According to the World Bank, 67% of India’s population was of working age in 2018, and according to the Sample Registration System of the Registrar General of India and Census Commissioner 2018, 47% were below the age of 25. To tap into this demographic and boost the country’s economy, in 2015, the Ministry of Skill Development and Entrepreneurship (MSDE) launched the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) to train and upskill the country’s skilled workforce. Under this scheme, the government will assess and certify individuals/candidates with or without prior learning experience and provide training based on the National Skill Qualification Framework (NSQF) and industry-led benchmarks; it will also bear the assessment and certification fees along with the cost of training, accommodation and boarding.
Pradhan Mantri Kaushal Vikas Yojana 1.0 (2015-16):
PMKVY was launched as a pilot in 2015 and was designed as a skill certification and award scheme. The scheme was implemented by the National Skill Development Corporation (NSDC), through Sector Skill Councils (SSCs), which were established as autonomous industry-led bodies to develop occupational standards, create a skill framework, conduct research on skill shortages and assess and certify trainees. NSDC has also established Training Partners (TPs) – which are private sector organisations/non-profit organisations/private and public universities – who sign term sheets with NSDC to implement the training scheme and provide financial support for the scheme. Between 2015 and 2016, 19.85 lakh candidates were trained under this scheme. After the successful implementation of PMKVY 1.0, the Union Cabinet has approved the scheme for another four years (2016-20) with an outlay of Rs 12,000 crore (US$ 1.6 billion).
Pradhan Mantri Kaushal Vikas Yojana 2.0 (2016-20):
In July 2016, the government launched PMKVY 2.0 with the aim of expanding the scheme across sectors, geographies and aligning it with other government missions such as ‘Make in India’, ‘Digital India’ and ‘Swachh Bharat Mission’. Under PMKVY 2.0, 89.59 lakh candidates were trained from 2016 to 2020. For this scheme, the government has allocated Rs 12,000 crore (US$ 1.6 billion), out of which, Rs 3,500 crore. 7,115 crore (US$ 967 million) has been sanctioned till January 2021.
Pradhan Mantri Kaushal Vikas Yojana 3.0 (2020-22):
Based on the learnings from PMKVY 1.0 and PMKVY 2.0, MSDE has launched a new version of the scheme in line with the current policy doctrine and to strengthen the skill ecosystem affected by the pandemic. PMKVY 3.0 will be implemented in two phases, out of which the first phase was implemented on a pilot basis in the financial year 2021 (2020-21) at a cost of Rs 949 crore (US$ 129 million). Under this new scheme, 2.78 lakh candidates have been trained between 2020 and 2021.
Pradhan Mantri Kaushal Vikas Yojana 4.0 (2022-26):
Based on the challenges faced in the implementation of the previous phases of PMKVY and the lessons learned, the next phase, i.e. PMKVY 4.0 is being implemented in the financial year 22-26 under the umbrella scheme of ‘Skill India Programme’. PMKVY 4.0 is being restructured with the main objective of making the existing skill ecosystem more flexible, faster and ready to meet the current challenges and emerging needs by making it more agile, faster and simplifying the process. The objective of PMKVY 4.0 is to create an enabling ecosystem for the youth to acquire skills commensurate with their capabilities and aspirations. It aims to provide skill training in a market-oriented and demand-driven manner, making the skill ecosystem more flexible and responsive to emerging needs. In addition, PMKVY 4.0 aims to facilitate the skill ecosystem through technology and digitalization, increase skill acquisition opportunities in remote areas and improve inclusion for marginalized communities.
Moreover, the government is working on a comprehensive mapping of various schemes – being run by the central and state governments and with the same objective (such as National Apprenticeship Development Scheme (NAPS), Mudra loans under Pradhan Mantri Mudra Yojana (PMMY) and Mahatma Gandhi National Employment Guarantee Act (MGNREGA)– to create a mechanism for better coordination of related schemes.
From 2015 to June 2024, 1.48 crore candidates have been trained under PMKVY. The Ministry of Skill Development and Entrepreneurship was allocated Rs 39.30 crore (~US$4.73 million) under grant for capital asset creation in the Interim Budget 2024-25.