Analyzing Performance of Skill Development Programs in India

Authors

DOI:

https://doi.org/10.17010/pijom/2025/v18i10/174987

Keywords:

skill development programs, work performance, income attainment, education attainment, employability, entrepreneurial development.
JEL Classification Codes : J24, O2, O15
Publication Chronology: Paper Submission Date : January 15, 2025 ; Paper sent back for Revision : May 5, 2025 ; Paper Acceptance Date : September 30, 2025 ; Paper Published Online : October 15, 2025

Abstract

Purpose : The study analyzed the effectiveness of selected state-run skills development schemes, particularly the socioeconomic impact of the selected skill development schemes on beneficiaries.

Methodology : The study conducted a questionnaire-based survey of 655 respondents who attended the skill development programs (SDPs) during the sample period. PLS-structural equation modeling (SEM) was adopted to examine the performance of SDPs, the hypothesized relationship among the dependent variables, i.e., income attainment, educational attainment, employability, entrepreneurship, work performance, and challenges to the implementation of SDP and skill attainment as the independent variable.

Findings : We found that SDPs are not sufficiently blended with employment opportunities to enhance their effectiveness by enhancing industry collaborations and career counselling in these programs, which can increase placement rates. There is a significant need to raise awareness and improve the implementation of skill development initiatives to maximize their reach and impact, especially for women. The region’s industrial profile should be considered when customizing skill programs at the state level to ensure that training meets the unique requirements of regional industries.

Practical Implications : The study recommended that SDPs must be integrated with available employment opportunities to make them more effective. An SDP must be evaluated for different motives from all stakeholders, primarily industry, trainees, government, civil society, and especially workforce market requirements, which are crucial. Our study is not free from limitations and allows scope for future researchers, whether these include differences in the design and assessment models of the other state-run SDPs and diversity in multiple regional and cultural contexts, requiring localised understanding.

Originality : The study represents path-breaking research for the state of Haryana and has implications for the proposed skill development policy of the Government of India.

Downloads

Download data is not yet available.

Published

2025-10-15

How to Cite

Singh, J., Aggarwal, R., & Gupta, P. K. (2025). Analyzing Performance of Skill Development Programs in India. Prabandhan: Indian Journal of Management, 18(10), 8–24. https://doi.org/10.17010/pijom/2025/v18i10/174987

References

1) Agnihotri, S., Malhan, S., & Singh, A. B. (2023). The emergence of social media as an antecedent of employability: A PLS-SEM approach. Prabandhan: Indian Journal of Management, 16(5), 57–73. https://doi.org/10.17010/pijom/2023/v16i5/171226

2) Agrawal, T. (2014). Skill development in India: An examination. Journal of Education and Work, 27(6), 629–650. https://doi.org/10.1080/13639080.2013.787485

3) Ahmed, A. (2019). Impacts of vocational training for socio-economic development of Afghan refugees in labor markets of host societies in Balochistan. Journal of International Migration and Integration, 20, 751–768. https://doi.org/10.1007/s12134-018-0627-4

4) Alexander, P. M., Lotriet, H. H., & Matthee, M. C. (2009). Methodological challenges in e-skills shortage research in South Africa. In Proceedings of the ACM International Annual Research Conference of the South African Institute of Computer Scientists and Information Technologists (pp. 16–21). Association for Computing Machinery. https://doi.org/10.1145/1632149.1632153

5) Aloui, L., & Eldin, A. Y. (2021). Socio-emotional competencies, socio-economic factors, and the employability process of female graduates in the Kingdom of Saudi Arabia. International Journal of Engineering Business Management, 12. https://doi.org/10.1177/1847979020980903

6) Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3), 411–423. https://doi.org/10.1037/0033-2909.103.3.411

7) Ashton, D., Green, F., Sung, J., & James, D. (2002). The evolution of education and training strategies in Singapore, Taiwan and S. Korea: A development model of skill formation. Journal of Education and Work, 15(1), 5–30. https://doi.org/10.1080/13639080120106695

8) Awogbenle, A. C., & Lwuamadi, K. C. (2010). Youth unemployment: Entrepreneurship development programme as an intervention mechanism. African Journal of Business Management, 4(6), 831–835. https://www.researchgate.net/publication/268354862

9) Balwanz, D. (2012). Youth skills development, informal employment and the enabling environment in Kenya: Trends and tensions. Journal of International Cooperation in Education, 15(2), 69–91. https://core.ac.uk/download/pdf/197299931.pdf

10) Banajawad, V. T., & Adi, M. S. (2020). A study on skill development programmes for rural youth in India. International Journal of Education, Modern Management, Applied Science & Social Science, 2(4), 38–41. https://www.inspirajournals.com/uploads/Issues/918539579.pdf

11) Barinua, V., Olarewaju, & Olatokunbo, V.-J. (2022). The impact of skill acquisition on entrepreneur development. Saudi Journal of Business and Management Studies, 7(5), 137–146. https://doi.org/10.36348/sjbms.2022.v07i05.004

12) Bennett, D., Knight, E., Dockery, A. M., & Bawa, S. (2020). Pedagogies for employability: Understanding the needs of STEM students through a new approach to employability development. Higher Education Pedagogies, 5(1), 340–359. https://doi.org/10.1080/23752696.2020.1847162

13) Bhatnagar, N. (2021). Employability and skill gap among MBA graduates in India: A literature review. Industrial and Commercial Training, 53(1), 92–104. https://doi.org/10.1108/ICT-10-2019-0098

14) Bhatnagar, N. (2020). Skill deficiencies in students and B-school interventions: A qualitative study exploring the perceptions of leader - Directors. Prabandhan: Indian Journal of Management, 13(2), 36–49. https://doi.org/10.17010/pijom/2020/v13i2/150562

15) Blake, H. L., Mcleod, S., Verdon, S., & Fuller, G. (2018). The relationship between spoken English proficiency and participation in higher education, employment and income from two Australian censuses. International Journal of Speech-Language Pathology, 20(2), 202–215. https://doi.org/10.1080/17549507.2016.1229031

16) Brown, T., & De Neve, G. (2024). Skills, training and development: An introduction to the social life of skills in the global South. Third World Quarterly, 45(4) 607–623. https://doi.org/10.1080/01436597.2023.2219615

17) Callen, T., Towe, C. M., & Reynolds, P. A. (2001). India at the crossroads – Sustaining growth and reducing poverty. International Monetary Fund. https://doi.org/10.5089/9781557759924.071

18) Chenoy, D., Ghosh, S. M., & Shukla, S. K. (2019). Skill development for accelerating the manufacturing sector: The role of 'new-age' skills for 'Make in India.' International Journal of Training Research, 17(Sup1), 112–130. https://doi.org/10.1080/14480220.2019.1639294

19) Ching, C. C., & Sellu, G. S. (2019). Bridging the cultural gap in the global workplace. In V. H. Kenon & S. V. Palsole (eds.), The Wiley handbook of global workplace learning (pp. 355–367). John Wiley & Sons. https://doi.org/10.1002/9781119227793.ch20

20) Churchill, G. A. (1979). A paradigm for developing better measures of marketing constructs. Journal of Marketing Research, 16(1), 64–73. https://doi.org/10.2307/3150876

21) Cohen, J. (1988). Set correlation and contingency tables. Applied Psychological Measurement, 12(4), 425–434. https://doi.org/10.1177/014662168801200410

22) De, D. (2019). Issues and challenges in implementing the Skill India movement. Worldwide Hospitality and Tourism Themes, 11(1), 54–67. https://doi.org/10.1108/WHATT-10-2018-0065

23) De Alba, J. M., & Stucki, V. (2019). Enhancing youth employability: A public private development partnership model to acquire industrial skills. International Journal of Economics and Business Research, 17(1), 1–17. https://doi.org/10.1504/IJEBR.2019.096582

24) De Prada, E., Mareque, M., & Pino-Juste, M. (2022). Teamwork skills in higher education: Is university training contributing to their mastery? Psicologia: Reflexão e Crítica, 35, Article No. 5. https://doi.org/10.1186/s41155-022-00207-1

25) Feldmann, L. (2016). Considerations in the design of WBL settings to enhance students' employability: A synthesis of individual and contextual perspectives. Higher Education, Skills and Work-Based Learning, 6(2), 131–145. https://doi.org/10.1108/HESWBL-09-2014-0044

26) Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50. https://doi.org/10.2307/3151312

27) García, A. A., Neira, I., & Lozano, J.-F. (2014). The challenges of higher education: Improving graduates' employability and social cohesion. Journal of the European Higher Education Area, 4, 15–32. http://hdl.handle.net/10261/132067

28) Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis (7th ed.). Pearson. https://www.scirp.org/reference/ReferencesPapers?ReferenceID=1841396

29) Hair Jr., J. F., Hult, G. T., Ringle C. M., & Sarstedt, M. (2021). A primer on partial least squares structural equation modeling (PLS-SEM) (3rd ed.). SAGE Publications, Inc.

30) Harvey, L., Locke, W., & Morey, A. (2002). Enhancing employability, recognising diversity Making links between higher education and the world of work. Centre for Research into CSU UK.

31) Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43, 115–135. https://doi.org/10.1007/s11747-014-0403-8

32) Kalbande, V. N., Rawandale, S. A., Gajghat, R. H., Bodhe, A. B., & Handa, C. C. (2022). Novel outlook to analyzing a gap between industrial and institutional skills at students in the faculty of engineering and natural sciences. International Journal of Health Sciences, 6(S2), 8940–8948. https://doi.org/10.53730/ijhs.v6nS2.7329

33) Kamaroellah, A., Eliyana, M. A., Amalia, N., & Pratama, A. S. (2021). Investigation of ideal employability skills: A literature review on components and antecedents. Journal of Legal, Ethical and Regulatory Issues, 24(5), 1–9. https://www.abacademies.org/articles/Investigation-of-ideal-employability-skills-1544-0044-24-S5-1047.pdf

34) Kline, R. B. (2005). Principles and practice of structural equation modeling (2nd ed.). The Guilford Press.

35) Kumar, J., & Hooda, G. (2022). Role of skill development programmes in youth development. SEDME (Small Enterprises Development, Management & Extension Journal), 48(4), 365–378. https://doi.org/10.1177/09708464221077155

36) Kumar, D. P., Subbarayudu, Y., & Nagaraju, E. (2019). Employability skills of management graduates: The comparative status of SC/ST students in Andhra Pradesh. Prabandhan: Indian Journal of Management, 12(3), 50–61. https://doi.org/10.17010/pijom/2019/v12i3/142340

37) Kuruvilla, S., Erickson, C. L., & Hwang, A. (2002). An assessment of the Singapore skills development system: Does it constitute a viable model for other developing countries? World Development, 30(8), 1461–1476. https://doi.org/10.1016/S0305-750X(02)00046-3

38) Lokhande, M. A. (2017). Analysis of entrepreneurial skill development of disadvantaged group entrepreneurs. Prabandhan: Indian Journal of Management, 10(3), 7–18. https://doi.org/10.17010/pijom/2017/v10i3/111423

39) Mason, G., Williams, G., & Cranmer, S. (2009). Employability skills initiatives in higher education: What effects do they have on graduate labour market outcomes? Education Economics, 17(1), 1–30. https://doi.org/10.1080/09645290802028315

40) McGrath, S., & Yamada, S. (2023). Skills for development and vocational education and training: Current and emergent trends. International Journal of Educational Development, 102, Article ID 102853. https://doi.org/10.1016/j.ijedudev.2023.102853

41) Mehta, S. N. (2020). Management perspective and impact of skill development as income generation: A review paper. International Journal of Management, 11(11), 3444–3446. https://doi.org/10.34218/IJM.11.11.2020.333

42) Monteiro, S., Almeida, L., & García-Aracil, A. (2021). “It's a very different world”: Work transition and employability of higher education graduates. Higher Education, Skills and Work-Based Learning, 11(1), 164–181. https://doi.org/10.1108/HESWBL-10-2019-0141

43) Morley, L. (2007). The X factor: Employability, elitism and equity in graduate recruitment. Twenty-First Century Society, 2(2), 191–207. https://doi.org/10.1080/17450140701325782

44) Nunnally, J. C., & Bernstein, I. (1976). Psychometric theory (3rd ed.). McGraw-Hill.

45) Nzonzo, J. C. (2017). Vocational education training and graduate employability in South Africa: An interlinkage in need of exploration. International Journal of Sustainable Society, 9(1). https://doi.org/10.1504/IJSSOC.2017.085721

46) Olivares, S. L., Adame, E., Treviño, J. I., López, M. V., & Turrubiates, M. L. (2020). Action learning: Challenges that impact employability skills. Higher Education, Skills and Work-Based Learning, 10(1), 203–216. https://doi.org/10.1108/HESWBL-07-2019-0097

47) Onsomu, E. N., Ngware, M. W., & Manda, D. K. (2010). The impact of skills development on competitiveness: Empirical evidence from a cross-country analysis. Education Policy Analysis Archives, 18, 7. https://doi.org/10.14507/epaa.v18n7.2010

48) Pala, A. (2019). Innovation and economic growth in developing countries: Empirical implication of Swamy's random coefficient model (RCM). Procedia Computer Science, 158, 1122–1130. https://doi.org/10.1016/j.procs.2019.09.252

49) Palit, A. (2009). Skills development in India: Challenges and strategies. Institute of South Asian Studies, National University of Singapore.

50) Pandey, A., & Nema, D. K. (2017). Impact of skill India training programme among the youth. International Journal of Multidisciplinary Research and Development, 4(7), 294–299. https://www.allsubjectjournal.com/assets/archives/2017/vol4issue7/4-7-70-800.pdf

51) Paulrajan, R. (2011). Employability skills in Chennai retail market, India. Acta Universitatis Danubius. OEconomica, 7(5), 16–30. https://journals.univ-danubius.ro/index.php/oeconomica/article/view/1059

52) Peter, J. P., & Churchill, G. A. (1986). Relationships among research design choices and psychometric properties of rating scales: A meta-analysis. Journal of Marketing Research, 23(1), 1–10. https://doi.org/10.1177/002224378602300101

53) Rahmat, M., Ahmad, K., Idris, S., & Zainal, N. F. (2012). Relationship between employability and graduates' skill. Procedia - Social and Behavioral Sciences, 59, 591–597. https://doi.org/10.1016/j.sbspro.2012.09.318

54) Sanghi, S., & Srija, A. (2015). Skill development and productivity of the workforce. Confederation of Indian Industry.

55) Scott, F. J., & Willison, D. (2021). Students' reflections on an employability skills provision. Journal of Further and Higher Education, 45(8), 1118–1133. https://doi.org/10.1080/0309877X.2021.1928025

56) Shenoy, S. S., & Shailashri, V. T. (2023). Impact of skill enhancement training on quality of work life– A review. International Journal of Case Studies in Business, IT, and Education, 7(1), 74–94. https://doi.org/10.5281/zenodo.7607567

57) Singh, J., Aggarwal, R., & Gupta, P. K. (2021). Review of literature in context of the evaluating effectiveness of skill development programmes in India. Elementary Education Online, 20(6), 1452–1469. https://ilkogretim-online.org/index.php/pub/article/view/5320

58) Smith, J., McKnight, A., & Naylor, R. (2000). Graduate employability: Policy and performance in higher education in the UK. The Economic Journal, 110(464), F382–F411. https://doi.org/10.1111/1468-0297.00546

59) Sousa, M. J. (2018). Entrepreneurship skills development in higher education courses for teams leaders. Administrative Sciences, 8(2), 18. https://doi.org/10.3390/admsci8020018

60) Stoica, A. E. (2010). Development and testing of a comprehensive skills framework for the successful employability of MBA graduates (Doctoral dissertation, Waseda University). https://core.ac.uk/download/pdf/144443186.pdf

61) Suman, S., & Kumari, S. (2020). Employment-centered skill development and social policy in urban India: Policy and institutional change. Journal of Studies in Social Sciences, 19(7), 1–13. https://infinitypress.info/index.php/jsss/article/view/2006

62) Teijeiro, M., Rungo, P., & Freire, M. J. (2013). Graduate competencies and employability: The impact of matching firms' needs and personal attainments. Economics of Education Review, 34, 286–295. https://doi.org/10.1016/j.econedurev.2013.01.003

63) Tem, S., Kuroda, A., & Tang, K. N. (2020). The importance of soft skills development to enhance entrepreneurial capacity. International Educational Research, 3(3). https://doi.org/10.30560/ier.v3n3p1

64) Tikkanen, T. (2014). Lifelong learning and skills development in the context of innovation performance. In B. Schmidt-Hertha, S. J. Krašovec & M. Formosa (eds.), Learning across generations in Europe. Research on the education and learning of adults (pp. 95–120). SensePublishers. https://doi.org/10.1007/978-94-6209-902-9_9

65) Tripathi, S., Gautam, S., & Lal, A. (2017). Evolving human resource landscape of the Indian retail sector: Bridging the skill-gap. Prabandhan: Indian Journal of Management, 10(2), 41–52. https://doi.org/10.17010/pijom/2017/v10i2/110633

66) Vera‐Toscano, E., Rodrigues, M., & Costa, P. (2017). Beyond educational attainment: The importance of skills and lifelong learning for social outcomes. Evidence for Europe from PIAAC. European Journal of Education, 52(2), 217–231. https://doi.org/10.1111/ejed.12211

67) Wall, T. D., Wood, S. J., & Leach, D. J. (2004). Empowerment and performance. In C. L. Cooper & I. T. Robertson (eds.), International review of industrial and organizational psychology (Vol. 19, pp. 1–46). John Wiley & Sons. https://doi.org/10.1002/0470013311.ch1

68) Wang, W., Wei, K., Kubatko, O., Piven, V., Chortok, Y., & Derykolenko, O. (2023). Economic growth and sustainable transition: Investigating classical and novel factors in developed countries. Sustainability, 15(16), 12346. https://doi.org/10.3390/su151612346

69) Weligamage, S. S. (2009). Graduates' employability skills: Evidence from literature review. University of Kelaniya. https://www.researchgate.net/publication/266014502