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Industry applauds skilling, employment schemes in Union Budget

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The latest Economic Survey indicated that a large portion of India’s youth were unemployable as they lacked the necessary skills that industry requires—a probable reason for the challenging jobless rate in the country. Finance Minister Nirmala Sitharaman set out to address these issues in her Budget by earmarking Rs 1.48 lakh crore for education, employment, and skilling.

Applauding the massive outlay and plan, Hero Vired Founder and CEO Akshay Munjal said, “Amid growing concerns about the impact of artificial intelligence (AI) on job creation, the substantial allocation for these sectors demonstrates a significant commitment to developing India’s human capital.”

Sitharaman also announced a package of five schemes and initiatives aimed at facilitating employment, skilling, and other opportunities for 4.1 crore youth over a five-year period, with an allocation of Rs 2 lakh crore.

She highlighted three 2-year schemes for ‘Employment Linked Incentive’, focusing on first-timers, job creation in manufacturing, and supporting employers.

The first scheme, focusing on first-timers, will provide one-month wage to those newly entering the workforce in all formal sectors, the FM said. The direct benefit transfer of one month salary in three instalments to first-time employees as registered in the EPFO will be up to Rs 15,000.

With an eligibility limit of a salary of Rs 1 lakh per month, the scheme is expected to benefit 210 lakh youth.

“The wage subsidy for the employees and the support to the employers shall encourage employers to hire fresh candidates for their organisations, whereas the linkage to EPFO registration shall help the cause of formalisation of jobs in the country,” Shantanu Rooj, Founder and CEO of TeamLease Edtech, told YourStory.

The second scheme, looking to incentivise additional employment in the manufacturing sector, aims to benefit 30 lakh youth entering the workforce and their employers.

The third scheme, focused on employers, will cover additional employment in all sectors and is expected to incentivise additional employment of 50 lakh persons.

“All additional employment within a salary of Rs 1 lakh per month will be counted. The government will reimburse employers up to Rs 3,000 per month for two years towards their EPFO contribution for each additional employee,” the FM added.

The Budget also announced a new centrally-sponsored scheme in collaboration with state governments and industry, which would skill about 20 lakh youth in five years. 

Moreover, the government will upgrade 1,000 industrial training institutes (ITIs) in the hub and spoke arrangements, and will align the course content to industry needs and introduce new courses for emerging needs.

TeamLease Edtech’s Rooj emphasised that the government should implement the same initiative in all ITIs in India—which play an important role in skilling the youth in several relevant vocational skills—and not limit it to the identified 1,000.

Besides the above schemes, the government will launch a comprehensive scheme to provide internship opportunities in 500 top companies to one crore youth in five years. 

Again, Rooj said the government should allow all employers to benefit from the scheme and not limit it to the top 500 employers only. 

“An internship allowance of Rs 5,000 per month, along with a one-time assistance of Rs 6,000 will be provided. Companies will be expected to bear the training cost and 10% of the internship cost from their CSR funds,” the Finance Minister said.

Mayank Kumar, Co-founder and MD of upGrad, believes the internship scheme will bridge the industry-academia gap and enhance employability, empowering India’s youth with the opportunities to bridge the talent supply demand across global jobs. 

On the loans front, Sitharaman announced financial support for loans of up to Rs 10 lakh for higher education in domestic institutions. “E-vouchers for this purpose will be given directly to 1 lakh students every year for annual interest subvention of 3% of the loan amount,” she explained.

Moreover, the Model Skill Loan Scheme will be revised to facilitate loans up to Rs 7.5 lakh with a guarantee from a government-promoted fund. It is expected to help 25,000 students every year.

“With such bold commitments towards jobs, skilling, and employment, Budget 2024-25 ignites a talent revolution in India, poised to propel the nation’s youth to global leadership,” upGrad’s Kumar added.

According to a report by the Reserve Bank of India (RBI), with 1.4 billion population, India provisionally created 46.7 million jobs in FY23-24, taking the nation’s total employment to 643.3 million. India’s employment growth rate was at 6% in FY23-24 compared to 3.2% in the earlier period.





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Flipkart selects five startups for third cohort of Flipkart Leap Innovation Network

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Flipkart has selected five innovative startups for the third cohort of its flagship startup accelerator programme, Flipkart Leap Innovation Network (FLIN).

The cohort is introducing startups that are driving advancements across GenAI, omnichannel, analytics, and video commerce, the company said in a statement.

The selected startups— Intelligence Node, Invenzo Labs, StoryBrain, Phyllo, and D-ID— are set to run pilot programs with Flipkart to develop solutions.

“The selected startups get access to mentorship, resources, and the opportunity to execute pilot projects within the Flipkart ecosystem, scaling their solutions to meet the demands of India’s digital economy and e-commerce growth,” the company said.

Since its launch in 2022, the accelerator programme aims to accelerate the growth of the startup ecosystem in India, driving collaboration, and championing cutting-edge retail innovations. 

“Through the FLIN programme, Flipkart continues to expand its role as a catalyst for innovation within India’s startup ecosystem, providing a collaborative platform for startups to test, refine, and deploy solutions that can shape the future of e-commerce in India,” said Naren Ravula, Vice President and Head – Product Strategy and Flipkart Labs.

The programme is designed to engage with startups through commercial partnerships in Flipkart’s areas of interest. Successful startups get the opportunity to scale up to a business partnership.

Over 20 startups from the initial two cohorts have concluded pilots working closely with the Flipkart Product and Engineering teams.

The company added that four startups from the previous cohort— Anagog, Speedsize, Sangti, and Vtion— have recently concluded successful pilot projects with Flipkart.





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Thesys secures $4M funding led by Together Fund

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AI startup Thesys bags $4 million funding in a round led by Together Fund. The round also saw participation from 8VC, the company said in a statement.

The startup will use the funding to bridge the gap of user experience with AI agents. As a visual collaboration tool, the company will also provide a platform that will enable businesses to ideate, visualise, and ship intelligent experiences at scale.

“The way we engage with technology is changing faster than ever. Static interfaces simply don’t meet the demands of today’s AI-capabilities…At Thesys, we’re building tools that make it possible for businesses to adapt and thrive in this new era,” said Parikshit Deshmukh, Co-founder, Thesys. 

This evolution is about unlocking the full potential of AI-driven interactions and delivering unparalleled user experiences, he added.

“The future of AI relies as much on intuitive, adaptive interfaces as it does on backend capabilities. Thesys’ vision for Generative UI aligns perfectly with Together Fund’s commitment to enabling founders who are redefining the user experience,” said Manav Garg, Co-founder and managing partner of Together Fund.

“By empowering teams to create real-time, personalized interactions, Thesys is setting a new standard for AI-driven interfaces. We’re excited to support their journey in transforming the role of design and development tools for the next generation of AI applications,” he added.

The company, founded by Rabi Shanker Guha and Parikshit Deshmukh this year, emerged from the understanding of the need to provide support in the shift towards AI-driven interfaces, it said.

“Thesys envisions a future where all interfaces dynamically adjust to each user’s behavior, preferences, and needs—driven by what the company calls “Generative UI”. Unlike traditional static interfaces that rely on predefined paths, Generative UI uses AI to create unique, adaptive user interfaces on-the-fly, allowing businesses to provide truly personalized digital experiences,” the company added.

The company plans to launch a UI SDK that is set to enable developers to seamlessly integrate Generative UI into their applications. Additionally, post its closed beta launch, the company plans a general availability (GA) with its product within the next quarter positioning itself as the go-to product toolkit for businesses looking to stay ahead in the AI revolution.

“Thesys is pioneering a transformative shift in UI design workflows by integrating AI-driven adaptability… Their Generative UI approach aligns with our commitment to investing in technologies that drive innovation in user experiences,” said Bhaskar Ghosh, partner at 8VC.





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BrowserStack launches AI-driven Low Code Automation tool

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Software testing platform BrowserStack has rolled out Low Code Automation, a solution to simplify test automation for quality assurance teams, developers, and non-technical users. 

The newly launched solution will address challenges faced by software teams, including manual testing delays and complex automation frameworks, BrowserStack said in a statement. 

While traditional test automation requires coding expertise by often limiting non-technical testers to contribute, this tool allows user—irrespective of their technical background—to create and manage AI-driven automated tests without writing code. Users can also use BrowserStack’s cloud infrastructure for reliable test execution.

“(The AI-powered Low-Code Automation (LCA) simplifies the process of building and maintaining test automation suites compared to traditional tools like Selenium. It reduces the steep learning curve and complexity often associated with automation projects, leading to a quicker return on investment (ROI),” Chintan Doshi, Director of Product Management at BrowserStack, told YourStory

To support development teams worldwide, Low Code Automation speeds up testing cycles, boosts product quality, and enhances user experience by reducing technical barriers. 

“Citizen testers—such as business analysts, product managers, and customer support teams—can easily add validations and create automated tests with the test recorder, without requiring coding skills. This reduces their dependency on developers and QAs and empowers them to actively contribute to testing efforts,” Doshi explained.

Founded in 2011 by Ritesh Arora and Nakul Aggarwal, BrowserStack provides a cloud-based platform for developers to test websites and mobile apps across devices, operating systems, and browsers on demand.

With headquarters in San Francisco and Mumbai, the company has expanded its product line to include over 15 products, of which 10 were launched in the past 18 months.

In August, the Accel-backed firm acquired Berlin-based Bird Eats Bug, an advanced bug-reporting tool. The acquisition aims to address the existing gaps in bug reporting and streamline fragmented testing workflows.





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