Parliamentary Panel Flags Major Gaps in PMKVY: High Dropout Rates, Just 14% Fund Use Raise Concerns Over Skill India Scheme
A parliamentary standing committee has raised serious concerns over the implementation of the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), highlighting high dropout rates among trainees and alarmingly low utilisation of allocated funds. The panel has called for an independent evaluation of the flagship skill development programme, warning that its current performance falls short of expectations under the government’s broader Skill India mission.
Panel Flags Poor Performance of PMKVY
The committee, which reviewed the functioning of the Ministry of Skill Development and Entrepreneurship (MSDE), pointed out that the latest phase of the scheme, PMKVY 4.0, has utilised only about 14% of its allocated budget, indicating inefficiencies in execution.
This low utilisation has raised questions about planning, implementation capacity, and coordination between central and state agencies. The panel observed that despite significant financial allocations, the outcomes on the ground remain limited.
In addition to PMKVY, another key scheme—PM-SETU—also showed extremely poor performance, with barely 0.63% of funds utilised, further reinforcing concerns about systemic issues within the ministry’s flagship programmes.
High Dropout Rates a Major Concern
One of the most pressing issues identified by the panel is the high dropout rate among trainees enrolled under PMKVY. While the scheme aims to provide industry-relevant skills to youth, especially school and college dropouts, many participants fail to complete the training programmes.
According to evaluation findings, dropouts are often linked to factors such as:
- Seasonal employment opportunities
- Migration for work
- Personal and socio-economic challenges
These structural issues highlight the difficulty in retaining trainees, particularly those from economically vulnerable backgrounds who may prioritise immediate income over long-term skill development.
What is PMKVY and Why It Matters
Launched in 2015, PMKVY is the flagship skill certification scheme under the Skill India Mission. It is designed to provide free, industry-aligned training to unemployed youth and school dropouts, with the goal of improving employability and bridging the skills gap in India’s workforce.
The programme includes:
- Short-term skill training courses
- Recognition of prior learning (RPL)
- Special projects for marginalised groups
It is implemented by the National Skill Development Corporation (NSDC) under the MSDE and targets millions of young Indians entering the workforce each year.
Panel Calls for Independent Evaluation
Given the concerns over outcomes, the parliamentary panel has recommended a comprehensive, independent evaluation of PMKVY. The aim is to assess:
- Effectiveness of training programmes
- Employment outcomes for beneficiaries
- Quality of training infrastructure and trainers
- Alignment with industry needs
The committee believes that such an evaluation is essential to identify systemic gaps and ensure accountability in public spending.
Suggestion for Structural Reforms
The panel has also proposed broader reforms to improve the effectiveness of skill development initiatives in India. These include:
1. Creation of a National Skill Board
A national-level body involving states has been suggested to streamline policy, avoid duplication, and ensure better coordination.
2. Focus on Fewer Flagship Schemes
The committee noted that the ministry is currently handling multiple schemes with limited success. It recommended focusing on a smaller number of well-designed programmes for better impact.
3. Greater Role for States
States should be given more responsibility in implementing skill programmes, as they are better positioned to understand local employment needs.
4. Industry Alignment
There is a need to strengthen partnerships with industries to ensure that training aligns with real job market requirements.
Budget Allocation vs Utilisation Gap
Despite a significant allocation of around ₹2,800 crore for the Skill India Programme in 2026-27, the panel noted that overall utilisation remains suboptimal, with total spending under the programme at just under 50%.
This gap between allocation and utilisation reflects inefficiencies in execution and planning, raising concerns about the effectiveness of government spending in the skill development sector.
Broader Concerns Around Skill India Mission
The panel’s observations come amid growing scrutiny of India’s skill development initiatives. Previous audits and reports have also flagged issues such as:
- Poor placement outcomes
- Data inconsistencies
- Weak monitoring mechanisms
These challenges indicate that while the intent behind the Skill India mission remains strong, its implementation continues to face structural hurdles.
Government’s Response and Ongoing Efforts
The government has acknowledged some of these challenges and has taken steps to improve the scheme. PMKVY 4.0, for instance, has introduced:
- Training in emerging technologies like AI, robotics, and drones
- Digital platforms for job matching
- Special provisions to support women and disadvantaged groups
Additionally, measures such as transport allowances, boarding facilities, and grievance redressal systems have been introduced to reduce dropout rates and improve retention.
The Way Forward
The parliamentary panel’s recommendations underscore the need for a fundamental rethink of India’s skill development strategy. While PMKVY has played a crucial role in expanding access to vocational training, its impact has been limited by issues in execution, monitoring, and alignment with market needs.
Experts suggest that future reforms should focus on:
- Outcome-based funding models
- Stronger industry partnerships
- Real-time tracking of employment outcomes
- Localised, demand-driven training programmes
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