PROGRESS OF THE NATIONAL APPRENTICESHIP PROMOTION SCHEME (NAPS)
The National Apprenticeship Promotion Scheme (NAPS), launched in August 2016, is currently in its second phase (NAPS-2) operational since FY 2022-23.
NAPS-2 aims to train 46 lakh apprentices over four years (FY2022-23 to FY2025-26) with a total budget outlay of ₹1,942 crore, 100% centrally funded.
For FY2025-26, a physical target of 13 lakh apprentices has been set; 3.99 lakh apprentices were engaged up to July 2025.
The number of women apprentices rose from approximately 0.56 lakh in FY2020-21 to around 2.25 lakh in FY2024-25, reflecting improved gender inclusion.
A 2026 reform proposal envisages a 36% increase in stipends, linking stipend amounts to the Consumer Price Index (CPI), and expanding apprenticeship options to include modern technology tracks including AI.
Apprentices Act, 1961 — Statutory Framework for Apprenticeship Training
Apprenticeship training in India is governed by the Apprentices Act, 1961, which provides a statutory framework for regulated on-the-job skill training in establishments. NAPS is implemented as a financial incentive scheme on top of this legal obligation.
Key Details
- Apprentices Act, 1961: Enacted to regulate and control training of apprentices in industry; originally administered by Ministry of Education, now under Ministry of Skill Development and Entrepreneurship (MSDE)
- 2014 Amendment (Apprentices Amendment Act, 2014, Act No. 29 of 2014; came into force December 22, 2014): Key changes included:
- Replaced fixed apprenticeship quotas with a flexible band: establishments with 30+ workers must engage apprentices in the range of 2.5%–15% of total workforce (including contract employees)
- Made optional trades (beyond designated trades) available for engagement of Graduate and Technician apprentices
- Allowed establishments to engage apprentices in optional as well as designated trades
- Categories of apprentices under the Act: (i) Trade Apprentice (ITI pass); (ii) Graduate/Technician Apprentice (degree/diploma holders in engineering/technology); (iii) Vocational Certificate Apprentice; (iv) Optional Trade Apprentice
- Establishments with 30+ employees are mandated to engage apprentices; penalty for non-compliance
- Apprentices are governed by health and safety provisions of the Factories Act, 1948 (Chapters III, IV, V); compensation for injury under Workmen's Compensation Act, 1923
NAPS is a financial incentive layered over the Apprentices Act obligation — it provides stipend support to encourage more establishments to engage apprentices beyond the minimum legal requirement.
National Apprenticeship Promotion Scheme (NAPS) — Design and Phases
NAPS was launched in August 2016 to increase the number of apprentices in India by providing financial incentives to establishments and to make apprenticeship a mainstream pathway for skill development and employment.
Key Details
- NAPS Phase 1 (2016-2022): Government reimburses 25% of the prescribed stipend or ₹1,500 per month per apprentice (whichever is less) directly to the employer; also covers basic training cost for fresher apprentices (who are not ITI graduates)
- NAPS-2 (FY2022-23 to FY2025-26): Second phase; 100% centrally funded; budget ₹1,942 crore over 4 years; target: 46 lakh apprentices
- Stipend support: Government shares 25% of the prescribed minimum stipend, subject to ₹1,500/month ceiling per apprentice
- FY2025-26 target: 13 lakh apprentices; achieved up to July 2025: 3.99 lakh
- Gender inclusion: Women apprentices grew from ~0.56 lakh (FY2020-21) to ~2.25 lakh (FY2024-25)
- Total engagement under NAPS (over 7 years): 13.38+ lakh apprentices
- Portal: apprenticeshipindia.org — digital platform for registration of establishments and apprentices
- Nodal ministry: Ministry of Skill Development and Entrepreneurship (MSDE)
NAPS-2 represents a scaling-up of the apprenticeship model with enhanced financial commitment; the 2026 reform proposals (CPI-linked stipends, AI tracks) reflect an effort to modernise the scheme and improve its attractiveness.
Apprenticeship as a Skill Development Model — International Comparison
The Germany apprenticeship model (dual system — classroom + workplace training) is internationally benchmarked as the most effective vocational training pathway. India has historically under-utilised apprenticeship compared to its peer economies.
Key Details
- India's apprentice-to-workforce ratio remains significantly below global benchmarks: India has approximately 5-6 lakh active apprentices at any time (pre-NAPS-2 scale-up) vs Germany's 1.4 million apprentices for a much smaller labour force
- ILO (International Labour Organization) defines apprenticeship as a formal programme combining on-the-job training with related technical instruction, governed by a contract between employer and apprentice
- India's National Apprenticeship Training Scheme (NATS) — separate from NAPS — covers Graduate and Technician apprentices under the Apprentices Act administered by the Board of Apprenticeship Training (BOAT) under the Ministry of Education
- NAPS (under MSDE) covers trade apprentices (ITI-trained workers) and optional trade apprentices
- The National Policy for Skill Development and Entrepreneurship 2015 set a target of 50 lakh apprentices by 2020 — not achieved, necessitating NAPS-2's scaled targets
The NAPS-2 targets and the 2026 reforms are part of India's effort to close the gap between its apprenticeship engagement and global standards, recognising that structured on-the-job training is more employment-effective than short-term institutional skilling alone.
Employment Generation and Demographic Dividend
India's demographic dividend — the economic benefit from a large working-age population relative to dependents — is a finite window (estimated to last until approximately 2055). Translating this demographic advantage into productive employment requires large-scale skill development, of which apprenticeship is a key component.
Key Details
- India's working-age population (15-64 years): approximately 68% of total population; adds ~7-8 million new labour force entrants per year
- Demographic dividend window: India's dependency ratio is expected to remain favourable until approximately 2055; after that, the elderly dependency ratio rises
- The National Skill Development Mission targets skilling 300 million persons by 2030 under the revised framework
- Periodic Labour Force Survey (PLFS) data: India's Labour Force Participation Rate (LFPR) and Unemployment Rate are tracked by MoSPI quarterly (urban) and annually (rural+urban)
- Female LFPR: A persistent challenge; women apprentice increase from 0.56 lakh to 2.25 lakh under NAPS reflects a positive trend but remains a small fraction of the female labour force
- MSDE also oversees Jan Shikshan Sansthan (JSS) for non-literate and neo-literate adults, Craftsmen Training Scheme (CTS) for ITIs, and Modular Employable Skills (MES) for informal sector workers
NAPS is one instrument within India's broader strategy to capture the demographic dividend; the female participation growth in apprenticeship, while modest in absolute terms, is a positive indicator of expanding formal skill training for women.
- NAPS launched: August 2016; nodal ministry: MSDE
- NAPS-2 period: FY2022-23 to FY2025-26; total budget: ₹1,942 crore (100% centrally funded)
- NAPS-2 total target: 46 lakh apprentices over 4 years; FY2025-26 target: 13 lakh
- Stipend support: 25% of prescribed minimum stipend, subject to ₹1,500/month ceiling per apprentice
- Women apprentices: 0.56 lakh (FY2020-21) → 2.25 lakh (FY2024-25)
- Total NAPS engagement (7 years cumulative): 13.38+ lakh apprentices
- Apprentices Act, 1961: 2014 amendment mandates 2.5%–15% of workforce in establishments with 30+ workers
- Apprentices Act 2014 Amendment: Act No. 29 of 2014; in force from December 22, 2014
- 2026 reform proposals: 36% stipend increase, CPI-linked stipends, AI/modern tech tracks added
- NATS (Graduate/Technician apprentices): Separate scheme under Ministry of Education via BOAT