An Analysis of Deendayal Upadhyay Grameen Kaushal Yojana- 2019

Policy Update
Lakshita Singh

Just recently, on 25th september every year we celebrate the birth anniversary of our renowned pandit Deendayal Upadhay as Antodaya Diwas who preached “Integral Humanism”. This is a human-centric approach balancing between material and spiritual aspects. Based on this philosophy, he advocated for well being and poverty alleviation of the poor. He advocated the concept of antyodaya meaning upliftment of the poorest of the poor. Humans should be the center of all development and making rural poor ‘Aatmanirbhar’, keeping this in mind the Ministry of Rural Development launched Deendayal Upadhyay Grameen kaushal yojana on the 98th anniversary of pandit Deendayal Upadhyay in 2014.

It was launched by union minister Nitin Gadkari and former vice president Venkaiyah Naidu. It is a part of the National Rural Livelihood Mission with the dual task of adding diversity to the income of rural poor and enlarging the career aspirations of the rural youth. It is a skill development program in rural areas which is aimed at providing better employment and placement opportunities for the rural poor and making them financially independent. The scheme targets people including women between 15-35 years.

Significance 

By 2022, a skills gap of 109.73 million was identified across 24 key sectors, as highlighted by the National Policy for Skill Development & Entrepreneurship 2015. Additionally, a 2013 study by FICCI and Ernst & Young projected a global shortfall of over 47 million skilled workers by 2020. Given India’s demographic dividend, there is substantial potential to train the nation’s bottom of the pyramid (BoP) youth and connect them with job opportunities worldwide.

The Deen Dayal Upadhyay Gramin Kaushal Yojana (DDU-GKY) has been pivotal in advancing the vision of Atmanirbhar Bharat by focusing on skill development. When combined with integrated farming initiatives aimed at rural development, DDU-GKY becomes even more impactful in preparing and placing rural youth into employment. As part of the broader Skill India campaign, DDU-GKY plays a crucial role in supporting both social and economic programs.

Key Guiding Principles

  1. Strong Demand for Economic Opportunities: There is a significant demand for economic opportunities among the rural poor, alongside vast potential to develop their skills to meet this demand.
  2. Social Mobilization and Institutional Networks: To convert India’s demographic surplus into a true dividend, strong social mobilization and robust institutional networks are essential. For example 
  3. Focus on Quality and Standards: Delivering high-quality training is crucial to make rural youth attractive to both Indian and global employers.
  4. Awareness and Engagement: The program emphasizes raising awareness in communities about available opportunities, identifying and mobilizing interested rural youth, and counseling them and their parents.
  5. Selection and Training: Youth are selected based on aptitude, and are provided with industry-linked skills, knowledge, and attitudes that enhance their employability.
  6. Employment and Post-Placement Support: DDU-GKY aims to provide verifiable job placements that offer wages above the minimum threshold. Moreover, it supports the sustainability of placements through post-employment assistance.
  7. Shift from Training to Career Progression: The focus has shifted towards ensuring that training leads to long-term career progression, enabling the poor and marginalized to benefit from economic growth.
  8. Migration Support: For individuals facing inevitable migration for employment, DDU-GKY seeks to minimize the hardships associated with this process.
  9. Partnership Building: The program proactively seeks to establish partnerships to enhance its reach and effectiveness.
  10. Monitoring and Evaluation: Monitoring of inputs and outputs is key, with placement outcomes being the primary focus.

Implementation and Ownership by States

The implementation model of DDU-GKY is a three-tier system. The DDU-GKY National Unit under the Ministry of Rural Development (MoRD) serves as the policymaking and technical support agency. State-level missions provide implementation support, while project implementing agencies (PIAs) handle the actual skilling and placement efforts. To promote greater ownership by the states, multi-state projects (MSPs) are no longer considered. Instead, Single State Projects (SSPs) are aligned with Annual Action Plans (AAP).

Regional and Social Inclusion

  • Social Inclusion: The program mandates inclusion of marginalized groups, with 50% of funds reserved for Scheduled Castes (SCs) and Scheduled Tribes (STs), 15% for minorities, and 3% for persons with disabilities. Additionally, one-third of beneficiaries must be women.
  • Regional Inclusion: There are special sub-schemes for various regions. The ‘Himayat’ scheme targets youth from Jammu & Kashmir, covering both urban and rural populations, and addressing both Below Poverty Line (BPL) and Above Poverty Line (APL) individuals. The Roshni scheme focuses on tribal regions and districts affected by Left Wing Extremism (LWE), offering training with flexible timelines to accommodate the specific challenges in these areas.

Funding and Support

DDU-GKY provides financial support for placement-linked skill development programs, with funding amounts ranging from ₹25,696 to over ₹1 lakh per trainee, depending on the project’s duration and whether it is residential or non-residential. Training durations range from 576 hours (three months) to 2304 hours (12 months).

Priority is given to PIAs offering:

  1. Foreign Placement: PIAs facilitating employment abroad.
  2. Captive Employment: PIAs or organizations providing training to meet their ongoing human resource needs.
  3. Industry Internships: Projects that offer internships co-funded by industry partners.
  4. Champion Employers: PIAs that can guarantee training and placement for at least 10,000 trainees within two years.
  5. Educational Institutions: Institutions with a National Assessment and Accreditation Council (NAAC) grading of 3.5 or above, or Community Colleges funded by the University Grants Commission (UGC) or All India Council for Technical Education (AICTE), are prioritized for project funding.

This comprehensive approach helps ensure that India’s rural and marginalized populations are equipped with the skills needed to access sustainable employment opportunities both domestically and internationally.

Achievements analysis of the scheme

Job Placements:

  • The scheme mandates that 75% of trained youth be placed in jobs. According to government data, more than 14.51 lakh candidates have been trained since its inception, with 8.07 lakh placed in jobs by 2023. This translates to a 57% placement rate, which is short of the 75% target, though placement rates have varied across sectors and regions.
  • While job placements in industries such as retail, hospitality, healthcare, automotive, and construction have been successful, long-term job retention remains an area for improvement.

Community participation

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The table outlines the percentage of participants placed under the DDU-GKY scheme from the categories of women, SC, ST, and minorities. In the 2014-15 period, among the trained participants, women had the highest placement rate at 39.21%, followed by SC at 34.90%, ST at 16.72%, with minorities having the lowest at 9.15%. The trend continued in 2015-16, with women leading at 39.22%, SC at 34.79%, ST at 16.86%, and minorities again having the lowest representation at 9.11%. In 2016-17, the percentages shifted slightly, with women at 40.43%, SC at 33.69%, ST at 16.63%, and minorities at 9.23%. By 2017-18, the figures for women were 40.27%, SC 33.71%, ST 16.57%, and minorities 9.43%.

The analysis reveals that SC, ST, and minority groups benefit less from the placement process compared to women. The program requires that one-third of participants be women, but the actual number of women trained exceeds this requirement. However, a study also found that many trained women are not being placed in jobs, despite their higher training participation rates. This suggests that the government needs to take additional measures to identify and address the barriers preventing women from securing placements under the scheme.

Additionally, while the overall growth in placed participants is commendable, especially given the rural focus of the program, the rate of growth remains limited. There is a need for increased emphasis on expanding the participation and placement of individuals from disadvantaged communities, including SC, ST, and minorities, in the coming years to ensure equitable benefits across all groups.

Training Quality and Employer Satisfaction:

  • Employers have raised concerns regarding the quality of training in some cases, stating that candidates are not always “job-ready” even after completing the program.
  • The Project Implementing Agencies (PIAs) vary in performance, with some delivering high-quality training, while others struggle to maintain standards. There is a need for stricter oversight and standardization to ensure that trainees across all regions receive uniform, high-quality education.

Shift from Training to Career Progression:

  • The scheme’s emphasis on career counseling, post-placement support, and partnerships with industries for long-term career development has been a positive shift. However, challenges remain in ensuring that trained candidates not only get placed but also advance in their careers over time.
  • The Champion Employers model, which supports large employers that train and place a minimum of 10,000 candidates over two years, is one of the more promising innovations aimed at fostering career growth.

One of the notable examples is the partnership with Maruti Suzuki, which signed an MoU to train at least 5,000 rural youth within two years, with guaranteed placement. This collaboration reflects the growing alignment between government initiatives and private sector needs, helping bridge the skills gap in India’s rural areas.

Emerging issues

While DDU-GKY has made substantial progress since its inception, the commitments set out in its guidelines are being fulfilled with varying degrees of success:

  1. Job Placements: Although a significant number of youth have been trained and placed, the placement rate of 57% is lower than the target of 75%. Efforts to improve long-term job retention and career growth are ongoing but need more attention.
  2. Inclusion Goals: The scheme has succeeded in targeting marginalized groups such as SC/STs, minorities, and women, with 50% of funds allocated for SC/ST candidates and one-third of trainees being women. These inclusion commitments are being met, but the focus must shift towards ensuring long-term socioeconomic upliftment for these groups.
  3. Training Quality: There is a need for greater consistency and quality control in training programs. Some PIAs have delivered excellent results, but others need stronger oversight to ensure that candidates are adequately prepared for the workforce.
  4. Foreign Employment: The promise of foreign placements remains a challenge, with only limited success achieved so far. Addressing barriers such as language skills and cultural adaptability will be key to improving this aspect of the program.

In conclusion, while DDU-GKY has made notable strides in terms of expanding access to skills training and creating job opportunities, there is room for improvement in areas like job retention, training quality, and foreign placements. By addressing these challenges, the scheme can better realize its vision of empowering rural youth and ensuring sustainable livelihoods.

Way forward

The Government of India should implement a robust monitoring system to consistently assess the progress of skill development initiatives. Moreover, these programs need to be continuously updated to align with the evolving demands of the industry and to contribute to the country’s socio-economic and cultural growth. If these measures are not taken, there is a risk of increased government spending without delivering significant benefits.

To achieve professional success, individuals must proactively utilize the various government programs available. Rural youth, especially those from marginalized backgrounds such as Scheduled Castes (SC) and Scheduled Tribes (ST), encounter considerable challenges. It is crucial for these young individuals to make determined efforts to surmount these obstacles and gain advanced skills to enhance their prospects for employment in the formal sector.

While transforming the lives of SC and ST youth in rural areas may require time, targeted training and mentorship programs can expedite this process. Such initiatives can equip them with the essential skills and knowledge necessary to thrive in the job market. Additionally, awareness campaigns designed to educate employers about the potential of these candidates can mitigate the discrimination they frequently encounter.

Addressing infrastructure issues—such as limited access to quality training facilities, transportation challenges, and inadequate digital connectivity—is also critical to ensure that rural youth can effectively engage with these programs. By tackling these issues and providing the necessary support to young people from marginalized communities, India can advance toward a more inclusive and equitable society where everyone has access to opportunities for economic advancement. To hasten this transformation, it is essential to address both social and infrastructure-related barriers that impede progress.

In summary, while the DDU-GKY scheme represents a commendable effort toward uplifting the rural poor, it is important to adopt a broader perspective for its implementation. Financial inclusion for SCs and STs is a key component, but a multifaceted strategy is crucial for achieving comprehensive socio-economic upliftment. For instance, offering incentives during training and implementing awareness programs can enhance outreach and effectiveness. The implementing agencies play a vital role in maximizing impact and ensuring last-mile delivery for all beneficiaries. Furthermore, the government must address existing flaws in the scheme to improve its overall performance.

References

About the Contributor– Lakshita Singh, is a research intern at IMPRI, currently pursuing her graduation from BA hons History from Delhi University.

Acknowledgement–  The author would like to thank Malika and Mohd Asim for reviewing their article. 

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