PM unveiled National Policy for Skill Development and Entrepreneurship 2015

Jul 16, 2015 13:06 IST

Prime Minister Narendra Modi on 15 July 2015 unveiled National Policy for Skill Development and Entrepreneurship 2015 in New Delhi.

The policy was unveiled in a programme held on the occasion of first-ever World Youth Skills Day.

It is the first such policy on entrepreneurship since independence and intended to replace the National Policy on Skill Development 2009.

Highlights of National Policy for Skill Development and Entrepreneurship 2015


Related to Skill Development: To make quality  vocational  training  aspirational for  both  youth  and  employers, focus on an outcome based approach towards quality skilling, increase the  capacity  and quality infrastructure, establish an IT base duality infrastructure for aggregating demand and supply of skilled  workforce and promote increased participation of women in the workforce among others.

Related to Entrepreneurship: To promote entrepreneurship culture and make it aspirational, enhance support for potential entrepreneurs through mentorship and networks and integrate entrepreneurship education in the formal education system among others.

Policy Framework for Skill Development

The framework outlines the following eleven major paradigms and enablers to achieve the objectives of the policy.

Aspiration and Advocacy

A National Campaign will be launched within three months to create awareness and a positive pro­skillig environment.

National Skills Universities and institutes will be promoted in partnership with States as  centres  of  excellence  for  skill  development  and  training  of  trainers,  either  as  de­novo institutions or  as a part of  existing university landscape.

Skilling will be integrated with formal education by introducing  vocational training classes linked to the local economy from class nine onwards in at least 25% of the schools, over the next five years.

To further the aspiration and respect associated with skilling, National Skill Awards will be instituted  in  close  association  with  major  stakeholders.

The  Prime  Minister’s  Skill  Development  Fellow  Scheme  will  be  introduced  to  tap talented, young individuals who will work with the State and District administration to spread awareness  about  skill  development,  identify  the  local  needs  and  steer  skill  development efforts in the region.


By designing suitable incentive schemes, existing infrastructure both in terms of buildings and potential teachers would be optimally leveraged for skill training. They includeutilistation of over 1.55 million schools, 25000 colleges, 3200 polytechnics and 83 youth hostels, around 1.5 lakh post offices and over 1 lakh kiosks across the country.

Apprenticeship will  further  be incentivised  in  the  MSME  sector through  appropriate schemes  for sharing  of stipend  etc.  Government will target a tenfold increase in apprenticeship opportunities in the next five years. Further, services sector will also be brought under the ambit of apprenticeship.


One  Nation  One  Standard  should  become  the  mantra  to  ensure  that  national standards and quality for skilling are globally aligned and Indian youth can aspire to secure local,  national  and  international  job  opportunities.

Recognition of Prior Learning (RPL) will be done that includes pre­assessment, skill  gap  training  and  final  assessment  leading  to  certification  of  existing skills in an individual.


Ministry of Skill Development and Entrepreneurship (MSDE), which has been set up to  coordinate  skill  development  efforts  in  the  country  will  within  three  months,  notify common  norms for rationalization  of Central Government Schemes  on Skill Development.

A national Labour Market Information System (LMIS) will be created to  generate  key  analysis  and  reports  which  will  determine  policy  interventions  by different  government stakeholders  and the  industry  at  large.

Skilling efforts will be completely aligned with the requirements of 25 key identified sectors of Make  in India.

Mobilization and Engagement

The industry should earmark at least 2 percent of its payroll bill (including for contract labour) for skill development initiatives in their respective sector. These funds can be channelized for skill development activities either through the respective SSCs or through National Skill Development Fund (NSDF).

Industry  should  actively  participate  in  designing  curricula  and  standards  for  skill training  courses.

Global Partnerships

Institutional arrangements through joint working groups, secretariats, etc will be established for  regular  exchange  of  knowledge,  experiences,  research  findings,  teaching  and  learning materials, and innovations in skill development.

Foreign Governments, corporate and agencies will also be encouraged to set up skill centres and  universities  as  well  as  participate  in  content  creation,  design  of  curricula  and delivery of training.

Government  would  promote  a  skills  training  ecosystem  that  would  also  enable training and placement of Indian boys and girls in overseas jobs. The ageing developed world  is  expected  to  face  a  huge  skill  shortage  while  our  country  has  the  potential  to  reap  its  demographic  advantage  and  export skilled  labour  to  the  world.


KVKs  will  play  a  pivotal  role  in  identifying  local  employment  opportunities and providing adequate training and post¬training support according to needs of  local  areas such as migration support for skilled workers.

A National Skills Research Division (NSRD), will be constituted within NSDA at the  national level to conduct skill surveys including aggregation  of the environmental scans done by SSCs, study emerging demand trends, operate the LMIS  and other skilling platforms and databases.

A National Campaign including through a dedicated TVand radio channel, and skilling camps will be initiated to promote interest and mobilize the youth for skilling.

ICT Enablement

The use of technology will be leveraged to  scale up training facilities,  enable  access to remote  areas  and increase  cost¬ effectiveness of  delivery  of  vocational  training. 

An  open  platform for  e¬content  on skill  development  will  be  created where further  curated content will be crowd sourced.

Government envisions to leverage the facility of Digital Locker for creation of Skill  Cards linked to Aadhaar for the labour force trained  and  certified  as  per NSQF

Trainers and Assessors

A  trainer/assessor  portal  will  be set  up  as  a  part  of  the  National  Portal  to  act  as  a  repository  and  registration  database  for  all  certified  and  interested  trainers/assessors.

New institutes for training of trainers will be set up in PPP mode, at least one in each  State, to increase the overall capacity of ToT in the country.


Adequate focus  will  be  given  to  youth from  deprived  households  by  establishing skill development centres in areas which are underserved.

Special attention needs to be  given  to  youth  residing  in  border, hilly and difficult areas, including North Eastern states, J&K, and the hilly  forested areas of central and eastern India to  address  their  needs  for  employment  and  employability.

Promotion of Skilling amongst Women

Special mechanisms in the delivery of training such as mobile training  units,  flexible  afternoon  batches,  training  based  on  the  local  needs  of  the  area,  will  be  introduced  to  ensure  participation  and  mobilization  of  women.

Training  in  non¬traditional  fields  for  women  will  be  promoted  through  the  establishment of specific training programmes that focus on life skills training modules and  literacy training.

Policy Framework for Entrepreneurship

To unlock entrepreneurial potential the following nine part entrepreneurship strategy was proposed under the policy.

• Educate and equip potential and early stage entrepreneurs across India
• Connect entrepreneurs to peers, mentors and incubators
• Support entrepreneurs through Entrepreneurship Hubs (E­Hubs)
• Catalyse a culture shift to encourage entrepreneurship
• Encourage entrepreneurship among under­represented groups
• Promote entrepreneurship amongst women
• Improve ease of doing business
• Improve access to finance
• Foster social entrepreneurship and grassroots innovations

Governance Structure and Financing

MSDE  will  be  responsible  for  implementation of the policy.

In order to achieve the objectives enshrined in the policy the Prime Minister also launched the National Skill Development Mission (NSDM) aimed at implementing and coordinating all skilling efforts.


National Skill Development Fund (NSDF) will be utilized for implementation of skilling efforts under the policy.

To attract funds from industry, companies will be encouraged to spend at least 25 percent  of  their Corporate Social Responsibility (CSR) funds on skill development initiatives directly or  through NSDF.

All  Government schemes  across sectors  will  be  encouraged  to  apportion  a  certain  percentage (10%) of the scheme budget towards skilling of human resources in local regions  in the required sector.

A  Credit  Guarantee  Fund  for  skill  development  and  a  National  Credit  Guarantee  Trustee Company (NCGTC) has been set up to support the initiative of loans for the purpose  of skilling  and  will  be  used  to  leverage  credit  financing  in  the skill  landscape.

A Policy Implementation Unit (PIU) will be set up so as to review the  implementation  and  progress  of  the  various  initiatives  under  this  policy.  The PIU  will  be  housed in MSDE with Secretary as the Chairperson and representation from NITI Aayog.

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