NITI Aayog finds gaps in apprentice scheme push, recommends 5-point reform plan

NITI Aayog report finds sharp state-level disparities and limited active participation under NAPS and NATS, suggests roadmap to strengthen skilling ecosystem.

NITI Aayog CEO B. V. R. Subrahmanyam launching the 'Revitalising India’s Apprenticeship Ecosystem: Insights, Challenges, Recommendations and Best Practices' report | Udit Bubna | ThePrint

New Delhi: At a time when India is banking on its demographic dividend, NITI Aayog has flagged a structural weakness in the country’s NITI Aayog—despite policy push and financial incentives, industry participation and regional balance remain uneven, limiting the scale and impact of skill development.

The report, ‘Revitalising India’s Apprenticeship Ecosystem: Insights, Challenges, Recommendations and Best Practices’ launched Friday says, “As of FY 2024–25, over 51,000 establishments were active under the National Apprenticeship Promotion Scheme (NAPS), yet data reveals stark regional disparities in engagement and completion that vary across states and UTs.”

Launched in 2016 by the Ministry of Skill Development and Entrepreneurship, NAPS aims to provide on-the-job training to candidates between 14 and 35 years of age across sectors. The scheme incentivises employers by reimbursing 25 per cent of the prescribed stipend, capped at Rs 1,500 per month per apprentice.

Under NAPS, the number of registered establishments stands at 1,95,939, but only 51,133 were active in FY 2024-25—highlighting what the report identifies as a “lower ratio of Active Establishments under NAPS”.

The imbalance across states is sharp. The top 10 states account for 79 per cent of registered and 84 per cent of active establishments, while North Eastern states and Union Territories together account for barely 4 per cent.

On the apprentice side, registrations under NAPS have grown 1.15 times over seven years, while engagements have risen 27.7 times. However, engagement remains skewed, with 76 per cent of engaged apprentices in the top 10 states.

In FY 2024-25, 13.09 lakh apprentices registered and 9.85 lakh were engaged. However, only 2.51 lakh completed the training—just 19.1 per cent of those registered that year, pointing to persistent completion gaps.

Apart from NAPS, the report also analyses the National Apprenticeship Training Scheme (NATS), administered by the Ministry of Education, which focuses on graduate and diploma holders and offers six months to one year of structured on-the-job training.

Under NATS, the number of engaged apprentices has risen sharply, reaching 5.23 lakh in FY 2024-25—almost double the previous year. Cumulatively, 14,05,727 apprentices were engaged between FY 2019-20 and FY 2024-25, but 83 per cent were concentrated in the top 10 states, including Maharashtra (21.4 per cent) and Tamil Nadu (17.6 per cent).

Overall, the report outlines five broad categories of challenges: Multiple policies, structural and regulatory gaps, regional disparities and limited industry participation—particularly among MSMEs and start-ups. Apprentice side challenges are low completion rates, low participation of women, and limited awareness and career counselling.

Launching the report, NITI Aayog CEO, B. V. R. Subrahmanyam said there is a need to drive higher participation in NAPS and NATS programme.

“Everybody wants a white-collar job sitting on a desk, even if a chap doing a blue-collar job may be earning twice the income,” he said, adding, “we need to change this by making working with your hands more respectable and attractive.”

NITI Aayog recommendations

To address these roadblocks, NITI Aayog proposes a five-pillar reform roadmap.

Under policy reforms, it recommends creating a National Apprenticeship Mission and a unified National Apprenticeship Portal to streamline governance. It also calls for targeted incentives to promote apprenticeship engagement among aspirational districts, North East states, and women apprentices.

To strengthen the regulatory framework, the federal think tank recommends establishing an Apprenticeship Engagement Index to benchmark and enhance apprenticeship efforts of States and Union Territories. It also calls for robust evaluation of apprenticeship programmes and apprentice competencies.

The report calls for state- and district-level interventions, suggesting targeted support for “high-potential, yet low-performing special districts” to improve completion and transition outcomes. “Introduce recognition/reward initiative for top 25 districts based on apprenticeship growth metrics,” the report recommends.

It also seeks deeper participation by micro, small, and medium enterprises (MSME) through cluster-based approaches, integration with the start-up ecosystem, and aligning apprenticeships with the gig and platform economy.

“By introducing startup specific apprenticeship incentives, the Central and state governments can enable early-stage ventures to hire and provide on-the-job training to youth without incurring excessive financial burdens,” the report states.

Finally, the Aayog calls for stronger apprentice support—including travel and accommodation assistance for marginalised candidates, expanded insurance coverage, structured career counselling, international mobility pathways, and specific measures to enhance women’s inclusion.

(Edited by Viny Mishra)