Fixing the fault lines in PMKVY

India today is a young nation, and this demographic profile is a powerful economic asset. A large share of its population lies within the working-age bracket of 15-59 years, with the 25-44 age group forming the core of the most productive workforce. At a time when many economies are ageing, India's youthful labour pool offers a rare opportunity to accelerate growth and sustain momentum.

As the Indian economy gathers pace, expanding industries and infrastructure demand ever more skilled hands to keep the wheels of production turning. If effectively harnessed, this demographic dividend could propel India towards the goal of becoming a developed economy by 2047. However, this boon can quickly become a bane if these hands do not find meaningful jobs. If the young workforce fails to find meaningful employment and is left holding placards instead of tools, the dividend quickly turns into a liability. Unemployment on a large scale would not only squander a historic opportunity but also risk breeding frustration, social unrest, and economic instability.

India's demographic dividend rests heavily on its ability to skill, employ, and productively absorb millions of young people entering the workforce every year. It is against this backdrop that the Comptroller and Auditor General's (CAG) findings on the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) are deeply disturbing. That only 41 per cent of trained and certified candidates found employment under one of the government's flagship skilling programmes exposes not just implementation lapses, but a deeper structural disconnect between training and employability. PMKVY was conceived as a transformative intervention — offering short-term, industry-relevant training to school drop-outs, unemployed youth, and vulnerable groups. Implemented between 2015 and 2022, the scheme sought to standardise skills through qualification packs. Yet, as the CAG audit across eight states shows, it is a different story at the ground level. The gaps flagged are serious. Candidates were enrolled in clear violation of age, education, and experience criteria. In some cases, individuals lacking minimum educational qualifications were trained for technically demanding jobs. Equally troubling is the absence of robust industry linkage. Placements and certifications were heavily skewed towards a handful of sectors — most notably self-employed tailoring — while nearly 20 other sectors contributed negligibly to employment. The exclusion of high-absorption sectors such as plumbing, logistics, and health care from PMKVY was a grave mistake. Skilling without keeping in mind employers' needs is of no use. The audit also points to various other anomalies — unreliable data systems, dubious bank account details, repeated beneficiary records, closed training centres, and delayed or unpaid incentives. Unutilised funds running into hundreds of crores underscore poor planning and coordination between the Centre, states, and implementing agencies. PMKVY is the need of the hour, as it can transform the economy. The solution is not to abandon it, but to plug the gaps and keep employability at the core.