Last updated on August 24th, 2024 at 05:55 am
The Union Budget 2024 introduces a new internship scheme targeting the top 500 companies in India, aiming to skill one crore youth over five years. Eligible individuals aged 21-24 will receive hands-on experience and a monthly allowance, enhancing employability and creating a future-ready workforce.
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The Union Budget 2024 has placed a significant emphasis on skill development and the creation of employable youth as crucial objectives. Recognizing the need to bridge the gap between education and employment, the government has launched an innovative internship scheme aimed at supporting the professional growth of young individuals while benefiting participating organizations. This initiative targets one crore youth within the next five years, highlighting the government’s commitment to enhancing the nation’s human capital.
Key Features of the Internship Scheme
The newly introduced internship scheme is designed to engage the top 500 companies in India, encouraging them to partake in this voluntary program. Although participation is not mandatory, the scheme offers considerable advantages for organizations aiming to cultivate a workforce that is prepared for future challenges. By integrating fresh talent into their operations, companies can contribute to and benefit from a more skilled and dynamic labor market.
Eligibility and Selection Criteria
To ensure that the scheme reaches those most in need, specific eligibility criteria have been established. Individuals aged 21 to 24 who are currently not employed or engaged in full-time education can apply. However, the program explicitly excludes candidates from prestigious institutions such as IIT, IIM, IISER, CA, and CMA, aiming to provide opportunities to those from less privileged educational backgrounds. Additionally, applicants must not have family members who are government employees or income tax assessees, further focusing the scheme on the underserved segments of society.
Internship Structure and Expectations
The internships are structured to last for 12 months, providing a substantial period for skill development. Companies participating in the scheme are expected to offer interns practical, hands-on experience in relevant skills. Importantly, at least 50% of the internship duration should involve working in a real job environment rather than classroom-based instruction. This approach ensures that interns gain practical insights and experience, making them more employable. If an organization is unable to provide this experience directly, it must collaborate with its supply chain partners or related institutions to fulfill this requirement.
Financial Aspects and Funding
The scheme includes a monthly internship allowance of INR 5,000, amounting to a total of INR 60,000 over the 12-month period. An additional INR 6,000 is provided for incidental expenses, bringing the total financial support to INR 66,000 per intern. The government will shoulder the majority of this financial burden, covering INR 54,000 of the allowance and the entire INR 6,000 for incidentals. Participating organizations are required to contribute INR 6,000 (10% of the internship allowance) and bear the training costs, which can be financed through their Corporate Social Responsibility (CSR) budgets. CSR funds can also be utilized to cover reasonable administrative expenses associated with the scheme.
Application Process and Selection
Applications for the internship program will be processed through an online portal, streamlining the application and selection process. Organizations will select candidates based on objective criteria, prioritizing those with lower employability prospects. This method ensures that the scheme effectively targets individuals who stand to benefit the most from the opportunity, enhancing their skills and future job prospects.
Practical Considerations and Challenges
Despite the promising framework, the scheme raises several practical questions. One significant concern is whether the voluntary engagement of interns will count towards the statutory requirement under the Apprentices Act, 1961, which mandates that organizations engage 2.5% of their workforce as apprentices. Additionally, clarifications are needed regarding the criteria for selecting the top 500 companies, the limits on the number of interns an organization can engage, and whether organizations can offer higher allowances than the minimum specified.
The Union Budget 2024’s focus on skill development through the new internship scheme reflects a strategic effort to prepare India’s youth for the evolving job market. By fostering partnerships between the government and leading companies, the scheme aims to create a robust pipeline of skilled workers ready to meet future challenges. While certain practical aspects require further clarification, the initiative holds great potential to transform the landscape of employment and skill development in India, benefiting both individuals and organizations.