Policy Update
Prabhjot Dayal
Background
The Craftsmen Training Scheme (CTS) is the flagship long-term vocational training program offered by the Directorate General of Training (DGT) within the Ministry of Skill Development and Entrepreneurship (MSDE). The program is executed through Industrial Training Institutes (ITIs) located all over India. The program was initiated in the early years following India’s independence with the intention of standardizing basic craft training in the country’s industries, ensuring the supply of semi-skilled and skilled manpower to the formal as well as the informal sectors. The basic idea behind the CTS is to provide NSQF-aligned time-bound training in engineering as well as non-engineering trades to help youth find employment, self-employment, as well as opportunities for higher vocational education.
Currently, the CTS program covers 169 national trades, including 31 “New Age” trades such as Artificial Intelligence, Cybersecurity, Drones, Renewable Energy, etc., through the extensive network of ITIs that operate through the NCVT-MIS portal, which controls the entire trainee lifecycle from admission to certification. The DGT’s latest set of guidelines also mandate 150 hours of compulsory industry-linked practical exposure or group projects as part of every CTS program, indicating the shift towards outcome-based training.
The education system in post-independence India has been very generalist and academic in orientation, yielding few vocational graduates in the formal sense, even though there has been significant growth in manufacturing and infrastructure development which has required craftspeople in engineering, construction, and services. The establishment of ITIs in the 1950s-60s through CTS marked the first large-scale effort to “vocationalise” some of the workforce. However, the quality and labour market orientation of these institutions have been mixed. Successive policy documents, such as the National Policies on Skill Development in 2009 and 2015 have highlighted skill gaps, poor employability of school- and college-going youth and curriculum mismatch as key issues affecting productive employment and industrial competitiveness.
The recent chapters in the Economic Survey on employment and skill development note that only 8-10% of the working population had any formal vocational training in the late 2010s. This led to the launch of the Skill India Mission in 2015 and a re-engineering of CTS and apprenticeship programs.
The skill development strategy reports from NITI Aayog note that India has to shift from a “quantity-driven” skill development approach to a quality-based, certification-based, and industry-aligned skill development model, in which ITIs have to play a central role in the “vocational education highway” from school to higher education to work. The new framework in which CTS operates is not merely a technical training program but one that has implications for demographic dividend management, industrial upgradation, women’s empowerment, and rural youth.
CTS is largely geared towards school and college-leaver youths, especially those looking for entry-level technical livelihoods, as opposed to academic-based careers. Eligible students include 10th/12th pass-outs, drop-outs, and sometimes former ITO trainees and ITI graduates looking for further upskilling, depending on their trade and state-wise norms. The scheme also focuses on marginalised groups, such as women and rural youths, through separate ITIs and women-centric courses, while linking CTS with apprenticeships and higher educational courses like diplomas.
With regard to its reach, CTS operates through a massive network of ITIs, with over 15,000 ITIs in operation in India as of 2024-26, with 3,300-3,400 government ITIs and over 11,700 private ITIs, imparting training in over 160 trades. Further, according to the DGT MIS portal (NCVTMIS), tens of thousands of trainees are enrolled under CTS every year, with over 45,000 trainees enrolled under the long-term skilling scheme of CTS/DST in 2023-24, with a seat utilization rate of 75-80% in total, according to the MSDE annual report 2023-24.
The Skill India Mission along with its respective dashboards, indicates a significant increase in the number of ITIs, with 9,800 ITIs (2014) which increased to over 14,500-15,000 (2025-26) indicating a deliberate push to increase CTS-based infrastructure and route more youths through this system of skilling. Thereby indicating a significant presence of CTS-based ITIs, which is arguably the largest public-private vocational training infrastructure in India with high penetration in both urban and semi-urban areas; while quality, trainer, and other issues are still a subject of policy debates.
Functioning
The institutional structure of the CST is multi-tiered and is governed by the Directorate General of Training (DGT) in association with National Council for Vocational Education and Training (NCVET/NCVT) and State Councils for Vocational Training (SCVT). The main implementing agency is Industrial Training Institutes (ITIs). The DGT, under the aegis of the Ministry of Skill Development and Entrepreneurship (MSDE) is the apex body responsible for coordination of long-term vocational training programs. It is responsible for laying down norms and affiliations in association with the CST system implemented in ITIs.
NCVET, which replaced the National Council for Vocational Training, has become a regulatory body recognizing and regulating awarding bodies and assessment agencies across India. On the other hand NCVT is responsible for laying down norms in association with standards of syllabi, infrastructure, qualifications of trainers, and examination norms in ITIs.
State Councils for Vocational Training are responsible for state-level trade tests and state-level certificates, particularly in cases of trades in individual states and non-NCVT-affiliated Industrial Training Institutes. NCVT/NCVET-affiliated trades are governed by uniform standards across India. As per the operational and examination manuals of DGT, only ITIs accredited and affiliated by NCVET/NCVT and SCVT are eligible to conduct All India Trade Tests and award National Trade Certificate and state-level certificates, respectively.
This structure ensures that CST is part of a regulated multi-tiered structure of TVET in India, with MSDE, DGT, NCVET/NCVT, and SCVT jointly determining standards and quality assurance mechanisms in ITIs across India.
According to CTS, training is delivered through trade-specific courses, with durations ranging from 6 months to 2 years, depending on the technical complexity and level of training as prescribed under NSQF. The basic trades include Fitter, Electrician, Welder, Mechanic Motor Vehicle, etc., and more recent additions include ‘NSQF-Aligned Trades’ such as Early Childhood Educator, Driver-Cum-Mechanic, etc.
The structure includes a time-bound approach, divided into semesters, with a combination of theory, in-shop training, and periodic assessments. The curriculum documents and trade-wise syllabi prescribed in the DGT curriculum documents, to be adopted or modified with NCVET/NCVT affiliation, include specific unit-wise learning outcomes, minimum training hours (1,260 hours for 2-year courses, etc.), and a specific ratio of professional skills, trade theory, and workshop practices.
The certification process is linked to All India Trade Test (AITT) conducted for NCVT-affiliated ITIs, where successful completion of written and practical tests leads to the award of National Trade Certificate, enhancing employability and portability across states. For SCVT-affiliated ITIs, trade tests are conducted at state levels, and successful candidates are awarded State Trade Certificates, as prescribed under specific SCVT guidelines and within the broader framework of NCVET/NCVT quality assurance mechanisms. The guidelines on ITI course structure and NCVT-DGT examination guidelines ensure that training under CTS not only includes a time-bound, modular approach to training but also an outcome-based approach, leading to certification at a national level.
Performance
Over the past 2-3 years, the CSTS has been functioning through the vast network of 15,000 Industrial Training Institutes (ITIs) comprising 3,300 government ITIs and over 11,700 private ITIs with an approximate sanction strength of several million seats (MSDE, 2023). The DGT MIS (NCVT-MIS) dashboard and the MSDE reports also reveal that long-term skilling through CTS-linked ITIs has registered an approximate enrollment of 45,000-50,000 trainees every year for 2-year trades, with an approximate seat utilization rate of 75-80%. This also confirms the substantial but scattered coverage of CTS-linked ITIs in the country.
The starred questions posed by various MPs during the recent Lok Sabha sessions also reveal that the number of ITIs has increased from 9,800 in 2014 to over 14,500-15,000 in 2025, indicating the gradual growth in CTS-linked infrastructure facilities but also the disparities in the actual utilization of the facilities provided by the ITIs located in various parts of the country (PIB, 2024; PIB, 2025).
The funding for CTS-linked skill training is provided through the Ministry of Skill Development and Entrepreneurship (MSDE) as part of the “Skill Development” budgetary allocation in the Union Budget with allocations in the range of thousands of crores of rupees every year through centrally sponsored schemes such as the “Skill India Mission” (Economic Survey, 2024; Budget, 2025).
From the Economic Survey sections on employment and the Demand for Grants documents pertaining to the Ministry of Skill Development, it is evident that the Ministry’s allocations have gradually shifted towards upgradation and modernisation of ITI infrastructure, lab equipment, trainer recruitment, and digital skilling, with an increasing proportion being allocated to quality-based outcomes rather than mere enrollment (Economic Survey, 2024; Demand for Grants, Ministry of Skill Development, 2025). Yet, as the Parliamentary Standing Committees and other committee reports point out, the actual expenditure executed on ITI-centric skilling initiatives lags behind allocations, particularly in smaller states and in areas such as infrastructure upgradation and women-centric courses (Standing Committee, 2024; PIB, 2025).
From the reports published under the Skill India Mission and the PIB releases pertaining to the success of the skill development initiatives, it is evident that only a minuscule proportion of the graduates passing out from the ITI CTS programs actually get employed in the formal sector, with many being employed in the informal sector, despite the nationally recognized National Trade Certificate (NTC) (Skill India, 2025; PIB, 2025).
As the Parliamentary Standing Committees and expert committee reports on the success of the skill development initiatives point out, it is true that over one crore youth get trained every year under the initiatives related to the Skill India Mission. Yet, the actual verified employment rates for the ITI CTS programs remain in the high hundreds only, varying widely depending on the trade, state, and gender (Standing Committee, 2024; MSDE, 2023).
Moreover, the apprenticeship linkages, which is one of the important initiatives under the Apprentice Act and the CTS reform initiatives, is still in its nascent stages. As the PIB releases and the MSDE reports point out, although the registration for apprenticeship programs is increasing, it still remains low compared to the actual number of ITI graduates (MSDE, 2023; PIB, 2025).
Impact
The Craftsmen Training Scheme (CTS) has resulted in a marginal increase in employability through its efforts in placing a number of hundred thousand youths in formal and informal sector jobs, especially in manufacturing, construction, and services, although this remains a mixed bag with a focus on a small number of high-demand occupations (Economic Survey, 2024; MSDE, 2023; ILO, 2022).
Even as ITI graduates who undergo training in CTS show higher levels of job access than their untrained counterparts, they still end up in jobs with low wages or in the informal economy, which indicates a significant mismatch in training supply and quality demand in industry, despite MSDE and other international agencies’ acknowledgement of its role in raising basic levels of technical employability and its support for national-level industrial policy interventions such as Make in India (NITI Aayog, 2024; Ministry of MSME, 2023).
The Craftsmen Training Scheme also contributes to social inclusion through its efforts in raising vocational levels for rural youth, Scheduled Castes, Scheduled Tribes, and other marginalised groups, with MSDE data showing a gradual increase in female participation in a number of trades, although gender disparities in participation and job placement are wide (MSDE, 2023; UNDP India, 2023).
Labour force participation surveys conducted at the household level show that youths with formal vocational qualifications, such as those holding NTCs, are more likely to be in formal sector jobs in non-agricultural occupations and less likely to be in self-employment without protection, indicating a significant level of upward mobility for socially and economically disadvantaged groups in India, although this is marginal and not transformative in nature (NSSO/PLFS, 2022-23; UNDP India, 2023).
Emerging Issues
Outdated curriculum
Occupational standards and ITI curricula developed as part of the Craftsmen Training Scheme are often outdated, especially in the rapidly changing requirements of the IT sector and the service sector. Parliamentary committee reports as well as the NITI Aayog study on ITI reforms discuss the issue of curriculum-occupation mismatch as an important barrier to the employability of ITI students. This is evident from the reports submitted by the parliamentary committees as well as the NITI Aayog study on ITI reforms. DGT affiliation as well as inspection guidelines also recognize the issue of outdated curriculum as an important barrier to the employability of ITI students.
Low employability despite training
While the youth who undergo ITI-level training do enter the workforce, many remain in low-skill occupations, as observed from the PLFS as well as vocational training reports. The Economic Survey, as well as reports based on the PLFS data, also recognize the issue of low skill as well as low employability among the youth who undergo ITI-level training. The reports observe that less than 10 percent of the workforce holds vocational qualifications; hence, the issue is not about the lack of training but the quality of employment.
Weak industry linkage
The skill gap/ITI transform reports issued by NITI Aayog highlight the issues of thin industry partnerships, weak apprenticeship embedding, and a lack of feedback mechanisms between industry and trainers (NITI Aayog, 2023, NITI Aayog, 2025). The sub-group reports of Chief Ministers on skill development also indicate similar issues with fragmented and silo-based initiatives, with a push for a stronger industry-led qualification pack and a placement-based curriculum (NITI Aayog Sub-Group, 2025).
Regional disparities in ITIs
DGT affiliation and grading statistics show a wide variation in ITI density and utilization in different states, with a weaker presence in mountainous and backward regions, despite a national-level figure of over 14,000 ITIs (NCVT-MIS, 2024, DGE, 2022). Research on linking geo-tagged ITI grade data with NITI Aayog reports on regional skill landscape papers highlights a situation where students in less developed regions are at a disadvantage with a lower number of nearby graded ITIs, thereby further accentuating skill disparities (NITI Aayog, 2023, NITI Aayog, 2025).
Gender gap in participation
The MSDE reports on annual activity indicate a continued gender imbalance in ITI/CTS enrollments, with women comprising a small percentage, especially in core engineering trades, although there is a higher percentage in certain service-oriented and new-age trades (MSDE, 2023, MSDE, 2024). NSSO and PLFS reports indicate a continued under-representation of women in steady, formal sector jobs in vocations, which further highlights issues with job market absorption (NSSO-EUS, 2011-12, PLFS, 2022-23).
Way Forward
Thus, a credible “way forward” for the Craftsmen Training Scheme would entail modernising the curriculum, deepening industry integration, and inclusive skilling. For instance, NITI Aayog’s latest reports on skill development and ITI reform highlight the need to move beyond rigid, engineering-focused trade curricula and instead move towards NSQF-aligned, modular, and modern curricula that include skills in areas like IT, automation, green energy, and services, and update these periodically through sector skill councils and ITI reform initiatives like those undertaken by the Ministry of Skill Development and Entrepreneurship (MSDE) (NITI Aayog, 2023; NITI Aayog, 2025; MSDE, 2023).
For deepening industry integration, the Skill India Mission reports suggest the incorporation of mandatory apprenticeships and industry-specific qualification packs in ITIs, which have been recommended by the ILO in terms of apprenticeship models that can be integrated with on-the-job training and wage protection (ILO, 2022; Skill India Mission, 2025).
For inclusive skilling, UNDP India’s reports and policy briefs aligned with the Sustainable Development Goals, specifically SDG-8, highlight the need to ensure gender-sensitive ITIs, rural skilling, and inclusive skilling in areas like care, IT, and green energy, and the Ministry of Skill Development and Entrepreneurship’s gender inclusion policies and annual reports highlight the commitment to increasing female enrollment and achieving specific outcomes in terms of placements for women and other marginalized groups to ensure that CTS-based skilling initiatives promote decent work and social inclusion (UNDP India, 2023; MSDE, 2023; UNDP, 2015).
References
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About the Contributor
Prabjot Dayal, a Research & Editorial Intern at IMPRI, is a postgraduate in Political Science from Panjab University, Chandigarh, with a specialization in Feminist Political Theory and State Politics. Her research and professional interests lie in public policy, gender justice, and inclusive governance, informed by her experience in student leadership, policy advocacy, and community engagement.
Acknowledgement
The author sincerely thanks the IMPRI team for their constructive comments and editorial guidance during the review of this policy update.
Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.
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