New Delhi, July 24 : In a bid to promote skilling, the Union Budget 2024-25 has launched a comprehensive scheme for providing internship and apprentice opportunities to 1 crore youth in five years in the top 500 companies.

Finance Minister Nirmala Sitharaman, while presenting the Budget in Lok Sabha on Tuesday, announced that the internship scheme, under the Prime Minister's package, will provide opportunities to one crore youths over the next five years, and each intern will receive a monthly allowance of Rs 5,000 and a one-time assistance of Rs 6,000.

It will provide 12 months of real-life business exposure, while participating companies can cover training costs and 10 per cent of the internship costs from their Corporate Social Responsibility (CSR) funds.

"This scheme bridges the gap between academic knowledge and industry requirements, empowering young individuals with practical experience and financial support," said Jayant Chaudhary, Minister of State for Skill Development and Entrepreneurship (Independent Charge) on Wednesday.

"It aligns with broader goals of improving employability, stimulating economic growth, and promoting sustainable development," he added.

The Finance Minister also proposed the creation of employment for about 4.1 crore youth over the next five years, and Rs 2 lakh crore has been allocated towards it.

In addition, 1,000 industrial training institutes (ITIs) will be upgraded.

Several experts have hailed the initiatives noting that it underscores the government's commitment to nurturing India's workforce and will help create a more skilled and job-ready workforce.

"The internship programme for Indian students in the top 500 companies, providing tax input for their CSR funds, is a welcome step for industry-academia participation," said Prof. (Dr.) Sanjiv Marwah, Director, Maharaja Agrasen Business School.

"We look forward to the comprehensive internship scheme designed to provide opportunities for one crore youth in 500 top companies over the next five years," Prabhakar Azad, Chief People and Process Officer, Ashwin Sheth Group.

He added that the "initiative is poised to bridge the gap between academic learning and practical industry experience, creating a more skilled and job-ready workforce. Such a workforce is crucial for sectors like real estate, where practical skills and experience are highly valued".

Meanwhile, the government also plans to incentivise 30 lakh youth entering the job market by offering a one-month PF contribution.

"This initiative is a welcome move, and will ease the transition from education to employment, supplemented by the internship allowance of Rs 5,000 per month and a one-time assistance of Rs 6,000," Azad said.

/IANS