Pradhan Mantri Kaushal Vikas Yojana: A skilling revolution for India

The youth unemployment rate in India was 23.22% as of 2022. There can be several possible reasons for this problem prevailing in the economy, such as the digital divide, lack of access to capital, financial crisis, and more. 

One prominent reason for the high youth unemployment rate is skills mismatch. Now what is it? Simply put, the skills demanded by government or corporate entities don't align with the skills of individuals seeking job opportunities. This mismatch has created a significant gap between the demand and supply of job opportunities in the market.

What should be done now? How can this problem in the economy solved? 🧐 

To address this issue, the Indian government has come up with a scheme under the name of “Pradhan Mantri Kaushal Vikas Yojana". The program was launched 7 years ago but still there are many revised versions coming up. 

Meanwhile, to read about exciting businesses that have been in the news, make sure to click here.

To learn more about the scheme, read further.

Introduction: The PMKVY

The Pradhan Mantri Kaushal Vikas Yojana (PMKVY), also known as the ‘Prime Minister’s Youth Training Program’ is implemented by the National Skill Development Corporation (NSDC) and is a flagship scheme under the Ministry of Skill Development and Entrepreneurship (MSDE). It was launched on 15th July 2015, which is also celebrated as World Youth Skills Day.

It is India’s largest Skill Certification scheme, which aims to promote skill development and bridge the gaps caused by skill mismatch in the country. PMKVY offers a total of 165 courses, ensuring that young candidates are trained in a manner that aligns with the eligibility criteria demanded by corporations.

Now, let us look at the,

Objectives of the PMKVY scheme

The Indian government has the following objectives to achieve under the scheme:

1. To reduce the rate of unemployment in India.
2. To expand the digital ecosystem to ensure the formal skilling of Indian Youth.
3. To provide employment opportunities to the country’s youth by enhancing placement assistance in the training centres.
4. The main aim of the PMKVY scheme is to organise the country’s youth by enhancing their skills and providing them with work based on the competency of the individuals.

Key Components: The PMKVY

The PMKVY achieves the aforementioned objectives through various plans and programmes. These activities form a crucial part of the scheme and are mentioned below:

1. Kaushal and Rozgar Mela
The Kaushal and Rozgar Mela, held biannually by training partners, aims to place a minimum of 50% of the batch by offering media coverage and preparing candidates through activities like resume building, mock interviews, and group discussions.

2. Special Projects
The special projects aim to create a platform focused on training young individuals for specific roles in government bodies, corporate entities, and specialised job positions.

3. Short-term training
PMKVY training centres offer specialised short-term training (STT) for school/college dropouts and unemployed individuals, aligned with the National Skills Qualification Framework (NSQF). The curriculum also covers entrepreneurship, soft skills, financial, and digital literacy training.

4. Recognition of Prior Learning
RPL is a skill certification for those in unregulated sectors. It allows individuals with prior learning to register, get assessed, and be certified under PMKVY's RPL component.

5. Continuous monitoring
Regular monitoring of the performance of different candidates is integral to the PMKVY scheme. The monitoring department can visit any training centre from the beginning of the training period.

6. Assessment and Certification
Each individual undergoes a rigorous assessment based on test performance, with a prerequisite of a minimum of 70% training attendance. Those who pass the assessment receive a nationally valid skill certificate.

7. Placement Assistance
Upon completing the training program under the scheme, candidates are assured of receiving placement assistance directly from their training centres.

Eligibility criteria: PMKVY

The following applicants will be eligible under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) scheme:

• Must be a young individual not currently employed or someone who has discontinued their education during their academic term.
• They must be of Indian nationality and possess valid proof of identity, such as an Aadhaar card, bank account, or voter's ID.

Now that you have an idea about the scheme, let’s see how you can proceed further.

How to apply under the PMKVY scheme?

One needs to follow the following steps to register under the Pradhan Mantri Kaushal Vikas yojana:

Step 1: Go to the official website of the PMKVY.

Step 2: A homepage will appear. Scroll to the bottom of this page and click on the “Skill India” section.

Step 3: A new page will open. Here, click on the "I want to skill myself" button.

Step 4: Fill out all the required details asked in the form, such as your basic details, locations, preferences, etc.

Step 5: After filling in all the required details, click the SUBMIT button to complete the registration process. Make sure to take a printout of the application form for future reference.

Working Structure of PMKVY

The success of the Pradhan Mantri Kaushal Vikas Yojana depends on the framework it employs to execute various tasks. Here's what you should know about it:

1. Implementation of the Scheme
The NSDA (National Skill Development Authority) works together with other related institutions to create specific guidelines and requirements for the PMKVY program. Meanwhile, the training centres are required to complete the PMKVY registrations through their dedicated SMART portal.

2. Enrollment of eligible candidates
People who meet the basic requirements can join training centres to learn relevant skills and receive education through the PMKVY training program. The government covers the training cost, which is approximately ₹8000.

3. Providing appropriate training
Next, the candidates receive either short-term training or participate in relevant training offered through special projects. The duration and type of training depend on the specific role the applicant is being prepared for.

4. Recognising Prior Learning
If a candidate possesses any prior skills, whether self-learned or formal training, he will be assessed to optimise the training process efficiently.

5. Course Completion
The courses offered under the PMKVY scheme have a duration ranging from 3 months to 1 year. Once the required training hours are completed, an assessment test is conducted. Applicants who pass the assessment test are awarded a skill card.

6. Candidate Placement
Applicants who have completed the courses and received a skill card are eligible to be placed in various sectors or industries. The skill card remains valid throughout India.

The reality of  the scheme

The PMKVY scheme focuses on bridging the gap between the demand and supply of skilled manpower. It provides free training programs and monetary rewards to applicants undergoing training through authorised institutions. Everything sounds great until reality intervenes. The same goes with this scheme as well. Here are the facts you should know:

• The PMKVY scheme was launched in 2015 with an initial outlay of ₹12,000 crore, and it was to be implemented through centrally sponsored components.
• A report by the Parliamentary Standing Committee on Labour, Textiles, and Skill Development highlights the underutilisation of funds.
• In the PMKVY 3.0 version, out of ₹12,000 crore, only 72% of the funds have been utilised for the intended purpose.
• Under PMKVY 3.0, the total number of candidates who were said to have been trained was 7.4 lakhs, out of which only 5% (41,437 people) have been placed.

Look at the image below to get an idea of the Top 10 sectors with the highest reported placements under the scheme. 

The question arises:

• Where are the unutilised 28% of the funds allocated to the PMKVY scheme? 
• What about the remaining 95% of individuals who have not been placed in any company? 
• What resources are they lacking? 
• Why is there a significant gap between the number of people trained and those who have secured placements?

The Bottom Line

The PMKVY scheme of the Ministry of Skill Development and Entrepreneurship (MSDE) primarily focuses on training unemployed youth by providing them with courses that will prepare them for the corporate world. Under the Pradhan Mantri Kaushal Vikas Yojana 3.0, around 7.4 lakh people have been successfully trained, out of which 66% have received certification, and about 41,437 have been placed in various sectors between FY21 and FY23, as of 5th January 2023.

The scheme has proven beneficial not only to Indian youth but also to the Shramiks (migrant workers) who were affected by the COVID-19 pandemic.

The Indian government has been consistently aiming to enhance the skills of the youth and adhere to industry standards. However, there are some flaws in the scheme that can be corrected with proper investigation and by assigning accountability to the concerned departments.

The unemployed Indian youth can register for various modern courses announced by the Union Finance Minister by visiting the official website of PMKVY and using their competencies to contribute to the overall development of the Indian economy. What are your thoughts on this scheme?