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

February 20, 2026 5 min read Polity & Governance Economics Social Issues GS Paper 2 GS Paper 3
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What Happened

  • NITI Aayog released a comprehensive report highlighting significant gaps in India's apprenticeship ecosystem under the National Apprenticeship Promotion Scheme (NAPS) and the National Apprenticeship Training Scheme (NATS).
  • Despite over 51,000 establishments being active under NAPS in FY 2024-25, the report found stark regional disparities, weak industry-academia linkages, fragmented regulatory frameworks, and limited active participation across states and union territories.
  • A persistent gender gap was identified, with male participants dominating both registrations and engagements, requiring targeted interventions for female inclusion.
  • The report noted that rapid economic shifts toward AI and digital technologies are outpacing curriculum revision in traditional Industrial Training Institutes (ITIs).
  • NITI Aayog outlined 20 action-oriented recommendations across five interlinked reform pillars: policy reforms, structural strengthening, state-district interventions, industry engagement, and apprentice support.

Static Topic Bridges

National Apprenticeship Promotion Scheme (NAPS) and NATS

India has two major apprenticeship programmes. NAPS, launched in August 2016 by the Ministry of Skill Development and Entrepreneurship under the Apprentices Act, 1961, provides financial support to establishments undertaking apprenticeship training. NATS is operated by the Ministry of Education for graduate and diploma holders in engineering and technology.

  • Under NAPS, the government pays 25% of the stipend (up to Rs 1,500 per month per apprentice) directly to apprentices, and reimburses up to Rs 7,500 of basic training costs.
  • India had approximately 13.8 lakh apprentices as of July 2022, against an original target of raising engagement from 2.3 lakh to 50 lakh.
  • Small enterprises find the documentation requirements of NAPS vs. NATS confusing, leading to lower-than-potential uptake.
  • The dual-scheme structure (NAPS under Skill Development Ministry, NATS under Education Ministry) creates jurisdictional overlap and regulatory fragmentation.

Connection to this news: The NITI Aayog report's call for a unified National Apprenticeship Portal addresses the fundamental structural problem of two parallel schemes operating under different ministries with different regulatory frameworks.

India's Demographic Dividend and Skill Development Challenge

India has the world's largest youth population, with approximately 65% of its population below 35 years and a median age of about 28 years. The National Skill Development Mission (2015), the Skill India initiative, and the National Education Policy 2020 aim to harness this demographic window, which is projected to remain open until approximately 2055-2060.

  • India needs to skill/reskill approximately 30 crore people by 2030 to meet the demands of a rapidly transforming economy.
  • The Periodic Labour Force Survey (PLFS) shows that only about 4.4% of India's workforce has received formal vocational/technical training, compared to 52% in the US, 68% in the UK, and 75% in Germany.
  • The apprenticeship route is globally recognized as one of the most effective pathways for workforce skilling — Germany's dual education system trains approximately 1.3 million apprentices annually (about 50% of each cohort).
  • India's National Education Policy 2020 envisions integrating vocational education from Grade 6, with internships in local industries and crafts.

Connection to this news: The NITI Aayog findings underscore a critical gap between India's ambition to leverage its demographic dividend and the ground reality of an apprenticeship system that reaches only a fraction of its potential.

NITI Aayog — Role and Mandate

The National Institution for Transforming India (NITI Aayog), established in 2015, replaced the Planning Commission as India's apex policy think tank. It functions as a think tank providing strategic and long-term policy directions, serving as the platform for cooperative federalism by fostering states' involvement in policy-making.

  • NITI Aayog is chaired by the Prime Minister, with a Vice-Chairperson (currently Suman Bery), a CEO, and full-time members. All state Chief Ministers and Lt. Governors of UTs are ex-officio members of the Governing Council.
  • Unlike the Planning Commission, NITI Aayog does not allocate funds to states; its role is advisory, focusing on evidence-based policy design and monitoring.
  • Key functions include monitoring SDG progress at the state level, publishing the Composite Development Index, and conducting evaluations of government schemes.
  • The proposed Apprenticeship Engagement Index (AEI) recommended in this report follows NITI Aayog's established approach of using competitive indices (like the Innovation Index, Health Index, and SDG India Index) to drive state-level reform.

Connection to this news: The report represents NITI Aayog exercising its core mandate of evidence-based policy evaluation, using data to identify gaps in centrally-sponsored schemes and recommending structural reforms to improve outcomes.

Five-Point Reform Framework — Key Proposals

The report outlines 20 recommendations organized into five pillars, representing one of the most comprehensive reform proposals for India's apprenticeship ecosystem.

  • Policy Reforms: Create a National Apprenticeship Mission and a unified National Apprenticeship Portal to streamline governance and end the NAPS-NATS confusion.
  • Structural Strengthening: Introduction of an Apprenticeship Engagement Index (AEI) — a real-time, publicly accessible dashboard ranking states and UTs by engagement performance relative to youth population, industrial base, and skilling infrastructure.
  • State-District Interventions: Targeted incentives for apprenticeship engagement in aspirational districts, North East states, and among women.
  • Industry Engagement: Simplify compliance for MSMEs and align curriculum with emerging technology requirements including AI and digital sciences.
  • Apprentice Support: Travel and accommodation assistance for marginalized candidates, expanded insurance coverage, structured career counselling, international mobility pathways, and measures to enhance women's inclusion.

Connection to this news: The five-pillar approach reflects an understanding that the apprenticeship ecosystem's challenges are structural and multi-dimensional, requiring coordinated action across policy, institutions, industry, geography, and individual support levels.

Key Facts & Data

  • Over 51,000 establishments active under NAPS in FY 2024-25, but with stark regional disparities.
  • India had ~13.8 lakh apprentices (as of 2022) against a target of 50 lakh.
  • Only 4.4% of India's workforce has formal vocational training vs. 68% in the UK and 75% in Germany.
  • NAPS stipend support: Government pays 25% of stipend, up to Rs 1,500 per month per apprentice.
  • 20 recommendations across 5 pillars: policy reforms, structural strengthening, state-district interventions, industry engagement, apprentice support.
  • Proposed Apprenticeship Engagement Index (AEI) for real-time state-level performance benchmarking.
  • Gender gap remains persistent; targeted interventions recommended for women apprentices and aspirational districts.
  • India needs to skill/reskill 30 crore people by 2030.