Centre raises FY27 apprenticeship target by 40%
New Delhi: The Centre has raised its apprenticeship target under the Apprenticeship Training Scheme (NATS) by 40% to 600,000 students in 2026-27 from 428,000 a
New Delhi: The Centre has raised its apprenticeship target under the Apprenticeship Training Scheme (NATS) by 40% to 600,000 students in 2026-27 from 428,000 a year ago, according to two people aware of the development. It has allocated ₹1,250 crore for the scheme in the current fiscal year. The government has also introduced a quality benchmark, requiring that at least 40% of apprentices be rated "good" or above by the industries where they undergo training. The decision is part of the government's efforts to address growing discontent over youth unemployment and the widening gap between academic qualifications and industry requirements, especially after massive student protests that led to Dharmendra Pradhan's exit as Union education minister. Also Read | What is fuelling the surge in GST collections? The NATS, implemented under the Apprentices Act, 1961, to provide on-the-job training to graduates, diploma holders and vocational students, along with the Prime Minister Internship Scheme (PMIS), is central to the government's strategy to improve employability. "The government is aiming to make more young people employable by providing training that is closely aligned with industry demand,” said one of the two people cited above.
The overall unemployment rate for people aged 15 and above stood at 5.5% in June 2026, unchanged from May, according to the Periodic Labour Force Survey (PLFS), India's official employment survey. The annual unemployment rate declined to 6.5% in 2025 from 7.0% in 2024. Skill development Experts say the move is aimed at strengthening the link between skill development and employability, addressing a long-standing mismatch between training outcomes and labour market demand. “Someone has to evaluate how these schemes are performing. If they are not succeeding in integrating youth into the labour market, we need to understand whether the problem lies with the design of the schemes or with weak demand from the private sector,” N.R. Bhanumurthy, director, Madras School of Economics, told Mint. Bhanumurth said that the issue was on the government's agenda even before the recent developments. "That is why it introduced initiatives such as the Employment Linked Incentive (ELI) Scheme and various skilling programmes. The government is doing its part, but it is equally important to examine why the private sector is not absorbing more young workers.” Also Read | India plans ₹5,000 crore Northeast push to strengthen border infrastructure Nishant Kumar, associate professor at the Centre for Political Studies, School of Social Sciences, Jawaharlal Nehru University, said the higher apprenticeship target suggests the government is trying to move beyond skilling to actual employment.
The BriefWire