Friday, November 21, 2025
NSN
NTTF_mini_web_banner
SGSU-banner-1
Didac India & Skills Combined NSN Banner-01
  • Home
  • Conversations
    • Industry Conversations
    • All Conversations
  • Perspectives
    • Education
    • Emerging Technologies
    • Government Initiatives
    • Industry
    • Industrial Training Institutes (ITIs)
    • NEP 2020
    • Skill Training
  • News
    • Latest Updates
    • News Archives
    • CSR and ESG in Skill Education
    • Skill Development e-Magazine
    • NSN PDF Newsletter Archives
  • Videos
    • Explainers
    • Panel Discussions
    • Student Stories
    • Video Conversations
  • Resources
    • Apprenticeship
    • e-Books
    • Resources
    • Success Stories
  • Events
    • Workshops
  • About us
    • Our Team
    • Our Clients
    • Our Services
    • Privacy Policy
No Result
View All Result
NSN
  • Home
  • Industry Conversations
  • Perspectives
    • Education
    • Emerging Technologies
    • Government Initiatives
    • Industry
    • Industrial Training Institutes (ITIs)
    • NEP 2020
    • Skill Training
  • News
    • Latest Updates
    • News Archives
    • Skill Development e-Magazine
    • NSN PDF Newsletter Archives
  • Resources
    • Apprenticeship
    • E-books
    • Resources
    • Success Stories
  • Events
    • Workshops
  • About us
    • Our Team
    • Our Clients
    • Our Services
    • Privacy Policy
NSN
No Result
View All Result
Home Perspectives Government Initiatives

National Training Fund (NTF): A Vehicle for Convergence

Guest Author by Guest Author
December 11, 2020
Reading Time: 5 mins read
A A
1

In this guest article Ms. Sunita Sanghi, Principal Adviser, Ministry of Skill Development and Entrepreneurship (MSDE) and Deepali Raina, Former Consultant, NCVET, share their views on National Training Fund (NTF) and how it can be a vehicle for convergence to meet the various needs of skill development in India.

A quality driven system at all levels, be it infrastructure, curriculum development, fostering industry partnerships, improved pedagogy, assessments and others is required for achieving optimal outcomes in the vocational education system. Currently, there are multiple schemes implemented by various Central Ministries /Departments and State governments leading to duplication of efforts and sub-optimal utilization of resources.

The learners and industries who are the ultimate end users of all skill development initiatives have no role / choice to exert in the current arrangement. A well-established institutional framework of funding, which takes into account peculiarities of the skill development space, is perquisite for realizing the objectives of skill development policy on ground. 

This necessitates exploring alternative options of funding that promotes convergence, transparency and demand driven skilling ecosystem. This brings on board National Training Fund (NTF).

Current funding scenario in skill development

Currently, all funding across skill development programs is largely government grant-based with focus on delivery of services for pre-employment training; reskilling and up-skilling; Recognition of prior learning (RPL) and apprenticeship training with limited focus on improving quality and relevance of training and quality of teachers/assessors.

The private sector buy-in remains extremely low, thus attributing to the lack of participatory approach in the skilling per se.

The situation calls for paradigm-shift and overhauling of the existing funding mechanism in the vocational education in the country. One of the models is that of the National Training Fund (NTF).

National Training Fund (NTF)_ A Vehicle for Convergence

National Training Fund (NTF)

While we will attempt to understand and evaluate the proposed NTF in terms of its rationale and applicability in the India context, it is important to consider that such kind of consolidated funding arrangements in skilling ecosystem are existing in other countries like that of European Union and others. A broad understanding of these existing arrangements globally will help us in building a perspective of our system.

The national training funds across the world are becoming an instrument for financing training by providing an institutional framework for collecting and allocating finances to the training providers. 

Training funds can be categorised in three ways, on the basis of the purpose they are used for viz. Pre-employment Training Fund, Enterprise Training Fund and Equity Training Fund. The question is what is National Training Fund; what are its objectives and benefits; what can be the model for India.

Usage of National Training Fund

In the Indian context, the NTF is proposed to be a consolidated fund that may derive its resources from government budget given to various central ministries; National Skill Development Fund and other sources like proportion from Corporate Social Responsibility (CSR) funds, Member of Parliament Local Area Development (MPLAD) Funds, Education Cess and Building and Construction Workers Cess etc. The consolidated fund would be instrumental in addressing multiple objectives of pre-employment training, quality training and enterprise training through fresh skilling, re-skilling, up-skilling, Recognition of Prior Learning, apprenticeship training, etc.

The training fund can also be used for training of workers in enterprises either in terms of recognition of prior learning or to finance the apprenticeship training. A mechanism to support industries and small enterprises for pre-employment training may also be plugged in to boost participation of industries in the process. This way the training fund would address the skill requirement of MSME and informal sector.

Convergence, autonomy and a quality assured monitoring system in place is must to ensure that NTF meets its desired objective of addressing the varied needs of the skill development. For this, a Special Purpose Vehicle with fire wall arrangements with the administrative Ministry (Skill Development and Entrepreneurship) is envisioned.

Role of other Ministries in executing NTF

It is crucial to understand the role of other Ministries (apart from Skill Development) in the execution of NTF. To understand this, lets first understand how the fund would operate.

  • The starting point of any process in NTF would be the choice made by the learner on a common IT platform. A well-integrated Labour Market Information System (LMIS) may be operationalised where in a learner can register and based on his requirement would opt for a particular scheme, sector and course.
  • A number of such entries may lead to creation of batch for particular scheme of the Ministry, which can then take it up in their system for further implementation.
  • This LMIS would not operate in isolation but maybe integrated with job aggregators and National Career Services that would channelize candidates into jobs, apprenticeships and training.

The provision of registration of candidates and selection of courses would be crucial in weeding out duplication of training and would also provide a transparent data in regard to training numbers.  Funds may not be given individually provided to the line Ministries. The line Ministries would provide all training targets under the central schemes to the National Training Fund. Since funds would be released through a single entity, it would ensure competitiveness amongst training providers and hence significantly enhance the quality of training.

Generation of Resources

The next important question may be how will NTF generate resources. The payroll levies (that are implemented in nearly 40 countries worldwide and are the main source of financing skill training) may not be an effective mechanism for funding skill training in India; given the large size of informal sector and its unique challenges of access and equity faced by large sections of the population.

Over 98% enterprises in India employ less than 10 workers. Such enterprises may not have the resources to contribute individually to the levy. The funding resources for this National Fund may then come from five major sources, viz. (I) Central Budget Outlays for all Central Ministries (ii) Mandating 50% of the 2% CSR funding under the Companies Act (iii) Contribution from the Members of Parliament Local Area Development Scheme (MPLADS). A 20% contribution from MPLADS/MLA funds can be used particularly for creating infrastructure for skill development. (iv) 25% of Funds from Building and Other Construction workers’ Welfare Cess (v) Other donations and multi-lateral funding may also be utilised. 

The NTF may be backed by an online web portal for effective real time monitoring of these skill development schemes with access to various stakeholders. A ranking of training providers may also be displayed on the portal to enable the candidates to choose his/her training provider.

Advantages of NTF

The possible advantages of well implemented NTF broadly include a lot of points but not limited to enhanced competition among training delivering entities, accountability, optimum utilisation of funds, addressing information asymmetry especially for learners and others. While the perception one may develop while reading the outlines of NTF, is that it will disempower the local level structures at state and district level.

Contrary to this, access and equity being the fundamental blocks of the proposed NTF, a more collaborative role of State and district machinery is being envisaged to reach out to the maximum number of target beneficiaries.

With all these advantages in place, the pragmatic view also warns that by just having consolidated fund and robust labour market system may not be sufficient in itself to address the various systemic challenges of the skill ecosystem. However, it does give a scope for utilisation of resources in a more transparent and participatory manner for components that go beyond tangible hardware part to address the very core of learning process that is crucial for translating the demographic advantage of our country into demographic dividend; contributing to socio economic growth of not only our country but the world over.

RelatedPosts

Bengaluru Skill Summit 2025: Strategic Insights on AI, Jobs, Innovation and Karnataka’s Vision 2030

Innovation Challenge Launched for NSTI Students by MSDE, ABCF, and BITS Pilani

Bengaluru Skill Summit 2025: Driving Skills, Innovation, and Growth in Karnataka

Tags: Covergence of skill deevlopment programsCSR and Skill developmentMinistry of Skill Development and EntrepreneurshipNational training fund (NTF))skill development fundsskill requirement of MSME and informal sectortraining partners
ShareTweetShareSummarizeSummarize
WhatsApp Join our WhatsApp channel for more updates:
WhatsApp Join Now!
YouTube Subscribe to our YouTube channel for more updates:
YouTube Subscribe Now!
Previous Post

NSDC collaborates with BYJU’s to support skilling of teachers and trainers

Next Post

Apprenticeship schemes in India: NAPS and NATS

Guest Author

Guest Author

Next Post
Apprenticeship schemes_ NAPS and NATS

Apprenticeship schemes in India: NAPS and NATS

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

No Result
View All Result
samplead3 samplead1

Subscribe to our e-Magazine

Trending Topics

skilling in India (131) National Skill Development Corporation - NSDC (127) skill development news India (124) skill development (114) Ministry of Skill Development and Entrepreneurship MSDE (101) vocational education (93) Apprenticeships (86) skill development news (79) skill development programs (70) Nettur Technical Training Foundation (NTTF) (68)

Follow us

  • Here are the key updates from this week’s NSN Newsbytes, capturing the major developments in India’s skill development and education ecosystem. 

DIDAC India 2025 begins today in New Delhi, bringing together innovations and insights on the future of learning and work. 

This edition also highlights findings from the India Skills Report 2026, state-led reforms in skill-based education, major CSR initiatives from leading corporates, and new industry–academia collaborations in AI and emerging technologies. 

Click here to read more: https://nationalskillsnetwork.in/weekly-newsbytes-from-nsn-on-skill-development-and-education-18th-november-2025/

Stay informed with the most important updates shaping India’s skilling landscape.

#skilldevelopment #education #DIDACIndia #CSR #VocationalTraining #EdTech #Employability
  • DIDAC India and DIDAC Skills 2025 begins tomorrow!

Asia’s largest and India’s only exhibition and conference for the education and skills sector is all set to open its 15th edition at Yashobhoomi (IICC), Dwarka, New Delhi.

Bringing together global and national leaders in education, EdTech, training, and skill development, DIDAC India and DIDAC Skills 2025 will showcase the latest technologies, hands-on learning innovations, industry-academia collaborations, and emerging sector opportunities across EV, healthcare, green energy, and advanced manufacturing.

This integrated platform will feature exhibitions, conferences, workshops, and knowledge-sharing sessions designed to support educators, administrators, training providers, and industry partners in strengthening India’s future workforce.

We also had an insightful conversation with Mr. Aditya Gupta, CEO of India Didactics Association, and Dr. Neeta Pradhan Das, Chief of DIDAC Skills, discussing key themes, opportunities, and what to expect at this year’s edition.

Watch the full discussion to know more about the event - https://youtu.be/NvT79kYqOYE?si=20gykgYiqj6kq2i1

Looking forward to three days of ideas, innovation, and inspiration for the education and skills ecosystem.

#DIDACIndia #DIDACSkills #Education #SkillDevelopment #FutureOfWork
  • What makes Skill Universities different and why do they matter for India’s future workforce?

This video explains how Skill Universities are reshaping higher education by bridging academics with real industry needs.

Discover how these universities, aligned with NEP 2020, offer flexible, competency-based programs that combine skills, certifications, and workplace exposure; preparing learners for the future of work.

Watch now to understand how Skill Universities are transforming education and employability in India!

Full Video: https://youtu.be/SnJHfzYj474?si=0gfISL92QPj4Ix25

#SkillDevelopment #SkillUniversities #HigherEducation #NEP2020 #FutureOfWork #VocationalEducation
  • The Bengaluru Skill Summit 2025 was an event filled with new energy and enthusiasm to drive work-integration education and entrepreneurship in Karnataka and beyond.

On behalf of our team at National Skills Network - NSN, we would like to thank the organisers and the event leaders for making NSN a part of the event. 

"I
  • October recap: A month of innovation, collaboration, and skill development!

From Design Skills and Careers in the Creative Economy to the AI Literacy Mission launched by AISECT, October was a month that celebrated creativity, technology, and purpose in skill development and education.

We also explored insights from DIDAC India 2025, where innovation meets education, and discussed how Bengaluru Skill Summit 2025 is shaping Karnataka’s skill vision for 2030. Initiatives like SGSU’s Diwali Skill Wali and SkillTech Studio’s innovative lab solutions added a festive and futuristic touch to learning!

Catch up on both October editions of The Skill Times and stay updated with stories driving India’s skilling transformation 👇

The Skill Times – October 01 Edition:
https://sendy.nationalskillsnetwork.in//w/1gvEmkc2fkWWQJ4aG2763TTg

The Skill Times – October 02 Edition:
https://sendy.nationalskillsnetwork.in//w/4XSHFW1lWMMZRrDhh2RpmQ

#SkillDevelopment #Education #TheSkillTimes #FutureSkills #SkillIndia #Employability #DIDACIndia #BengaluruSkillSummit #AISECT #SGSU #NSN
  • Don’t miss this week’s updates on skill development!

India’s skilling landscape continues to evolve with new government reforms, CSR-led initiatives, and academic collaborations shaping the future of employability.

From Telangana’s T-STEM digital platform and Kerala’s one lakh job initiative for ITI graduates to the upcoming Pradhan Mantri Kaushal Mudra Yojana (PMKMY), the focus remains clear; building a future-ready workforce.

In the CSR and academic space, organisations like Toyota, Daimler India, AMHSSC, and RedVersity, along with institutions like NIT Jalandhar and BITS Pilani, are driving innovation, entrepreneurship, and hands-on learning in skill development.

Stay updated with all the key developments in skill and education this week; read the latest NSN Newsbytes now - https://nationalskillsnetwork.in/weekly-newsbytes-from-nsn-on-skill-development-and-education-4th-november-2025/

#SkillDevelopment #Education #Employability #CSR #PMKMY #RozgarMela
  • In this conversation, Dr Madhuri Dubey, Founder and Director of the National Skills Network (NSN), spoke with Dr E. V. Ramana Reddy, Chairman of the Karnataka Skill Development Authority, about the ongoing Bengaluru Skill Summit 2025. The discussion centred on the vision, policy focus, and key initiatives that are shaping Karnataka’s skilling ecosystem.

We’re proud to join hands with the Bengaluru Skill Summit 2025 as an Association Partner! 🤝

Organised by the Government of Karnataka through the Skill Development Entrepreneurship and Livelihood Department (SDEL), Karnataka Skill Development Corporation (KSDC), Karnataka State Department of Agriculture (KSDA), and Karnataka Digital Economy Mission (KDEM), the summit will bring together leaders from government, industry, academia, and youth to power the next wave of India’s skilling revolution.

This year’s summit celebrates collaboration, innovation, and workforce transformation, shaping the future of skills in India.

Visit https://bengaluruskillsummit.com/ to know more.

Watch the full interview on our YouTube channel, link in our story highlights! 

#BengaluruSkillSummit #SkillDevelopment #FutureOfWork #Innovation #Workforce2030
  • Bengaluru Skill Summit 2025 begins today!

We’re truly delighted to be part of this transformative journey as the Bengaluru Skill Summit 2025 kicks off in Bengaluru; a flagship initiative organised by the Department of Skill Development Entrepreneurship and Livelihood Department, Government of Karnataka (SDEL), Government of Karnataka, and hosted by the Karnataka Skill Development Corporation (KSDC) - ಕರ್ನಾಟಕ ಕೌಶಲ್ಯ ಅಭಿವೃದ್ಧಿ ನಿಗಮ and Karnataka Skill Development Authority (KSDA) — with the Karnataka Digital Economy Mission (KDEM).

The inaugural session, graced by Hon’ble Chief Minister of Karnataka, Shri Siddaramaiah, marked a significant beginning with the launch of the Karnataka Skill Development Policy 2.0, outlining the state’s vision for a skilled, inclusive, and innovation-driven future.

At National Skills Network (NSN), we’re happy and proud to partner with this incredible summit that brings together leaders from government, industry, academia, and youth to drive India’s workforce vision for 2030.

We look forward to being a part of conversations shaping the future of India’s workforce, exchanging ideas, sharing insights, and learning from the inspiring discussions that are shaping the future of skills, innovation, and workforce development in Karnataka and beyond.

Stay tuned for updates and highlights from the Summit.

#BengaluruSkillSummit #SkillDevelopment #Innovation #FutureOfWork
  • Join Us at Bengaluru Skill Summit 2025! 🌟

Karnataka is leading the way in shaping India’s future of work and skills. The Bengaluru Skill Summit 2025, organised by the Department of Skill Development, Entrepreneurship & Livelihood (SDEL), Karnataka Skill Development Corporation (KSDC), Karnataka State Department of Agriculture (KSDA), and Karnataka Digital Economy Mission (KDEM), is the state’s flagship platform to build a future-ready workforce.

Connect with policymakers, industry leaders, training partners, academia, youth, and international agencies to co-create strategies that transform employability, unlock global mobility, and build inclusive talent ecosystems.

💡 Why Attend:

3,000+ Participants

100+ Speakers

100+ Exhibitors

📅 Event Dates:

4 November 2025 – Inaugural Ceremony (By Invite Only)

5–6 November 2025 – Summit Open to All

📍 Venue: The Lalit Ashok, Bengaluru

Don’t miss this chance to be part of India’s largest skilling movement!

🔗 Book your FREE pass now: https://konfhub.com/checkout/bengaluru-skill-summit-2025?ticketId=56659 

#BengaluruSkillSummit2025 #SkillsForFuture #FutureOfWork #Leadership #SkillDevelopment #Innovation #Upskilling #YouthEmpowerment

About us

National Skills Network (NSN) captures and shares the positive impact of various training, skill development and vocational education initiatives in India.

To know more about Our Team: Click here

Address

NSN Digital Solutions Pvt. Ltd.
CIN: U74999TG2020PTC147299
MSME: UDYAM-TS-09-0086473
Gachibowli, Hyderabad – 500032

Email us: contact@nationalskillsnetwork.com

Important Links

  • Conversations
  • Perspectives
  • News
  • Skill Development e-Magazine
  • Resources
  • Our Team
  • Our Clients
  • Partner with us
  • About us
  • Advertise with us
  • Content Disclaimer
  • Privacy Policy

© National Skills Network Content licensed under CC BY-ND 4.0. Commercial use requires permission.

No Result
View All Result
  • Home
  • Conversations
    • Industry Conversations
    • All Conversations
  • Perspectives
    • Education
    • Emerging Technologies
    • Government Initiatives
    • Industry
    • Industrial Training Institutes (ITIs)
    • NEP 2020
    • Skill Training
  • News
    • Latest Updates
    • News Archives
    • CSR and ESG in Skill Education
    • Skill Development e-Magazine
    • NSN PDF Newsletter Archives
  • Videos
    • Explainers
    • Panel Discussions
    • Student Stories
    • Video Conversations
  • Resources
    • Apprenticeship
    • e-Books
    • Resources
    • Success Stories
  • Events
    • Workshops
  • About us
    • Our Team
    • Our Clients
    • Our Services
    • Privacy Policy

© National Skills Network Content licensed under CC BY-ND 4.0. Commercial use requires permission.