Lok Sabha Question No. 2631 (UNSTARRED), answered on 2025-03-17
Subject: Building Start-up and Employment Generation Opportunities
Ministry: SKILL DEVELOPMENT AND ENTREPRENEURSHIP
Asked by: Shri Bhojraj Nag

## GOVERNMENT OF INDIA MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP

## LOK SABHA UNSTARRED QUESTION NO. 2631

ANSWERED ON 17.03.2025

## BUILDING START-UP AND EMPLOYMENT GENERATION OPPORTUNITIES

† 2631. Shri Bhojraj Nag:

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

- (a)  the  manner  in  which  the  Government  is  ensuring  equal  access  to  Skill  Development Programme for students in rural and remote areas;
- (b) whether any step is being taken by the Government to track and assess the evaluation of this initiative  in terms of the opportunities for building Start-up and employment generation; and

(c) if so, the details thereof?

## ANSWER

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

(SHRI JAYANT CHAUDHARY)

(a) to (c):  Under  the  Govt  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 Shikshan 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 including  the  candidates  from  rural  and  remote  areas.  The  SIM  aims  at  enabling  youth  of India to get future ready and equipped with industry relevant skills.

Amongst the schemes of MSDE, placements were tracked  under the Short-Term Training component of PMKVY in the first  three  versions  (PMVY1.0,  PMKVY  2.0  and  PMKVY  3.0) implemented from 2015-16 to 2021-22. Under PMKVY (1.0,2.0 and 3.0), a total of 24,43,672 candidates were reported placed in India. Under PMKVY 4.0, the focus is on empowering the trained candidates to choose their varied career path and they are suitably oriented for the same. However, independent evaluation of  the schemes of MSDE have been done. 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).

Further,  Government  of  India  with  an  intent  to  build  a  strong  ecosystem  for  nurturing innovation,  startups  and  encouraging  investments  in  the  Startup  ecosystem  of  the  country 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. As  a  result  of  these  efforts,  1,61,150  entities  have  been  recognized  as  startups  by DPIIT in the country which have reportedly created over 17.69 lakh direct jobs.

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