Skills and knowledge are the driving forces of economic growth and social development for any country. India is blessed with 65% percent of its youth in the working age group. As per the National Policy for Skill Development and Entrepreneurship 2015, it is estimated that the average age of the population in India by 2020 will be 29 years as against 40 years in USA, 46 years in Europe and 47 years in Japan. In next 20 years, the labor force in the industrialized world is expected to decline by 4%, while in India it will increase by 32% which creates a need and opportunity to provide its workforce with required skill sets and knowledge to enable them to contribute substantially to the economic growth of India.1

The skill ecosystem in India is undergoing major reforms and policy interventions as India embarks on its journey to become a Knowledge Economy. The skill gap study by the National Skill Development Corporation (NSDC) for the period of 2010-2014 reports that over 109.73 million additional skilled manpower will be required by 2022 across different sectors.

In the last two years, the government has taken a host of initiatives to channelize the efforts and provide impetus to the Skill Development ecosystem.

To steer and coordinate the current skilling initiatives with quality deliverables, the Ministry of Skill Development and Entrepreneurship (MSDE) was created in November 2014 to drive the ‘Skill India’ agenda in mission mode.

Key interventions taken up by the government during the last two years have resulted in the number of trained Indians growing by 36.8% from 0.76 crores in FY 2014-15 to 1.04 crores in FY 2015-16. These trainings were done through Central Government Programs and NSDC associated training partners in the private sector.

Policy Initiatives

MSDE has made great strides in a relatively short span of time and the key policy initiatives have been launched to support the skilling mandate.

Pradhan Mantri Kaushal Vikas Yojana (PMKVY)

Launched in July 2015 with the mission statement “KaushalBharat Kushal Bharat’, PMKVY is the flagship scheme of MSDE aimed to benefit 1 crore youth. PMKVY is being implemented through National Skill Development Corporation (NSDC).

A new version of PMKVY was launched on July 13, 2016 with modification and continuation of PMKVY as ‘Skill Development Component’ of umbrella PMKVY with a target to skill 10 million people over four years (2016-2020) at an outlay of INR 12,000 crore.

  • A total of 19.8 lakh candidates (17.8 lakhs in fresh training and 1.8 lakhs under Recognition of Prior Learning (RPL)) have been enrolled, out of which 17.93 lakh have been trained and 11.9 lakh have been certified. The details of sector-wise breakup is mentioned in Annexure-I.
  • 7. 22 lakh candidates alone have been trained in manufacturing job roles.

Revitalizing the landscape of Industrial Training Institutes (ITI’s) across the nation

The scheme envisages up-gradation of an existing Government ITI in a State to Model ITI through Institute Management Committees (IMC’s)with a representative as chairperson from Industry. The scheme was approved in December 2014 for a total cost of INR 300 crore. Implementation period is for 3 years with a funding pattern 70:30 between Center and States. For North Eastern states, the funding pattern is 90:10 between Center and States. Some of the major achievements are:

  • The number of ITIs in the country has increased from 10,750 in May 2014 to over 13,105 in May More than 1141 new ITIs have been added and 1.73 lakh seats have been increased in the last one year.
  • 15,000 instructors have been trained by Central Institutes of Directorate General of Training (DGT).
  • Distance learning infrastructure has been created and over 18000 trainers have been trained in last two years.
  • MSDE has also enabled opening up of 8 new Regional Vocational Training Institutes (RVTIs) for women in skill development. Five of which were opened during FY 2015- 16, 2 of which have been operational since August 2015, 3 are to be opened in FY 2016-
  • 2,33,000 youth were awarded certificates from ITIs, and 18,000 plus graduating students received job offer letters on the occasion of World Youth Skills Day.

National Skills Qualifications Framework (NSQF)

NSQF is a competency-based framework that organizes all qualifications according to a series of levels of knowledge, skills and aptitude. NSQF aims to safeguard the consistency in outcome of skills training. Over 1661 qualifications from both the NSDC and ITI ecosystems have been aligned to NSQF during the last two years.

Apprenticeship Act reformed to scale up Apprenticeship training

The Apprenticeship Act was modified in December 2014 to incentivise employers to take on more apprentices. Advocacy campaign amongst industry partners has been taken up and an online portal has been launched. Employers can now engage up to 10% of its total workforce as apprentices. The number of apprentices in the country has increased from 2.70 lakh to 3.10 lakh in FY2015- 16, which is 15% higher as compared to FY 2014- 15.

  • National Apprenticeship Promotion Scheme (NAPS) was also notified on August 19, 2016 to equip 50,000 apprentices during 2016-2022.

National Skill Development Corporation (NSDC)

NSDC which was established to catalyse private sector involvement in the area of skill development was further strengthened and entrusted with responsibility of setting up Pradhan Mantri Kaushal Kendra (PMKK) to run industry-driven courses of high quality with focus on employability. Some of the initiatives taken by NSDC are:

  • NSDC partners have skilled 24.93 lakh people and placed about 12 lakh people through its ecosystem in FY2014-15.
  • Under UDAAN, a special industry initiative to enhance the employability in the state of J&K, the number of candidates trained has leapfrogged from 3062 in May 2014 to 10,810 in May 2016.
  • 33 Pradhan Mantri Kaushal Kendras (PMKK) have been set-up across India as yet. Target is to create 426 PMKK across 409 districts.

The details of NSDC centers operational during FY 2015-1 6 are in Annexure II.

Pradhan Mantri YUVA Yojana (PMYY)

MSDE launched its flagship scheme on entrepreneurship education and training in November 2016. The scheme spans over five years (2016-17 to 2020-21) with a project outlay of INR 499.94 crore, and will provide entrepreneurship education and training to over 7 lakh students in 5 years through 3050 Institutes. The institutes under the PM’s YUVA Yojana include 2200 Institutes of Higher Learning (colleges, universities, and premier institutes), 300 schools, 500 ITIs and 50 Entrepreneurship Development Centers, through Massive Open Online Courses (MOOCs).

Sector Skills Councils r66C’s)

  • NSDC is funding industry led Sector Skill Councils (SSCs) that create National Occupation Standards (NOS). Till date, NSDC Board has approved 40 Sector Skill Councils.
  • 11 New SSCs have been added namely Chemical & Petrochemicals SSC, Paints & Coatings SSC (IPA), Management SSC, Green Job SSC, Strategic Manufacturing SSC, Furniture & Fitting SSC, and PWD SSC since November 2014.
  • The number of SSCs that developed National Occupational Standards (NOS) have grown from 22 in Nov 2014 to 31 at end of Oct 2015.
  • In the textile sector, a total of about 8.61 lakh persons have been trained including traditional sectors under ISDS (Integrated Skill Development Scheme) of which 69% got placed.

Special Focus on skilling and empowering Women

In an endeavor to create a conducive socio-cultural and economic environment for women, several initiatives have been taken to further strengthen the ecosystem.

  • 30% of all the seats are reserved in all Government and Private ITIs for courses for women candidates which includes girls as well.
  • 5 new RVTIs for women in skill development have been established during FY 2015-16 and 3 are to be opened in FY 2016-17. 2 RVTIs are being established in Himachal Pradesh (Jhundla, Shimla) and Tripura (Anandanagar, Agartala) to facilitate the requirements in the hilly terrain since August 2015.
  • NSDC training partners have trained a total of 1,55,236 women candidates across India, of which 54,456 have been placed as on October 31, 2016.
  • Under non-PMKVY, around 6000 candidates were trained through various training centers during the year 2015-16.
  • Under the Craftsmen Training Scheme, more than 10 lakh trainees got skilled during FY 2015-16.
  • Skill Loan scheme was launched in July 2015 and offers soft loans ranging from INR 5000 to INR 1.5 lakh to 34 lakh Indian youth seeking to attend skill development programmes over the next five years.

Annexure I & II


Contact Us

Department of Industrial Policy and Promotion,

Ministry of Commerce and Industry,

Udyog Bhawan, Rafi Ahmed Kidwai Marg,

Rajpath Road Area, Central Secretariat,

New Delhi, Delhi 110011

Ministry of Skill Development and Entrepreneurship

2nd Floor, Annexe Building Shivaji Stadium, Shaheed

Bhagat Singh Marg, Connaught Place,

New Delhi, Delhi 110001

Knowledge Partner : KPMG

Building No. 10, 8th Floor, Tower B & C,

DLF Cyber City, Phase II,

Gurgaon, Haryana 122 002

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