The stakeholders in the education sector have been waiting with bated breath for the Union Budget 2024. The wait ended on Tuesday, 23rd July, and the reactions have been mixed. The focus has been on employment and skilling.
Eminent Educationist Dr Ashok Kumar Pandey said, “Finance Minister Nirmala Sitharaman presented the full budget for the financial year 2024 in the parliament, outlining nine priority areas. Among these, three are directly related to education: Employment and Skilling, Innovation, R & D, and Next Generation Reforms, signalling the government’s intent. The education sector encompasses more than just primary, secondary, and higher education. It is fundamentally about shaping the future workforce. The government’s focus on reskilling, paid internships, interest subvention on educational loans and fostering enablers for youth employability and entrepreneurship is commendable.”
Dr Ashok Kumar Pandey
No direct GST benefits
“Although no direct GST benefits were announced for the education sector, the government has promised to rationalize the GST structure. The education sector had anticipated a greater emphasis on teacher development, digital infrastructure, private sector incentivization, and fostering school-industry-university collaboration to lower entry barriers for youth entering the workforce,” added Ashok Pandey.
Skilling gets a boost
“One of the takeaways of the budget and a welcome one at that is the revised model skilling scheme and the upgrading of 1,000 industrial training institutes,” says Dr Resy Mannemplavan, Head of Cambridge Research and Development Centre, DPS & PALLAVI GROUP.
Dr Resy Mannemplavan
The intent of the Government is clear with emphasis on employability. The upgrade of Industrial Training Institutes (ITIs) will be done using a hub-and-spoke model. The upgrade will tweak the course content and make it relevant to the demands of the industries.
Highlights
- Rs 1.48 lakh crore allocated for education, employment, and skilling sectors
- Government to offer internships at 500 top companies to 1 crore youth over five years
- The Finance Minister announced model skill loans up to Rs 7 lakh for 25,000 students annually
20 lakh youth to be skilled
Finance Minister Nirmala Sitharaman said that the new initiatives will skill 20 lakh youth over a five-year period. This move is expected to significantly contribute to the nation’s workforce, providing young individuals with the necessary skills to thrive in various industries.
Internships in top 500 companies
The new scheme will offer internship opportunities at 500 top companies for 1 crore students over the next five years. Each student will receive a monthly stipend of Rs 5,000 and a one-time assistance payment of Rs 6,000.
Loans to 25,000 students
In a major boost to students aspiring for loans, the budget introduced “Skilling loans – model skill loans schemes for up to 7 lakh rupees will benefit 25,000 students every year,” she stated. This initiative aims to support students financially in acquiring the necessary skills, thus enhancing their employability and career prospects.
The proposal to provide Rs 1.48 lakh crore for education, employment and skilling outlines the government’s focus on lending a hand to the youth and boosting employment by providing industry-specific skills and training.
