Union Cabinet approves Rs 8,800 crore to boost Skill India Programme

The scheme also places a strong emphasis on international mobility, ensuring Indian workers are equipped with globally recognised skills

The Ministry for Skill Development has completed talks with stakeholders on the government scheme announced in the FY25 Budget to upgrade 1,000 Industrial Training Institutes (ITIs) and is drafting guidelines before seeking Cabinet approval, a senior
Under the three flagships schemes of Ministry of Skill Development and Entrepreneurship, there are more than 2.27 crore beneficiaries till date. | Representative Image
Shiva Rajora New Delhi
3 min read Last Updated : Feb 07 2025 | 11:19 PM IST
The Union Cabinet on Friday approved continuation and restructuring of the ‘Skill India Programme (SIP)’ till 2026 with an outlay of Rs 8,800 crore from the period of 2022-23 to 2025-26.
 
Three components — Pradhan Mantri Kaushal Vikas Yojana 4.0 (PMKVY 4.0), Pradhan Mantri National Apprenticeship Promotion Scheme (PM-NAPS) and the Jan Shikshan Sansthan (JSS) scheme — are now combined under the composite central sector scheme, the SIP. 
 
“These initiatives aim to provide structured skill development, on-the-job training (OJT), and community-based learning, ensuring that both urban and rural populations, including marginalised communities, have access to high-quality vocational education,” said the Union Cabinet in a statement.  
 
To keep pace with evolving industry demands and advent of new-age technologies, the Rs 6,000 crore PMKVY 4.0 scheme will provide over 400 new courses on AI, 5G technology, cybersecurity, green hydrogen and drone technology among others.
 
The scheme also puts strong emphasis on international mobility, ensuring Indian workers are equipped with globally recognised skills.
 
“A key shift under the scheme is the integration of OJT within short-term skilling programmes, ensuring that trainees gain real-world exposure and industry experience. Also, cross utilisation of existing infrastructure and to expand access to quality training, Skill Hubs have been established across premier academic institutions. To enhance efficiency, procedural changes have been introduced, including the realignment of the demand assessment strategy to better identify sectoral skill gaps and industry needs,” the statement said. 
 
Besides, the NAPS will have a total outlay of Rs 1,958 crore to support seamless transition from education to work, ensuring that apprentices gain industry-specific skills through real-world exposure.
 
Under this, the government will provide 25 per cent of the stipend, up to Rs 1,500 per month, through direct benefit transfer (DBT) to an apprentice, between the age of 14 and 35 years. 
 
The NAPS encourages apprenticeship opportunities in prevailing manufacturing, including emerging fields such as AI, robotics, blockchain, green energy, and Industry 4.0 technologies. 
 
Meanwhile, the community-centric skilling initiative — Jan Shikshan Sansthan (JSS) — that places special emphasis on women, rural youth and economically disadvantaged groups between the age group of 15 and 45 years will have an outlay of Rs 858 crore. 
 
“By delivering low-cost, doorstep training with flexible schedules, JSS ensures that skilling opportunities reach those who need them the most, fostering both self-employment and wage-based livelihoods. JSS is linked with key initiatives of the government like PM JANMAN and Understanding of Lifelong Learning for All in Society (ULLAS) to promote inclusive skilling,” said the statement. 
 
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

Topics :Skill IndiaUnion Cabinetscheme

First Published: Feb 07 2025 | 8:59 PM IST

Next Story