Union Budget 2024-25: New Skilling Scheme Announced by Finance Minister

New Delhi: In a major push towards enhancing the skills of the Indian workforce, Union Finance Minister Smt. Nirmala Sitharaman unveiled a new centrally sponsored scheme as part of the Prime Minister’s package while presenting the Union Budget 2024-25 in Parliament today. This initiative aims to skill 20 lakh youth over the next five years in collaboration with State governments and industry partners.

The new scheme will see the upgrade of 1,000 Industrial Training Institutes (ITIs) across the country, adopting a hub-and-spoke model with a strong focus on outcome orientation. “Course content and design will be aligned to the skill needs of industry, and new courses will be introduced for emerging needs,” stated Smt. Sitharaman. This alignment aims to ensure that the training provided is relevant to the current and future demands of the job market, thus enhancing employability.

To support this ambitious skilling initiative, the Finance Minister also announced a revision to the Model Skill Loan Scheme. The revised scheme will facilitate loans of up to ₹7.5 lakh, backed by a guarantee from a government-promoted Fund. This measure is expected to benefit 25,000 students annually, providing them with the financial means to pursue skill development programs.

This skilling initiative is designed to create a highly skilled workforce that meets the evolving needs of various industries. By upgrading ITIs and introducing industry-relevant courses, the government aims to bridge the skill gap and enhance the employability of the youth. The availability of higher skill loans will further support students in acquiring advanced skills, thereby boosting their career prospects.