Central Apprenticeship Council (CAC) in its 38th meeting recommended a 36% increase in apprentice stipends under the National Apprenticeship Promotion Scheme (NAPS) and National Apprenticeship Training Scheme (NATS) to enhance apprenticeship engagement and reduce dropout rates.
Key Highlights
Proposed Stipend Revision
- Existing stipend: ₹5,000 to ₹9,000
- Proposed stipend: ₹6,800 to ₹12,300
- Stipend to be linked to the Consumer Price Index (CPI) for automatic bi-annual revision, ensuring inflation-adjusted support.
Key CAC Recommendations
- Update in Industrial Code:
- Replace outdated 1987 industry code with the National Industrial Classification (NIC) Code 2008
- Include emerging sectors: IT, software services, telecom, biotechnology, renewable energy.
- Online/Blended Training Modes:
- Allow basic/practical training to be delivered via online/virtual/blended formats, aligned with centrally approved curricula.
- Promotion of Apprenticeship-Embedded Degree Programmes (AEDPs):
- Enable integration of classroom learning with industry training
- Encourage credible alternatives to traditional degrees
- New Definitions Proposed:
- Include “degree apprenticeship,” “institution,” “UGC,” “contractual staff” to align with evolving education models.
- Regional Expansion:
- Set up regional boards to enhance outreach and regulate AEDPs and NATS implementation.
- Merger with Vocational Training:
- Align Craftsmen Training Scheme (CTS) with apprenticeship for better academic-industrial transition.
Inclusivity Measures
- Insert definition of “Person with Benchmark Disability” as per RPwD Act
- Mandate disability-suitability labeling for trades/fields and reservation of training places
Significance:
Improving Access and Reducing Dropouts
- India’s apprenticeship engagement: 0.27% of workforce (vs. 3–4% in developed countries)
- Dropout reduction is a central goal of the stipend hike
- Financial aid expected to:
- Support rural and economically weaker students
- Improve retention rates
- Expand industry participation
Impact on Students
- Financial security for technical & non-technical students
- Enhanced job-readiness through real-world exposure
- Higher appeal of vocational education
What is Apprenticeship?
Apprenticeship is a bridge between education, industry, and employment, especially crucial for youth from rural and economically weaker backgrounds. Schemes like NAPS and NATS play a pivotal role in inclusive, demand-driven skilling.
PM-NAPS (Ministry of Skill Development & Entrepreneurship):
- 43.47 lakh apprentices across 36 States/UTs
- 20% female participation
NATS (Ministry of Education):
- 5.23 lakh apprentices in 2024–25
- Targets graduates and diploma holders
Funding Support
- Under PM-NAPS: Government contributes ₹1,500 or 25% of stipend
- Under NATS: Government contributes 50% of stipend
- Apprenticeship in India: Total apprentices engaged (2020–2025): 4.84 million
- 3.55 million under NAPS
- 1.29 million under NATS