Key Highlights of Union Budget 2024-25 for Human Capital

Introduction

The Union Budget 2024-25 places significant emphasis on enhancing human capital by easing access to education and promoting skill development. These measures aim to foster a more skilled workforce, reduce economic disparities, and support long-term economic growth.

Key Initiatives for Human Capital Development

1. Easing Education Loans

Objective: To increase access to higher education for needy students while reducing the financial burden on taxpayers.

• Measures:
  • Simplified loan application processes.
  • Lower interest rates for education loans.
  • Extended repayment periods.
• Impact: More students from economically weaker sections can pursue higher education without the stress of immediate financial pressure.

2. Skilling Through Apprenticeship Programs

Objective: To provide practical training and skill development opportunities for youth.

• Measures:
  • Expanded apprenticeship programs in various industries.
  • Stipends for apprentices to support their livelihood during training.
  • Partnerships with private companies and educational institutions to enhance training quality.
• Impact: Enhanced employability of youth through hands-on experience, bridging the gap between education and industry requirements.

Long-Term Strategy for Education and Skill Development

1. Investment in Educational Institutions

Funding: Increased budget allocations for improving the infrastructure of schools and higher education institutions.

Quality Enhancement: Focus on enhancing the quality of education through better teaching resources, updated curricula, and modern technology integration.

Outcome: Higher educational standards and more competitive graduates.

2. Promotion of Digital Education

Digital Infrastructure: Expansion of internet access and digital resources in rural and underserved areas.

E-Learning Platforms: Development and support of online education platforms to facilitate remote learning.

Impact: Increased accessibility to quality education across the country, ensuring no student is left behind due to geographical constraints.

Economic Impact

• Labour Market: A skilled workforce is expected to attract more investments, both domestic and international, boosting economic growth.
• Innovation and Entrepreneurship: Encouraging innovation and entrepreneurship through skill development, leading to the creation of new businesses and job opportunities.
• Reduction in Economic Inequality: Providing equal opportunities for education and skill development helps in reducing economic disparities and promoting inclusive growth.

Supportive Policies

1. National Apprenticeship Promotion Scheme (NAPS)

• Incentives: Financial incentives for employers to engage apprentices, thereby increasing the number of apprenticeship opportunities.
• Training Quality: Collaboration with industry experts to ensure high-quality training aligned with market needs.

2. Vocational Training and Skill Development Initiatives

• Targeted Programs: Specialized training programs for sectors with high employment potential, such as IT, manufacturing, and services.
• Certification and Recognition: National recognition of vocational qualifications to standardize skills and improve job prospects.

The Union Budget 2024-25’s focus on developing human capital underscores the government’s commitment to creating a skilled and educated workforce, which is crucial for driving economic growth and achieving sustainable development.

Frequently Asked Questions (FAQs)

Q1. What are the main objectives of the Union Budget 2024-25 regarding education?
Answer: The main objectives include easing access to education, enhancing skill development, and promoting a skilled workforce to support economic growth.

Q2. How does the Union Budget plan to support apprenticeship programs?
Answer: The budget aims to expand apprenticeship programs, provide stipends, and establish partnerships with companies to enhance training quality.

Q3. What is the significance of digital education in the budget?
Answer: Digital education promotes accessibility, ensures quality learning resources reach remote areas, and facilitates e-learning platforms for students.

Q4. How will vocational training initiatives impact employment?
Answer: Vocational training initiatives will provide specialized skills aligned with industry needs, improving job prospects and reducing unemployment.

Q5. What is the expected economic impact of enhancing human capital?
Answer: A skilled workforce is anticipated to attract investments, boost economic growth, and reduce economic inequalities through inclusive opportunities.

UPSC Practice MCQs

Question 1: What does the Union Budget 2024-25 emphasize regarding education?
A) Reducing school infrastructure
B) Enhancing human capital
C) Increasing taxation on education
D) Privatizing education
Correct Answer: B

Question 2: Which program is aimed at promoting apprenticeships in the Union Budget 2024-25?
A) National Educational Policy
B) National Apprenticeship Promotion Scheme (NAPS)
C) Skill India Mission
D) Digital India Program
Correct Answer: B