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Skill Development and Tech Growth: Government Pushes Future Skills and Innovation in Non-Metro India

Skill-Development-and-Tech-Growth

06 AUG 2025 | New Delhi

In a major push towards developing a future-ready workforce and catalyzing India’s digital economy, the Government of India is aggressively promoting skill development in emerging technologies and supporting IT growth in Tier-2 and Tier-3 cities through the Skill India Mission (SIM) and the Software Technology Parks of India (STPI) network.

Future Skills Training Under Skill India Mission

Under the Ministry of Skill Development and Entrepreneurship (MSDE), several schemes—Pradhan Mantri Kaushal Vikas Yojana (PMKVY), Jan Shikshan Sansthan (JSS), National Apprenticeship Promotion Scheme (NAPS), and Craftsman Training Scheme (CTS)—are delivering skill training across all societal segments. The training now includes new-age domains like AI/ML, robotics, electric vehicles (EVs), mechatronics, drone technology, and 5G.

  • PMKVY: Over 4.32 lakh candidates trained in future skills as of June 30, 2025.
  • NAPS: 31,750 candidates trained in 69 new-age trades.
  • CTS (via ITIs/NSTIs): 52,882 candidates trained in 31 future-skills courses between 2022–2024.
  • MoUs with Tech Giants: Collaborations with IBM, Microsoft, AWS, and others are enhancing industry-aligned training through CSR initiatives.
  • Indian Institutes of Skills (Ahmedabad and Mumbai): Established in PPP mode to deliver cutting-edge hands-on training.

To facilitate placements, MSDE launched the Skill India Digital Hub (SIDH)—a unified platform integrating skilling, education, employment, and entrepreneurship. Under PMKVY 1.0 to 3.0 (2015–2022), 24.38 lakh candidates were placed. Under the ongoing PMKVY 4.0, candidates are oriented towards diverse career paths with support via Rozgar Melas and Pradhan Mantri National Apprenticeship Melas (PMNAMs).

STPI Network: Driving IT Growth Beyond Metros

Meanwhile, the Software Technology Parks of India (STPI) initiative under the Ministry of Electronics and IT (MeitY) has driven remarkable IT sector growth in non-metro cities:

  • 68 STPI centres across India, with 60 in Tier-2 and Tier-3 cities.
  • 2.98 lakh direct jobs created in non-metros by STPI-registered units (as of March 2025).
  • 9,800 additional jobs created by startups supported under the Centres of Entrepreneurship (CoEs) and Next Generation Incubation Scheme (NGIS).

Startups and Innovation

  • 1,121 startups supported by STPI with ₹445.77 crore in funding.
  • ₹39.86 crore disbursed as direct funding to 590 startups over three years.
  • 15 new CoEs added in the last five years, fostering innovation in domains such as AI, blockchain, agritech, gaming, and fintech.

India’s IT Sector: 2019–2025 Growth Highlights (NASSCOM Data)

Metric 2019 2024/25
Direct Employment 4.14 million 5.8 million
Total Revenue USD 177 billion USD 283 billion
Exports USD 136 billion USD 224.4 billion
Domestic Revenue USD 41 billion USD 58.2 billion
Number of Startups ~7,200 32,000+
Patent Filings 4,331 90,000

Supporting Policies and Programs

National Policy on Software Products (NPSP) 2019 has played a crucial role in India’s shift from a service-led to a product-led digital economy. Key programs include:

  • Future Skills PRIME: Up-skilling in technologies like AR/VR, IoT, Big Data, and AI.
  • NGIS: Fosters tech startups in smaller towns.
  • SAMRIDH: Offers market access and investor connections.
  • GENESIS & TIDE 2.0: Support youth-led and tech startups.
  • Digi-SAPNE: Supports NE-region startups.
  • BHASHINI: National Language Translation Mission.
  • 24 Centres of Entrepreneurship: Provide domain-specific innovation support nationwide.

Source: PIB

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