No company will be forced into the internship programme as companies will bear the cost through CSR, Government on Internship Programme in Union Budget 2024

Government sources have clarified that the top 500 companies in India will not be compelled to participate in the internship programme announced in the Union Budget 2024. As outlined by Finance Minister Nirmala Sitharaman, the government will provide stipends for the internships while companies will bear the cost of training through their Corporate Social Responsibility (CSR) funds.

“No company will be forced into the internship programme as announced in the budget. The government will provide money for internships, while companies will bear the cost of training the interns through corporate social responsibility (CSR),” government sources told ANI on Wednesday.

Finance Minister Sitharaman announced the new internship scheme as part of the Union Budget 2024-25, aiming to provide internship opportunities to youth in the top 500 companies in India. This scheme, set to be implemented over the next five years, is expected to benefit 100 million youth. Interns will receive a monthly stipend of Rs 5,000 and a one-time assistance of Rs 6,000. The companies involved will cover training costs and 10 per cent of the internship costs from their CSR funds.

This announcement is part of a larger effort to boost employment and enhance India’s skilling capacity. Sitharaman’s budget speech included a proposal to create job opportunities for about 4.1 crore youth over the next five years. To support this initiative, the government has allocated Rs 2 lakh crore for employment initiatives and Rs 1.48 crore for skilling programmes, aiming to skill 20 lakh youth over the same period.

Moreover, 1,000 industrial training institutes will be upgraded, and a one-time wage incentive will be provided to all first-time employees across sectors through Direct Benefit Transfer (DBT).

Sitharaman emphasised that employment, skilling, MSMEs, and the middle class are key focus areas of this budget, highlighting the government’s commitment to creating more job opportunities and enhancing the skills of the Indian workforce.