursements.
Scheme 5: Higher education loan – Guarantee-free loan up to Rs 10 lakh
- Announcement: The government will provide assistance for loans up to Rs 10 lakh for higher education, with a 75% credit guarantee on loans up to Rs 7.5 lakh. It will also provide 3% of the annual interest for loans up to Rs 10 lakh.
- Status: Not started yet. The PM Vidyalakshmi Scheme was approved on November 6, 2024, and is expected to start in February 2025.
Unemployment update:
In 2024, the unemployment rate in India stood at 3.2%, the same as in 2023. However, it had decreased compared to 4.1% in 2022, with 32 out of every 1,000 people actively seeking work being unemployed.
Education spending under NDA government:
The NDA government has spent, on average, 1% less of the total budget on education compared to the UPA government over the past 20 years.
Major skilling schemes in India:
- Pradhan Mantri Kaushal Vikas Yojana (PMKVY)Launched in July 2015, this scheme provides free or subsidised training for unskilled and illiterate youth, aiming to prepare them for employment. More than 1.2 crore youths have benefited.Website: pmkvyofficial.org
- National Skill Development Mission (NSDM)Launched in July 2015, the mission aims to train 400 million people by 2022, focusing on rural and vulnerable youth. More than 50 million people have benefited.Website: nsdcindia.org
- Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY)Launched in September 2014, this scheme provides skill training for rural youth aged 15-35, especially targeting SC/ST, women, and disabled individuals. Over 11 lakh youths have benefited.Website: ddugky.gov.in
