India's Budget 2024: Boosting Youth Employment and Economic Growth Through Innovative Schemes

Learning by Doing: Why India's new internship scheme is a masterstroke

The government proposed an internship scheme to bridge education and employment gaps, targeting the development of a skilled workforce. Covering 1 crore youth in 5 years, it offers stipends for practical work experiences in top companies, empowering interns and encouraging corporate involvement.I hear and I forget. I see and I remember. I do and I understand. - Confucius Our march from developing to developed nation must be built on Innovation and Knowledge. If as a nation we do not bank on the Demographic, Digital and AI dividend we will lose a generational edge. This predicates the need to urgently disrupt the traditional education model and ensure we do not lose faith in the system. The abysmal higher education gross enrollment ratio of 29% and the anemic growth, is a symptom and not the cause. India's job landscape is a paradox - on one hand the employers are crying for talent with skills & stability and on the other hand the talent capability, aspiration and mobility is not aligned with the industry demand. The single largest impediment to meet the goals and vision of Viksit Bharat is this lack of alignment. Aspiration can be infused and mobility incentivized but the skill-capability gap is real and scary. Organization leaders can dispense stories of how the majority of the candidates cannot even cover the basics of their field after years of education - Commerce graduates struggle to talk about the 3 golden rules of accounting, Science graduates cannot recall the basic laws and Computer Science graduates fail when asked to write a few lines of code. The problem is real and the root cause boils down to one simple fact - the traditional learning models are failing both the Student and the Industry. Learning by Doing is perhaps the most sure shot method of acquiring skills. An extension of this is the model of Work Integrated Degree Programs that blend higher education and work experience. This model is the panacea to solve the talent supply chain crisis, the skill gap and create a real bridge between industry and academia. With a scorching pace of growth the need for skilled professionals has never been more urgent. Recognizing this, the government has introduced a pioneering internship scheme designed to bridge the gap between education and employment. This scheme not only promises to enhance the employability of young graduates but also incentivizes organizations to invest in the future of India's human capital. The primary beneficiaries of this scheme are the interns themselves. By receiving a stipend, they take care of basic expenses, while they are under training especially those from economically weaker sections. The hands-on experience gained during the internship is invaluable, providing practical skills and industry insights that complement theoretical knowledge. The scheme is designed to encourage companies to actively participate in the nation's skill development agenda. By contributing only 10% of the internship allowance and the training costs, organizations have a viable way to adopt this model. Moreover, the allowance for administrative expenses from CSR funds reduces the financial burden. By channeling CSR funds into internship programs, companies can contribute to community development while building their talent supply chain. The forward-thinking internship scheme is a master stroke that creates a win-win situation for all stakeholders involved. Interns will gain valuable work experience and financial support, companies will be able to reduce their training overheads and fulfill their CSR obligations, and the government advances its mission of creating a more skilled and employable workforce. The author is COO & Head of Employability Business, TeamLease Edtech

Budget focus on job creation for youth seen spurring economic growth too

The Budget 2024-25 aimed to address the job market mismatch in India by allocating Rs 2 lakh crore for education, skilling, and employment. Key initiatives included salary support for first-time employees, industry-aligned skilling programs, and internship opportunities. Despite positive steps, stakeholders emphasized the importance of effective implementation and industry absorption of the newly skilled workforce.India's job market faces a significant mismatch between the aspirations of job seekers and the reality in the employment landscape, says Anshuman Das, CEO & Co-Founder of Careernet. This is one of the reasons why many graduates are unemployed or underpaid. The good thing, he says, is that the Budget 2024-25 has made an attempt to address this issue. The schemes and initiatives proposed in the budget bring a fresh perspective to youth employment through internship programmes and skilling initiatives. An allocation of Rs 2 lakh crore for education, employment and skilling is a substantial investment to strengthen our workforce. Among the significant initiatives are one month's salary support for first-time employees, encouraging companies to hire fresh talent; skilling initiatives aligned with industry needs, enhancing employability and addressing skills gaps; incentives for job creation in manufacturing, leading to increased hiring in this sector; and reimbursement of EPFO contributions to employers, creating a win-win situation for both employees and employers. Arvind Pandit, Founder & Managing Partner, Ishwa Consulting, says the budget has made a decisive move toward job creation. "It is poised to benefit 30 lakh young individuals and generate 50 lakh jobs across diverse industries, driving robust economic growth. Additionally, the emphasis on women's participation through dedicated skilling programmes will enhance workplace diversity and elevate representation in boardrooms." Many industries offer internship opportunities to young people and so the government's decisions to encourage internships and give stipend support to interns are being seen as welcome moves. The budget has proposed a 12-month internship programme with Rs 5,000 as monthly allowance; companies can use CSR funds to bear 10% of the internship cost. Ankit Aggarwal, Founder & CEO, Unstop, says internship opportunities are popular in various industries. "Internships are mostly done as a part of a student's college journey to give them the right practical experience. This is why they are mostly 3-6 months long. The 12-month internship scheme should have some flexibility in the duration depending on the course and the requirements of the companies," he says. Sumit Kumar, Chief Strategy Officer, TeamLease Degree Apprenticeship, says the scheme focuses on the top 500 companies and that is commendable. "But including MSMEs in the scheme would have maximised employment opportunities, as MSMEs have significant skin in the game when it comes to job creation and economic development." Kumar says the budget missed an opportunity to encourage apprenticeships. This is also a way to address youth employability and create a sustainable talent pipeline. "Despite prior mentions of amending the act to scale up apprenticeships in India, this budget did not put emphasis on such a transformative opportunity." Far-sighted policies to skill unemployed youth play a big part in economic growth. Rajiv Krishnan, MD and CEO of Ma Foi Strategic Consultants, says it is good that this requirement is being recognised now. These programmes have also gradually been made simpler to implement, he says. These schemes will create jobs in segments such as household solar rooftops, digital public infrastructure, shipping, infrastructure and nuclear energy. "The incentives for employers who hire first-timers will create an unstoppable momentum. Skilling schemes that will focus on upskilling 20 lakh youth, the proposed investment in 1,000 ITIs and the ambitious paid internships planned for one crore youth will ensure that the gap between education and employability is continuously addressed," says Krishnan. The CEO of Ma Foi Strategic Consultants is upbeat that CSR funds will be used for training and upskilling. Ramesh Alluri Reddy, CEO at TeamLease Degree Apprenticeship, says the move to simplify the recruitment processes by allocating Rs 3,000 crore to the National Recruitment Agency is a positive move. The other noteworthy proposals in the budget are the special skill development programmes for 3.5 lakh tribal students; the establishment of three Centers of Excellence for Artificial Intelligence; and the Skill India international network to foster innovation and bring in global education standards, says Reddy. The plan to set up e-commerce export hubs in private-public partnerships will ensure more artisans can sell their products in international markets, says Arjun Ranga, Managing Director, Cycle Pure Agarbatti. This is another way to encourage employment in such areas, as financial opportunities would attract the youth to take up these jobs. The promotion of digital public infrastructure is also particularly relevant, he says, as it aligns with the growing trend of online retail and opens up new avenues for Indian retailers to tap into global markets. "The initiative to update 1,000 industrial training institutes in a hub-and-spoke model will definitely boost employment in tier 2 and tier 3 cities. Now the skilled workforce is heavily dependent on metropolitan and soon-to-be-metropolitan cities for jobs. This initiative will help create a more distributed workforce, with industry-focused hubs that leverage the unique geographical and demographic strengths of each small town and city," says the MD of Cycle Pure Agarbatti. However, industry stakeholders had one unanimous view: the success of these initiatives will depend on how effectively they are implemented and how well the industry can absorb the newly skilled workforce.aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa