Youth Employment Budget 2026 : Golden Era for Youth! Ambitious Announcement of 350 Million Jobs Likely
In the 2026 Union Budget, the central government has taken historic steps on the front of employment and skill development for the country's youth. With the aim of bringing a “flood of jobs,” the Finance Minister has announced a special package of 2 lakh crore rupees, targeting the creation of 35 crore job opportunities over the next five years. This ambitious effort by the government is seen as an attempt to bridge the gap between education and industry and make India the “skill capital of the world.”
The biggest attraction of this budget is the Prime Minister Internship Scheme. Under this scheme, 1 crore young people will get a 12-month internship in the top 500 companies in the country. The main objective of this scheme is to make selected young people in the age group of 21 to 24 employable by giving them practical work experience. Interns will be given a stipend of 5,000 rupees per month, of which 4,500 rupees will be provided by the central government and 500 rupees by companies from CSR funds. Additionally, a one-time financial assistance of 6,000 rupees will be provided at the start of the internship.
The government has announced the modernization of the Skill India program with an allocation of 8,800 crore rupees for skill development. More than 400 new courses have been launched in future fields such as Artificial Intelligence (AI), drone technology, green energy, and cyber security. Upgradation of 1,000 government ITI institutions across the country will be undertaken, and 1,200 state-of-the-art vocational laboratories will be established for youth in rural areas.
An investment of 1 lakh crore rupees has been made under the Prime Minister's Development India Employment Scheme (PMVBRY) to boost job creation. The goal is to create more than 35 million new jobs in the next two years. An incentive of up to 15,000 rupees will be provided by the government for the appointment of new employees, while employers will receive a subsidy of 3,000 rupees per month.
There is a proposal to increase the loan limit under the Mudra scheme to encourage entrepreneurship, and loans up to 20 lakh rupees can be available in the “Tarun Plus” category. Additionally, a special loan scheme up to 2 crore rupees for 5 lakh women and new entrepreneurs from scheduled castes and tribes has become another important feature of the budget. Furthermore, funds have been reserved to provide special training in the AI field to 10 lakh youth under the India AI Mission. Global AI summits in cities like Jaipur and New Delhi are providing an international platform for Indian youth. Through all these initiatives, the government's resolve to create a 'Developed India' by 2047 is prominently visible in this budget.