Ministry of Skill Development and Entrepreneurship in India

On 9th November 2014 Ministry of Skill Development and Entrepreneurship was launched to consolidate all skill development efforts across the country (in India). Industrial training, apprenticeship, and other skills development responsibilities have been transferred from the Ministry of Labor and Employment.

Newly created ministry on 16 April 2015 has the objective to reduce the gap between the demand and supply of skilled manpower, develop new skills and innovative ideas not only for current jobs but for those jobs as well. Many programs have been initiated by the Indian government which explained in the article below

Skill program in the Ministry of Skill Development and Entrepreneurship

A recent systematic literature review by Cabral and Dhar (2019) identified the importance of skill development, in which the implementation of such schemes reduces poverty, uses demographic dividends, socio-economic empowerment of privileged areas, achieves economic growth, reduces social challenges, and financial inclusion.

As far as the institutional mechanism is concerned, the National Skill Development Corporation (NSDC) and the Ministry of Skill Development and Entrepreneurship and Planning – Pradhan Mantri Kaushal Vikas Yojana (PMKVY) have achieved significant results but have not completed the desired results. The study argues that skill development is imperative in the country to embrace technology and empower women.

Foreign & Domestic Investment

On 12 February 2016, Oracle announced that it would build a new 2.8 million square feet. The Bengaluru campus is the largest outside the Redwood Shores headquarters in California. Oracle Academy launches a training program to improve computer science skills for more than half a million students each year, currently expanding its partnership to 1,700 to 2,700 institutions in India.

Japan’s private segment intends to set up six establishments of production to training 30,000 people over the next ten years in Japanese-style manufacturing skills and practices, mainly in rural areas.

In collaboration with the public and private sectors, the Japan-India Institute of Manufacturing (Gym) and the Japanese Ended Courses (JEC) will set up in engineering colleges designated by Japanese companies in India. The first three institutes will set up in the summer of 2017 in Gujarat, Karnataka, and Rajasthan.

The Government of India has decided to assign a maximum of Rs. every year at least ten million Indian youth enter the workforce of the country, but job creation in India has failed to realize this flood, with rising unemployment becoming a severe problem. Through this provision, the government aims to provide employment and livelihood to millions of young Indians who enter the workforce each year.

The government has invested Rs 4000 crore for the launch of Sankalp (Knowledge Awareness for Skill Acquisition and Livelihood Promotion Program), another major initiative under the Skill India Mission. Its mission is to provide market-related training to 350 million young Indians.

Besides, the government will set up 100 India International Skills Centers, which provide advanced courses in foreign languages to prepare young people for overseas employment. It provides opportunities for Indian youth.

Projects and collaboration

It is anticipated that by 2022, India will need an additional 29 million people to train. In this speech, NSDC launched a Skills Development Program in Northeast India, intending to teach 240,000 people in 2017. -18.

NSDC has partnered with Amazon’s “Mary Saheli” initiative to improve women’s digital literacy. In partnership with Google India, it launched a 100-hour course offered by partner agencies to train people on mobile development.

NSDC has signed with the Indian Institute of Corporate Affairs to train CSR, Corporate Governance, Business Innovation, e-Governance, and other skills. Other collaborators comprise the Adani Foundation, Uber, and Maruti.

Legal structure and governance

The NSDC operates under the Public-Private Partnership (PPP) model. The Ministry of Skill Development & Entrepreneurship (MSDE) retains 49% capital in the Government of India, while the private sector owns 51%.

According to the NSDC’s Board Report, the largest shareholder and regulatory of government corporations, and individual holders are ten business associations or federations – the Confederation of Indian Industry (CII), the FICCI (Federation of Indian Chambers of Commerce & Industry) and the National Association of Software & Service Companies (NASSCOM) – Each 5.1% share capital There continues.

Under the MSDE, the NSDC has worked with central and state governments, industries, non-profit organizations, and academics to accelerate and accelerate talent efforts.

Operation and Funding Model

As a non-profit organization, NSDC achieves its mission by funding state-funded activities and funding private skills-training institutions, institutions, and organizations. NSDC takes the initiative as a partner or project management unit to manage government skills-training programs and formal grant-based programs and support the central and state governments of India in implementing their skill development strategies.

NSDC also develops suitable models to enhance, support, and high-level coordinate programs in the private sector. According to the annual report, NSDC has developed an active network of training partners, including 302 funds, 115 non-fund and 14 innovation partners, 39 operational skills councils, and distributed 1453.70 crores (approximately US $ 210 million) for skill. Training programs through shared networks.

National Skill Development Agency (NSDA) seeks to increase youth employment in India. It is a fully independent company, which has been approved by the Union Cabinet of India. On 9 May 2013, the Union Cabinet endorsed the creation of the NSDA.

The Union Cabinet meeting was held on 31 January 2013, in which the proposal for the establishment of the National Skill Development Agency (NSDA) was first approved, and a panel of ministers reviewed the proposed plan. The project supported by the United Progressive Alliance (UPA) government.

Pradhan Mantri Kaushal Vikas Yojana (PMKVY)

It is the Government of India’s Skill Development Initiative Scheme, which includes skill recognition and standardization.

The aim of the PMKVY Scheme is to promote the interest in job skills and increase the work potential of prospective and existing daily wage earners by providing monetary rewards and rewards and providing them with quality training.

The average prize money per person is $ 8,000 (the US $ 110). Salaries of those who already have a standard skill are recognized under this scheme, and the average reward money for them is from 2000. 2500.

In the initial year, the plan aims to deliver $ 15 billion (the $210 million). Training programs have been developed based on National Vocational Standards (NOS) and Merit Packs, especially in different areas of skills. Various Sector Skill Councils (SSCs) created by industry partnerships have prepared quality plans for this qualification, like the National Skill Development Council (NSDC) are co-ordinated through a driving agency for this.

The Cabinet has approved an expenditure of 120 billion (the US $ 1.7 billion), which aims to train one crore Indian youth from 2016-20.


As of February 15, 2016, the “Indian Leather Development Program” trained 51,216 youth over 100 days and planned to train 144,000 children annually. Four new branches of the “Footwear Design and Development Institute” are being set up at Hyderabad, Patna, Banur (Punjab), and Ankleshwar (Gujarat) to improve the training infrastructure. The industry is undergoing severe skills shortages, and the sector absorbs the majority of those who trained.

Prime Minister Narendra Modi launched Kaushal Bharat in 2015 to create a generation of talented employees and leaders with modern-day market demands. Skills India, which will be launched by 2022, will be implemented by a well-organized organization to train more than 40 crore citizens with skills in various industries.

Industrial Training Institute (ITI) and Industrial Training Center Secondary schools under the central government is initiated to train various trades in the Directorate of Secondary Education and Employment (DGET), Ministry of Skill Development and Entrepreneurship in India.

Handicrafts Training Scheme (HTS)

The Directorate General of Training (DGT) launched the Craftsmen Training Scheme in 1950. More than 130 different specialties range from six months to two years. Further, 8th to 12th-grade courses are required. Upon completion of the training, trainees will write the All India Trade Test (AITT). Successful candidates will receive the National Business Certificate (NTC).


Entries for various trades are held in August every year and the admission process is initiated before the start of the new session. The session will start from August 1, under the scheme. Admission to ITI made according to NCVT guidelines based on merit-based/written test. Enrollment in private ITIs is done directly.

Trades in Ministry of Skill Development and Entrepreneurship

Some of the transactions under this scheme are listed below.

Electronics Mechanic, Engineering and Non-Engineering Trade, Mechanic repair and maintenance of two-wheelers, Building Management, Excavator Operator (Mining), Mechanic Auto Electrical & Electronics, etc.

Apprenticeship Training Scheme

After completing ITI, traders can get apprenticeship training in various industries. The Directorate General of Training, under the Ministry of Skill Development and Entrepreneurship, has implemented the scheme, stating that “Training in organizations alone is not enough to become skilled and needs to be replaced by actual workplace training.”

The period for apprenticeship training is usually one year for the ITI final exam, ie, AITT. It usually takes three years for freshers. During training, the trainees are given a monthly stipend.

Lateral Admission for Polytechnic Diploma Engineering

AICTE certified polytechnics propose engineering curriculums over a phase of 3 years, known by several names in different states (JEXPO in West Bengal, JEEP in Uttarakhand, JEECUP in Uttar Pradesh and CG PPT in Chandigarh).

And upon completion, course candidates are awarded diplomas in various subjects. Those who have passed the minimum 2-year ITI course with a National Trade Certificate will be allowed to enter the second year of the polytechnic diploma course. For this purpose, the Voclet Entrance Examination is conducted every year along with the JEXPO.

Official website of Ministry of Skill Development and Entrepreneurship

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