Budget job focus, internship plan: Congress says echoes its ‘pehli naukri pakki’ poll promise

The Congress manifesto had promised a “right to apprenticeship programme”, which was packaged by Rahul Gandhi in his campaign speeches as the catchy “pehli naukri pakki (guaranteed first job)” scheme. Under the ‘Right to Apprenticeship Act’, the Congress said, a government led by it would provide “one-year apprenticeship with a private or a public sector company to every diploma holder or college graduate below the age of 25”, ensuring them earnings of Rs 1 lakh a year.

“The apprenticeship will impart skills, enhance employability and provide full-time job opportunities for millions of youth,” the Congress manifesto said.

The opposition party, which believes it has the Modi government on the backfoot after the Lok Sabha results left it short of a majority, was quick to react after Sitharaman read out the internship scheme.

“The Finance Minister has taken a leaf out of the INC’s Nyay Patra 2024, with its internship program clearly modelled on the INC’s proposed Apprenticeship Program that was called Pehli Naukri Pakki. However, in their trademark style, the scheme has been designed to grab headlines, with arbitrary targets (1 crore internships) rather than a programmatic guarantee for all diploma holders and graduates, like the Indian National Congress had envisioned,” Congress communications head Jairam Ramesh said.

Another Congress promise was to “create a new employment-linked incentive (ELI) Scheme for corporates”. “The Congress will reform the production-linked incentives (PLI) scheme to target specific sectors that can create thousands of jobs by making India one of the top 5 producers in the world in that sector. We will introduce a new employment-linked incentive (ELI) Scheme for corporates to win tax credits for additional hiring against regular, quality jobs,” the manifesto had said.

Sitharaman’s announcements included three employment-linked schemes, including one under which the government will provide one month’s wage to those entering the workforce in all sectors. The second scheme will incentivise additional employment in the manufacturing sector, linked to hiring of first-time employees.

“An incentive will be provided at a specified scale directly to the employee and employer with respect to the EPFO contribution in the first four years of employment. This scheme is expected to benefit 30 lakh youth… and their employers,” the minister said, adding that the third scheme will cover additional employment in all sectors.

“All additional employment within a salary of Rs 1 lakh per month will be counted,” she said, adding that the government will reimburse employers up to Rs 3,000 per month for two years towards the EFPO contribution to each additional employee.

Another government promise, of setting up working women hostels to promote women’s participation in the workforce, had also found a mention in the Congress manifesto. “In partnership with state governments, the Central government will double the number of working women hostels in the country, with at least one Savitribai Phule Hostel in each district,” the Congress manifesto had said.

Sitharaman also proposed abolition of angel tax for all classes of investors. The Congress manifesto had made the same promise. “We will eliminate ‘Angel tax’ and all other exploitative tax schemes that inhibit investment in new micro, small companies and innovative start-ups,” it had said.

Ramesh pointed out this, adding: “The Indian National Congress had proposed a GST 2.0 – a Good and Simple Tax – to replace the bureaucratic monstrosity that the non-biological Prime Minister’s Government set up. This is a widely popular demand, echoed by State Governments, industry bodies, MSME organisations, and consumers. The Finance Minister has made no commitment to implement it, besides a general statement. In a welcome move, however, the Finance Minister has heeded the Indian National Congress’s demand to abolish the Angel Tax that has disincentivised investments in India’s start-ups,” Ramesh said.

The Congress also saw Sitharaman’s announcement that the Central government will set up a critical mineral mission for domestic exploration, recycling of minerals and overseas acquisition of critical mineral assets a reflection of its manifesto promise.

The Congress manifesto had promised to “launch a strategic mining programme to explore and mine rare earths and critical minerals, with the object of increasing the share of mining to 5 per cent of the GDP and creating 1.5 crore jobs for unskilled and skilled workers in mineral-rich states”.