Currently, only a very small proportion of India’s workforce has any formal skill training. Not surprisingly therefore several sectors of the country's economy face shortage of skilled people and has to put up with low productivity levels due to poor quality of workforce.
At the same time, large sections of the country's youth are looking for better economic and livelihood opportunities. In this context, skill development division of the government has made skill improvement and training a key priority area for the country. This is not only essential for economic development, but will also fulfil the youth’s aspirations for good quality, better paid jobs and self-employment opportunities. This will also enable the country to take advantage of its favourable demographic profile. With a large pool of skilled people, India has an opportunity to become a skilled provider for the world, particularly the ageing developed world.
PMKVY (Pradhan Mantri Kaushal Vikas Yojna) scheme is the flagship outcome-based skill training scheme of the new Ministry of Skill Development and Entrepreneurship, India. This skill certification and reward scheme aims to enable and mobilise a large number of Indian youth to take up skill training and become employable and earn their livelihood. Under the scheme, monetary reward would be provided to youths who are successfully trained, assessed and certified in skill courses run by affiliated training providers. This will boost the productivity of the country's workforce by enabling them to require high skill training across a range of sectors. It will also bring about radical change in skill training procedures in the country from input-based to outcome-based. It also seeks to significantly improve skill training activities in the country and enable skill training to happen at a fast pace with no compromise in quality. The aim of the NSDC is to empower the nation’s youth with world skills in India, skills that will make them employable and thereby financially independent.