One-Third of Rural Youth Unplaced in Indian Skilling Program
A parliamentary committee report reveals that approximately one-third of the 1.8 million rural youth trained under India's Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) have not secured reported employment. The report questions the Ministry of Rural Development over the placement gap.
Key takeaways
- Nearly one-third of over 1.8 million rural youth trained under India's DDU-GKY program remain unplaced.
- A parliamentary committee has questioned the Ministry of Rural Development regarding the employment gap.
- Recent scheme updates and state-level variations contribute to differing placement outcomes.
- Women trainees are well-represented but show a lower placement rate compared to their training numbers.
A significant portion of young people trained under a flagship Indian government initiative for rural youth have not found employment, according to a recent parliamentary committee report. Out of more than 1.8 million individuals who have undergone training since 2014, nearly one-third have not achieved a reported job placement.
What Happened
The Standing Committee on Rural Development and Panchayati Raj highlighted that only 1.2 million of the 1.8 million candidates trained under the Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) have been placed. The committee also noted that under the Rural Self Employment Training Institutes (RSETIs), only 4.5 million out of 6.2 million trained beneficiaries have been successfully settled into self-employment.
The DDU-GKY scheme, initiated in September 2014, is designed to equip rural youth aged 15 to 35 from low-income households with skills for regular wage employment through industry-specific training. The Ministry of Rural Development stated that the overall placement rate of around 65% fluctuates considerably across different states. The ministry attributed some of the lower reported figures to changes implemented under DDU-GKY 2.0, which began in April 2025. These changes included doubling the minimum job duration for a placement to be counted from three to six months, expanding eligible outcomes to include self-employment and gig work, and altering funding mechanisms for training providers.
Following the implementation of DDU-GKY 2.0, reported placements saw a notable decrease. In the 2025-26 financial year, the placement rate fell to 47.7%, a significant drop from the average of 77.7% recorded in the three preceding financial years.
Key Facts
- Over 1.8 million rural youth have been trained under the DDU-GKY program since its launch in 2014.
- Approximately one-third of these trainees, around 600,000 individuals, have not secured reported placements.
- The scheme aims to train rural youth aged 15-35 from poor households for wage employment.
- Under RSETIs, 4.5 million of 6.2 million trained beneficiaries were settled in self-employment.
- The ministry reported an overall placement rate of approximately 65%.
- Changes under DDU-GKY 2.0 in April 2025 altered placement criteria and funding.
- In 2025-26, the placement rate dropped to 47.7%, compared to a preceding average of 77.7%.
- Tamil Nadu reported the highest placement rate at 95.3%, while Uttar Pradesh had a rate of 43% with the largest number of trainees.
- Women constituted 52.5% of trainees but a smaller proportion of those placed.
Background
Experts suggest that employment outcomes are not solely dependent on skills training, emphasizing that the availability of job opportunities operates independently of the supply of skilled individuals. The parliamentary committee's data indicates significant disparities in placement rates among Indian states. Tamil Nadu recorded the highest placement rate at 95.3% for 80,214 candidates. In contrast, Uttar Pradesh, which trained the highest number of candidates (2.55 lakh), reported a placement rate of only 43%, with 1.10 lakh individuals placed.
The scheme has seen strong participation from women, who made up 52.5% of all DDU-GKY trainees, exceeding the program's one-third mandate. However, the proportion of women among those placed was lower. Out of 9.65 lakh women trained, 6.03 lakh were placed, indicating that the scheme's success in attracting women to training is not being matched by equal success in their employment.
Sources reviewed
Project Chintan independently synthesized and analyzed information cross-checked across the sources listed above.
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