India spent just 5% of flagship skilling fund in FY26

India spent only 5% of the funds allocated under its flagship employment and skilling package in FY 2025-26, raising concerns over the programme’s incentive structure, targeting, and implementation, according to latest budget data.

The special package, announced by Finance Minister Nirmala Sitharaman in the 2024-25 Budget, aimed to skill and employ youth through an internship scheme, upgradation of 1,000 government-run industrial training institutes (ITIs), and other employment generation schemes. The programme was projected to benefit nearly 41 million youth at a total cost of Rs 2 lakh crore over five years.

However, data shows that the government spent just Rs 1,730 crore in FY26 out of the Rs 33,830 crore allocated. Of this, the internship scheme saw expenditure of Rs 526 crore from its Rs 10,800 crore allocation, despite only two pilot rounds being conducted.


The first phase of the internship programme received 6.2 lakh applications for roughly 1.3 lakh opportunities. While companies extended 82,000 offers, only 28,000 were accepted. In the second phase, 83,000 offers were made against 1.2 lakh opportunities, with 24,600 acceptances.

The internship scheme is still being finalised, with the Ministry of Corporate Affairs expected to seek cabinet approval soon. Funding for the scheme has been pegged at Rs 4,788 crore in FY27, as per budget projections.

(With inputs from TOI)