Policy Update
Atharva Salunke
Background:
India is undergoing a unique demographic phase, with over half of its population under the age of 25 and a continuously growing workforce. This presents both an opportunity and a challenge: to transform this human resource base into a skilled and productive force that can drive economic growth. Identifying this, the Government of India set up the Ministry of Skill Development and Entrepreneurship (MSDE) in 2014 with an aim to bring together disparate skill development efforts under one roof. The National Policy for Skill Development and Entrepreneurship, 2015, laid down the plan, focusing on speed, quality, and sustainability in skill delivery, and bringing vocational education into mainstream education through the National Skills Qualification Framework (NSQF).
Within this framework, the National Skill Development Corporation (NSDC), a trailblazing Public-Private Partnership, has been tasked with operating large-scale, high-end vocational training schemes. Among its flagship programs is Pradhan Mantri Kaushal Kendras (PMKKs), which seeks to set up state-of-the-art Model Training Centres in each district, providing aspirational, demand-driven, and industry-relevant skill training.
Functioning:
Pradhan Mantri Kaushal Kendras are top-level model training centres meant for imparting demand-driven and skill-based training of utmost quality. These Pradhan Mantri Kaushal Kendras operate on four broad components: coverage, infrastructure, financial support, and delivery of training.
A saturation approach is adopted to ensure universal reach, which entails the establishment of centres in every district. This is supplemented by a cluster model wherein fewer partners cover a larger area. Infrastructure is developed on the notion of the district population.
Consequently, infrastructure centres are divided into three categories: Category A- 8,000 sq. ft area, Category B- 5,000 sq. ft, and Category C- 3,000 sq ft. These centres have sector-specific labs with IT-enabled learning systems and have facilities available for counselling, life skills, and communication training to impart holistic skill training.
| Category | District Population (Age 15–35) | No. of Districts | Minimum Area (sq. ft) |
| A | Above 4 lakh | 437 | 8,000 |
| B | Between 1–4 lakh | 178 | 5,000 |
| C | Below 1 lakh | 68 | 3,000 |
Table 1: Infrastructure is based on district population
Financial assistance is offered by NSDC in the shape of concessional secured loans for an amount up to 75 per cent of the project cost, maximum ₹70 lakhs per PMKK. The interest rate is 6 per cent for Category A and B districts, 3 per cent for Category C, and zero per cent for challenging districts with a four-year repayment period with a one-year moratorium.
| Category of Districts | Interest Rate | Centre Size (sq. ft) | Repayment Terms |
| A | 6% | 8,000 | 4 years with a 1-year moratorium |
| B | 6% | 5,000 | Same as above |
| C | 3% | 3,000 | Same as above |
| Difficult Districts | 0% | As above | Same as above |
Table 2: Financial support is provided through concessional NSDC loans
Training imparted under PMKKs focuses on compulsory incorporation of manufacturing domain trades, keeping in mind local skill demand for enhanced placement. Every centre functions with a minimum guaranteed mandate under PMKVY or associated schemes, thus ensuring sustainability. Through connecting financial support with strong backing, robust infrastructure, and industry-aligned training, PMKKs are iconic institutions for skilling India’s youth.
| S. No | Sector/Mandate description | Category A | Category B | Category C |
| 1 | Minimum number of sectors | 2 | 2 | 1 |
| 2 | Minimum number of trades | 5 | 3 | 2 |
| 2a | Minimum Manufacturing trades | 2 | 1 | 1 |
| 3 | Minimum annual mandate under PMKVY/other schemes under MSDE | 1000 | 750 | 500 |
Table 3: Sectors and Training Mandates under PMKK
Performance:
As of December 31, 2024, the program has emerged as a countrywide network of model training centres reaching 707 out of 785 districts in the country. This widespread reach reiterates the government’s determination to make sure that youth in both urban and rural India gain access to quality, demand-driven vocational education and training.
714 out of 818 PMKKs sanctioned are already operational, exhibiting a whopping activation rate of almost 87%. This shows the operational effectiveness of the Ministry of Skill Development & Entrepreneurship (MSDE) and the National Skill Development Corporation (NSDC), as well as the commitment of the Training Partners (TPs) to investing in infrastructure and delivery. The operation centres have updated facilities, to national standards, with facilities to offer aspirational and industry-related training opportunities.
| Categories | Achievement |
| Total No. of Districts in India | 785 |
| Districts Covered by PMKK | 707 |
| PMKKs Allocated | 818 |
| PMKKs Operational | 714 |
Table 4: PMKK Centres Summary
Image 1: Year-wise Performance of PMKKs
Year, and that the performance of PMKKs brings out the achievements and challenges. Enrollments from the year 2016 to 2020 amounted to 16.2 lakh candidates; 14.5 lakh were trained, 11.6 lakh were certified, and 7.1 lakh were placed, establishing ample linkages with industry.
In the year 2020-21, enrolments almost came down to 2.6 lakh and placements thereto almost totally dried up at barely 21,000, the country’s pandemic COVID-19 being the medium duress. Since 2022, the enrollment has risen to 5.1 lakh, and training reached 3.7 lakh, but certifications are low, and placements have not been reported. This needs strong support of placement to multiply the impact of skill development.
Impact:
Pradhan Mantri Kaushal Kendras have become aspirational skill development hubs that have greatly boosted India’s skilling landscape. With the reach extending to 707 districts and operationalising 714 centres, the programme has facilitated even access to training across the country. Over 16 lakh youth have been trained since inception, with significant numbers certified and placed, increasing employability and earning opportunities.
The uniform infrastructure and industry-led courses have enhanced the reputation of vocational education, which is now more appealing to the younger population. In addition to skilling, PMKKs have encouraged entrepreneurship, enhanced local economies, and put India on the map as an emerging centre for a skilled workforce.
Emerging Issues:
Even with significant improvement, Pradhan Mantri Kaushal Kendras are hindered by critical challenges that constrain their overall effectiveness. Low placement rates continue to be a critical issue, as too many trained and certified candidates fail to find sustainable jobs.
Even when placements are made, salary levels tend to stagnate at approximately ₹30,000 per month, constraining opportunities for youth upward mobility. Furthermore, the ratio of centres to districts reveals an accessibility deficit, with most districts needing additional PMKKs to meet their needs. These problems must be solved in order to drive improved outcomes and ensure that skilling leads to substantive livelihoods.
Way Forward:
It is suggested that a system tie-up should be organised at the local level with small and medium enterprises and local businesses. This would facilitate adaptation of the scheme at the micro level, generate localised job opportunities, and enhance placement performance, making skilling interventions more regionally relevant to economic needs.
It is suggested that superior courses be introduced in parallel with the completion of foundation courses. This would enable candidates to elevate their level of ability and rank by moving forward once they have achieved some specified criteria for high-level training.
Having a formal skill grading system would be a beneficial addition, allowing learners to step up gradually from basic knowledge to specialist skills. This would not only enhance employability but also provide long-term career progression for candidates on the scheme.
References:
- Ministry of Skill Development and Entrepreneurship. (2025). Annual report 2024–2025. Government of India. https://www.msde.gov.in/static/uploads/2024/02/8600d640ec9ca6f66daf4a8a46635f87.pdf
- Ministry of Skill Development and Entrepreneurship. (December, 2017). Pradhan Mantri Kaushal Kendra: Guidelines. Government of India. https://nsdcindia.org/sites/default/files/files/PMKK-Guidelines-December-2017.pdf
- Press Information Bureau. (2021, February 5). Skill development fund and employment opportunities. PIB Delhi. https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=1695636
- Press Information Bureau. (2025, July 14). A decade of building skills & empowering dreams: 10 years of Pradhan Mantri Kaushal Vikas Yojana. PIB Delhi. https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=154880&ModuleId=3
- Press Information Bureau. (2020, February 3). Setting up of skill development centres. PIB Delhi. https://www.pib.gov.in/PressReleasePage.aspx?PRID=1601720
- Press Information Bureau. (2022, January 10). Year end review of Ministry of Skill Development and Entrepreneurship: 3.74 lakh people have been enrolled, 3.36 lakh trained, 2.23 assessed, and 1.65 lakh certified under PMKVY 3.0. PIB Delhi. https://www.pib.gov.in/PressReleasePage.aspx?PRID=1788919
- Press Information Bureau. (2025, July 12). Rozgar Mela: Jobs, skills, growth. PIB Delhi. https://www.pib.gov.in/PressNoteDetails.aspx?id=154875&NoteId=154875&ModuleId=3
About the Contributor:
Atharva Salunke is a Policy Research Associate at NITI TANTRA and a Research Intern at IMPRI. He has recently graduated with a Bachelor’s degree in Political Science from Sir Parashurambhau College, Pune.
Acknowledgement: The author extends his sincere gratitude to the IMPRI team and Ms. Aasthaba Jadeja for her invaluable guidance throughout the process.
Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.
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