Policy Update
Aditi Kumari
Introduction
The Ministry of Skill Development and Entrepreneurship (MSDE) is responsible for coordinating skill development efforts across India, bridging the gap between industry demands and workforce supply. With a vision of ‘Skilled India,’ the ministry focuses on large-scale skilling, vocational training, and entrepreneurship promotion. MSDE collaborates with ministries, state governments, industries, NGOs, and global organizations. It equips India’s youth with industry-relevant skills. The goal is to boost employability and drive economic growth. Its initiatives align with Viksit Bharat 2047, leveraging India’s 65% youth population to create a future-ready workforce.
Functioning of MSDE
MSDE operates through key functional arms to implement and regulate skill development programs:
- Directorate General of Training (DGT): Manages 15,000+ ITIs and 33 NSTIs for vocational training.
- National Council for Vocational Education and Training (NCVET): Standardizes skill certification.
- National Skill Development Corporation (NSDC): Works with 187 training partners to promote skill-based education.
- Sector Skill Councils (SSCs): Aligns skills training with industry needs across 37 sectors.
- National Skill Development Fund (NSDF): Provides financial support for skilling initiatives.
MSDE’s Vision 2025 focuses on economic empowerment, a demand-driven skills market, and job creation through innovative skilling.
Government Schemes and Initiatives for Skill Development in India
Under the Government of India’s Skill India Mission (SIM), the Ministry of Skill Development and Entrepreneurship (MSDE) provides skill development, re-skilling, and up-skilling through a vast network of training centers and institutes across the country, implementing various targeted schemes.
1. Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
PMKVY is the flagship skill development scheme aimed at providing short-term training (STT) and upskilling opportunities through Recognition of Prior Learning (RPL). It targets youth, including those from rural areas, ensuring they gain industry-relevant skills. The scheme focuses on emerging fields like Artificial Intelligence (AI), Robotics, Drone Technology, and Industry 4.0, making India’s workforce future-ready.
2. Jan Shikshan Sansthan (JSS) Scheme
This initiative is designed to impart vocational skills to non-literates, neo-literates, and school dropouts (up to 12th standard) in the 15-45 age group, with relaxed criteria for differently-abled individuals. Special attention is given to women, SC, ST, OBC, and minorities in rural and urban low-income areas. JSS helps individuals become self-reliant by offering skill training in various trades.
3. National Apprenticeship Promotion Scheme (NAPS)
NAPS aims to promote apprenticeship training by providing financial support to industries that engage apprentices. The training consists of:
- Basic Training – Theoretical knowledge of the trade.
- On-the-Job Training (OJT) – Hands-on experience at workplaces.
With 42,453 establishments onboard, the scheme bridges the education-employment gap.
4. Craftsmen Training Scheme (CTS)
Under CTS, long-term vocational training is provided through Industrial Training Institutes (ITIs). These institutes offer specialized courses across multiple sectors, ensuring that trainees acquire practical skills for employment or entrepreneurship. The curriculum is constantly updated to align with the latest industry demands.
5. Pradhan Mantri Kaushal Kendras (PMKKs) – Model Training Centres
To elevate India’s status as a global leader in skill development, the National Skill Development Corporation (NSDC) has established Pradhan Mantri Kaushal Kendras (PMKKs) in every district. These state-of-the-art training centers focus on:
- Delivering high-quality skill training.
- Emphasizing sustainability and industry engagement.
- Shifting from short-term programs to a structured institutional framework.
Key Initiatives for Strengthening the Skill Ecosystem
1. Industry Collaboration for Market-Driven Training
- 36 Sector Skill Councils (SSCs) have been set up to ensure training programs match market needs.
- Future-ready job roles in AI, Robotics, Mechatronics, and Drone Technology are prioritized.
2. National Council for Vocational Education and Training (NCVET)
NCVET serves as the apex regulatory body for vocational education, ensuring quality standards in skill training.
3. Flexi MoU Scheme and Dual System of Training (DST)
- Provides real-world industry exposure to ITI students.
- Encourages public-private partnerships to enhance skill training.
4. Industry Partnerships with Tech Giants
- MSDE has signed MoUs with IBM, CISCO, Amazon Web Services (AWS), and Microsoft to provide:
- Industry-relevant training.
- Enhanced exposure to cutting-edge technologies.
5. National Skills Qualification Framework (NSQF)
- NSQF courses integrate On-Job Training (OJT) and employability skills, ensuring graduates meet industry demands.
- Ensures structured and progressive skill learning.
6. Market-Led Training Under NSDC
NSDC provides financial and logistical support to training providers who align courses with industry requirements, ensuring employability.
The Indian government is committed to building a skilled workforce, making individuals job-ready while driving economic growth. These skill development programs provide opportunities for people from diverse backgrounds, ensuring inclusive growth and self-reliance. By aligning training with industry demand and emerging technologies, India is preparing a future-ready workforce to compete on a global scale.
Impact
Over the past decade, the percentage of skilled individuals has improved from approximately 34% to 51.3%, reflecting the positive impact of government initiatives in skill development and entrepreneurship. MSDE has played a crucial role in this transformation by introducing structured programs and financial support mechanisms to equip the workforce with employable skills.
Source: India Skills report
The Apprenticeship Training Program has grown significantly. As of July 2024, 2,77,036 apprentices have been engaged this financial year. A total of 7.46 lakh apprentices are currently in training. 47,311 establishments are providing industry exposure. This structured training makes youth job-ready. It helps reduce unemployment and bridges the education-employment gap.
| Name of Scheme | Enrolled/ Engaged/ Admitted | Trained | Certified |
| PMKVY 4.0 | 24,12,673 | 10,87,280 | 4,69,618 |
| JSS (2018-19 to June 2024) | 26,67,372 | 26,38,028 | 25,93,642 |
| CTS (2018 to 2022) | 65,10,956 | 62,55,071 | 41,61,894 |
The data highlights significant differences in the efficiency of training and certification across three major skill development schemes. PMKVY 4.0 has a notable drop-off, with only 45% of enrolled candidates completing training and 19.5% receiving certification, indicating potential challenges such as high dropout rates or stringent certification criteria. In contrast, JSS demonstrates exceptional efficiency, with 99% of enrolled candidates completing training and 97% obtaining certification, reflecting strong implementation and retention. CTS also performs well, with 96% of enrolled candidates completing training and 64% achieving certification, suggesting effective training delivery but some challenges in certification. Overall, JSS appears to be the most successful in ensuring both training completion and certification, while PMKVY 4.0 struggles with participant retention and certification rates.
India’s concerted efforts in skill development are not only transforming individual lives but also strengthening the nation’s economic and industrial landscape.
Challenges
India faces major challenges in skill development and entrepreneurship. Skilling is often seen as a last resort, limiting its appeal. Over 20 Central Government Ministries run fragmented programs with weak coordination. Assessment and certification systems are inconsistent, confusing employers. A shortage of trainers affects quality. Demand-supply mismatches lead to unemployment despite training. Rigid education systems make it hard to move between vocational and higher education. Low apprenticeship coverage limits hands-on experience.
Outdated curricula fail to meet modern industry needs. Women’s declining labor force participation reduces skilling access. The unorganized sector offers low wages, discouraging skill development. Entrepreneurs struggle with limited mentorship and financial support, making it hard to sustain startups. Innovation-driven businesses need stronger backing. Skilled workers often lack wage premiums and reduce motivation for training. To fix these issues, India needs better policies, industry partnerships, and a shift in perception to make skilling aspirational and job-relevant.
Way Forward
To strengthen India’s skill development ecosystem, greater industry collaboration, modernized training programs, and policy integration are essential. Expanding apprenticeship programs, public-private partnerships, and digital learning platforms will equip youth with industry-relevant skills. A centralized governing body should streamline fragmented skilling initiatives across ministries, ensuring uniform standards and effective implementation. Integrating AI, robotics, and Industry 4.0 into vocational training will prepare India’s workforce for future jobs. Skilling programs should connect with higher education through a National Credit Framework. This will make vocational education more aspirational.
Women’s participation in skill development must be prioritized through targeted training, financial incentives, and flexible learning options. Expanding Jan Shikshan Sansthan (JSS) and promoting women-centric apprenticeships can enhance their economic inclusion. Additionally, entrepreneurship support, including mentorship, micro-financing, and incubation centers, is needed to empower young innovators. A nationwide awareness campaign should be launched to change perceptions about vocational training, making it a respected career choice rather than a fallback option.
Conclusion
India’s skill development efforts have made remarkable strides, but the journey toward a future-ready workforce demands relentless innovation and commitment. To truly harness the potential of its vast talent pool, India must modernize training, strengthen industry partnerships, and ensure inclusive skilling opportunities for all. With the vision of Viksit Bharat 2047, we must act decisively to align skills with market demands. We must also foster a culture of lifelong learning and empower every citizen to contribute to national progress. The time to transform our workforce is now. By making skill development the backbone of economic growth and social empowerment, India can rise as a global leader, driving prosperity for generations to come.
References
- About MSDE. (2023). Ministry of Skill Development and Entrepreneurship. https://www.msde.gov.in/en/about-msde
- Schemes of MSDE. (2024). Ministry of Skill Development and Entrepreneurship. https://pib.gov.in/PressReleasePage.aspx?PRID=2034975
- Impact of Schemes/ Initiatives. (2024). Ministry of Skill Development and Entrepreneurship. https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2053796
- CHAUDHARY, J. (2024). SKILL INDIA MISSION. In RAJYA SABHA. https://sansad.in/getFile/annex/265/AU1085_6mI7uh.pdf?source=pqars
- Annual Report 2023-2024. (2024). Ministry of Skill Development and Entrepreneurship. https://msde.gov.in/sites/default/files/2024-11/Annual%20Report%2023-24%20Eng.pdf
About the Author: Aditi Kumari is a research intern at the Impact and Policy Research Institute (IMPRI), pursuing Post graduation in Sociology.
Acknowledgement: The author extends sincere gratitude to Dr Arjun Kumar and Aasthaba Jadeja for their invaluable guidance and to Asif and Devananda for their informative inputs.
Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.
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