The study was sponsored with financial support ofNITI Aayog, Government of India and conductedby Centre for Economic Policy Research, Amritsar. DISCLAIMER Centre for Economic Policy Research, has received the grant under the ResearchScheme of NITI Aayog, 2015 to produce the document. However, NITI Aayog shallnot be responsible for findings or opinions expressed in the document prepared.This responsibility rests with Centre for Economic Policy Research, Amritsar. Preface The ever increasing population in the country cannot be ignored as an area of concern for a longperiod of time. A large population poses a challenge of actively engaging young people inopportunities of employment and value creation. Especially, in an economy like India where thepopulation embodies a variety of characteristics, the imperative role of education as well asvocational education cannot be turned down. Infact, vocational education and attempts at skillbuilding of youth become most important aspects to gainfully engage the vast young population. Toconsecrate the role of vocational education and training in India, several initiatives have been takenup by the Government in recent years. This was done to motivate students to acquire skills in a widevariety of job roles which could render them employment ready in consonance with the futurerequirements of the industry. This report is an initiative to assess the impact of the Pradhan Mantri Kaushal Vikas Yojana(PMKVY) which is a flagship programme of the Govt. of India for promoting skill development inthe country. Since its inception from 2016, the PMKVY programme has done victoriously well inachieving its set targets. Various other initiatives have been taken up by the Government under thePMKVY programme as a part of the main agenda to achieve the objectives. The report talks about the present scenario of skill development in the country. It provides an insightabout the challenges and problems being faced by the institutions as well as the students involved inthe skill development programme. The report provides an account of the state-wise analysis ofstudents belonging to the selected five states in the country, the demographic requirements of thesestates and possible changes in policies that may help in achieving the targets effectively. The challenges and problems being faced by the skill development programmes in India arediscussed in detail. The suggestions and way forward at the last chapter conclude the report. Acknowledgement This report is a novel effort of the Centre for Economic Policy Research (CEPR) for studying the impactof Pradhan Mantri Kaushal Vikas Yojana (PMKVY). Dr. Subhash Sharma, the Director of CEPR provided his timeless support for the project. He bestowed uswith his wisdom and insight and helped us triumph over the stumbling blocks which we encounteredduring the study. Sh. Manish Kumar, the CEO of NSDC was instrumental in devising a framework for the project'sdevelopment in throughout all the stages of this project. His contribution in this regard is invaluable forboth guiding the work and keeping it focused. The team from NSDC responded to authors' requests foradditional information with astonishing promptness and thoroughness. We appreciate the fine work and unwavering support of the NITI Aayog team as well. We are grateful fortheir assistance and timely appraisals that helped us in understanding the absolute visual of this project. The Sector Skills Council (SSCs) worked fervidly in providing required information throughout theproject. The administrative staff of CEPR lent their unterminable support throughout the project. With theinception of this project, the CEPR team has worked round the clock for collection of data and filling allthe information so received. They provided valuable feedbacks throughout the writing of the report.They gave freely of their time to help the authors understand the factors that have influenced filingsduring the project. The CEPR project team would like to thank the field investigators who helped us in conducting thePhase-I study. The data collected in this project is an indispensable result of their efforts. Summary of Tables &Figures List of Figures List of Tables List of Annexure Summary Tables Summary Tables Executive Summary Consequential to the process of economic development, the economic reforms in the country led India tobecoming one of the fastest growing economies in the world. The economic reforms which started from1980s transformed the overall structure of the economy and shifted the focus of economy to the servicessector. With an aim to increase the role of manufacturing sector in the economy, a need to boost the skillsof the workforce was felt. This led to the recognition of vocational training as the required driving forcein the country. With India possessing the largest demographic dividend which would be at its peak in 2020 and isexpected to last till 2040, it becomes imperative for the p