New apprenticeship policy to link degrees, raise stipends

NEW DELHI: Centre has proposed comprehensive reforms to revitalise the apprenticeship ecosystem. Key measures include an inflation-linked hike in stipend rates, from the current Rs 5,000-9,000 to Rs 6,800-12,300, to reduce dropout rates and attract diverse talent.

The reforms also formalise Apprenticeship Embedded Degree Programmes (AEDP), enabling apprentices to earn recognised degrees alongside practical training. Additionally, the policy aims to enable global deployment of apprentices at overseas client sites and expand training delivery through digital and virtual platforms.

These proposals come amid persistent structural challenges within the apprenticeship framework. An official from ministry of skill development and entrepreneurship (MSDE) said, "The proposed stipend increase is essential to curb dropouts and make apprenticeships viable, especially in sectors like technology, manufacturing, and services where living and commuting costs can be prohibitive."

A 2022 parliamentary standing committee report recommended convergence through a unified operational and digital infrastructure. Industry participation, particularly among small and medium enterprises (SMEs), remains limited due to administrative complexity, compliance burdens, and lack of awareness. Regional disparities persist, with only 1.2% of apprentices from the North-East despite targeted benefits. Female participation, while improving, continues to lag behind overall workforce levels.

Fragmentation between ministry of education and MSDE - which run National Apprenticeship Training Scheme (NATS) and Pradhan Mantri National Apprenticeship Promotion Scheme (PM-NAPS), respectively - has caused duplication and inefficiencies. "We are developing a unified apprenticeship portal to integrate certification, data sharing, and employer outreach. This will simplify processes, reduce compliance friction, and improve access for both apprentices and employers," the official added.

The 38th meeting of Central Apprenticeship Council, chaired by Jayant Chaudhary, minister of state (independent charge), MSDE, recently discussed these proposals and charted a forward-looking policy roadmap. The reforms include targeted inclusion measures for women, persons with disabilities (PwDs), and youth from the northeastern region (NER). The official noted: "Expanding participation from under-represented groups, particularly from the North-East and PwDs, is a key priority. The pilot project launched in Mizoram, providing an additional Rs 1,500 monthly stipend to over 26,000 apprentices, highlights our commitment."

Formal regulation of AEDPs will allow apprentices to earn recognised degrees alongside hands-on training, strengthening the link between education and industry needs. "Only 0.27% of India's workforce are apprentices, compared to 3% in the UK and Germany. Attrition rates remain high. Inflation-linked stipends and degree-linked apprenticeships will help reduce attrition and sustain a steady talent supply," said Nipun Sharma, CEO, degree apprenticeship, Team Lease. He also pointed out the low female participation, despite sectors like electronics manufacturing and smartphone assembly preferring female workers.

On global deployment plan, the official said, "Allowing apprentices to gain experience at overseas client sites will expose them to international standards and prepare them for a competitive global workforce."