Introduction
In 2018, as per the World Bank, India’s 67% of the population was in the working-age group; and as per the Sample Registration System 2018 by the Registrar General & Census Commissioner of India, 47% was under 25 years. To take advantage of this demography and boost the country’s economy, in 2015, the Ministry of Skill Development and Entrepreneurship (MSDE) launched the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) to train and upskill the country’s capable workforce. Under this scheme, the government will assess and certify individuals/candidates with prior learning experience or no skills and provide training based on the National Skill Qualification Framework (NSQF) and industry-led standards; will also bear assessment and certification fees, along with training, lodging and boarding costs.
Need for the Pradhan Mantri Kaushal Vikas Yojana Scheme
According to the International Labour Organisation (ILO), in 2020, India comprised 4,717 lakh workers, of which, the agriculture sector consisted of 41.19% workforce, followed by the service sector (32.33%) and the industry sector (26.18%). In 2019, India’s labour force participation rate (% of the total population) stood at 48.14% for population aged >15 years; stood at 26.67% for the age group of 15-24 years. As per the ILO’s Periodic Labour Force Survey (LFS), the unemployment rate in India stood at 21.1% for the age group of 20-24 and 9.8% for the age group of 25-29 in 2019.
According to the ILO, India is likely to face shortage of ~29 million skilled personnel by 2030. A recent ILO report published in March 2024, highlights concerning trends in Indian youth employment, as over 80% of the unemployed workforce comprises youth. The proportion of unemployed youth with secondary education or higher has surged from 35.2% in 2000 to 65.7% in 2022. Despite a decline during the pandemic, youth unemployment rates remain high, particularly among those with graduate degrees, disproportionately affecting women. The report also underscored a critical skill gap in India's youth despite its youthful population, particularly in digital literacy. A significant portion lacks basic digital skills, hindering employability. Shockingly, 90% can't input a mathematical formula into a spreadsheet, 60% struggle with basic tasks like copying and pasting files, and at least 75% are unable to send emails with attachments.
Through the PMKVY, the government aims to improve/enhance the efficiency of capable workforce and therefore, contribute to the overall development of India. Currently, there is a huge gap between the needs of industry and skills of individuals at the local level that is rapidly expanding because of the pandemic. While employers struggle to employ people with the required skills, many displaced workers with limited skills strive to regain their livelihoods. Also, the present skilling ecosystem needs a new game plan, as ‘work from home' becomes the new norm, functional roles in different sectors are increasingly being redefined, resulting in fundamental changes in the ecosystem.
Key Objectives
- Encourage and mobilise youth to take up industry-relevant skill training to become employable.
- Increase capability and productivity of the existing workforce and align skill training with the actual requirements of the industry.
- Promote standardisation of the certification process and implement it on a larger level to create National Skills Registry (NSR is a database of details of the professionals as entered by them and background check information on the same. It includes personal, academic and employment details of individuals employed / to be employed in the industry).
Pradhan Mantri Kaushal Vikas Yojana – PMKVY (2016-2026)
PM Kaushal Vikas Yojana 1.0 (2015-16):
PMKVY was launched as a pilot in 2015 and was designed as a skill certification and reward scheme. The scheme was implemented by the MSDE through the National Skill Development Corporation (NSDC), Sector Skill Councils (SSCs), which were set up as autonomous industry-led bodies to create occupational standards, develop a competency framework, conduct studies on skill gaps and assess & certify trainees. The NSDC also established Training Partners (TPs)—that are private companies/not for profit companies/private & public universities—that sign term sheet with the NSDC for implementing training projects and receive financial payouts for the project. Between 2015 and 2016, 19.85 lakh candidates were trained under the scheme. After the successful implementation of PMKVY 1.0, the Union Cabinet approved the scheme for another four years (2016-20) with an outlay of Rs. 12,000 crores (US$ 1.6 billion).
PM Kaushal Vikas Yojana 2.0 (2016-20):
In July 2016, the government launched PMKVY 2.0 with an aim to augment the scheme in numerous sectors, geographies and align it with other government missions such as ‘Make in India’, ‘Digital India’ and ‘Swachh Bharat Mission’. Under PMKVY 2.0, 89.59 lakh candidates were trained from 2016 to 2020. For this scheme, the government allocated Rs. 12,000 crore (US$ 1.6 billion), of which, Rs. 7,115 crore (US$ 967 million) was sanctioned until January 2021.
PM Kaushal Vikas Yojana 3.0 (2020-22):
Based on the learning attained from PMKVY 1.0 and PMKVY 2.0, the MSDE launched the newer version of the scheme to match the current policy doctrine and energise the skilling ecosystem that was affected due to the pandemic. The PMKVY 3.0 scheme will be implemented in two phases, wherein phase one was implemented on a pilot basis in FY21 (2020-21), with an outlay of Rs. 949 crore (US$ 129 million). Under this new scheme, 2.78 lakh candidates were trained between 2020 and 2021.
PM Kaushal Vikas Yojana 4.0 (2022-26):
Based on the challenges faced in implementing earlier phases of PMKVY and the learnings gathered, the next phase i.e. PMKVY 4.0 under the umbrella scheme of the ‘Skill India Programme' is being implemented between FY22-26. PMKVY 4.0 is being realigned with a core focus on making the existing skill ecosystem more flexible, swift, and geared to meet the current challenges and emerging needs through process simplification. The objective of PMKVY 4.0 is to create an enabling ecosystem for youth to acquire skills aligned with their abilities and aspirations. It aims to deliver skill training in a market-oriented and demand-driven manner, making the skilling ecosystem more flexible and responsive to emerging demands. Additionally, PMKVY 4.0 seeks to simplify the skill ecosystem through technology and digitalization, enhance access to skilling in remote areas, and improve inclusivity for marginalized communities.
Moreover, the government is working on a comprehensively mapping various schemes—which are being run by central and state governments and have similar goals (schemes such as National Apprenticeship Promotion Scheme (NAPS), MUDRA loans under Pradhan Mantri MUDRA Yojana (PMMY) and the Mahatma Gandhi National Employment Guarantee Act (MGNREGA))—to create a mechanism for better convergence of the related schemes.
Between 2015 and June 2024, 1.48 crore candidates have been trained under PMKVY. The Ministry of Skill Development and Entrepreneurship was allocated Rs. 39.30 crore (~US$ 4.73 million) under the grants for creation of capital assets in the Interim Budget 2024-25.
Pradhan Mantri Kaushal Vikas Yojana Courses
- Short Term Training (STT)
Under the PMKVY, STT provides training programmes to unemployed youths or school/college dropouts (aged 15-45 years) based on the National Skills Qualification Framework (NSQF). These training centres (which have the required accreditations and affiliations according to the PMKVY guidelines) offer training courses in soft skills, entrepreneurship, financial and digital literacy, wherein the duration of these training sessions vary as per the job role and can range for 300-600 hours. On-Job-Training (OJT) is also an inherent component under STT as mandated by National Council for Vocational Education and Training (NCVET), and the duration of OJT will depend on the job role. Moreover, the government provides placement/entrepreneurship/apprenticeship assistance to candidates who have successfully completed the certification courses under the scheme.
- Recognition of Prior Learning (RPL)
RPL refers to an assessment process that is used to evaluate an individual’s existing skill set, knowledge and experience gained either by formal or informal learning. Through this parameter, individuals with prior learning experience or skills can register themselves and get certified under the scheme. The main objective of RPL is to align competencies of the pre-existing workforce of the country to the standardised NSQF.
- Special Projects
Training projects for new skills, which may not be conducted through STT due to the rules & regulations drafted in STT may be considered for special projects on case-to-case basis. The objective of special projects is to create innovative, critical, and practical projects that have the potential to impact various marginalised, vulnerable, socially disadvantaged, hidden, and hard-to-reach populations of the society through placement-linked and entrepreneurial skill development training programmes.
The following criteria must be fulfilled for consideration as special projects:
- If the job roles are outside the purview of the existing PMKVY job roles
- If the TP provides greater than or equal to 90% captive placement
- Training programmes conducted in varied institutional settings such as jail and government institutions
- Proposals where training is executed through partial funding from the PMKVY and other sources
- These criteria can change based on the project or case-to-case basis
Any training provider, corporate, government institution, association, and NGO subject to scheme guidelines and qualification requirements under special projects can apply for PMKVY Special Projects.
- Kaushal and Rozgar Mela
Social and community mobilisation is extremely critical for the success of PMKVY, as active participation of the community ensures transparency and accountability and helps in leveraging the cumulative knowledge of the community for better functioning. In line with this, PMKVY assigns special importance to involvement of the target beneficiaries through a defined mobilisation process. Kaushal and Rozgar Mela is conducted by TPs every six months with media coverage.
- Placement Assistance
PMKVY links aptitude, aspiration, and knowledge of the skilled workforce to employment opportunities and demands in the market. It provides placement opportunities to candidates who have been trained and certified under the scheme. TPs also provide support to boost entrepreneurship.
- Continuous Monitoring
To ensure that high-quality standards are maintained by TCs and the NSDC, the empanelled inspection agencies use various methodologies, such as self-audit reporting, call validations, surprise visits and monitoring through the Skills Development Management System (SDMS) that manages the entire workflow ranging from enrolment of candidates to disbursement of tranche-based payments to TPs and certificates to candidates.
Key Statistics(As of April 8, 2024)
|
|
RPL |
STT and Special Projects |
|
Enrolled candidates |
391,742 |
2,390,983 |
|
Ongoing training |
2,363 |
561,231 |
|
Trained candidates |
359,065 |
1,448,065 |
|
Assessed candidates |
212,998 |
801,847 |
|
Certified candidates |
199,969 |
689,859 |
|
Candidates placed |
NA |
NA |
- As of September 2024, 13,715 training centres were operational across the country.
- As of September 2024, there are 6,496 training partners.
Note: *-as of April 8, 2024
Key initiatives and partnerships by the MSDE
- In February 2024, MSDE inked 19 MoUs, including five under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), with the industry partners, academia, and various government departments. These partnerships with the private sector and other ministerial departments are integral for shaping India into a ‘Kushal Bharat. Viksit Bharat', empowering youth to meet domestic and global market demands while fostering leadership and innovation on a global level.
- In November 2023, MSDE signed a memorandum of understanding (MoU) with the Government of Israel for enabling skilled mobility from India in two sectors, namely, construction and home-based caregiver. The MoU seeks to facilitate temporary employment for Indian workers in specific labour market sectors in Israel and operationalize the framework agreement by addressing various aspects like costs, employment, support, governing framework etc. for Indian workers employed in these sectors in Israel.
- In March 2023, MSDE signed a memorandum of understanding (MoU) with the Government of Australia to establish an effective, efficient, and sustainable means for qualification recognitions and quality assurance.
- In May 2022, MSDE signed a memorandum of understanding (MoU) for cooperation in the field of skill development, vocational education and entrepreneurship with the Ministry of Children and Education, Govt. of Denmark with a focus on encouraging and facilitating cooperation in the field of skills development, vocational education and entrepreneurship, non-formal training and education with special emphasis to support green and sustainable development in sectors outlined in the Green Strategic Partnership and its associated Joint Action Plan.
- In October 2021, MSDE signed a Joint Letter of Intent with Ministry of Children and Education, Govt. of Denmark for cooperation in skill sector focusing on strengthening bilateral relations, foster their growth over the long term and extend them to other areas of common interest.
- In December 2020, the MSDE partnered with Microsoft and National Association of Software and Service Companies (NASSCOM) to provide digital content to Industrial Training Institutes (ITI) students and future-ready skilling programmes for upskilling and reskilling. Through this collaboration, ~1,20,000 students in ~3,000 ITIs would be benefit from this digitised e-learning module via the ‘Bharat Skills’ portal. Similar to this, the MSDE has joined forces with numerous digital industry leaders such as IBM India Pvt. Ltd., SAP India, Cisco Systems India Pvt. Ltd., Accenture Solutions and Quest Alliance, Adobe and SSC-NASSCOM, to enable students to become industry ready.
- In October 2020, the MSDE signed a memorandum of understanding (MoU) with the High Commission of Australia to strengthen cooperation in skill development, vocational education, and training (VET). To date, it has signed MOUs with eight countries including Japan, the UAE, Sweden, Saudi Arabia, Russia, Finland, and Morocco for cooperation in the field of VET.
- In August 2020, the MSDE entered an MoU with the Ministry of Shipping (MoS) to create a robust framework driven by the concerted efforts of the two ministries to address the need for a skilled workforce in the ports and maritime sector.
- In July 2020, MSDE launched the ‘Aatmanirbhar Skilled Employee Employer Mapping (ASEEM)’ portal to help skilled workforce find sustainable livelihood opportunities. This AI-based platform aims to strengthen career pathways and help students attain industry-relevant skills and explore emerging job opportunities. As of December 2020, 1.3 crore skilled personnel were onboarded the portal and ~14 lakh job offers were made.
The Road Ahead
The government is reviewing the existing programmes for skilling the country’s youth, with an emphasis on digital technology. In the next phase of PMKVY (2022-26), the government will focus on areas such as data analysis, AI and machine learning and entrepreneurship.
It will conduct an industrywide mapping to identify skills that have become outdated and those that are in demand; this will be reviewed by the department and skilling organisations to develop appropriate skilling manuscripts. For each sector, in-demand skills, and job positions for those skills with salary will be assessed and certified programmes will be developed. After this, the government will work in partnership with public and private institutions to make these programs available. In addition to the central government, each state will provide inputs on the employment needs of the local youth. Jobs and skills mapping will also be done at a district level.
To survive in a rapidly evolving business environment, the government aims to focus on skilling, reskilling and upskilling over the next few years. Given the appalling degree of skill mismatch in India, the government expects that PMKVY 4.0 will bridge the demand-supply gap by promoting skill development in areas of new-age skills like Industry 4.0, Web 3.0, Artificial Intelligence (AI), Machine Learning (ML), Augmented reality/virtual reality (AR/VR), Climate Change, Circular Economy, Green Economy, and Energy Transition.
Partners
