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PM unveiled National Policy for Skill Development and Entrepreneurship 2015

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PM unveiled National Policy for Skill Development and Entrepreneurship 2015

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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