The union budget, which was laid out on Tuesday has employment of youth and upskilling as its cornerstone. Incentives for jobs, exemption of angel tax, changes to the new tax regime and more have been highlights of the discussion around the budget.
Here are some reactions for the Union Budget 2024-25 which was presented by union finance minister Nirmala Sitharaman.
“The union budget, which was laid out on Tuesday has employment of youth and upskilling as its cornerstone. Incentives for jobs, exemption of angel tax, changes to the new tax regime and more have been highlights of the discussion around the budget. Here are some reactions for the Union Budget 2024-25 which was presented by union finance minister Nirmala Sitharaman.” – Dr Anunaya Chaubey, Provost, Anant National University
“The government’s new budget is a significant step towards meeting the needs of our youth and workforce. The ₹2 lakh crore allocation over five years to skill and employ 4.1 crore youth is transformative. The internship scheme for 1 crore youth provides crucial industry exposure and skills for the global market. Employment incentives, including wage support for first-time hires, will boost job creation and support new professionals. The emphasis on women’s skilling and workforce participation promotes gender equality and economic growth. Overall, these measures reflect a comprehensive strategy for building a skilled, diverse workforce, driving economic development.” – Rahul Attuluri, CEO of NxtWave.
“The Union Budget 2024-25 marks a significant stride towards fostering higher education, job skills, and employment opportunities in our nation. The government’s commendable initiative to enhance the Model Skill Loan Scheme, benefiting 25,000 students annually, will alleviate financial concerns and enable our aspiring youth to pursue their ambitions unhindered by financial constraints. Furthermore, the promotion of internships in 500 leading companies, accompanied by an internship allowance of ₹5,000 and a one-time assistance of ₹6,000, underlines the government’s commitment to providing practical exposure and experiential learning opportunities to our students. The allocation of ₹1.48 lakh crore towards education, employment, and skilling exemplifies the government’s resolute dedication to fostering a knowledge-driven economy. This substantial investment will equip our youth with the necessary skills to thrive in an ever-evolving and competitive world.” – Aman Mittal- Vice President, Lovely Professional University
“Heartening to note the much-needed impetus provided to the employment, education & skilling sector. The announcement of INR 1.48 lakh crore provision along with inclusion in the list of 9 priorities of the Government spells out an intention to truly transform the sector for the upliftment of the society especially youth & women. Announcing three employment linked incentive schemes covering first timers in manufacturing & other sectors has the potential to generate millions of job-related opportunities in the formal sector. Furthermore, investments in upgradation of 1,000 ITIs with outcome orientation & improving access to skilling/educational loans is expected to empower the next generation to pursue higher & vocational education programs. Offering paid internship opportunities in top companies to over 1 crore youth is likely to open multiple doors to employment whilst bridging the gap between academia/skilling institutions & the corporate world. Unfortunately, no announcements with respect to restructuring the NTA, digitisation of competitive exams to avoid a NEET-like fiasco & incentivising foreign investment in K12 & higher education were made” – Rohin Kapoor, Partner, Education and Skilling, Management Consulting, BDO India
“With India extensively investing in education and skill development initiatives, the time is right to use the “youth bulge” to enhance the vision of Industry 4.0 and 5.0. The Indian government’s proposed new scheme to upskill 20 lakhs youth, aligning the youth population with Industry 4.0 and 5.0 through holistic skill development in technology, adaptability, and innovation will boost economic growth and create a sustainable future. As digital natives, youth, particularly in the age group of 15 to 24, are more likely to embrace and excel in fields, such as artificial intelligence, robotics, and biotechnology. Through investments in their aspirations and skill development, India can harness their potential to lead in these cutting-edge areas and ensure a competitive and forward-looking workforce”. – Akhand Jyoti Tiwari, Partner, MicroSave Consulting (MSC)
“The Union Budget’s focus on education and skilling, presented by Finance Minister Nirmala Sitharaman, is commendable. It addresses both immediate and long-term economic concerns by emphasizing employment, MSMEs, and the middle class. The introduction of internship opportunities for youth in top companies and the collaborative effort to train 20 lakh youth over five years are timely and beneficial. The provision of e-vouchers for education loans at a 3% interest rate will support 1 lakh students, easing the financial burden of higher education. Additionally, financial assistance for loans up to ₹10 lakh will aid those pursuing advanced studies. However, increased support for high-end research in scientific institutions is needed to elevate India’s global standing. Overall, the budget takes important steps in the right direction.” – Prof Arvind Sahay, Director at MDI Gurgaon
The Union Budget 2024-25 aims to reshape India’s employment landscape with major initiatives: ₹2 lakh crore allocated to create 4.1 crore jobs, including incentives for first-time employees, new working women hostels, and enhanced MGNREGA. It also focuses on skilling youth with up to ₹10 lakh in education loans and internships for 1 crore people. Support for MSMEs includes a ₹100 crore guarantee fund, targeting a 12-15% job increase. Investments in infrastructure and tourism are expected to boost employment by 15-20% and 10-12%, respectively. These measures promise significant economic growth and inclusivity.” – Sachin Alug, CEO, NLB Services
“This year’s budget announcements will be revolutionizing for the education sector. The Prime Minister’s package, with its massive ₹2 lakh crore outlay, shows a strong commitment to our youth. The plan to skill 20 lakh young people over the next five years is such a crucial step. It means more of our youth will have the skills they need to succeed in today’s job market. And the support for education loans up to ₹10 lakhs? That’s a game-changer. It will make higher education accessible to so many more students, helping them to pursue their dreams without the heavy burden of financial constraints. Overall, these initiatives are a huge leap towards a more inclusive and dynamic future for our country.” – Dr. Kokil, Dean – Research & Outreach, at FIIB (Fortune Institute of International Business)
“The Union Budget 2024 is a landmark initiative that promises to reshape the landscape of education and employment in our country. By prioritising education, skills development, and internships, it addresses critical gaps in the current system. The introduction of financial support for higher education and direct benefit transfers is set to make quality education more inclusive. Additionally, the provision for internships for 1 crore youth in top companies will provide invaluable hands-on experience and practical skills. This initiative not only supports students financially with a monthly stipend of Rs 5,000 but also equips them with the experience needed for successful careers. Ensuring that students have access to both world-class education and real-world training is essential for their future success.” – Dr Prabhu Aggarwal, Dean BSM (Badruka School of Management)
“The introduction of financial support for education loans up to ₹10 lakhs, paired with a new skilling program aimed at training 20 lakh youth over the next five years, is a strategic move that meets today’s pressing needs. As we face a job market where nearly 50% of employers report significant skills gaps, this initiative comes as a timely remedy. By enabling students to pursue higher education and simultaneously focusing on practical skill development, we’re addressing both the academic and professional demands of the current and future job landscape. This comprehensive approach ensures that young people not only gain theoretical knowledge but also acquire the hands-on skills that are increasingly critical in the modern workforce.” – Nien Siao (Dean, JS Institute of Design)
I am deeply encouraged by the government’s allocation of Rs 1.48 lakh crore towards education, employment, and skilling. Notably, funding for the PM SHRI initiative, aimed at transforming government schools into model institutions, has surged from Rs 2,800 crore to Rs 6,050 crore, reflecting a substantial increase of Rs 3,250 crore. This enhanced funding will ensure that every student has access to high-quality resources and opportunities. – Rustom Kerawalla, Founder and Chairman of VIBGYOR Group of Schools
The announcement to offer internship opportunities to 1 crore students at 500 top companies over the next five years is a welcome move to foster industry-academia collaboration and produce industry-ready professionals. The decision will facilitate B Schools to forge ties with industry leaders, design a more targeted curriculum and align academic programs with existing industry trends and demands. We expect further financial assistance from the Union Government to meet the objectives of NEP 2020 and nurture future talent in the digital era. Overall, the Union Budget 2024 embodies India’s vision of becoming a Vishwaguru by promoting a proficient workforce, driving innovation, and fostering economic growth. – Dr Prabhat Pankaj, Director , Jaipuria Institute of Management, Jaipur
We applaud the government’s initiative to provide a 3% interest subvention on loans up to Rs 10 lakh for higher education. This will significantly reduce the financial burden on students, making quality education more accessible. Moreover, the new centrally sponsored scheme under the Prime minister’s package for skill development, in collaboration with state governments and industry, is a commendable step. Over the next five years, this will equip students with essential skills, enhancing their employability. – Prashant Bhonsle, Founder of Kuhoo Edufintech
We commend the Government’s forward-thinking initiatives announced in today’s Union Budget for the education sector. The commitment to provide skilling opportunities to 20 lakh youth over the next 5 years and internships for 1 crore young individuals is a significant step towards empowering the next generation and addressing the skills gap in our country. The focused skilling programs for women will promote inclusivity and ensure that women are equally equipped to participate in the workforce. – Vinay Kumar Swamy, Country Head- Pearson India
Such initiatives in the education and skilling financing sectors are widely praised and can be seen as crucial steps towards fostering the potential of the youth, who are integral to the future growth of our nation. These measures are expected to play a pivotal role in advancing our country’s well-rounded socio-economic development. – Nikunj Agarwal – Head – Fund Raise, Finance & Lending Alliances (Propelld)
The introduction of initiatives such as the Prime Ministerial Package and internships at top companies for students, along with model skill loans, are steps in the right direction towards empowering the youth and preparing them for a competitive job market. It is crucial for the government to sustain and expand upon these efforts in the future budgets to ensure long-term benefits for the country’s workforce and economy. – Usha Iyer, Principal and managing director, The Green School Bangalore
The three newly announced ‘Employment Linked Incentive’ schemes—First Timers, Job Creation in Manufacturing, and Support to Employers—will undoubtedly drive employment and boost the manufacturing sector. Providing skilling loans of up to Rs 7.5 lakh will further ease financial barriers for students, ensuring they have access to quality training and employment opportunities. These initiatives reflect a significant commitment to building a skilled workforce. – Ankur Goel, CEO & Founder of Skillible
It is good that the FM has specifically mentioned the importance of Creches for supporting Women in the workforce. We urge the Government to further clarify as well as strictly implement the guidelines, insist on mandatory staff to be hired and the creches to be kept open without fail. This is necessary as some companies are citing lack of interest from employees as the reason for keeping their infra dormant leading to a chicken-and-egg story for years after the setup. Also, the law mandates nearby presence of a creche so loopholes like generic tie ups with far away existing centers should be plugged soon. – Saloni Verma, Chairperson, Sunshine Preschools
We are glad to see the budget‘s focus through financial packages and loans on higher education, youth employment, internships and skilling which marks a significant step towards empowering India‘s future generation and will help India become a technology hub. The government’s dedication to enhancing women’s roles in economic development through multiple reforms is the beginning to a brighter future. However, there could have been some targeted focus on enhancing the attractiveness of India as a global educational hub to attract more international students. There is also a need to upscale the education system to attract more foreign students to the country to promote India as a global study destination. – Shweta Sastri, Managing Director, Canadian International School, Bangalore
It is highly encouraging to see the budget’s focus on skill development with substantial investments aimed at revamping our education system. The access to easy financial assistance will help youth and students particularly from underserved areas to train themselves in skills to meet employment requirements of the new economy. These initiatives aim to alleviate financial barriers faced by students seeking advanced education, ensuring broader access to quality educational opportunities. – Niru Agarwal, Managing Trustee, Greenwood High International School
The Union Budget 2024’s focus on women’s workforce participation is commendable. Establishing hostels and women-specific skilling programs, alongside promoting internships in top companies, shows a strong commitment to gender equality. The provision of a Rs.5,000 internship allowance and Rs. 6,000 one-time assistance, along with skilling 20 lakh youth over five years, will significantly boost opportunities. These measures, coupled with enhanced educational support, will empower women and youth, driving India’s economic and social progress forward.” – Rashmi Mittal, Pro Chancellor, Lovely Professional University
The allocation of Rs. 2 lakh crore under Modi 3.0’s budget is a transformative step towards enhancing education, employment, and skilling opportunities in India. By offering financial support of up to Rs.10 lakhs for higher education loans, the government directly aids 1 lakh students annually with interest subvention, thereby reducing financial burdens and promoting domestic institution enrolment. This initiative not only boosts accessibility but also ensures quality education remains within reach. Furthermore, the PM’s comprehensive package of five schemes aims to skill and employ 4.1 crore youth over five years, injecting vitality into the job market and fostering a skilled workforce. Such strategic investments are pivotal in nurturing a robust education sector and driving economic growth through empowered, skilled individuals. – Koneru Satyanarayana, President at KL Deemed to be University
We happily acknowledge the progressive measures the government is taking to further the education of young Indians. The government will also offer internships in 500 of India’s top companies. The companies can employ these interns through their CSR funds. As a support to employers, reimbursement of up to Rs 3,000 per month for two years towards their EPFO contribution for each additional employee will be provided. India’s large population challenges the country, and these new schemes aim to create new jobs and provide employment to well-educated youth. – Balkishan Sharma, Chairman & Founder at Future Varsity
The government’s move to launch a scheme for providing internship opportunities in 500 top companies to 1 crore youngsters in the next 5 years will go a long way in creating new jobs in the country. This will also enable the youngsters to upskill themselves and move up the value chain. Acquiring the requisite skills needed for the industry is most important and this move to provide internships will accelerate that process. Allocation of Rs.1.48 lakh crore for the education sector, jobs and skill developmentis a encouraging move. – Raj Mruthyunjayappa, Chairman and CEO, Talisma Corporation
The commitment to upgrade 1,000 Industrial Training Institutes (ITIs) in hub & spoke arrangements over the next five years underscores the government’s focus on enhancing skill development and aligning training with industry needs. The revision of the Model Skill Loan Scheme to facilitate loans up to Rs 7.5 lakh with government guarantees is expected to significantly enhance employability and skill acquisition among the youth, thereby supporting industry growth. – MG Rajgopal, president, Karnataka Small Scale Industries Association (KASSIA)
“It is very encouraging to see Skill Development listed among the top 9 priorities in the Union Budget 2024, reflecting the Government’s commitment to sustained efforts in this area. The partnership between state governments and industry to skill 20 lakh youth over the next 5 years is a commendable initiative. It is essential that we place equal emphasis on life skills development as a critical component of Skill Development.” – Ravi Sonnad, Founder and CEO, Enabling Leadership.
The Union Budget announced by the Hon’ble FM has its heart in the right place. The allocation of Rs. 1.48 lakh crore to focus on education, employment, and skilling, augurs well for nation building in the long term. The increase in funding for central universities reflects a commendable commitment to strengthening the educational infrastructure. The financial support with loans up to Rs. 10 lakhs for higher education is a significant step towards making education accessible to all. The skilling program to train 20 lakh young people over the next five years in partnership with state governments and industries is a welcome step too. The new internships, offering stipends and assistance funded through CSR, are also commendable and will provide the student’s valuable hands-on experience. We look forward to aligning with the nation’s imperatives and working collaboratively with the government towards our common goals. – Dr P Venkat Rangan, Vice Chancellor, Amrita Vishwa Vidyapeetham
Public Sector Units (PSUs) are the single biggest repositories of industrial skills. Their divestment could have been strategically used to fund skill development clusters in emerging sectors such as Fintech, Logistics, Textiles, and Defence Production. Additionally, lenders to students possess critical insights into the employability of their borrowers and could be incentivized to align education and skills training with industry needs, enhancing efficiencies. Domestic educational institutions would benefit from increased lending ceilings for local education, while creating more opportunities for the return of talent educated abroad could prevent dis-incentivization of such loans. States, having the best scope to create jobs, should be given GST incentives to invest in education and skills, particularly in regional languages. – Prof. (Dr.) Madhu Veeraraghavan, Pro Vice Chancellor ,Manipal Academy of Higher Education, Bengaluru.
Thank the Finance Minister for her continued efforts in making healthcare more accessible by exempting additional cancer medications from customs duties, building on the exemptions introduced in the last budget. This, along with the customs duty exemptions for foods and drugs used for rare diseases, significantly alleviates the financial burden on patients who are already grappling with the trauma of their conditions. We eagerly anticipate further exemptions for drugs and medical consumables related to other lifestyle diseases, which will help make healthcare accessible to even more people. However, it is worth noting that the increase in the healthcare budget allocation compared to the previous year is marginal. There is still a pressing need to substantially bridge the gap in achieving the vision of quality healthcare for all. – Dr K Hari Prasad, Group Chairman & Non-Executive Director, Quality Care India Ltd.
Also read: Budget 2024: Expectations from the Education Sector