Tracking Reforms & Policy
Pradhan Mantri Kaushal Vikas Yojana

Prepared for: Prof. Amitabh Pandey
Prepared by: Anshul Gupta (16007), Julie Bania (16025)
3 August 2017

However all these parameters in the youth can help transform the future only with the ability of skills. employers and enterprises must play a vital role to play in the conception and implementation of vocational training programmes. The 12th FYP. One of the key reason was the unskilled labour. Young people are the innovators. health. However. which leaves around 400 million people to be trained in the 13th FYP by 2022. the 12th FYP embarked on a relatively modest target of skilling 80 million people until 2019. creators. where the percentage of skilled workforce is between 60% and 90% of the total workforce. including managing Industrial Training Institutes (ITIs) and in the development of faculty. It is said that developing countries with large youth populations can increase their economies . decision making and real choices in life.INTRODUCTION India is amongst the fastest-growing economies in the world in the last decade with a youth population of 356 million aged between 10. There is a need for speedy reorganisation of the ecosystem of skill development and entrepreneurship promotion in the country to suit the needs of the industry and enable decent quality of life to its population. . As opposed to developed countries. Skill development and entrepreneurship efforts across the country have been highly fragmented so far.69% of workforce with formal vocational skills. The document mentions that in order to ensure that skills match demand. India has the benefit of a demographic dividend because the age structure of the population ensures that the labour force will be growing. according to the 4th Annual Employment-Unemployment Survey Report 2013-14 of the Labour Bureau. provided they invest heavily in young people’s education and health and protect their rights. It urges enhancing access to higher education by creating two million additional seats for each age cohort aligned to the skill needs of the economy.24 yrs. SKILL INDIA It is not that skill and training have been given high priority by the government for the first time under the current regime. India records an abysmal 4. Despite the above facts India’s emerging workforce is unable to cope with the demands of a 21st-century economy. which was prepared under the United Progressive Alliance in its second term (UPA-2). Underlining the importance of skill development and vocational education. The plan says that skill development programmes should have backward linkages with school programmes and forward linkages with industry and other service sectors who can be potential employers of skilled manpower. emphasises the need to connect the Skill Development Mission with market demand. builders and leaders of the future. the 12th Five Year Plan (FYP) document informs us that while falling labour force is a major concern in most industrialised countries and also China.

They are also responsible for training the trainers. • Kaushal and Rozgar Mela. Objective of PMKVY: • Increase the employability of India's youth • Alleviating households below poverty line • Empowering the future generations so that they can shape their own future • Reach out to rural India to help them be self. the NDA government raised the target to 400 million by 2022.using technology based methodologies to ensure high standards of quality maintained by the training centres • Standardized branding and communication. The UPA government targeted a decent goal of skilling 150 million by the year 2022.Linking the knowledge and potential of the students to potential employers. The Pradhan Mantri Kaushal Vikas Yojana is a flagship event under the   Ministry of Skill Development & Entrepreneurship (MSDE) and the Union Cabinet on 20th of March.Providing 60 lakh youth with the opportunity to get trained. • Placement assistance. The Sector Skill Council(SSC) of India plays an important role in the implementation of the scheme. .Organised every six months by training partners to ensure trainings reach far and wide. • Continuous monitoring. assessment and the certification of the trainees who have been skilled.PRADHAN MANTRI KAUSHAL VIKAS YOJANA To increase the number of skilled labour so that the unemployed could grab some employment opportunities Prime Minister Narendra Modi launched the “Skill India” Campaign. • Reward based scheme • Public-Private partnership IMPLEMENTATION OF THE SCHEME: The scheme is implemented by MSDE through National Skill Development Council( NSDC). however. The focus under the scheme is on placement facilitation. The curriculum for the trainings are designed by the SSC ( autonomous industry led bodies) which conduct the skill gap study in our country. The vocational trainings are meant to be provided by the vocational training centres which are funded by the NSDC. 1500 crore for the first phase of PMKVY initiative to provide skills and training to the unemployed as well school drop outs in order to increase their livelihoods.Ensure greater visibility and accurate communication of the scheme on ground. assessed and certificate • Recognition of prior learning.Enable a platform that will facilitate trainings in special areas and premises of government bodies and corporates.sustainable • Bridging skilled labour gap for the industry KEY COMPONENTS OF PMKVY: • Sort term training.2015 approved it with an outlay of Rs.Aligning the competencies of 40 lakh individuals from the unregulated workforce with the National Skill Qualification Framework(NSQF) • Special projects.

Allocated budget of MSDE for the year 2016-17. Source: Annual Report MSDE Role of all the stakeholders under PMKVY. 2017-18. 2016 Source: PMKVY Guidelines 2016 . Source: Guidelines PMKVY.

So in order to achieve their targets they compromise in the quality and on arbitrary basis without analysing which skills are in actual demand in the sectoral employers. Success of the Scheme: As overall success is not calculated merely by numbers.03 lakh persons trained under PMKVY in 2015-16.The Ministry of Skill Development and Entrepreneurship has trained more than 1. training of assessors. It is a silent revolution that is underway and is a joint investment that the government along with the private partners.4% persons were placed. This was mainly due to the fact that the public fund was benefitted to the private sector while less focus was emphasized on the type of training required. is making for the country’s growth. certification of trainees etc. of which 50 per cent are women candidates. Out of 18. It is a path that needs to be travelled very carefully since it involves the future of our youth. affiliation of training institutes. • Courses: According to several studies and sources the curriculum designed by the SSC for trainings on various skills are on an average 3 months.5 lakh people have got trained in skills of their choice till date. Benefits to Candidates • Free Cost Training to eligible candidates • Skill Certificate to eligible candidates • Placement assistance in case of Short Term Training • INR 500 is applicable for all certified candidates • Conveyance Fee for all eligible candidates 2. It has not been able to achieve its target of high rate of job placement. Failures of the Scheme: • Placement: One of the key failure of the scheme is poor placement. only 12. but also through key policy interventions and reforms introduces to up-scale India’s skill ecosystem. • Quality of training and assessment: The financial assistance to the SSC’s were linked with the achievement of targets such as training of trainers. Under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 26. .17 crore aspirants in various skills through MSDE schemes and programmes since the inception of Skill India.ANALYSIS OF PMKVY 1. This period of training is insufficient to meet the demand of the standards in the real industry as it seems to be too short for those people who are just 10th passed or drop outs.

Other Loopholes: • Unequal distribution of Training Centres & problem of Ghost Training Centres From the above figure it can be seen that the highest number of training centres are restricted to only 5 major states. Rajasthan and Haryana. From studies it has been found out that there is an increase number of fake centres or rather ghost trainees in the states of .Makeup and Home furnishing sector and the Retailer sector. Domestic workers etc are very few compared to others which have high potential of employment opportunities. The centres can outsource only for land. The trainings in the courses of the rest of the sectors like Handicrafts. building and equipment purposes. Source: PMKVYofficial. Apparel. Few centres outsource training to third parties which is strictly against PMKVY.3. • Consolidation of Sectors: Currently there are existing 40 different sectors for skills under the SSC. However from the below table it can be seen that the top three sectors focussed are electronics sector. So instead of 40 sectors the SSC can consolidate into 20 manageable sectors and focus on it.

poorly designed apprenticeship programs devoid of industry linkages • Narrow and often obsolete skill curricula • Declining labour force participation rate of women • Pre-dominant non-farm. Administrative Challenges • Skill development programmes of the Central Government are spread across more than 18 Ministries/ Departments without any robust coordination and monitoring mechanism to ensure convergence. unorganised sector employment with low productivity but no premium for skilling • Non. • Multiplicity in assessment and certification systems that leads to inconsistent outcomes and causes confusion among the employers • Paucity of trainers. Source: PMKVYofficial. 5. Psychological barriers: Public perception that views skilling as the last option meant for those who have not been able to progress/ opted out of the formal academic system.• The reach of the scheme and training centres are far behind in many states of the country: From the below table we can analyse that the even though the scheme was launched in the year 2015. at present after two year it has still not reached to many regions of the country specially the north east region although extra amount of fund was allotted specially for this 4.inclusion of entrepreneurship in formal education system • Lack of mentorship and adequate access to finance for startups • Inadequate impetus to innovation driven entrepreneurship . inability to attract practitioners from industry as faculty • Mismatch between demand and supply at the sectoral and spatial levels • Limited mobility between skill and higher education programs and vocational education • Very low coverage.

On the demand side. taking advantage of the demographic dividend. the re-skilling and up-skilling initiatives are expected to put up pace. There are more than 10.” said the chief executive of an education technology firm involved in skill training. The objective of the National Policy on Skill Development and Entrepreneurship. Challenges for the skill training segment will have to be addressed — one. this when the primary challenge faced by over 75 per cent of Indian businesses is the shortage of technical or specific skills. Most important being. a skill gap study has been conducted by NSDC in 2014. It will aim to provide an umbrella framework to all skilling activities being carried out within the country. Another concern would be to ensure that ground level implementation of skill policies happen at the same speed at which the youth are coming into the workforce. 2015 will be to meet the challenge of skilling at scale with speed and standard (quality). There is an enormous gap between the skills needed by the industry and what academia is producing.3 per cent of the total workforce in India having undergone formal skill training as compared to 68 per cent in the UK and 52 per cent in the US. This mental block has only increased the gap between what the industry requires and what is currently available.000  ITIs in the country. With new policies on skill development being put in place. As government officials also agree. NSDC would have to look at providing job opportunity across. Industry experts say public perception on skilling and vocational training is still low.  “Skilling is perceived as the last resort meant for those who have not been able to progress in the formal academic system. The biggest challenge is availability of good quality trained trainers. to align them to common standards and link the skilling with demand centres. aligning student aspirations with industry expectations on salaries and job roles. employing large numbers of trainers but their knowledge and skills do not match industry requirements of today. two.ROAD AHEAD PMKVY will have to achieve much more than what it could so far. the quantum of the challenge is still high.2 million skilled manpower in 24 key sectors by 2022. proper handholding from private sector is what will boost the new phase of skilling. apart from mere fund allocations from the private sector. which indicates that there is an additional net requirement of 119.4 million. which is both — the biggest opportunity and the biggest concern — for the country. Industry players say skilling will also have to go beyond the token corporate social responsibility initiatives that companies take up.   The industry says in any situation there is natural attrition. convincing employers to hire the skilled force rather than looking for a cheaper resource. resulting in a deep fracture in the talent supply chain. It is observed that today the total workforce in the country is estimated at 487. Be it from the training perspective or from job opportunity perspective. With only 2. of which approximately 51 per cent is in the non-farm sector. Jobs have to be found where the skilling takes place. . .REFERENCES • aplenty-115071401318_1.html • Annual Report: MSDE • PMKVY Guidelines • http://youthforum.