Lok Sabha Question No. 2526 (UNSTARRED), answered on 2025-08-04
Subject: Investments in India's Skilled Workforce
Ministry: SKILL DEVELOPMENT AND ENTREPRENEURSHIP
Asked by: Shri Jagdambika Pal

## GOVERNMENT OF INDIA MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP

## LOK SABHA

## UNSTARRED QUESTION NO. 2526

ANSWERED ON 04.08.2025

## INVESTMENTS IN INDIA'S SKILLED WORKFORCE

2526.  SHRI JAGDAMBIKA PAL

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

- (a) the  steps  taken  by  the  Government  to  invest  in  skills  and  capacity  building schemes and programmes for youth along with to enhance entrepreneurship to promote employment opportunities;
- (b) the details of key skill development areas identified by the Government; and
- (c) the  steps  taken  by  the  Government  to  address  the  issue  of  skills  gap  and underqualification?

## ANSWER

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

(SHRI JAYANT CHAUDHARY)

(a) to (c): Under the Government of India's Skill India Mission (SIM) , the Ministry of Skill Development and Entrepreneurship (MSDE) delivers skill, re-skill and up-skill training through an extensive network of skill development centres under various schemes, viz. Pradhan Mantri Kaushal Vikas Yojana (PMKVY), Jan Sikhshan Sansthan (JSS), National Apprenticeship  Promotion  Scheme  (NAPS)  and  Craftsman  Training  Scheme  (CTS) through Industrial Training Institutes (ITIs), to all the sections of the society across the country.  The  SIM  aims  at  enabling  youth  of  India  to  get  future  ready,  equipped  with industry relevant skills. The brief on the schemes are as under:

Pradhan Mantri Kaushal Vikas Yojana (PMKVY): PMKVY Scheme is for imparting skill development training through Short-Term Training (STT) and up-skilling and re-skilling through Recognition of Prior Learning (RPL) to youth across the country.

Jan Shikshan Sansthan (JSS) Scheme: The main target of the JSS is to impart vocational skills  to  the  non-literates,  neo-literates  and  the  persons  having  rudimentary  level  of education and school dropouts up to 12th standard in the age group of 15-45 years, with due age relaxation in case of 'Divyangjan' and other deserving cases. Priority is given to Women, SC, ST, OBC and Minorities in the rural areas and urban low-income areas.

National  Apprenticeship  Promotion  Scheme  (NAPS): This  Scheme  is  for  promoting apprenticeship  training  and  increasing  the  engagement  of  apprentices  by  providing financial  support  for  payment  of  stipend  to  apprentices.  Training  consists  of  Basic Training and On-the- Job Training / Practical Training at workplace in the industry.

Craftsmen  Training  Scheme  (CTS): This  scheme  is  for  providing  long-term  training through Industrial Training Institutes (ITIs) across the country. The ITIs offer a range of vocational/skill  training  courses  covering  many  economic  sectors with  an  objective  to provide skilled workforce to the industry as well as self-employment of youth.

Further,  to  promote  an  inclusive  entrepreneurial  ecosystem  through  entrepreneurship education, training, and advocacy, Government of India has inter-alia taken the following initiatives:

- (i)   Implementation of schemes/programmes for the entrepreneurship promotion like PM's Employment Generation Programme; MSE -Cluster Development Programme; Scheme of Fund for Regeneration of Traditional Industries; A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship; Startup India; Startup Village  Entrepreneurship  Program;  PM  Formalisation  of  Micro  Food  Processing Enterprises; Technology Incubation and Development of Entrepreneurs Scheme, etc.
- (ii)   With  intent  to  build  a  strong  ecosystem  for  nurturing  innovation,  startups  and encouraging investments in the Startup ecosystem of the country, the Government launched the Startup India initiative on 16th January 2016. The flagship Schemes namely,  Fund  of  Funds  for  Startups  (FFS),  Startup  India  Seed  Fund  Scheme (SISFS) and Credit Guarantee Scheme for Startups (CGSS) support Startups at various stages of their business cycle.
- (ii)  MSDE through its autonomous institutions, i.e, National Institute for Entrepreneurship and Small Business Development (NIESBUD), Noida and Indian Institute of Entrepreneurship (IIE), Guwahati conducts Entrepreneurship Awareness Programme  (EAP) and  Entrepreneurship  Development  Programme  (EDP)  to promote entrepreneurship across the country including special areas like northeastern region and aspirational districts.
- (iv)   MSDE in collaboration with the Women Entrepreneurship Platform of NITI Aayog, launched the Swavalambini - a Women Entrepreneurship Programme in February 2025 in the Northeastern States of Assam, Meghalaya, Mizoram and also in Uttar Pradesh  and  Telangana.  The  programme  aims  to  cultivate  an  entrepreneurial mindset among female students through EAP and EDP to be implemented through NIESBUD, Noida and IIE, Guwahati.

Skill Gap studies are conducted from time to time which provides information on the skills needed and the skill gaps in various sectors. Such studies guide the interventions of the Government aimed at preparing the workforce as per the industry needs. Further, District Skill Committees (DSCs) are mandated with formulating District Skill Development Plans (DSDPs) to promote decentralized planning and implementation at the grassroots. The DSDPs identify sectors with employment opportunities as well as the associated demand for  skilling  in  the  district,  and  map  the  available  facilities  for  Skill  Training.  Skill Development Programmes of the Government are designed and implemented to bridge identified skill gaps across sectors

Through  National  Council  of  Applied  Economic  Research  (NCAER),  Ministry  of  Skill Development and Entrepreneurship (MSDE) conducted a National Skill Gap Study on seven high-growth sectors to establish a robust methodology for analyzing sector-specific skill demands. The seven sectors include -(i) Growing of cereal, leguminous crops and oilseeds; (ii) raising of cattle and buffaloes; (iii) weaving of textiles; (iv) manufacture of motor vehicles, parts & accessories of motor vehicles; (v) electric power generation using solar  energy  and  other  non-conventional  sources;  (vi)  retail  sale  of  food,  clothing, footwear and leather articles in specialised stores and maintenance & repair of MVs and; (vii) computer programming activities. The study has identified job roles which are facing and are likely to face demand shortage in the seven sectors.

To ensure that the skills training are aligned with the current industry requirements and thereby improve employability of the youth, following specific steps have been taken by MSDE:

- (i)   National Council for Vocational Education and Training (NCVET) has been set up as an overarching regulator establishing regulations and standards to ensure quality in the Technical and Vocational Education and Training (TVET) space.
- (ii)  The  Awarding  Bodies  recognised  by  NCVET  are  expected  to  develop  the qualifications  as  per  the  industry  demand  and  map  them  with  the  identified occupations  as  per  the  National  Classification  of  Occupations,  2015  and  obtain industry validations.
- (iii)   36 Sector Skill Councils (SSCs), led by industry leaders in the respective sectors, have been set up which are mandated to identify the skill development needs of respective sectors as well as to determine skill competency standards.
- (iv)   Directorate General of Training (DGT) under the aegis of MSDE is implementing Flexi MoU Scheme and Dual System of Training (DST) which are meant to provide training to ITI students in industrial environment as per their requirements.
- (v)  Under PMKVY, the new age/future skills job-roles have been specially aligned with Industry  4.0  requirements  in  areas  like  AI/ML,  Robotics,  Mechatronics,  Drone Technology, etc. for upcoming market demand and industry requirements.
- (vi)   DGT has introduced new age /future skills courses in Industrial Training Institutes (ITIs) and National Skill Training Institutes (NSTIs) under CTS to provide training in emerging areas such as 5G Network Technician, Artificial Intelligence Programming assistant, Cyber Security Assistant, Drone Technician etc.
- (vii)  DGT has signed MoU with IT Tech companies like IBM, CISCO, Future Skill Rights Network, Amazon Web Services (AWS) and Microsoft to ensure industry linkages for  the  institutes  at  the  state  and  regional  levels  under  CSR  initiatives.  These partnerships facilitate the provision of technical and professional skills training in modern technologies.
- (viii)  Indian  Institute  of  Skills  (IIS)  established  at  Ahmedabad and Mumbai, in  Public Private Partnership (PPP) Mode, provide training to create a pool of industry-ready workforce for Industry 4.0, equipped with cutting-edge technology and hands-on training.
- (ix) MSDE has launched Skill India Digital Hub (SIDH) a unified platform that integrates skilling, education, employment, and entrepreneurship ecosystems to provide a lifelong array of services. The details of the trained candidates are available on SIDH portal for connecting with potential employers. Through SIDH, candidates can have access to jobs and apprenticeship opportunities.
- (x)  MSDE organises Rozgar Melas and Pradhan Mantri National Apprenticeship Melas (PMNAMs)  to  facilitate  the  placements  and  apprenticeship  opportunities  to  the certified candidates.

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