Socio-Economic Aspects and Effectiveness of Skill Development Training Programmes in India: A Case Study of Bihar

Abstract

India, with its demographic advantage of a youthful population, stands at a crucial point in its developmental journey, yet faces a persistent challenge of low formal skill training among its workforce. Despite government efforts through flagship initiatives such as Skill India Mission, PMKVY, and Digital India, only about 2.5–3% of the workforce has received formal vocational or technical training, far behind international counterparts like South Korea (96%) and Germany (75%). This skills deficit has constrained employability, with labour market studies consistently highlighting a mismatch between industry demands and available skill sets. Consequently, sectors including engineering, healthcare, IT, and manufacturing face shortages of job-ready candidates despite high vacancies. The issue is particularly acute in Bihar, one of India’s fastest-growing yet economically lagging states, where agricultural employment is declining but non-farm job creation remains limited. To address this, the present study investigates the effectiveness of skill development programmes under the Aspirational District Programme in Muzaffarpur and Aurangabad. A total of 600 trainees across training institutes such as Kushal Yuva Programme and Kaushal Vikas Centres were surveyed. The respondents largely belong to rural, socially disadvantaged, and low-income groups, yet possess sufficient educational backgrounds to benefit from structured training. Findings reveal the need for stronger industry alignment, updated curricula, digital literacy integration, and enhanced job placement mechanisms. The study recommends targeted outreach in rural areas, improved monitoring frameworks, employer partnerships, gender-inclusive policies, and localized training models. Additionally, strengthening ICT skills and Recognition of Prior Learning (RPL) can significantly boost employability. By bridging the demand–supply skill gap and tailoring programmes to regional labour market needs, Bihar has the potential to transform its youth into a competitive workforce. Ultimately, sustained investment in vocational education and entrepreneurship-oriented training can help reduce unemployment, enhance productivity, and contribute to inclusive economic growth.