Education Budget 2024: Institutions welcome domestic sector loans, internships for 1 crore youth

NEW DELHI: Calling the union budget 2024 ‘far-sighted vision’ of the finance minister Nirmala Sitharaman, the heads of premier universities and institutes across India welcomed and hailed the announcement of domestic education loans, e-vouchers for students, and internship opportunities.

Pankaj Priya, deputy director and dean-academics at BIMTECH mentioned how the central government has, since 2014, focused on skilling, which is also highlighted in the present budget. Emphasizing on the benefits of the union budget 2024 announcements, he said, “The prime minister's package for skilling envisages a collaboration with all state governments as well as industry. This new centrally sponsored scheme for skilling will support our 20 lakh youth in up-skilling over the next five years. It will translate into more jobs for our youth in rural as well as urban areas. The above investment, along with a newly announced scheme targeting 4.1 crore youth will propel India towards its goal of becoming a developed nation by 2047.”

Professor Ram Kumar Kakani, director of the Indian Institute of Management (IIM) Raipur, reiterated the initiatives announced by the finance minister for youth such as loans of up to Rs 10 lakh for higher education in the domestic sector, e-vouchers directly to 1 lakh students, and over the next five years, 500 top companies providing internship opportunities with a monthly allowance of Rs 5,000.

Sharing his views on the budget, the professor said, “By integrating financial support for education, robust internship opportunities, and a strong focus on skill development, these measures not only empower our youth but also lay a solid foundation for sustainable growth and innovation. This holistic approach ensures that every segment of our society—from aspiring students to new startups—can contribute to and benefit from India's evolving economic landscape.”

Focus on employment, skill development

MS Moodithaya, vice-chancellor, NITTE Deemed to be University expressed joy to find that the union budget 2024-25 has “rightly recognized” that focussing on India’s youth will serve as the route for the country’s economic growth. “With a median age of around 28 years, India has one of the youngest populations in the world. To harness the potential of our youthful population the finance minister has made provision for skill development, education, entrepreneurship, innovation and employment generation,” he commented.

The VC welcomed the government’s proposal to provide Rs 1.48 lakh crore for education, employment and skill development. He called the provision of financial support for loans up to Rs 10 lakh to students aiming for higher studies in domestic education a “good move”, especially from the point of view of stopping brain drain. He also praised the scheme for skilling students, in collaboration with state governments and the private sector.

“Another ambitious announcement is the proposal for providing internships for one crore youth, with a stipend of Rs 5,000 and one-time assistance of Rs 6,000. It is to be seen as to how the finance minister would ensure that the industry responds positively by allocating resources from their CSR funds,” the professor added.

Increase in education budget

"An allocation of Rs 1.48 lakh crore has been made for education, compared to an allocation of Rs 1.12 lakh crore last year. This is an increase in absolute terms and needs to be applauded. Loans of up to Rs 7.5 lakh will be provided with government guarantee for skilling courses and of Rs 10 lakh for higher education. E-vouchers will be given to 1 lakh students with interest subvention of 3 percent of the loan amount from the government. We are hopeful that public expenditure on education will rise towards 6% in years to come,” said Shreevats Jaipuria, chairman of the education committee at the PHD Chamber of Commerce and Industry (PHDCCI).

Praising the youth-friendly aspect of the budget, Debhasis Chatterjee, director of IIM Kozhikode said, "The Union Budget 2024 has laid out an ambitious roadmap for achieving the Vision 2047 of a developed India. The announcement of a National Research Fund is a welcome step to boost innovation and research, with a special focus on private sector-driven R&D. The forward-looking vision of creating growth hubs for 14 cities, fostering industry collaborations through the internship scheme, and introducing a new centrally sponsored scheme on skilling will significantly empower the youth and lay a strong foundation for a resurgent India.”

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The VC thinks that the increased spending on the education sector was “much needed”, and the current budget has responded positively to the requirement. The higher education sector will now be more inclusive with the introduction of e-voucher loans at low interest rates, marking a significant step forward in making it more affordable, he added.

Nidheesh Saxena, senior director of admissions, Gitam Deemed to be University seconded the thoughts of university heads and said, “Modi 3.0’s budget is a transformative step towards enhancing education. I am glad to see budget 2024‘s focus on youth employment and skilling opportunities in India. The internship scheme for 1 crore youths in over 500 firms is a welcome step from the government. It will help students acquire the necessary skills for obtaining jobs and gain hands-on experience, making them industry-ready.”

“We all know that this has been a long-term problem, with a gap between the skills that graduate students have and what the modern workforce requires. An investment of Rs 1.48 lakh crore in the education sector reflects the government’s strong commitment to nurturing the future of our nation. With employment being one of the nine priorities in this budget, this substantial allocation will empower students to pursue their desired careers,” Saxena further said.