What is the National Skill Development Fund?

What is the National Skill Development Fund


After the approval of the union cabinet, a proposal for reconstructing the National Skill Development Fund and National Skill Development Cooperation was formed to combine their strength for their governance, implementation. The sole purpose of restructuring is also to ensure better corporate governance, transparency and accountability in operations of NSDC.

The National Skill Development Fund was founded in 2009 by the Government of India for raising funds both from Government and Non-Government sectors for skill development in India. The Fund is given by various Government sources, and other donors/ contributors to enhance, stimulate and develop and brush up the skills of Indian youth through various sector-specific programs. A public Trust established by the Government of India is the custodian of the Fund. The Trust takes a donation, contribution in cash or kind from the Contributors for the furtherance of objectives of the Fund. The Fund is run and managed by the Board of Trustees. The Chief Executive Officer of the Trust is caretaker for day-to-day administration and management of the Trust.


  • The Fund meets its objectives through National Skill Development Corporation (NSDC) which is an industry-led ‘Not For Profit Company’ set up for building skill development capacity and forging strong linkages with the market.
  • NSDC acts as a catalyst in skill development by providing funding to enterprises, companies and organizations that provide skill training. It also develops appropriate models to enhance, support and coordinate private sector initiatives.
  • NSDC with 160 training partners and 1722 training centres has so far trained around 35 lakh persons across India. Till 31st March 2015, NSDF has released Rs. 2333 crore to NSDC towards skill development programmes including National Skill Certification and Monetary Reward Scheme (STAR) and UDAAN Scheme (J&K oriented).
  • Manner as may be directed by GOI and also accounts of the Trust are subject to CAG Audit and are also audited by a Chartered Accountant for every financial year.
  •  The Trust is combined IL&FS Trust Company Ltd (ITCL), one of the largest Corporate Trustees in India, for providing little prudential oversight on the implementing partner and monitoring the interests of Trust.


The majority of India’s large population is of working age. Necessary and effective action to Skill India is needed to capture the demographic potential of India’s youth. As per data from the 68th Round of NSSO, it is estimated that only 4.69 percent of India’s total workforce has undergone formal skill training, compared with 52 percent in the USA, around 68 percent in the UK, almost 75 percent Germany, estimate of 80 percent in Japan and 96 percent in South Korea.
After efforts to hasten and large up skills through the creation of the National Skill Development Fund (NSDF) in 2009, the launch of the NSDC in the same year, and creation of the NSDA in 2013, progress to date has been sporadic. According to the Census report 2011 and NSSO (68th Round) data, it is estimated that 104 million fresh entrants to the workforce will require skill training by 2022, and 298 million of the existing workforce will require additional skill training over the same time period.

Previous What is the National Skill Development Agency?
Next What is the Indian Institute of Public Administration (IIPA)?