In Union Budget 2024, Finance Minister Nirmala Sitharaman announced a new internship scheme providing skill development and a monthly stipend for youths.
Finance Minister Nirmala Sitharaman, in her Budget 2024-25 speech announced a significant new scheme aimed at enhancing employment and skill development. Among the initiatives under the Prime Minister’s package, she highlighted an internship program designed to offer opportunities to 1 crore youth across 500 top companies over the next five years.
The Union Budget 2024-25 introduces a major internship scheme to provide 1 crore youth with a 12-month experience at 500 top companies over five years. Interns will receive a monthly stipend of Rs 5,000 and a one-time assistance of Rs 6,000 to support their journey.
Sitharaman stated, "As the 5th scheme in the Prime Minister's package, our government will launch a comprehensive scheme to provide internship opportunities to 1 crore youth in 500 top companies over the next five years." For 12 months, they will be exposed to real-world business environments, many professions and job opportunities."
Companies offering these internships will be required to provide actual work experience and skill development sessions. At least half of the internship duration must be spent in a job environment rather than in a classroom settings. Participating companies will also cover training costs and contribute 10 per cent of the total internship expenses from their CSR funds.
The scheme will be implemented in two phases: Phase 1 will run for 2 years, followed by Phase 2 for 3 years. It will also be coordinated with state government initiatives wherever applicable.
In her announcement, Sitharaman also revealed that the government will implement five schemes to focus on 4.1 crore youth over the next five years, with a central outlay of Rs 2 lakh crore. Alongside this internship scheme, the Budget outlines other employment-promoting initiatives including employment-linked subsidies where the government will pay a one month salary for new employees in three instalments and two schemes offering subsidies for Employee Provident Fund (EPFO) contributions
Applications for the internship scheme will be processed through an online portal, which will be launched soon, ensuring a streamlined process for potential candidates.