NSDC was set up as part of a national skill development mission to fulfil the growing need in India for skilled manpower across sectors and narrow the existing gap between the demand and supply of skills. The then Union Finance Minister Shri Pranab Mukherjee announced the formation of the NSDC in his 2008-09 Budget Speech. "There is a compelling need to launch a world-class skill development programme in a mission mode that will address the challenge of imparting the skills required by a growing economy. Both the structure and the leadership of the mission must be such that the programme can be scaled up quickly to cover the whole country."
- Upgrade skills to international standards through significant industry involvement and develop necessary frameworks for standards, curriculum and quality assurance.
- Enhance, support and coordinate private sector initiatives for skill development through appropriate Public-Private Partnership ( PPP ) models; strive for significant operational and financial involvement from private sector.
- Play the role of a ‘market-maker’ by bringing funds, particularly in sectors where market mechanisms are ineffective or missing.
- Prioritise initiatives that can have a multiplier or catalytic effect as opposed to one-off impact.
To contribute significantly ( 40 per cent ) to the overall target of skilling/up-skilling 400 million people in India by 2022, mainly by fostering private sector initiatives in skill development programmes and to provide funding.