NITI Aayog Report: Revitalizing the Apprenticeship Ecosystem

Recently, NITI Aayog released a landmark policy report titled “Revitalizing the Apprenticeship Ecosystem: Insights, Challenges, Recommendations, and Best Practices.”The report outlines a comprehensive strategy to reposition apprenticeships as a powerful linkage between education and employment, with the objective of harnessing India’s demographic dividend to achieve the vision of Viksit Bharat @2047.The report presents 20 action-oriented recommendations along with an action plan, assigning implementation responsibilities and measurable performance metrics for each of the recommendations.

It categorises recommendations into 5 interlinked pillars

¨     policy and systemic reforms

¨     structural and regulatory strengthening

¨     state and district-specific interventions

¨     industry and employer engagement

¨     apprentice-and aspirant-level support mechanisms.

The study was conceptualised and designed by the Skill Development and Employment Division of NITI Aayog, and it undertook a comprehensive review of the evolution of the Apprentices Act, 1961, including its subsequent amendments and regulatory refinements.It utilised secondary data from official public platforms, including the National Apprenticeship Promotion Scheme (NAPS) portal and the National Apprenticeship Training Scheme (NATS) dashboard.

Apprenticeships

¨     The World Bank describes apprenticeships as structured programs that combine work-based learning (on-the-job training) with classroom-based instruction, governed by a formal agreement or contract, and leading to a recognized vocational qualification.

According to the Apprenticeship Act, 1961, apprenticeship training is a training course under an apprenticeship contract in an industry or establishment, which includes the following:

Basic Training Component

¨     On-the-Job Training (OJT)/Practical Training at the Workplace.

¨     Firms benefit from low-wage workers (often in the early stages of their careers), and individuals have the opportunity to receive firm-specific training.

NAPS and NATS

¨     NAPS - National Apprenticeship Promotion Scheme: Administered by the Ministry of Skill Development and Entrepreneurship, this scheme encourages employers, especially MSMEs, to hire apprentices from diverse backgrounds (including school graduates and ITI trainees) by sharing the cost of their stipend.

¨  NATS - National Apprenticeship Training Scheme: Administered by the Ministry of Education, this program provides structured, one-year on-the-job training to graduates and diploma holders, especially in technical and general disciplines, to bridge the gap between academic knowledge and industry requirements.