Finance Minister Nirmala Sitharaman has introduced a new scheme in the Union Budget 2024-25, aimed at creating internship opportunities for 1 crore youth. The scheme will provide internships at 500 top companies over the next five years. Participants will receive a monthly allowance of Rs 5,000, along with a one-time assistance payment of Rs 6,000.

Companies hosting interns will be responsible for covering the training costs and will be required to use 10% of the internship costs from their Corporate Social Responsibility (CSR) funds.

“As the fifth scheme under Prime Minister’s package, our government will launch a comprehensive scheme providing internship opportunities in 500 top companies to one crore youth in five years. They will gain exposure to 12 months to real life business environment, varied professions and employment opportunities. And internship allowance of Rs 5000 per month along with a one-time assistance of Rs 6000 will be provided. Companies will be expected to bear the training cost and 10 per cent of the internship cost from their CSR funds,” says the Finance Minister said in the Lok Sabha.

Sitharaman outlined nine priorities in the Budget aimed at generating job opportunities. These priorities include productivity, jobs, social justice, urban development, energy security, infrastructure, innovation, and reforms.

She announced three schemes for employment generation, proposing the creation of nearly 41 million jobs over the next five years.

To boost skill development, the FM allocated Rs 1.48 crore to train 2 million youth over a five-year period. She also announced the upgrade of over 1,000 industrial training institutes.

Discontent over unemployment was a major factor in Prime Minister Narendra Modi’s BJP failing to secure a majority in the Lok Sabha elections, necessitating its reliance on allies like TDP and JDU.