About Us  :  Online Enquiry

NITI AYOG - New India @ 75


Chapter # 26. Skill Development


For harnessing the demographic advantage that it enjoys, India needs to build the capacity and infrastructure for skilling/reskilling/up-skilling existing and new entrants to the labour force. The goals to be met until 2022-23 are as follows

  • Increase the proportion of formally skilled labour from the current 5.4 per cent1 of India’s workforce to at least 15 per cent.
  • Ensure inclusivity and reduce divisions based on gender, location, organized/unorganized, etc.
  • India’s skill development infrastructure should be brought on par with global standards by.
  • Developing internationally compliant National Occupation Standards (NOS) and the Qualification Packs (QP) that define a job role.
  • Making all training compliant with the National Skills Qualification Framework (NSQF).
  • Anticipating future skill needs to adapt skill development courses.
  • Skill development should be made an integral part of the secondary school curriculum.

Current Situation

According to the National Policy for Skill Development and Entrepreneurship,2 more than 54 per cent of India’s population is below 25 years of age and 62 per cent of India’s population is aged between 15 and 59 years. This demographic dividend is expected to last for the next 25 years.3

With most of the developed world experiencing an aging population, India has the opportunity to supply skilled labour globally and become the world’s skill capital. However, the demographic advantage might turn into a demographic disaster if the skills sets of both new entrants and the existing workforce do not match industry requirements.

Recognizing the challenge, the Government of India has launched many initiatives to equip fresh entrants with relevant skills and to upgrade the skills of the existing workforce.

A dedicated Ministry of Skill Development and Entrepreneurship (MSDE) was set up in 2014 to implement the National Skill Development Mission, which envisions skilling at scale with speed and standards. On July 15, 2015, on the first ever World Youth Skills Day, the Honourable Prime Minister launched the Skill India scheme.4

To improve the relevance and quality of courses offered by industrial training institutes (ITIs), polytechnics and private training providers, sector skill councils (SSCs) have been involved in curriculum up-gradation/preparation, and in the assessment and certification process.

Courses are being aligned to the National Skills Qualifications Framework (NSQF). Recognition of prior learning (RPL) has been introduced to ensure certification of and bridge training for the existing work force. The year-end review 2017 released by MSDE suggests that government initiatives are gathering pace. Until   2017, 2.5 crore candidates have been skilled under the ministry’s programmes since its inception.5

This includes 40.5 lakh candidates trained under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), and 74 lakh candidates under fee based training programmes run by National Skill Development Corporation (NSDC).6


The National Skill Development Policy7 estimates that only 5.4 per cent of the workforce in India has undergone formal skill training as compared to 68 per cent in the UK, 75 per cent in Germany and 96 per cent in South Korea.

The India Skill Report 2018 states that only 47 per cent of those coming out of higher educational institutions are employable.8 Given that 83 per cent of the workforce is engaged in the unorganized sector with limited training facilities, upgrading of skills, both in manufacturing and services sectors remains a challenge.

The major challenges to skill development are the following:

  • Mapping skill requirements sector-wise and geographically.
  • Making vocational training an aspirational choice.
  • Involving industry for improved quality and relevance – scaling up the apprenticeship programme.
  • Integrating the informal sector into the skill development ecosystem.
  • Putting in place an effective, internationally recognized assessment and certification system.

Way Forward

Mapping skill requirements for a demand driven skill development ecosystem

  • Skill development plans and strategies should be developed by geography and sector by mapping the availability of infrastructure and on the basis of assessing skill requirements both at the national and state levels. Talukas/districts should be required to provide the information required for such mapping.
  • Industry stakeholders must be incentivized to provide data on their skill requirements on an ongoing basis, which could be used as input for the skill requirement assessment made at different levels.
  • Regular labour market studies should be conducted and published by the MSDE in collaboration with the SSCs. These studies should capture changes in industry requirements to assess the skill sets required and introduce changes in training curricula.
  • Create vocational training innovation centres for systematic research and conducting longitudinal studies on improving vocational education.

Improving training delivery and quality 

  • Capacities of teacher training institutes need to be upgraded to ensure the availability of qualified trainers. It is also important to provide for cross learning by teachers and industry experts through industry-institute linkages.
  • A single regulatory body with branches in all states should be set up to lay down minimum standards for all players in the skilling system like training providers, assessors, etc., and to issue NSQF aligned certificates.
  • To address the requirement of skilled workers in the unorganized sector, scaling up RPL is required under the PMKVY, using bridge training, apprenticeship, dual training, work-based learning and advanced courses.
  • In addition to scaling RPL, there should be a focus on the identification of transferable skills.This can be done by developing a skills/trade matrix; and highlighting the overlap of skills across different trades, such as information and communication technology (ICT), knowledge of languages, etc. The most common transferable skills across the board should be made part of the basic skill development curriculum.

Vocational education in secondary schools 

  • As recommended by the Sub-Group of Chief Ministers on Skill Development,9 vocational education may be initiated from class VIII. The report pointed out that lessons could be drawn from the “The Himachal Pradesh Payment of Skill Development Allowance to Educated Unemployed Persons Scheme, 2013.” This has provided for an allowance starting from INR 1,000 per month for students who have at least passed VIII standard.10
  • This will help children get acquainted with formal vocational courses and apprenticeship training. Provisions for credit transfers into higher education could also be considered.
  • Participation by private schools should be incentivized with lower interest rates on loans to expand training facilities.

Apprenticeship programmes 

  • Active advocacy is needed to create awareness about recent amendments in the Apprenticeship Act, 1961, and about the National Apprenticeship Promotion Scheme (NAPS) among different stakeholders.
  • The claim process for reimbursement, through which companies get appropriate refund for funds spent on stipends under the NAPS, needs to be streamlined.
  • Facilitate the integration of the micro, small & medium enterprises (MSME) sector into the apprenticeship system by linking it to MUDRA scheme.


  • Mainstreaming skill development with education through a system for academic equivalence to ITI’s qualifications. This would provide ITI candidates option to attain academic qualification as well.
  • An Overseas Employment Promotion Agency should be set up at the national level under the Ministry of External Affairs. Apart from working with the MSDE to train and certify Indian workers keen on overseas employment, in line with international standards, it could also support pre-departure orientation training (PDOT), including language and soft skills training modules. This agency could help in identifying potential partners and streamlining efforts of India international skill centers.
  • Publicize role models/micro entrepreneurs who have benefitted from vocational training courses.


  • Alternative financial sources such as Corporate Social Responsibility (CSR) funds, Compensatory Afforestation Fund Management and Planning Authority (CAMPA) funds, Building & Construction Workers’ Cess, Members of Parliament Local Area Development (MPLAD) Fund, Mahatama Gandhi National Rural Employment Guarantee Act (MGNREGA), etc., should be tapped to expand the skill programme and contribute to national skill development fund.

Strengthening SSCs

  • SSCs should be clustered and based on occupations/functions with respect to job standards/QPs across domains. New technologies could also be considered as a criterion for clustering. This would ensure convergence in efforts of different SSCs.
  • It is recommended that job roles of SSCs having horizontal applicability across sectors should be integrated and customized to a sector’s requirements.11

Monitoring and evaluation

  • Since skilling is dynamic, it is necessary to monitor programmes regularly. Hence, it is necessary to develop state level indicators, such as placement rates, which help monitoring whether demand requirements are being addressed, and the impact of various government schemes.
  • NSDC may get into partnerships with private jobs counseling agencies for helping newly skilled persons with soft skills and adapting to local conditions.

Chapter # 41. Data Led Governance and Policy Making

Objectives Evidence based policy making should be made integral to the overall governance structure in New India, 2022-23. To achieve this, timely gen

Chapter # 40. Optimizing the Use of Land Resources

Optimizing the Use of Land Resources-Ensuring that land markets function smoothly, through efficient allocation of land across uses, provision of secu

Chapter # 39. Modernizing City Governance For Urban Transformation

Objective  City Governance For Urban Transformation To transform our cities into economically vibrant and environmentally sustainable habitats that p

Chapter # 38. Civil Services Reforms

Objective  civil-services-reforms To put in place a reformed system of recruitment, training and performance evaluation of the civil service to ensur

Chapter # 37. Legal, Judicial and Police Reforms

Objective To ensure the safety and security of citizens and ensure access to effective legal systems and speedy delivery of justice. Current Situation

Chapter # 36. The North-East Region

Objectives The North-East Region (NER) should: Have adequate road, rail and air connectivity, waterways, internet connectivity and financial inclusion

Chapter # 35. Balanced Regional Development: Transforming Aspirational Districts

Objective  Balanced Regional Development: Transforming Aspirational Districts Achieve balanced development in India by uplifting 115 districts, curre

Chapter # 34. Scheduled Castes (SCs), Scheduled Tribes (STs), Other Backward Classes (OBCs), Other Tribal Groups and Minorities

SCs, STs, OBCs, De-Notified Tribes (DNTs), Nomadic Tribes (NTs) and Semi-Nomadic Tribes (SNTs) Objective  To accelerate the socio-economic developm

Chapter # 33. Senior Citizens, Persons with Disability and Transgender Persons

SENIOR CITIZENS  Objective To ensure a life of dignity, social security and safety for senior citizens, enabling them to actively participate in econ

Chapter # 32. Gender

Objective  To create an enabling environment, sans institutional and structural barriers. To enhance the female labour force participation rate to at

Chapter # 31. Nutrition

Objectives  Under POSHAN Abhiyaan, achieve the following outcomes by 2022-23, compared to the baseline of 2015-16 (National Family Health Survey-4):

Chapter # 30. Universal Health Coverage

Objectives  On the strong platform of Pradhan Mantri – Jan Arogya Yojana (PM-JAY): Attain a coverage of at least 75 per cent of the population

Chapter # 29. Human Resources for Health

Objectives  Achieve a doctor-population ratio of at least 1:1400 (WHO norm 1:1000) and nurse-population ratio of at least 1:500 (WHO norm 1:400) by 2

Chapter # 28. Comprehensive Primary Health Care

Objectives  Under Ayushman Bharat, scale-up a new vision for comprehensive primary health care across the country, built on the platform of health an

Chapter # 27. Public Health Management and Action

Objectives  To revamp radically the public and preventive health system in the nation through the following strategic interventions: Mobilize public

Chapter # 26. Skill Development

Obejctives  For harnessing the demographic advantage that it enjoys, India needs to build the capacity and infrastructure for skilling/reskilling/up-

Chapter # 25. Teacher Education and Training

Objectives There cannot be a quality education system without quality teachers. Therefore, a thorough revamp of the entire ecosystem of teacher educat

Chapter # 24. Higher Education

Objectives  Increase the gross enrolment ratio (GER) in higher education from 25 per cent in 2016-17 to 35 per cent by 2022-23. Make higher education

23. School Education

Objectives Universal access and retention: o Hundred per cent enrolment and retention at elementary education and secondary education levels; achieve

Chapter # 22. Sustainable Environment

Objective  The objective is to maintain a clean, green and healthy environment with peoples’ participation to support higher and inclusive economic

Chapter # 21. Water Resources

Objectives By 2022-23, India’s water resources management strategy should facilitate water security to ensure adequate availability of water for l

Chapter # 20. Swash Bharat Mission

Objectives The key objectives of the Swachh Bharat Mission include: 1. Making India Open Defecation Free (ODF) by October 2, 2019. 2. Carrying out ext

Chapter # 19.Smart Cities for Urban Transformation

Objectives  Leverage the ‘Smart Cities’ concept in select urban clusters to: Drive job creation and economic growth. Significantly improve effici

Chapter # 18. Digital Connectivity

Objectives Given the relevance of digital connectivity to economic growth and the need to eliminate the digital divide by 2022-23, India should aim to

Chapter # 17. Logistics

Objectives Achieve multi-modal movement of cargo on par with global logistics standards. Reduce the logistics cost to less than 10 per cent of GDP fro

Chapter # 16.Ports, Shipping and Inland Waterways

Objectives  Double the share of freight transported by coastal shipping and inland waterways from 6 per cent in 2016-171 to 12 per cent by 2025. Incr

Chapter # 15. Civil Aviation

Objectives Enhance the affordability of flying to enable an increase in domestic ticket sales from 103.75 million in 2016-171 to 300 million by 2022.2

Chapter # 14. Railways

Objectives By 2022-23, India should have a rail network that is not only efficient, reliable and safe, but is also cost-effective and accessible, both

Chapter # 13. Surface Transport

Objectives Increasing the coverage and quality of roads and highways is critical to enhancing connectivity and internal and external trade. By 2022-23

Chapter # 12. Energy

Objectives The government’s on-going energy sector policies aim “to provide access to affordable, reliable, sustainable and modern energy”. At t

Chapter # 11. Minerals

Objectives Double the area explored from 10 per cent of obvious geological potential (OGP) area to 20 per cent.1 Accelerate the growth of the mining s

Chapter # 10. Travel, Tourism and Hospitality

Objectives  Increase India’s share in global international tourist arrivals from 1.18 per cent to 3 per cent. Increase the number of foreign touris

Chapter # 9. Housing For All

Objectives Provide every family with a pucca house, with a water connection, toilet facilities, and 24×7 electricity supply and access. Build 2.9

Chapter # 8. Financial Inclusion

Objectives Banking for the unbanked  o Bank accounts: Ensuring universal access to bank accounts, which are a gateway to all financial services.  o

Chapter # 7.Doubling Farmers’ Income (III): Value Chain & Rural Infrastructure

Objectives • Transform the rural economy through the creation of modern rural infrastructure and an integrated value chain system. • Leverage the

Chapter # 6.Doubling Farmers’ Income (II): Policy & Governance

Objectives Create a policy environment that enables income security for farmers, whilst maintaining India’s food security. Encourage the participati

Chapter # 5.Doubling Farmers’ Income (I): Modernizing Agriculture

Objectives • Modernize agricultural technology, increase productivity, efficiency and crop diversification. • Generate income and employment throu

Chapter # 4.Industry

Objectives Double the current growth rate of the manufac-turing sector by 2022. Promote in a planned manner the adoption of the latest technology adva

Chapter # 3. Technology and Innovation

Objectives India should be among the top 50 countries in the Global Innovation Index by 2022-23.1 Five of our scientific research institutions should

Chapter # 2.Employment and Labour Reforms

Objectives Complete codification of central labour laws into four codes by 2019. Increase female labour force participation to at least 30 per cent by

Chapter # 1 Growth (India @ 75)

Objectives Steadily accelerate the gross domestic product(GDP) growth rate to achieve a target of about 8 per cent during 2018-23 This will raise the


xyz Facebook Twitter Google+ Pinterest LinkedIn Email WhatsApp

Send this to a friend