Sattva Consulting
Understanding the Return on Skills Training Models in India
March 19, 2021

Understanding the Return on Skills Training Models in India

Skill development is a key national priority and is today supported by the government as well as private organizations. Between 2015-20 the flagship skill development program Pradhan Mantri Kaushal Vikas Yojana (PMKVY) reached out to about 72 lakh youth.

Pradhan Mantri Kaushal Vikas Yojana 3.0 launched in January 2021. The five-year plan for PMKVY in 2021-22 has set an ambitious target of skill training 1.5 crore youth. Along with Government efforts, 328 private organizations contributed INR 1653 Cr. towards 775 projects in skill development through CSR funding to reduce the skill gap in India. The union budget 2021 specifically set aside INR 3000 Cr. for training and upskilling of Indian youth, demonstrating the key role that skill development will play in the nation’s post-COVID rebuilding efforts. The large scale of investment in jobs and skills warrants a closer examination on how the sector is performing, and to critically examine the return on investment (ROI) in skill development initiatives.

J.P. Morgan collaborated with NASSCOM Foundation and Sattva to study this. Between April 2020 and February 2021, Sattva analyzed data across 27 skill development organizations and 33,000 candidates trained by these organizations. The sectors included Banking, Financial Services and Insurance (BFSI), ITeS, Construction, Retail and Healthcare.

To gain deeper insights and the overall recommendations read the full report here.


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