The Prime Minister Kaushal Vikas Yojana (PMKVY) 4.0, a flagship skill development initiative by the Indian government, significantly missed its targets and budget allocations in the 2025-26 financial year. Data from the Ministry of Skill Development and Entrepreneurship (MSDE) reveals that only 24% of the allocated funds were released, and the scheme achieved just a tenth of its certification goal.
Launched in 2015 under the Skill India Mission, PMKVY aims to enhance employability by providing short-term training, upskilling, reskilling, and recognizing prior learning. The current phase, PMKVY 4.0, began in 2022 and is planned to run until 2026, with discussions underway for a potential PMKVY 5.0. The National Skill Development Corporation (NSDC) is responsible for implementing the program.
Understanding PMKVY and Its Objectives
PMKVY was designed to equip Indian youth with skills relevant to the evolving job market. The 4.0 version emphasizes training in emerging technologies such as artificial intelligence, semiconductors, green energy, electric vehicles, drones, cybersecurity, and robotics. The scheme is demand-driven, meaning funds are allocated based on demand rather than fixed state-wise budgets.
Despite its ambitious goals, the scheme has faced challenges in fund disbursement and utilization, which have impacted its overall effectiveness.
Funding and Performance Details
- From 2023-24 to 2025-26, the original budget for PMKVY 4.0 was Rs 6,811 crore, but only Rs 2,392 crore was released, representing 35% less than planned.
- In 2025-26, only Rs 265.57 crore was released against a budget estimate of Rs 1,915 crore.
- States like Rajasthan and Uttar Pradesh saw sharp declines in fund utilization, with Rajasthan’s expenditure dropping from Rs 292.42 crore in 2024-25 to Rs 34.92 crore in 2025-26.
- Over the last three years, 27,31,699 beneficiaries enrolled, but only 19,13,573 were certified, leaving 30% uncertified.
- For 2025-26, the target was to certify 30 lakh candidates, but only about 3.04 lakh were certified.
- In 2026-27, as of June 30, 85,754 candidates enrolled and 30,247 were certified.
Why PMKVY’s Shortfall Matters
The underperformance of PMKVY 4.0 raises questions about the scheme’s implementation and oversight. The Comptroller and Auditor General (CAG) previously highlighted issues such as missing beneficiary details, financial irregularities, and weak monitoring by the NSDC. These problems contribute to the gap between targets and actual outcomes.
Given the scheme’s focus on emerging technologies, its success is crucial for preparing India’s workforce for future industries. The shortfall in certifications and fund utilization could slow down skill development efforts and affect employment opportunities for youth.
Moreover, the uneven fund release and utilization across states suggest disparities in how the program is managed locally, which could hinder nationwide progress.
Frequently Asked Questions
Q: What is PMKVY 4.0?
A: PMKVY 4.0 is the current phase of the Prime Minister Kaushal Vikas Yojana, a government initiative launched in 2015 to provide skill development training to Indian youth, focusing on new-age technologies.
Q: Why did PMKVY 4.0 miss its certification targets?
A: The scheme faced challenges such as insufficient fund release, poor fund utilization, and administrative issues, leading to fewer candidates being certified than targeted.
Q: How does the funding shortfall affect the scheme?
A: Reduced fund release limits the number of training programs and certifications that can be conducted, impacting the scheme’s ability to meet its goals and prepare the workforce effectively.
