PROGRESS OF THE NATIONAL APPRENTICESHIP PROMOTION SCHEME (NAPS)

1. At a Glance

• NAPS is the flagship Central Sector Scheme of the Ministry of Skill Development and Entrepreneurship (MSDE) to promote on-the-job apprenticeship training under the Apprentices Act, 1961 [S1][S2].
• Currently in its second phase (NAPS-2) since FY 2022-23, the scheme co-funds 25% of the prescribed stipend (capped at ₹1,500/month) via DBT to apprentices' bank accounts [S1].
• High UPSC salience: intersects skilling, demographic dividend, employability and formalisation of labour — a recurrent GS-II/III theme.

2. Why in the News

• PIB release dated 11 March 2026 by MSDE detailing year-wise apprentice engagement under NAPS for the last 5 FYs [S1].
• Cumulative 41,95,703 apprentices engaged from FY 2018-19 to July 2025; 11.84 lakh engaged in CY 2025 alone [S2].
• Physical target of 13 lakh apprentices set for FY 2025-26 [S2].

3. Background & Evolution

• 1961: Apprentices Act enacted — statutory basis for apprenticeship training [S1][S3].
• 2014: Amendment to Apprentices Act, 1961 to liberalise engagement norms [S3].
• August 2016: NAPS launched to incentivise establishments to engage apprentices [S1].
• 2019: Apprenticeship Rules amended to further ease compliance [S3].
• 2022-23: Re-launched as NAPS-2 with revised stipend-sharing pattern; DBT mechanism introduced by then-Minister Dharmendra Pradhan in 2023 to push stipend directly to apprentices [S1][S4].

4. Core Static Facts

• Implementing ministry: Ministry of Skill Development and Entrepreneurship (MSDE) [S1].
• Statutory base: Apprentices Act, 1961 and rules thereunder [S1].
• Apex body: Central Apprenticeship Council (CAC) — tripartite, constituted under the Act, advises on policy [S3].
• Government share: 25% of prescribed minimum stipend, max ₹1,500/apprentice/month [S1].
• Disbursal mode: Direct Benefit Transfer (DBT) to apprentice bank accounts [S1].
• Phase-1: Aug 2016 – FY 2021-22; Phase-2 (NAPS-2): FY 2022-23 onwards [S1].
• FY 2025-26 target: 13 lakh apprentices; engagement up to July 2025: 3.99 lakh [S2].
• Cumulative engagement (FY 2018-19 to July 2025): 41,95,703; of which 21,47,122 completed training [S2].
• Establishments registered under NAPS-2 (incl. MSMEs): 25,423 [S2].

5. Multi-Dimensional Analysis

Economic - Targets demographic dividend by formalising on-the-job training; subsidy lowers cost of engaging apprentices for industry [S1][S2]. - Embeds skilling within enterprises rather than detached training centres — addresses skill-job mismatch.

Social - Women apprentices rose from ~0.56 lakh in FY 2020-21 to ~2.25 lakh in FY 2024-25 — ~4× jump signalling improved gender inclusion [S2]. - Provides stipend floor, partially shielding youth from exploitative low-wage internships.

Administrative - DBT removes intermediation, plugs leakages and shortens reimbursement cycles [S1][S4]. - Tripartite governance via CAC synchronises Centre, States and industry.

Legal - Anchored in a colonial-era statute (1961) refreshed by 2014 amendment and 2019 Rules to widen optional trades and ease size thresholds for establishments [S3].

Ethical / Governance - Stipend cap of ₹1,500 critiqued as inadequate; CAC has recommended ~36% hike in stipend rates for NAPS & NATS apprentices [S5].

6. Recent Developments (last 12-18 months)

• 2024: CAC recommended ~36% increase in apprenticeship stipend under NAPS and NATS [S5].
• CY 2025: 11.84 lakh apprentices engaged — highest annual figure to date [S2].
• July 2025: Cumulative tally crosses 41.95 lakh since FY 2018-19 [S2].
• 11 March 2026: PIB tabled year-wise NAPS engagement data in Parliament [S1].

7. Prelims Hooks

• NAPS launched in August 2016 [S1].
• NAPS-2 operational since FY 2022-23 [S1].
• Implementing ministry: MSDE (not Ministry of Labour & Employment) [S1].
• Statutory base: Apprentices Act, 1961 [S1].
• Government stipend share: 25% of minimum stipend, max ₹1,500/month [S1].
• Stipend disbursed via DBT directly to apprentice's bank account [S1].
• Central Apprenticeship Council (CAC) — apex statutory body under the Act [S3].
• Cumulative apprentices engaged FY18-19 to July 2025: 41,95,703 [S2].
• FY 2025-26 physical target: 13 lakh apprentices [S2].
• CY 2025 engagement: 11.84 lakh [S2].
• NATS (National Apprenticeship Training Scheme) is a separate scheme run by MoE for graduates/diploma-holders — distinct from NAPS [S5].
• Women apprentices FY 2024-25: ~2.25 lakh [S2].
• CAC has recommended ~36% stipend hike [S5].

8. Mains Relevance

• GS-II: Government policies & interventions for development in social sectors (skilling).
• GS-III: Employment, growth, inclusive development; demographic dividend.
• Possible stems:
• "Critically evaluate NAPS-2 as an instrument for monetising India's demographic dividend." (GS-III)
• "Apprenticeship-led skilling demands legislative modernisation beyond the 1961 Act. Discuss." (GS-II)
• "Examine the role of DBT in plugging leakages in skill-development schemes, with reference to NAPS-2." (GS-II)

9. Related Topics to Study Next

• National Apprenticeship Training Scheme (NATS) — MoE-run cousin for graduate/diploma engineers.
• Skill India Mission / PMKVY 4.0 — overarching skilling architecture.
• Apprentices Act, 1961 & 2014 amendment — statutory backbone.
• Central Apprenticeship Council (CAC) — apex advisory body.
• PM Internship Scheme (Budget 2024-25) — complementary internship pipeline in top-500 companies.
• Code on Wages, 2019 & Labour Codes — wage-floor implications for stipends.
• Periodic Labour Force Survey (PLFS) — employability outcomes.
• Demographic Dividend / NEP 2020 vocational integration — long-run skilling vision.

10. Common Errors / Trap Areas

• Wrong ministry: NAPS is under MSDE, not Labour & Employment, and not Education.
• Confusing NAPS with NATS: NATS is for technically-qualified graduates/diploma holders under Ministry of Education; NAPS covers a broader pool under MSDE [S5].
• Stipend cap: ₹1,500/month is the Government share ceiling, not the apprentice's total stipend.
• Launch year: NAPS launched 2016, but underlying Act dates to 1961 — do not conflate.
• DBT introduction: DBT in NAPS was rolled out 2023, not at scheme launch in 2016 [S4].

11. Sources

• [S1] PROGRESS OF THE NATIONAL APPRENTICESHIP PROMOTION SCHEME (NAPS) — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2238227 — (tier: 1)
• [S2] NATIONAL APPRENTICESHIP PROMOTION AND TRAINING SCHEMES — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2226495 — (tier: 1)
• [S3] Apprenticeship Reforms and the Central Apprenticeship Council's Recommendations — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2149336 — (tier: 1)
• [S4] Shri Dharmendra Pradhan launches DBT in NAPS — https://www.pib.gov.in/PressReleseDetailm.aspx?PRID=1948017 — (tier: 1)
• [S5] CAC recommends 36% Increase in Stipend under NAPS and NATS — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2131391 — (tier: 1)