Karnataka’s Yuva Nidhi Scheme 2024

Karnataka's Yuva Nidhi Scheme 2024

Policy Update
Radhika Gupta

Introduction

India has the largest youth population in the world, with approximately forty percent of the global youth present in the country. This is often referred to as a ‘youth bulge’,  which helps a country foster economic growth and innovation through the efforts of a young workforce. However, it also leads to high competition for resources and opportunities.

As a result, even educated youth in India struggle to  secure jobs. Therefore, both the central and state governments have been trying to resolve this issue through various skill-building initiatives and programs. The Yuva Nidhi scheme, introduced by the Karnataka government in 2024, is a major example of this.  

Under Yuva Nidhi, the educated but unemployed youth in the state are provided financial assistance in the form of a fixed monthly allowance. They are also encouraged to participate in state-sponsored skill-building workshops and certified courses to help them secure jobs.

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This scheme was launched by Karnataka’s current Chief Minister Siddaramaiah and Deputy CM D.K. Shivakumar in the Shivamogga city on January 12, 2024. Yuva Nidhi was introduced as a guarantee scheme for the unemployed youth and was also one of the five major poll promises made by the Congress party before the state elections.

Functioning

Through the Yuva Nidhi scheme, the Karnataka government  provides a monthly allowance of ₹3,000 to unemployed graduates and ₹1,500 to diploma holders, who remain unemployed even six months after completing their education. This allowance is provided only for a maximum period of two years and through Direct Bank Transfers (DBT). 

Only those youths who aren’t receiving any salaries or loans and aren’t pursuing their higher education are eligible beneficiaries under this scheme. Also, the scheme is applicable only for those who have graduated or received their school diplomas in the academic year of 2022-23 or later.

Candidates eligible under this scheme can either register themselves through the government’s online Seva Sidhu portal or apply offline through the nearest District Employment Exchange Office. They are also required to make a self-declaration of their unemployment status once every three months through the portal.

The program also includes a complementary training component called the Yuva Nidhi Plus. Under this, the scheme’s beneficiaries are encouraged to participate in state-sponsored, skill-building initiatives. Free courses on forty different topics, like Artificial Intelligence (AI), Electronic Vehicles (EV), integrated circuit design, fundamentals of cyber security, etc., are provided to the youth to increase their knowledge and ultimately help them find jobs. 

Implementation

For the effective implementation of the Yuva Nidhi, the state government of Karnataka has allotted the following amount of money for different financial years-:

Financial YearMoney Allocated to Yuva Nidhi Scheme
2023-24₹250 Crore
2024-25₹650 Crore
2025-26₹600 Crore
Total₹1500 Crore

Under the Yuva Nidhi program, beneficiaries are also given free in-person training (inclusive of meals) in vocational and soft skills. Over forty different certified courses are provided by recognised institutions like the Karnataka German Technical Training Institute (KGTTI), the Centre for Entrepreneurship Development of Karnataka (CEDOK) and the Government Tool Room & Training Centres (GTTC). 

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Various awareness campaigns about the program were also organised by the government to ensure that the target group, i.e., 10 lakh unemployed youth of the state, are made aware of the program. A special focus was put on ensuring awareness amongst unemployed women, by organizing Yuva Nidhi awareness sessions at girls’ schools and colleges.

Challenges

Since the inception of the Yuva Nidhi Scheme two years ago, 3.7 lakh unemployed graduates and diploma holders in Karnataka have benefited from the scheme, out of which 1.7 lakh are still receiving the unemployment allowances in their respective bank accounts. Skill-based training has also been set up by the state government for the program beneficiaries.  

Also, as many as 89 degree colleges, five diploma colleges, and one engineering college have been identified to cover the benefits.

However, there have also been several challenges associated with the implementation of the scheme. These include:

1) The aim of launching this guarantee scheme was not only to provide financial assistance to educated but unemployed youth, but also to help them enhance their skills, which would ultimately help them secure jobs. However, according to a report by The Times of India, over 77% of the beneficiaries of this scheme haven’t shown interest in skill training. Over 1.74 lakh young people are currently receiving financial assistance under Yuva Nidhi, but only 40,000 out of these have undergone skill training.

2) Several of the Yuva Nidhi scheme’s beneficiaries have complained about irregularities in receiving the unemployment allowance. They have stated that they received the money for the first five months since the implementation of the program but did not receive the amount for quite a few months afterwards.

3) According to the data released by the government, more than 10 lakh youth members are eligible to benefit under this scheme, yet only 3.7 lakh out of them have benefited under this scheme till now. This is due to technical difficulties during registration, a rigorous documentation process, low awareness in backward areas, and other such problems.

 4) Only those youths who have graduated or received their diplomas in the year 2023 or afterwards are eligible beneficiaries under this scheme, due to which the youth members who have graduated earlier but are still unemployed are left out from all the benefits of the Yuva Nidhi program.

 5) Various active youth groups in the state, like the Democratic Youth Federation of India (DYFI), have stated that the unemployment allowance provided under the scheme is insufficient to support their personal and family expenses. They have demanded an increase up to ₹12,000. 

Way Forward

The Yuva Nidhi scheme was launched in 2024 by the government of Karnataka to provide financial assistance as well as skill training to the educated but unemployed youth of the state. Since its inception it has helped lakhs of youths in the state irrespective of their caste, language, religion, or gender (including transgender persons).

However, there have also been several gaps in the program’s implementation, and the following is a list of suggested measures that can be taken to address these issues:

 1) Increase awareness about the importance of skill-building classes, and make it mandatory to obtain certification by completing at least one out of the courses provided.

 2) The government and college authorities can also take steps to ensure that skill-building classes are held in a hybrid mode (i.e., both offline and online) to increase youth participation.

 3) Resolve all technical glitches and admin issues to ensure that Yuva Nidhi beneficiaries receive their unemployment allowances on time every month.

 4) Simplify the documentation process using the latest technological advancements to ensure a smooth registration process for all eligible candidates.

 5) Broaden the eligibility criteria to include and support unemployed graduates and diploma holders before the year 2023.

 6) Increase the stipend amount to ensure that beneficiaries can adequately support their personal and family expenses.

References

About the contributor: Radhika Gupta is a research intern at IMPRI. She is currently pursuing her graduation in journalism and mass communication from Bennett University. 

Acknowledgement: The author extends her sincere gratitude to Aasthaba Jadeja and fellow interns, who provided guidance throughout the process.

Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organization.

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