Role Of Skill India Programme In Providing Employment In India

DOI- https://doi.org/10.5281/zenodo.21802071

Abstract

The budget allocation to the Ministry of Skill Development & Entrepreneurship (MSDE) over the period 2020-21 to 2024-25 illustrates an evolving fiscal commitment to upscaling India’s skill development ecosystem, critical for boosting employability and entrepreneurship. The Budget Estimate (BE) shows a clear upward trajectory, rising from Rs. 3002.21 crores in 2020-21 to Rs. 4520 crores in 2024-25, signalling increased government prioritization amid India's growing demand for a skilled workforce aligned with its demographic dividend. However, the Revised Estimate (RE) and actual expenditure figures consistently lag behind the BE, reflecting real-world challenges in fund utilization—such as implementation bottlenecks, infrastructural constraints, or delays in program execution. Notably, in 2022-23, only around Rs. 1474.22 crores were expended against an Rs. 2999 crore estimate. Encouragingly, the gap narrows in recent years, with actual expenditure rising to Rs. 2746.92 crores in 2023-24 and Rs. 2874.76 crores in 2024-25, showing progress toward effective budget absorption. This incremental fiscal trend coincides with Skill India’s expansion into digital skills, emerging technologies, and inclusive skilling initiatives. For these substantial budgetary allocations to translate into tangible employment gains, continuous focus on timely fund release, rigorous project monitoring, infrastructure development, quality enhancement, and industry collaborations remains imperative. Overall, this budget analysis captures both the ambitions and operational realities of large-scale skill development funding in India’s quest for equipping a competitive workforce.

Keywords: Skill Development; Skill-Based Training; Employability; and PMKVY