India's PMKVY scheme boosts wages by 35% for certified workers in five years
India's Pradhan Mantri Kaushal Vikas Yojana (PMKVY) has become one of the country's largest skill development schemes since its launch in 2015. Over the past decade, the programme has trained 1.64 crore candidates, with 1.29 crore receiving certification and 24.3 lakh securing jobs. Recent data now shows that certified workers earn significantly more than their non-certified peers.
The scheme was introduced by the Ministry of Skill Development and Entrepreneurship (MSDE) to address India's growing need for a skilled workforce. It offers two main components: Short-Term Training (STT) for new skills and Recognition of Prior Learning (RPL) for those already experienced in a trade. Training durations under PMKVY 4.0, launched in 2022-23, range from 300 to 600 hours, depending on industry demands.
An evaluation by the National Skill Development Corporation (NSDC) found that RPL-certified workers saw wage increases of 25–35% over five years (2021–2025). In contrast, non-certified workers experienced growth of just 10–15%. Sectors like manufacturing and construction showed the highest wage premiums for certified employees. Employers have also shown strong confidence in PMKVY-trained candidates, according to independent studies by NITI Aayog and the Indian Institute of Public Administration. Despite this, dropout rates in PMKVY 4.0 have remained a concern, fluctuating between 28.35% and 30.59% in recent years. The latest phase of the scheme places greater emphasis on on-the-job training, industry-aligned courses, and special projects for marginalised groups. Government funding has risen accordingly, with ₹1,538 crore allocated for 2024-25. So far, 1.29 crore candidates have been certified, and 24.3 lakh have found employment—a placement rate of 42.8%.
PMKVY continues to play a key role in preparing India's youth for the job market. With higher wages for certified workers and sustained government investment, the programme aims to bridge the gap between training and employment. However, reducing dropout rates remains a challenge as the scheme expands its reach.
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