Shares of hiring companies surged following the announcements in the Budget, with TeamLease rising 9 percent, NIIT up 7 percent, Aptech increasing 5 percent, and Quess Corp climbing 3 percent.
These gains are in response to the government’s new package for skilling and collaboration, which includes several impactful initiatives. The Finance Minister's announcement aims to address long-term job creation and employability challenges, a critical policy focus in India.
Key elements of the package include skilling 20 lakh youth over five years and upgrading 1,000 ITIs in a Hub and Spoke arrangement with outcome-oriented goals.
The Model Skill Loan scheme will also be revised to facilitate loans up to Rs 7.5 lakh, backed by a government-promoted fund. Additionally, financial support for loans up to Rs 10 lakh will be available for higher education in domestic institutions, targeting youth who haven't benefited from other government schemes.
The Finance Minister also introduced a new internship program, enabling corporations to employ interns at Rs 5,000 per month for a year, funded through corporate social responsibility (CSR) funds. This initiative aims to skill 10 million youth over five years.
Furthermore, an e-voucher scheme will provide loans of up to Rs 10 lakh for higher education, with an annual interest subvention of 3 percent for 1 lakh students.
For first-time employees, a direct benefit transfer of one-month salary in three installments, up to Rs 15,000, will be available to those registered in EPFO. In manufacturing, incentives will be provided to both employees and employers based on EPFO contributions during the first four years of employment.
Employers will receive reimbursements of up to Rs 3,000 per month for two years for each additional employee.
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