The Pradhan Mantri Kaushal Vikas Yojana (PMKVY), launched in 2015, has trained 13.7 million candidates over seven years. However, only 18 per cent or 2.4 million of these candidates have been successful in securing a job. This low placement rate is one of several concerning issues highlighted by the Lok Sabha standing committee. The committee also identified underutilised funds, infrastructure deficiencies, dropouts, a disconnect with industry, and insufficient state engagement as significant problems. To increase the effectiveness of the programme, it is imperative that PMKVY is aligned with the local economy’s needs.
Currently, only 2.4 per cent of India’s 530-million-strong workforce has received formal vocational education or training. This means that a vast majority of the workforce remains unskilled, making them less productive. Additionally, a quarter of India’s workforce has less than primary education, further emphasising the importance of skill development programmes in reducing unemployment rates. Despite this, the latest data from the quarterly Periodic Labour Force Survey (PLFS) reports an unemployment rate of 6.8 per cent, with a youth unemployment rate (for ages 15 to 29) of 17.3 per cent.
Placement of candidates
The PMKVY has seen three versions, with PMKVY 2.0 having the highest number of trained and placed candidates, with a placement rate of 19.5 per cent. However, this rate has since fallen to 5.8 per cent for PMKVY 3.0, the lowest yet. Overall, approximately 11 million trained candidates have completed certification. It is imperative that the government takes immediate action to address these concerns, align PMKVY with the local economy, and improve the programme’s effectiveness.
It is imperative to note that Uttar Pradesh is the State with the highest number of candidates trained — a staggering 1.59 million. However, the placement rate in the State is only 20 per cent. On the other hand, Telangana takes the lead with the highest placement rate of 35.1 per cent, followed closely by Puducherry 34.6 per cent, and Haryana and Punjab at 31.7 per cent and 29.6 per cent, respectively. Maharashtra and Kerala stand at a disappointing 9.3 per cent and 10.4 per cent, respectively.
Poor utilisation of funds: According to government data, the programme’s fund utilisation was poor in 2016-17, with only 56 per cent of the allocated funds being used. Although the number improved to 98 per cent in 2020-21, it fell back to 72 per cent in 2021-22. The Lok Sabha standing committee reported that the suspension of training and placement operations due to Covid-19 restrictions led to a significant drop in enrolment and certification, resulting in low disbursement and utilisation of funds. However, it is expected that the ongoing training under PMKVY 4.0 since January 2023 will lead to an increase in expenditure upon its completion.
Connect to industry missing: The National Skill Development Corporation (NSDC), established in 2008, collaborates with partner trainers to conduct skill development programmes. However, the lack of industry participation and a disconnect between NSDC and the industry is a significant challenge that needs to be addressed. The current skill development programmes do not align with the actual regional demand for skills, creating a mismatch between training and local economic needs. This leads to a gap between the skills imparted and the market requirements, which is unacceptable.
The quality of training and the choice of the particular skill being imparted must meet the market standards. Unfortunately, the skill centres are not adequately equipped for practical training, resulting in theoretical training with little practical exposure. This is unacceptable, and immediate action needs to be taken to bridge this gap. The standing committee has also highlighted this disconnect and suggested conducting a survey of industry representatives to better understand their needs.
Candidate dropout, infra deficiencies: A study conducted by the Indian Institute of Public Administration between 2016 and 2021 revealed that 20 per cent of candidates who enrolled under PMKVY dropped out. The reasons for this were medical issues, family obligations, social challenges, lengthy commutes to training centres, marital status changes, increased livelihood demands, limited job opportunities, and perceived skill stagnation. Female candidates also dropped out due to pregnancy, marriage, and course duration.
As a solution, the government must create a pool of National Assessors and Trainers under PMKVY 4.0.
Limited State participation: State disparities driven by varying economic and employment histories result in limited State participation. This is a significant challenge that needs to be addressed with a sense of urgency. For instance, while some States have a significant agricultural workforce that relies on programmes like the MGNREGS, others like Maharashtra or Tamil Nadu have more employment opportunities. Therefore, it is imperative to adopt localised, demand-driven approaches that extend employment schemes from metropolitan areas to tier-2 and tier-3 cities, thus addressing specific regional challenges.
The writer is a Co-Founder and MD of Orane International, a Training Partner with the National Skill Development Corporation