Bengaluru: Launched in December 2023 with the promise of offering financial support to unemployed youth, Karnataka’s Yuva Nidhi scheme is now witnessing a steep reduction in beneficiaries. According to the skill development department, nearly 1.6 lakh out of 2.55 lakh beneficiaries will exit the scheme over the next eight months after completing their two-year stipend eligibility.
Under the programme, graduates received ₹3,000 per month, while diploma holders were given ₹1,500. The withdrawal of a large chunk of beneficiaries comes at a time when the state’s job market remains sluggish, raising concerns about the scheme’s effectiveness in helping youth secure employment.
Most exits from north Karnataka
Officials said that the majority of beneficiaries set to exit the scheme are from north Karnataka districts such as Kalaburagi, Yadgir, Raichur, and Vijayapura. Belagavi alone accounts for 26,000 beneficiaries who will soon stop receiving the allowance.
Despite the intended purpose of easing the transition to employment, the scheme’s basic objective—to help unemployed youth find stable work—has remained largely unmet.
Training efforts fall short
To complement the allowance, the state introduced Yuva Nidhi Plus, aimed at providing training and upskilling to make beneficiaries industry-ready. However, participation has been limited.
“Under Yuva Nidhi Plus, we have been trying to train and upskill those who have registered for the unemployment allowance, to make them industry-ready. However, the response has been quite lacklustre. Only 1,200 participants have been trained so far,” said Manoj Kumar Meena, secretary of the skill development department.
Beneficiaries worried about stipend cuts
Many young people dependent on the allowance fear losing their stipend before securing employment. To address this, the department has issued instructions to district administrations.
“In order to rid the beneficiaries of this fear, we have written to the CEOs of panchayats and the deputy commissioners of the districts that unless the unemployed youth secures a job, the stipend will not be cut off. The training will have no impact on their stipend,” Meena added.
Graduates dominate the scheme
Data shows that graduates constitute an overwhelming majority of the scheme’s beneficiaries, with diploma holders making up only 2%. This suggests that diploma holders were either quicker to secure employment or opted for entrepreneurship.
Many graduates, officials said, used the allowance to sustain themselves while preparing for competitive examinations.
Yuva Nidhi in numbers
- Launch date: December 26, 2023
- Total beneficiaries: 2,55,033
- Graduates: 2,50,869
- Diploma holders: 4,164
- Women beneficiaries: 1,23,700
- Men beneficiaries: 1,31,333
- Total stipend spent so far: ₹622 crore
- Expenditure in 2025: ₹311 crore
(Source: Government of Karnataka)
Conclusion
While Yuva Nidhi has provided temporary financial relief to lakhs of unemployed youth, the scheme’s larger goal of enhancing employability remains underachieved. With more than half of the beneficiaries set to leave the scheme soon, Karnataka faces the challenge of improving training uptake, boosting job creation, and ensuring that the programme delivers beyond financial support.