Lok Sabha Question No. 1665 (UNSTARRED), answered on 2025-03-10
Subject: Shortage of Skilled Manpower in Industries
Ministry: SKILL DEVELOPMENT AND ENTREPRENEURSHIP
Asked by: Shri Shrirang Appa Chandu Barne

## GOVERNMENT OF INDIA MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP

## LOK SABHA UNSTARRED QUESTION NO. 1665

ANSWERED ON 10.03.2025

## SHORTAGE OF SKILLED MANPOWER IN INDUSTRIES

1665.  SHRI SHRIRANG APPA CHANDU BARNE:

Will the Minister of SKILL DEVELOPMENT AND ENTREPRENEURSHIP be pleased to state:

- (a) whether  Industries  are  facing  shortage  of  skilled  manpower  despite  the  number  of schemes run by the Government for skill development;
- (b) if so, whether the Government has evaluated the schemes being implemented for skill development and if so, the result thereof;
- (c) whether the Government recently approved the merger of all the three skill development schemes under the composite Central Sector Scheme of the Skill India Programme (SIP); and
- (d) if so, the details of new scheme is proposed to meet the shortage of skilled manpower?

## ANSWER

THE  MINISTER  OF  STATE  (INDEPENDENT  CHARGE)  IN  THE  MINISTRY  OF  SKILL DEVELOPMENT AND ENTREPRENEURSHIP

(SHRI JAYANT CHAUDHARY)

- (a)  &  (b):   As  per  the  latest  Period  Labour  Force  Survey  (PLFS  2023-24)  estimates, percentage  of  persons  in  the  age  of  15-59  years  who  received  vocational/technical  training formally and informally are 4.1% and 30.6 % respectively.

MSDE's flagship scheme Pradhan Mantri Kaushal Vikas Yojana (PMKVY) was evaluated by NITI Aayog in October 2020 under jobs and skills sector. As per the study, about 94 percent of the  employers  surveyed  reported  they  would  hire  more  candidates  trained  under  PMKVY. Further, 52 percent of the candidates who were placed in full time/part time employment and oriented under the Recognition of Prior Learning (RPL) component received higher salary or felt that they will get higher salary compared to their un-certified peers.

As  regards  other  schemes  of  MSDE,  third  party  evaluation  reports  have  mentioned  about success  in  terms  of  placement  or  livelihood  improvement    of  candidates  trained  under different schemes. The brief details of same are as given below:

Jan Shikshan Sansthan (JSS): The evaluation study of JSS scheme conducted in 2020 has found  that  the  scheme  has  helped  in  almost  doubling  the  household  income  for  those beneficiaries  who  have  got  employment  or are self-employed after the JSS  training. Considering  79%  women  representation,  50.5%  of  the  rural  share,  73.4%  change  in  the employment  for  enhanced livelihood, 89.1%  change  in the average income  of each beneficiary, 85.7% mobilization of beneficiaries by JSS, the report has further observed that usefulness of the scheme would be further evident from the fact that 77.05% of the beneficiary trainees  have  undergone  occupational  shifts.  The  study  also  affirmed  that  the  focus  of  the skilling in the scheme favours self-employment.

National  Apprenticeship  Promotion  Scheme  (NAPS): The  3 rd party  evaluation  study  of NAPS  conducted  in  2021  has  observed  that  the  scheme  has  successfully  enhanced  the employability of youth by providing structured on-the-job training, with a notable increase in the engagement of apprentices across various industries. In the new version of the scheme, DBT method  has  been  adopted  to  transfer  government's  share  directly  to  apprentices'  bank accounts, as streamlined reimbursement process was recommended in the report.

Industrial  Training  Institutes  (ITIs): The  final  report  of  Tracer  Study  of  ITI  Graduates published in 2018 by MSDE mentions that 63.5% of total ITI pass-outs got employed (out of which 6.7% are self-employed).

(c) & (d): The Government of India approved the continuation and restructuring of the Central Sector  Scheme  'Skill  India  Programme  (SIP)'  comprising  of  Pradhan  Mantri  Kaushal  Vikas Yojana  4.0  (PMKVY  4.0),  Pradhan  Mantri  National  Apprenticeship  Promotion  Scheme  (PMNAPS), and Jan Shikshan Sansthan (JSS) Scheme.  The continuation and restructuring of the SIP  underscore  the  commitment  to  build  a  skilled,  future-ready  workforce  by  integrating demand-driven, technology-enabled, and industry-aligned training across the country. The key changes made in the restructured SIP are given below:

(i) Demand  driven  skilling  responding  to  national  priorities  and  industry  requirements contributing  through  skill  gap  studies  and  curriculum  design,  trainers,  training  infrastructure have been introduced.

(ii) Integration of  On-the-Job  Training  (OJT)  within  short-term  skilling  programs,  ensuring that trainees gain real-world exposure and industry experience;

(iii) Leveraging  of  existing  infrastructure  through  cross  utilization  of  the  facilities  and infrastructure available in Educational Institutions, Institutes of National Importance, Schools, Higher Education Institutions (HEIs), Central and State Government Institutes, and Industries;

(iv) Under PMKVY 4.0, a whole-of-government approach has been adopted to drive interministerial convergence, ensuring the seamless execution of skilling initiatives across sectors;

(v) Supports  education-to-work transition  from apprenticeship  to  formal  employment, emphasizing industry-specific roles and through real life exposure to the world of work;

(vi) Sharing of 25% of the stipend payment upto a maximum of Rs. 1,500 per month per apprentice through Direct Benefit Transfer (DBT) during the training period;

(vii) Encourages apprenticeship opportunities in prevailing manufacturing including emerging fields such as AI, robotics, blockchain, green energy, and Industry 4.0 technologies;

(viii) The scheme JSS caters to local needs and empowers them for self-reliance by offering technical skills along with life skills and access to entrepreneurial opportunities, particularly in aspirational districts and difficult regions.

(ix) Candidate-centric approach covering pre-registration, counseling, financial contribution, flexible training delivery models, through Skill India Digital Hub (SIDH) platform;

(x)  Improved training lifecycle management, Aadhaar authenticated enrolment and biometric attendance. Training allowed only through certified trainers and assessment through certified assessors.

*****