Skill India Program (SIP)

Why in News?

Under the chairmanship of Prime Minister Narendra Modi, the Union Cabinet has approved the restructuring of the Skill India Program (SIP) and its continuation until 2025-26. The plan has been allocated a budget of ₹8,800 crore, which will empower the skill development of the youth.

About Skill India Program 

The Skill India Program, launched by Prime Minister Narendra Modi on July 15, 2015, is a comprehensive national initiative aimed at empowering and making India self-reliant by creating a skilled workforce. The program is managed by the National Skill Development Corporation (NSDC).

• The mission was first introduced on the occasion of World Youth Skills Day in 2015, with the goal of training over 300 million Indians in various skills by 2022. 
• The mission seeks to bridge the gap between industry requirements and available skills through skill training programs aimed at imparting industrial and entrepreneurial skills to the youth.
• The Government of India established the Ministry of Skill Development and Entrepreneurship (MSDE) to revitalize the workforce and make it globally competitive.
• Under the Skill India Mission, India and the United Kingdom (UK) have begun a new partnership that provides academic and professional opportunities for young people from both countries in each other’s nations.
• On April 16, 2022, India inaugurated its first Skill India International Center in Bhubaneswar. During the inauguration, a Memorandum of Understanding (MoU) was signed between the National Skill Development Corporation (NSDC) and Skill Development Institutes (SDI).
• The Skill India Mission is becoming a milestone in the country’s development journey. It is not only making the youth employable but also helping them become entrepreneurs and contribute to strengthening India’s economic position.

Objectives and Importance of the Skill India Program 

Objectives of the Program

• Preparing Youth for Employment: The mission aims to teach skills that align with market demands and make the youth job-ready.
• Bridging the Gap Between Industry and Skills: The primary objective is to address the gap between the growing demand for skilled labor and the lack of individual skills. The mission also promotes entrepreneurship education and training to encourage youth to become entrepreneurs.
• Leveraging the Youth Population: India’s working-age population constitutes 65% of the total, with 54% under the age of 25. The Skill India Mission aims to leverage this demographic advantage by providing youth with skills to contribute to the nation’s economic growth.
• Identifying and Developing New Sectors: Identifying sectors where skill development is needed and expanding training programs in those areas is a key part of the mission.
• Meeting Global Skill Demand: According to the International Labour Organization (ILO), India may face a shortage of 29 million skilled workers by 2030. The Skill India Mission aims to address this shortage and make India globally competitive in new technologies and manufacturing industries.

Importance of the Program

• Making Indian Workforce Globally Competitive: The program seeks to establish Indian youth as a skilled workforce in global markets.
• Contributing to Changing Employment Structure: Over 50% of the Indian population depends on agriculture, a sector with low productivity. The mission aims to make youth employable in service and manufacturing sectors, providing them with stable future prospects.
• Social and Economic Reforms: By empowering the marginalized and underdeveloped sections of society through skill development, the program aims to bring about improvements in everyday life.
• Expanding Training Across Various Sectors: The mission includes skill development programs in sectors such as real estate, construction, transportation, textiles, banking, tourism, and the gems and jewelry industry.
• Promoting Talent and Livelihood: By offering youth better livelihoods, the mission helps them gain respect in society and develops talent within the country.
• Building a Self-Reliant India: By creating a skilled and self-reliant workforce, the program contributes to India’s goal of becoming self-sufficient.
• Access to Entrepreneurial Networks: To promote entrepreneurship, the mission ensures that youth have easy access to entrepreneurial networks and resources.

Key Initiatives under the Skill India Program 

To ensure the success of the Skill India Mission, several initiatives and programs have been implemented, focusing on skilling the youth and providing employment opportunities. These initiatives aim to promote the economic and social development of the country.

• National Skill Development Mission (NSDM): The primary goal of this mission is to strengthen the country’s skill ecosystem and provide industry-specific skills to youth. It focuses on empowering young people through various training programs and employment-oriented courses.
• National Policy on Skill Development and Entrepreneurship, 2015: This policy provides a structured framework for skill development. It aims to teach youth employable skills and promote entrepreneurship. Special provisions have been made under this policy to address the needs of marginalized sections of society, including Scheduled Castes, Scheduled Tribes, Other Backward Classes, minorities, and differently-abled individuals.
• Pradhan Mantri Kaushal Vikas Yojana (PMKVY): The PMKVY scheme focuses on teaching industry-related skills to youth and enhancing their employability. It offers vocational training through 3 to 6-month courses. After completing the training, candidates are provided with employment opportunities. Under PMKVY 4.0, short-term training (STT) and Recognition of Prior Learning (RPL) will be provided, with a focus on industry-specific courses such as AI, 5G, and Cybersecurity.
• Pradhan Mantri National Apprenticeship Promotion Scheme (PM-NAPS): This scheme promotes apprenticeship training, where youth gain practical work experience. The program provides a stipend to trainees and promotes apprenticeship opportunities in MSMEs and underdeveloped regions.
• Skill Loan Scheme: Under this scheme, youth are provided with financial assistance to pay for fees of vocational courses. Students enrolling in recognized institutions can benefit from this scheme, which leads to certificates, diplomas, or degrees from training institutions.
• Pradhan Mantri Yuva Yojana (PM-YUVA): This initiative focuses on promoting entrepreneurship and providing self-employment opportunities to youth. It creates an enabling environment for entrepreneurship education and networking, along with supporting initial business funding through the Mudra Scheme.
• Jan Shikshan Sansthan (JSS): This community-focused skill development initiative is designed primarily for women, rural youth, and marginalized groups. It provides vocational training to Scheduled Castes, Scheduled Tribes, and other disadvantaged sections of society. The training is delivered on a large scale with minimal infrastructure requirements, offering both theoretical and practical education.
• SANKALP Scheme: The SANKALP Scheme, funded by the World Bank, focuses on strengthening the infrastructure and policies for skill development. The program is being implemented with a budget of 675 million USD.
• Pradhan Mantri Kaushal Kendra (PMKK): The PMKKs are model training centers to be set up in every district across the country. These centers are designed to provide skill training in modern technologies. They have been established by the Ministry of Skill Development and Entrepreneurship (MSDE).

Key Achievements of the Skill India Program 

• Pradhan Mantri Kaushal Vikas Yojana (PMKVY) has successfully skilled over 13.7 million youth. Through various skill training programs, it prepares young people for employment.
• Over 720 Pradhan Mantri Kaushal Kendras (PMKKs) have been established, offering quality training with state-of-the-art technical equipment and pedagogies.
• PMKVY recognizes and certifies the skills acquired by individuals through prior learning, promoting a shift from the informal sector to the formal economy. Over 5 million people have been certified under this program.
• Skill India has implemented standardized curricula and training standards, ensuring that all training programs operate with a unified objective. Coordination between various skill development institutes and industries has been strengthened.
• The Apprenticeship Act, 1961 has been significantly reformed to better align with industry needs, and the National Apprenticeship Promotion Scheme (NAPS) has been launched to provide financial incentives to apprentices.
• Skill India has expanded beyond domestic markets and is actively engaging at the international level. Through partnerships with various countries, India is adopting and exporting global skill standards.
• India’s unemployment rate has improved, with the unemployment rate for people aged 15 and above dropping from 6% in 2017-18 to 3.2% in 2023-24.
• Over 22.7 million beneficiaries have benefitted from the three major programs of the Ministry of Skill Development and Entrepreneurship.
• According to the CSO, 59.30% of rural women are self-employed, compared to 54.50% of men. This statistic highlights the government’s active efforts to promote entrepreneurship, particularly for rural women.

Key Announcements of Employment and Skill-Related Developments in 2025:

• National Excellence Centers for Skill Development: Five National Excellence Centers will be established to bridge the existing skill gaps.
• Generative AI in Education: An allocation of ₹500 crore will be made to integrate Generative AI into the education system.
• National Digital Skill Development Mission: Under this mission, youth will be trained in automation and AI literacy.
• New Loan Schemes for SC/ST Women: New loan schemes will be introduced to provide employment opportunities to 5 lakh women from Scheduled Castes and Scheduled Tribes.
• Increased Opportunities for Women in STEM and AI Education: More opportunities will be created for women in STEM fields, and investment in AI-driven learning will be increased.
• Investment in Vocational and Digital Education: Investment will be ramped up in vocational training and digital education to make youth competitive in the global job market.
• Economic Survey 2024-25: The Economic Survey discusses several important aspects of employment and skill development:
  • Growth in Self-Employment: The number of self-employed workers has increased from 52.2% to 58.4%, indicating a rise in entrepreneurship across the country.
  • Decrease in Unemployment Rate: India’s unemployment rate has fallen to 3.2% in FY 2023-24, a significant drop from 6% in FY 2017-18. Additionally, there has been an increase in EPFO registrations, indicating growth in the employment sector.
  • Training under PMKVY and Other Programs: Millions of people have been trained under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) and other programs. Additionally, the PM Vishwakarma Yojana has trained 1.18 million artisans in skill centers.
  • Increase in Female Labor Force Participation: The Female Labor Force Participation Rate (FLFPR) has increased from 23% to 41.7%.
  • E-Shram Portal for Unorganized Workers: The E-Shram portal has been launched for unorganized sector workers, with more than 305 million unorganized workers having registered.

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