11 March 2026·PIB

PROGRESS OF THE NATIONAL APPRENTICESHIP PROMOTION SCHEME (NAPS)

In this note

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 [1][2].
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 [1].
High UPSC salience: intersects skilling, demographic dividend, employability and formalisation of labour — a recurrent GS-II/III theme.

PIB release dated 11 March 2026 by MSDE detailing year-wise apprentice engagement under NAPS for the last 5 FYs [1].
Cumulative 41,95,703 apprentices engaged from FY 2018-19 to July 2025; 11.84 lakh engaged in CY 2025 alone [2].
Physical target of 13 lakh apprentices set for FY 2025-26 [2].

1961: Apprentices Act enacted — statutory basis for apprenticeship training [1][3].
2014: Amendment to Apprentices Act, 1961 to liberalise engagement norms [3].
August 2016: NAPS launched to incentivise establishments to engage apprentices [1].
2019: Apprenticeship Rules amended to further ease compliance [3].
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 [1][4].

Implementing ministry: Ministry of Skill Development and Entrepreneurship (MSDE) [1].
Statutory base: Apprentices Act, 1961 and rules thereunder [1].
Apex body: Central Apprenticeship Council (CAC) — tripartite, constituted under the Act, advises on policy [3].
Government share: 25% of prescribed minimum stipend, max ₹1,500/apprentice/month [1].
Disbursal mode: Direct Benefit Transfer (DBT) to apprentice bank accounts [1].
Phase-1: Aug 2016 – FY 2021-22; Phase-2 (NAPS-2): FY 2022-23 onwards [1].
FY 2025-26 target: 13 lakh apprentices; engagement up to July 2025: 3.99 lakh [2].
Cumulative engagement (FY 2018-19 to July 2025): 41,95,703; of which 21,47,122 completed training [2].
Establishments registered under NAPS-2 (incl. MSMEs): 25,423 [2].

Economic

Targets demographic dividend by formalising on-the-job training; subsidy lowers cost of engaging apprentices for industry [1][2].
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 [2].
Provides stipend floor, partially shielding youth from exploitative low-wage internships.

Administrative

DBT removes intermediation, plugs leakages and shortens reimbursement cycles [1][4].
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 [3].

Ethical / Governance

Stipend cap of ₹1,500 critiqued as inadequate; CAC has recommended ~36% hike in stipend rates for NAPS & NATS apprentices [5].

2024: CAC recommended ~36% increase in apprenticeship stipend under NAPS and NATS [5].
CY 2025: 11.84 lakh apprentices engaged — highest annual figure to date [2].
July 2025: Cumulative tally crosses 41.95 lakh since FY 2018-19 [2].
11 March 2026: PIB tabled year-wise NAPS engagement data in Parliament [1].

NAPS launched in August 2016 [1].
NAPS-2 operational since FY 2022-23 [1].
Implementing ministry: MSDE (not Ministry of Labour & Employment) [1].
Statutory base: Apprentices Act, 1961 [1].
Government stipend share: 25% of minimum stipend, max ₹1,500/month [1].
Stipend disbursed via DBT directly to apprentice's bank account [1].
Central Apprenticeship Council (CAC) — apex statutory body under the Act [3].
Cumulative apprentices engaged FY18-19 to July 2025: 41,95,703 [2].
FY 2025-26 physical target: 13 lakh apprentices [2].
CY 2025 engagement: 11.84 lakh [2].
NATS (National Apprenticeship Training Scheme) is a separate scheme run by MoE for graduates/diploma-holders — distinct from NAPS [5].
Women apprentices FY 2024-25: ~2.25 lakh [2].
CAC has recommended ~36% stipend hike [5].

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)

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.

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 [5].
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 [4].