India grapples with numerous challenges contributing to unemployment, including underemployment, skill gaps, and employed poverty. Addressing these barriers requires a strategic focus on skill development, which empowers individuals to acquire industry-relevant skills and secure meaningful employment. Recognizing this need, the Government of India has undertaken significant skill development schemes aimed at promoting effective learning across all sections of society.
The Ministry of Skill Development and Entrepreneurship (MSDE), in collaboration with key organizations such as the Directorate General of Training (DGT), the National Council for Vocational Education and Training (NCVET), the National Skill Development Corporation (NSDC), and the National Skill Development Fund (NSDF), plays a pivotal role in coordinating and implementing these initiatives. Their collective efforts aim to enhance the overall employability of the nation.
For graduates and job seekers, it is imperative to explore and leverage these skill development programs to gain sustainable, industry-relevant skills and secure employment in their chosen fields.
Skill Development Programs by Government of India
National Policy for Skill Development and Entrepreneurship (2015)
The National Policy for Skill Development and Entrepreneurship (2015) was introduced to sustain the pace and quality of skill development initiatives in India. It serves as an overarching framework to standardise the quality of skill development programs, ensuring alignment with the demands of the job market.
National Education Policy (NEP) 2020
The National Education Policy (NEP) 2020 underscores the importance of skilling to enhance employability and drive economic growth. Its key interventions to promote skill development and entrepreneurship include:
- Introducing vocational education in schools from the 6th grade, along with internships.
- Establish vocational education centres equipped with modern technologies and infrastructure.
- Encouraging the establishment of incubation centres at educational institutions to support entrepreneurship and self-employment initiatives.
- Ensuring equitable and inclusive education, with a special focus on socially and economically disadvantaged groups (SEDGs).
- Establishing Multidisciplinary Education and Research Universities (MERUs) to foster holistic skill development and enhance employability.
Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
The Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is a flagship scheme implemented by the National Skill Development Corporation (NSDC) to provide industry-relevant training and employment opportunities. Its components—Short-term training (STT) and Recognition of Prior Learning (RPL)—target school and college dropouts and the unemployed, offering industry-focused training. The scheme now focuses on in-demand skills such as coding, AI, robotics, mechatronics, IoT, 3D printing, drones, and soft skills to prepare talent for Industry 4.0.
Pradhan Mantri Kaushal Kendra (PMKK)
The Pradhan Mantri Kaushal Kendra (PMKK) facilitates the establishment of district-level model training centres to standardise infrastructure and training delivery under PMKVY. PMKK aims to transform the short-term training system into a sustainable education model for every district. It also provides financial support of Rs. 70 Lakhs as a soft loan to improve training infrastructure.
Jan Shikshan Sansthan (JSS)
The Jan Shikshan Sansthan (JSS) is an autonomous body established to facilitate vocational education and skill development. Its primary objective is to impart technical knowledge and occupational skills to illiterates and individuals with low levels of education.
National Apprenticeship Promotion Scheme (NAPS)
The National Apprenticeship Promotion Scheme (NAPS) was launched in 2016 to provide financial support to organisations undertaking apprenticeship training, particularly MSMEs. The government reimburses 25% of the prescribed stipend (up to Rs. 1500/- per month per apprentice). The Union Budget for 2023-24 introduced Direct Benefit Transfer (DBT) to transfer stipends directly to around 47 Lakh youth over three years.
SANKALP
SANKALP (Skill Acquisition and Knowledge Awareness for Livelihood Promotion) is an initiative by the Ministry of Skill Development, supported by the World Bank. It aims to impart short-term skill training by strengthening institutions at the central, state, and district levels, ensuring the quality of skill development programs and extending benefits to marginalised populations.
Skill Loan Scheme
The Skill Loan Scheme was launched to provide institutional credit to individuals pursuing skill development courses aligned with National Occupation Standards and the National Skills Qualification Framework (NSQF). All member banks of the Indian Bank’s Association (IBA) and other banks approved by the RBI are eligible to offer this scheme. No collateral is required from beneficiaries.
Deen Dayal Upadhyay Gram Kaushal Yojana (DDU-GKY)
The Deen Dayal Upadhyay Gram Kaushal Yojana (DDU-GKY), initiated by the Ministry of Rural Development, is part of the National Rural Livelihood Mission (NRLM). It funds skill training programs across over 250 trades such as hospitality, retail, health, automotive, construction, electrical, leather, plumbing, and gems. Since 2012, DDU-GKY has committed an investment of over Rs. 5,600 crore under the Skill India campaign to enhance rural youth employability.
Deendayal Antyodaya Yojana – National Urban Livelihoods Mission
The Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM) aims to provide urban poor households with access to skill-based employment opportunities to reduce poverty. It also conducts regional workshops to support urban street vendors and the homeless, enhancing their entrepreneurial skills.
Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA)
The Mahatma Gandhi National Rural Employment Guarantee Act (NREGA) guarantees wage employment for at least 100 days to rural households willing to undertake unskilled manual work. It aims to empower rural women, protect the environment, reduce rural-to-urban migration, and promote social equality.
National Rural Livelihood Mission
The National Rural Livelihood Mission (Aajeevika Skills), launched by the Ministry of Rural Development under NRLM, aims to increase the rural youth’s income by understanding their professional aspirations. Key features include food and transport support during training, assured placement, and post-placement support. The scheme encourages the private sector to establish training institutes, fostering self-employment.
The Outcomes
The National Policy for Skill Development and Entrepreneurship (2015) laid the foundation for skill development initiatives across various industries and ministries, ensuring that the quality of programs aligned with industry skill demands. It also emphasised the importance of promoting entrepreneurship development programs within the country.
Under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), the first three versions (PMKVY 1.0, 2.0, and 3.0) were implemented between FY 2015-16 and FY 2021-22. During this period, approximately 56.88 lakh candidates were certified under short-term training programs. Out of these, about 24.3 lakh candidates secured employment, achieving a placement rate of 42.8%, highlighting the potential for improving training quality and accessibility.
In the year 2023-24, about 312 Jan Shikshan Sansthan (JSS) units were operational, training 26,38,028 individuals from marginalised communities. Of these, approximately 25,98,978 candidates (98.5%) were certified, reflecting the program’s strong outreach and certification success rate.
Since inception under the Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY), a total of 14.51 lakh candidates have been trained. Of these, about 8.70 lakh candidates secured employment as of May 2023, reflecting a consistent effort to enhance rural employability.
The National Apprenticeship Promotion Scheme (NAPS) recorded around 600,996 enrollments and engaged approximately 661,179 candidates by 2022-23, demonstrating effective outreach and industry participation.
The Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) generated approximately 92,956,184 employment offers in 2023-24 for rural populations, reinforcing its role as a potential source of employment for rural communities.
Consistent skill development is essential for driving employment growth and strengthening the nation’s economy. Skill development schemes and programs have played a key role in identifying and engaging youth from rural and socially disadvantaged communities, equipping them with industry-relevant skills to enhance their employability across the country. While these programs have been effective, there is still a need for targeted interventions to improve the quality of training and expand access to broader sections of society.
