Spending in FY2025-26: Just 5% spent on skill development programs (allocation was in the 2024-25 budget)
The Indian government spent just 5% of its massive ₹33,830 crore budget for job and skill development in FY2025-26—only ₹1,730 crore actually reached programs meant to help young people get work-ready.
This is despite big promises to skill 41 million youth and upgrade 1,000 ITIs over five years.
Government pegs funding for FY2026-27 at ₹4,788 crore
Even though internship schemes got lakhs of applications, only a small fraction of offers were accepted—most offers went unaccepted.
The government has pegged funding at ₹4,788 crore for FY2026-27, and set up a high-powered committee (announced alongside comments from Skill Minister Jayant Chaudhary) to tackle AI's impact on jobs and bridge the skills gap.
The hope is that these new steps will finally make a real difference for young people looking for better opportunities.