National Apprenticeship Promotion Scheme (NAPS-2): Boosting Industry-Led Skill Training Through Apprenticeship

NAPS-2 in Parliament: Government Details Apprenticeship Stipend Reforms and Ecosystem Building

The Minister of State (Independent Charge), Ministry of Skill Development and Entrepreneurship, Jayant Chaudhary, recently informed the Lok Sabha about the National Apprenticeship Promotion Scheme, Phase 2, or NAPS-2, in a written parliamentary reply detailing the scheme's structure, stipend framework, and reform trajectory.

"The National Apprenticeship Promotion Scheme is set for significant reforms in its second phase, focusing on broadening youth participation and strengthening India's skilled workforce."

Among the reforms detailed was a proposed 36 percent stipend hike under NAPS-2, moving the eligible monthly stipend range from Rs 5,000-9,000 to Rs 6,800-12,300 per apprentice, with the revised figures linked to the Consumer Price Index and subject to biennial revision going forward. Under this arrangement, the government continues to support 25 percent of the minimum prescribed stipend, capped at Rs 1,500 per apprentice per month, disbursed directly through the Direct Benefit Transfer system. This parliamentary disclosure comes against the backdrop of continued ministry activity around apprenticeship expansion, including the recent extension of the Special Intervention for Promotion of Apprenticeship in the North-Eastern Region under the Prime Minister's National Apprenticeship Promotion Scheme for FY 2026-27, targeting 30,000 apprentices with a financial outlay of Rs 57.58 crore.

Origins and Evolution: From NAPS to NAPS-2

The scheme's foundations trace back nearly a decade. The National Apprenticeship Promotion Scheme was originally launched on 19 August 2016 with the objective of promoting apprenticeship training and increasing the engagement of apprentices, providing financial incentives to establishments engaging apprentices under the Apprentices Act, 1961. Its second phase, NAPS-2, has been implemented throughout the country from 2022-23 by the Ministry of Skill Development and Entrepreneurship, retaining the core aim of promoting apprenticeship training while sharpening its focus on ecosystem capacity building.

"NAPS-2 aims to promote apprenticeship training in the country by providing partial stipend support to apprentices, undertaking capacity building of the apprenticeship ecosystem, and providing advocacy assistance to stakeholders."

The scheme operates as a Central Sector Scheme, fully funded by the Central Government, and functions as one of the sub-components under the broader umbrella of the Skill India Programme. Under NAPS-2, the Ministry has set an ambitious target of training 46 lakh apprentices across the period from FY 2022-23 to FY 2025-26, reflecting the scale of ambition behind this apprenticeship expansion drive.

Core Features of NAPS-2

The scheme's design combines financial support, industry integration, and digital administration into a coordinated framework. Financial support is delivered through Direct Benefit Transfer, with the Government's share of the stipend released directly to beneficiary bank accounts, ensuring transparency and minimising leakage in disbursement.

"Apprenticeship training is conducted in actual work environments using the training facilities available with participating establishments, enabling hands-on learning and industry exposure."

This industry-led approach is reinforced by technology-enabled implementation, with a dedicated online portal facilitating the entire apprenticeship lifecycle, from registration and contract approval to monitoring and benefit disbursement. To extend the scheme's reach, particularly among smaller enterprises, mobilisation of apprentices and establishments, especially MSMEs, is supported through empanelled Third-Party Aggregators, who help bridge the gap between willing employers, particularly smaller firms lacking dedicated HR capacity, and prospective apprentices. The scheme additionally aims to improve ease of doing business by simplifying apprenticeship engagement processes, and it links successful apprentices to the National Career Service portal upon completion of training to support their transition into formal employment.

Significance and the Way Forward

The parliamentary disclosure of NAPS-2's stipend reforms carries significance for India's broader skilling and employability agenda. The proposed 36 percent stipend increase, indexed to the Consumer Price Index with periodic revision, addresses a long-standing concern that stagnant stipend levels discouraged youth participation in formal apprenticeship pathways, particularly as living costs rose faster than the scheme's original stipend bands. Coupled with the scheme's emphasis on MSME participation through Third-Party Aggregators, NAPS-2 seeks to extend structured, on-the-job training opportunities into segments of the economy that have historically remained outside formal skilling frameworks.

Going forward, the scheme's success will hinge on translating its ambitious 46-lakh apprentice target into effective, quality training outcomes rather than mere numerical enrolment, and on ensuring that MSMEs, often resource-constrained, can meaningfully sustain apprenticeship programmes with the support of Third-Party Aggregators. The continued regional expansion evident in initiatives like the North-Eastern intervention under PM-NAPS suggests the government intends to deepen geographic penetration alongside these structural reforms, a dual approach that will need sustained monitoring through the scheme's technology platform to ensure both scale and quality keep pace with each other.

Conclusion

The Lok Sabha disclosure on NAPS-2 underscores a scheme that has evolved considerably since its 2016 origins, now combining a revised, CPI-linked stipend structure with a broader push for industry-led, technologically administered apprenticeship training across India. As the government works toward its 46-lakh apprentice target through FY 2025-26, NAPS-2's continued refinement, particularly its stipend reforms and MSME-focused outreach through Third-Party Aggregators, will be central to building a genuinely skilled and industry-ready workforce for India's economy.