The Pradhan Mantri Kaushal Vikas Yojana (PMKVY), launched in 2015, has progressively evolved towards demand-driven, industry-aligned and outcome-oriented skilling. PMKVY 1.0 established the national framework for short-term training, certification and Recognition of Prior Learning; PMKVY 2.0 expanded sectoral and geographical coverage, introduced State-led implementation and promoted convergence with national priorities and missions; while PMKVY 3.0 strengthened decentralized, bottom-up planning through State Skill Development Missions and District Skill Committees for identifying local skill gaps, employment opportunities and training requirements. Under PMKVY 4.0, training targets and job roles are prioritized based on national priorities and missions, State and District Skill Development Plans, industry demand, skill-gap assessments, institutional capacity and implementation readiness. The Scheme also prioritizes new-age and futuristic job roles in areas such as Artificial Intelligence, cyber security, semiconductors, 5G, Internet of Things, drone technology, green energy and additive manufacturing, thereby linking national development priorities and regional workforce requirements with employment oriented skills.

Further, Skill Impact Bond, launched through the National Skill Development Corporation (NSDC), was designed to benefit 50,000 youth over four years, with at least 60 per cent women, by shifting the focus from training and certification alone to sustained employment outcomes. As on 1^st July, 2026, 51,869 candidates have been enrolled and 48,437 have been certified under this initiative.

The Ministry and the NSDC have exchanged anMemorandum of Understanding (MoU) for establishing a Skills Outcomes Fund on 15^th July, 2026 with a proposed corpus of approximately ₹530 crore. Anchored by NSDC under the aegis of MSDE, the Fund seeks to mobilize Government support, Corporate Social Responsibility investments and philanthropic capital to support over two lakh youth through industry-aligned skilling, employment, entrepreneurship and sustainable livelihood pathways. The Fund also focuses onplatform for piloting innovative approaches, including skill vouchers, skills-financing mechanisms and entrepreneurship-led models, with greater accountability for measurable outcomes.

These reforms demonstrate the Ministry’s continuing shift from an input- and training-volume-based approach to a demand-responsive framework focused on measurable employment, retention, income and livelihood outcomes.

The Ministry conducts periodic independent evaluations of PMKVY to ensure quality and accountability. An evaluation by NITI Aayog (October 2020) indicated that approximately 94 percent of surveyed employers expressed willingness to hire more candidates trained under PMKVY. The study also noted that 52 percent of candidates placed in employment or oriented under the Recognition of Prior Learning (RPL) component reported receiving higher salaries or expecting improved earnings compared to uncertified peers. An independent evaluation of PMKVY 2.0 conducted by the Indian Institute of Public Administration (IIPA) found that about 70.5 percent of surveyed candidates were placed in their desired skill sector.

More recently, an independent third-party impact evaluation of the PMKVY 4.0 has been conducted by Arun Jaitley National Institute of Financial Management (AJNIFM), an autonomous institution of Ministry of Finance, Government of India. As per the report, PMKVY training has contributed to a measurable shift in employment outcomes for Short Term Training (STT) candidates. The combined share of employed and self-employed STT respondents increased from 26.6% prior to training to 45.4% after PMKVY training, reflecting an 18.8 percentage point increase. Income-related outcomes also show positive movement, with 41.4% of STT candidates and 48.9% of RPL candidates reporting an increase in income following training and certification. Overall, PMKVY 4.0 has significantly expanded access to formal skill training and certification and has generated measurable improvements in skill confidence, employment participation, and income outcomes for a substantial proportion of beneficiaries.

The Ministry has collaborated with a wide range of industries to strengthen the implementation of skilling initiatives under PMKVY through strategic partnerships and industry-driven interventions. Memoranda of Understanding (MoUs) have been signed with leading employers across sectors, including Air India SATS, Flipkart SCOA, and CMR Greens, to facilitate industry-relevant skill training. Further, more than fifteen leading companies, such as HCL Technologies, IBM, Bajaj Finserv, and Microsoft, have been designated as Awarding Bodies to develop job roles aligned with evolving industry requirements. The Ministry has also promoted industry-linked skilling through dynamic skill gap studies, industry-aligned curriculum design, and training delivered at industry premises, thereby improving placement outcomes. To further strengthen the skilling ecosystem, industry consultation workshops have been organized to deliberate on innovative approaches and the establishment of Centres of Excellence. In addition, On-the-Job Training (OJT) has been integrated into short-term skilling programmes to provide trainees with practical workplace experience and enhance their employability.

The year-wise Budget Estimates, Revised Estimates and actual expenditure under PMKVY during the last three financial years are as under:

(₹ in crore)

Financial Year	Budget Estimate (₹)	Revised Estimate (₹)	Actual Expenditure (₹)
2023-24	1,558.00	920.00	510.52
2024-25	1,938.30	1,538.00	1,538.00
2025-26	1,915.00	1,100.00	265.57

 

This information was given by the Minister of State (Independent Charge), Ministry of Skill Development and Entrepreneurship (MSDE), Shri Jayant Chaudhary in a written reply in the Rajya Sabha today.

 

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SH

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