Budget 2024: New Internship Scheme Targets 1 Crore Youth Through CSR-Based Quotas

In a move aimed at boosting youth employment, Finance Minister Nirmala Sitharaman announced a groundbreaking initiative in the Union Budget 2024-25. The government is set to introduce a comprehensive scheme designed to provide internship opportunities to 1 crore young individuals over the next five years. This initiative will engage the top 500 companies in India, establishing a “voluntary quota system” based on the Corporate Social Responsibility (CSR) expenditure of these firms.

New Internship Scheme Details

Voluntary Quota System

Under this new scheme, the government will work with the leading 500 companies to implement a voluntary quota system for hiring interns. The allocation of internships will be linked to the CSR expenditure of these companies. Finance Secretary TV Somanathan revealed that the specifics of the system are still under development in consultation with the industry. This system will allow companies to commit to hiring a certain number of interns based on their CSR spending, and they can also utilize their supply chains for skilling purposes.

Financial Support for Interns

The scheme will provide substantial financial support to the interns. Each intern will receive an allowance of Rs 5,000 per month. Additionally, a one-time assistance of Rs 6,000 will be given to help cover any initial expenses. This initiative is aimed at making internships accessible and attractive to young job seekers.

Focus on Marginalized Youth

A key aspect of the scheme is its focus on marginalized and underrepresented youth. “We won’t be giving them (companies) the type of people they would normally recruit because we don’t want to give them a subsidy for people they would have hired anyway. We will have a negative list also: Say, nobody from IITs, IIMs, chartered accountants, cost accountants, nobody who is paying income tax, nobody whose parent is a government servant, etc. We want it for the people who are left out of the normal channels of recruitment,” Somanathan explained.

Scheme Implementation and Impact

Internship Exposure

The new scheme is designed to offer young people exposure to real-life business environments and diverse professions. Interns will have the opportunity to experience various fields and gain valuable skills that will enhance their employability. The internships will span 12 months, providing comprehensive professional experience.

Strategic Alignment with Government Goals

This initiative aligns with the government's broader goals of job creation and economic development. By leveraging CSR expenditure to drive employment opportunities, the scheme aims to address the gap in job creation for youth and ensure that more individuals benefit from professional development programs.

Conclusion

The introduction of the internship quota system as part of the Union Budget 2024 is a significant step towards creating meaningful employment opportunities for India's youth. By involving the top 500 companies and tying the scheme to CSR spending, the government aims to foster a more inclusive job market and provide valuable work experience to those who need it most.