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Context:
The Indian government is preparing to launch a new initiative, Pradhan Mantri Kaushal Mudra Yojana (PMKMY), aimed at integrating financing with skill development to boost workforce readiness across emerging sectors. The announcement is expected in the Union Budget 2026-27.
Background and Launch
- Launched by: Launched in 8 April 2015 Ministry of Skill Development and Entrepreneurship (MSDE) in collaboration with the Ministry of Finance.
- Parent Schemes:
- Pradhan Mantri Mudra Yojana (PMMY) – for collateral-free loans up to ₹10 lakh to small entrepreneurs.
- Skill India Mission (PMKVY) – to provide employable skill training.
- Objective: To provide financial support for skills training, ensuring access to high-quality government and private training providers, particularly where training costs are high.
- Target Beneficiaries: The scheme aims to cover all segments of society, including women, rural youth, and persons with disabilities, ensuring inclusive access to skill development.
- Implementation Features:
- Five-year rollout plan.
- Interest subvention for marginalized groups and special regions to improve affordability.
- Use of blended finance models combining government funding, CSR, and philanthropic contributions.
- Expansion of the skills finance market through credit guarantees and improved data for loan underwriting, reducing lender risk and increasing accessibility.
