PMKVY 4.0 Skill Development Program Update

The Ministry of Skill Development and Entrepreneurship (MSDE) provided a comprehensive update on its flagship Pradhan Mantri Kaushal Vikas Yojana (PMKVY) scheme, currently in its fourth iteration (PMKVY 4.0) since FY 2022-23. The scheme focuses on imparting skill development training through Short-Term Training (STT) and up-skilling/re-skilling through Recognition of Prior Learning (RPL) to all sections of society.

Training Focus and Outcomes

PMKVY 4.0 emphasizes training in emerging and new-age courses including Artificial Intelligence, semiconductors, electronics, green energy, electric vehicles, drones, cybersecurity, and robotics, with over 600 such courses introduced to meet industry requirements. As of June 30, 2026, approximately 5.44 lakh candidates have been trained in these new-age and futuristic job roles across India.

Historical placement data shows that under PMKVY 1.0, 2.0, and 3.0 (implemented from FY 2015-16 to FY 2021-22), out of 56.89 lakh candidates certified in STT, 24.37 lakh candidates were reported placed, resulting in an overall placement rate of 42.8%. Under PMKVY 4.0, the focus has shifted to empowering trained candidates to choose varied career paths through On-Job Training (OJT) embedded industry-relevant skill courses.

Evaluation Findings

Multiple evaluations demonstrate the scheme's effectiveness. A NITI Aayog study in October 2020 found that 94% of surveyed employers reported they would hire more PMKVY-trained candidates, and 52% of placed RPL component candidates received or expected higher salaries compared to uncertified peers. An Indian Institute of Public Administration evaluation of PMKVY 2.0 (2016-20) found 70.5% of surveyed candidates received placement in their desired skill sector.

A 2025 third-party evaluation by Arun Jaitley National Institute of Financial Management observed that PMKVY training led to measurable employment improvements, with the combined share of employed and self-employed STT candidates increasing from 26.6% pre-training to 45.4% post-training—an 18.8 percentage point rise. Additionally, 41.4% of STT candidates and 48.9% of RPL candidates reported increased income following training and certification.

Funding Allocation

PMKVY 4.0 operates as a demand-driven scheme without state-wise fund allocation. The year-wise financial details from FY 2023-24 to 2026-27 (up to June 30, 2026) show a total budget estimate of ₹6,811.30 crore, revised estimate of ₹3,558.00 crore, and actual funds released of ₹2,392.37 crore. Specific annual releases were: FY 2023-24: ₹510.52 crore (against BE: ₹1,558.00 crore, RE: ₹920.00 crore), FY 2024-25: ₹1,538.00 crore (against BE: ₹1,938.30 crore, RE: ₹1,538.00 crore), FY 2025-26: ₹265.57 crore (against BE: ₹1,915.00 crore, RE: ₹1,100.00 crore), and FY 2026-27: ₹78.28 crore (against BE: ₹1,400.00 crore).

State and Sector Performance

The program achieved significant scale with state-wise training numbers showing Uttar Pradesh leading in total trained candidates (463,503 in FY 2024-25), followed by Rajasthan (280,156) and Madhya Pradesh (259,871). Sector-wise data reveals Electronics and Hardware as the top training sector (485,201 trained in FY 2024-25), followed by IT/ITeS (180,082) and Apparel (137,240).

Industry Collaboration and Digital Integration

Industries play a vital role through standardized training via the National Skills Qualification Framework (NSQF), with Industry-led Sector Skill Councils identifying skill gaps and developing curriculum. Over fifteen industries including HCL Technologies, IBM, Bajaj Finserv, and Microsoft have been designated as Awarding Bodies to develop industry-aligned job roles. The Ministry has also launched the Skill India Digital Hub (SIDH), a unified digital platform integrating skilling, education, employment, and entrepreneurship ecosystems to provide lifelong access to services and connect skilled candidates with employers.