By Sumit Kumar
Budget 2025: India has made notable strides in skill development and workforce participation in recent years. Over the last three years, the growth in apprenticeships is around 30%, and the number of employers engaged with apprentices has doubled to 40,000. Also, the registered industries in apprenticeships are reaching the 2 lakh mark.
This is a great feat achieved. However, with the transformation of work, workforce, and workplace due to the advent of AI and new sectors requiring specialised workforce for skill-based job roles, we need unprecedented growth in skilling initiatives.
As we approach the budget 2025, there is a pressing need to build upon these achievements, and this year, we expect the budget to prioritise skill-based employment generation and inclusive growth, with a central focus on increasing women’s labour force participation.
The government must prioritise promoting increased participation of women in the workforce through an apprenticeship platform that gives opportunities to women, especially to upskill and gain relevant hands-on experience to be employable in the formal sector.
Targeted financial incentives and policies need to be implemented to encourage employers to engage with women apprentices. Employers could be incentivised for building supportive infrastructure such as crèches, safe working spaces, dedicated transportation facilities, and accommodation for migrants, ensuring safety and welfare.
Mobilisation is a critical element for skill development. Furthermore, improving access to apprenticeships in underserved areas is crucial. We recommend the introduction of a one-time allowance for candidate mobilisation, ensuring that apprenticeships reach individuals in socio-economically disadvantaged communities, particularly in rural and underserved urban areas.
To further support migrant workers, the government must focus on creating hostels, affordable accommodation facilities, and other essential support systems to ensure their smooth integration into the workforce and society. Additionally, addressing the subsidy parity between the National Apprenticeship Promotion Scheme (NAPS) and the National Apprenticeship Training Scheme (NATS) is essential to ensure equal financial support for both employers and apprentices, making these programmes effective.
Streamlining and simplifying the regulatory framework and unifying apprenticeship guidelines will further reduce administrative burdens, increase efficiency, and allow these programmes to scale effectively. Moreover, the introduction of industry-friendly UGC guidelines for work-integrated education programmes will ensure that the skills developed align with industry demands and remain future-proof. This will encourage industry-academia collaboration, recognising the establishment of industries as a new and effective classroom for learning, which is much needed.
Furthermore, expanding work-integrated learning programmes and internships is vital to bridging the gap between education and employment. We suggest that the budget 2025 significantly enhance the PM Internship Scheme, providing youth—especially those from disadvantaged educational backgrounds—with the chance to gain industry-relevant experience.
By equipping school dropouts and undergraduates with targeted skill development opportunities, the government can help them re-enter the workforce, reduce dropout rates, and create clear pathways to long-term employment.
For undergraduates, these opportunities can include work-integrated learning programmes, degree apprenticeships, and industry-specific certifications that allow them to gain hands-on experience while completing their education. Also, linking PMIS with NEP, by recognising the internship component, which is taken up in industry, under UG programmes offered by HEIs. Expand the internship opportunities beyond the Top 500 spenders in CSR, including medium enterprises as well.
Alongside, the budget 2025 must allocate funds to create robust digital infrastructure to enhance skilling platforms for seamless operations and scalability of execution of apprenticeships and other skilling initiatives, including the launch of a mobile application. To further strengthen these initiatives, streamlining regulatory processes and promoting public-private partnerships will be crucial in creating a more inclusive, accessible, and efficient skilling infrastructure.
The growth of MSMEs, which are crucial to the Indian economy, can be further supported by expanding access to apprenticeships and work-integrated learning programmes, allowing them to develop a skilled workforce while contributing to broader economic goals.
The author is Chief Strategy Officer, TeamLease Degree Apprenticeship. Views are personal.
