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Background: Scheme for 'Skill Development in ESDM for Digital India'

National Policy on Electronics 2012: Government of India has approved the National Policy on Electronics 2012 which aims at transforming India into a premier ESDM hub. The objective of the policy include creation of an eco-system for a globally competitive Electronic System Design and Manufacturing sector in the country to achieve a turnover of USD 400 billion by 2020 and employ around 28 million at various levels by 2020.

Moreover, the policy also proposes setting up of over 200 Electronic Manufacturing Clusters. The employment in the Electronics industry is estimated to grow phenomenally.

In order to facilitate skill development in ESDM sector focusing on students/unemployed youth at 9-10th standard onwards, ITI, Diploma, Non-engineering graduates, etc. to increase their employability to work in ‘Manufacturing’ and ‘Service support’ functions, a ‘Scheme for Financial Assistance to select States/UTs for Skill Development in Electronics System Design and Manufacturing (ESDM) sector’ was approved by DeitY in November, 2013. A total of 90,000 persons are to be supported under the scheme in the selected States in 5 levels of vocational skill development courses recognized by NIELIT/Electronic Sector Skill Council/Telecom Sector Skill Council. The total outlay of the Scheme is Rs. 113.77 crore with Grant-in-Aid of Rs. 100 crore (approx.).

Based on the proposals received, an Empowered Committee had selected the states of Andhra Pradesh (including Telangana; Target divided equally i.e. 7,500 for each state), Jammu & Kashmir (Target: 15,000 in all 5 levels), Karnataka (Target :15,000 in all 5 levels), Kerala (Target: 11,250 - for Level 3, 4, 5 courses only), Punjab (Target: 15,000 in all 5 levels), Uttarakhand (Target: 3750 - for Level 1, 2 courses only) and Uttar Pradesh (Target : 15,000 in all 5 levels). An Expert Committee has been constituted by the Government to recommend the basket of courses which could be covered under the said scheme. So far this Committee has recommended 64 courses so far for rollout of the scheme. The state of Karnataka has launched one course already and the other selected states and the three key implementing agencies viz. NIELIT, ESSC and TSSC are in the process of identifying state level training agencies in the respective states for launching these courses very shortly.

Further, the Government has announced a ‘Digital India’ initiative, under the aegis of which the department has approved the instant Scheme to cover all the remaining States/UTs of the country which are not covered in the previous scheme in order to facilitate creation of an eco-system for development ESDM sector in the entire country. Both the Schemes are to be implemented concurrently.


  1. The Scheme aims at enhancing the skilling capacities in ESDM sector through public and private sector for students/unemployed youth belonging to other disciplines by:
  2. Utilizing the existing human resource who are undergoing studies in schools (IX standard onwards)/ITIs/Polytechnics/UG Colleges (non-engineering) and the school drop outs/unemployed youth by providing them with additional skills that are recognized by industry for employment in ESDM sector.
  3. Encouraging new investments in training in ESDM sector by industry.
  4. Facilitating evolving of process/norms for (i) certification of various courses; (ii) providing opportunities for moving up the value chain; and (iii) recognition of institutions for conducting such courses, as per requirement of Industry in the ESDM sector.


  • To provide financial assistance for facilitating skill development for 3,28,000 persons in ESDM sector by involving the States/UTs in the country for improving the employability of the students/unemployed youth.

Duration of the Scheme:

  • The scheme will be in operation for four (04) years.

Total outlay of the Scheme:

  • The total budget outlay of this Scheme is Rs.410.94 crore (approx.) out of which the Grant-in-aid would be Rs. 354.85 crore (approx.).

Specific targets to be achieved:

  • The scheme is targeted to cover 3, 28,000 candidates in various States/UTs of the country The scheme is proposed to target the following beneficiaries:

Students studying at

  1. IX/X standards onwards
  2. ITIs
  3. Polytechnics
  4. Under Graduate (Non-Engineering)

Unemployed youth (indicative list

  1. School dropouts from 8th Pass onwards
  2. ITI Certificate Holders
  3. Diploma holders
  4. Graduates (Non-Engineering)
  5. Registrants in Employment Exchanges
  6. Unemployed resources in the Non-Formal Sector