Why in news?
A performance audit by the Comptroller and Auditor General (CAG) and a report of the Public Accounts Committee presented in the Lok Sabha in June 2026 highlighted serious shortcomings in the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), India’s flagship skill development scheme.
Background
Launched in July 2015 by the Ministry of Skill Development and Entrepreneurship, PMKVY provides short‑term training and recognition of prior learning to young people. Trainees who complete courses receive certification and a modest monetary reward. The scheme has gone through three phases (2015–16, 2016–20 and 2020–24) with a combined target of training over 1.3 crore candidates in industry‑relevant skills.
Key issues identified by the CAG
- Low placement rates: Out of about 56 lakh candidates certified under the short‑term training and special projects components, only 41 % secured employment. Trainings were often offered in sectors such as apparel, electronics and retail that showed low labour demand, leading to a mismatch between skills and industry needs.
- Lack of skill‑gap analysis: The audit found that job roles were selected without assessing micro‑level skill gaps or employer demand. A national skill development plan, envisaged in the third phase, was not prepared on time.
- Irregular enrolments: Candidates were enrolled without proper verification of age, education or work experience. Mechanisms to identify and onboard school dropouts and unemployed youth were weak. The CAG recommended integration with the UDISE database to improve targeting.
- Unspent funds and unpaid rewards: Nearly one‑fifth of the funds allocated to states between 2016 and 2024 remained unused. About 36 % of trainees did not receive the ₹500 reward due to incomplete bank details and administrative delays.
- Poor monitoring and irregularities: Only 13 % of training batches complied with the requirement of Aadhaar‑based attendance tracking. Some implementing agencies submitted edited photographs as evidence of training, and inspectors were reported to have visited multiple centres in different states on the same day. Geotagging was missing in most inspection reports.
- Lack of coordination: The audit noted insufficient convergence between central and state skill initiatives. Without a unified roadmap, duplication of efforts and gaps in coverage persisted.
Conclusion
PMKVY was conceived to equip India’s youth with employable skills, but the CAG’s findings reveal systemic weaknesses. To make the programme effective, training courses must align with labour‑market demand, beneficiary selection and attendance must be rigorously verified, funds should be released and utilised promptly and monitoring needs to be strengthened. Better coordination with state‑level schemes and industry partners will ensure that certifications translate into meaningful employment.