Skill India Programme

  • Would skill the youth with an emphasis on employability and entrepreneur skills.
  • It will also provide training and support for traditional professions like welders, carpenters, cobblers, masons, blacksmiths and weavers etc that could boost manufacturing and capital goods industry.
  • Convergence of various schemes to attain this objective is also proposed.
  • What is the need of such programme?
  • India has the world’s youngest workforce with over 12 million new entrants in the labour market every year but it is woefully short on skills as only 2 per cent of the employees have any certified abilities.
  • This has meant that the country’s demographic dividend hasn’t materialized because industry is unable to find employable workers.
  • It’s a situation that could breed socio-economic unrest if youth remain unemployed and have no training avenues.

Government also proposed changes in the apprenticeship law (Apprentices (Amendment) Act, 2014) that governs the on-the-job training scheme to make it more ‘responsive to industry and youth


  • The national policy will provide clarity and coherence on how skill development efforts across the country can be aligned within the existing institutional arrangements.
  • This policy will link skills development to improved employability and productivity.
  • Bridging existing skill gaps, promoting industry engagement, operationalising a quality assurance framework, leverage technology and promoting greater opportunities for apprenticeship training
  • Equity is also a focus of the Policy, which targets skilling opportunities for socially/geographically marginalised and disadvantaged groups
  • Skill development and entrepreneurship programmes for women are a specific focus
  • In the entrepreneurship domain, the Policy seeks to educate and equip potential entrepreneurs, both within and outside the formal education system

It also seeks to connect entrepreneurs to mentors, incubators and credit markets, foster innovation and entrepreneurial culture, improve ease of doing business and promote a focus on social entrepreneurship

Pradhan Mantri Kaushal Vikas Yojana

  • Aim: To provide skills training for the youth.
  • Implementing Ministry: Ministry of Skill Development and Entrepreneurship (through the National Skill Development Corporation).
  • Coverage: 24 lakh persons.
  • Primary focus: Class 10 and 12 dropouts.
  • Initial Outlay: 1500 crore.
  • The Skill training would be based on the National Skill Qualification Framework (NSQF) and industry led standards
  • Under the scheme, a monetary reward is given to trainees on assessment and certification by third party assessment bodies. The average monetary reward is around Rs.8,000 per trainee.
  • The target for skill development  will also take into account the demands from various other flagship programs launched in recent times such as Make in India, Digital India, National Solar Mission and Swachh Bharat Abhiyan.
  • The PMKVY, will primarily focus on the first time entrants to the labour market and target mainly drop outs from Class 10 and Class 12
  • Special emphasis has been given to recognition of prior learning.
  • Awareness building and mobilization efforts would be focused for attention. Mobilization would be done through skill melas organized at the local level with participation of the State Governments, Municipal Bodies, Pachayati Rai Institutions and community based organizations.
  • Skill training would be done on the basis of recent skill gap studies conducted by the NSDC for the period 2013-17.
  • For assessment of demand of Central Ministries/Departments/State Governments, industry and business would be consulted.

SETU (Self Employment and Talent Utilization) Scheme:

  • SETU will be a Techno-Financial, Incubation and Facilitation Programme to support all aspects of start up businesses, and other self-employment activities, particularly in technology-driven areas.
  • An amount of Rs.1000 crore is being set up initially in NITI Aayog for SETU.
  • It will involve setting up of incubation centres and enhance skill development.
  • It aims to create around 1,00,000 jobs through start ups.

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