The Karnataka State Cabinet recently gave its nod to the Karnataka State Skill Development Policy 2025-32, a massive initiative requiring an investment of ₹4,432.5 crore over its seven-year span.
This visionary policy aims to solidify Karnataka’s position as a leading hub for a highly skilled workforce, propelling the state towards a remarkable $1 trillion economy by 2032.
At its core, the policy seeks to “transform Karnataka into a vibrant center for skill development, cultivating an inclusive and forward-looking workforce ready to meet the demands of a rapidly evolving global economy.”
Its mission is clearly defined: empower youth and marginalized communities by providing access to skills directly aligned with industry needs, championing continuous learning, and strengthening partnerships between various industries and educational institutions.
This holistic approach aligns perfectly with the broader Skill India Mission, designed to reduce regional skill disparities and drive sustainable economic advancement across the nation.
Key objectives of the policy include a strong focus on fostering lifelong learning, alongside comprehensive reskilling and upskilling programs. These are crucial to ensure the workforce remains adept and adaptable amidst rapidly changing technologies and industry requirements. Furthermore, it advocates for the seamless integration of vocational education into traditional schooling, higher education, and university curricula through credit-based programs.
Significant emphasis has also been placed on fostering deeper industry collaboration. This includes promoting apprenticeships, facilitating industry-led training initiatives, and encouraging the adoption of Industrial Training Institutes (ITIs) by private enterprises.
The policy intends to fully leverage modern digital technologies and AI-powered tools for training delivery, skill assessment, and personalized career guidance, all accessible through a unified digital portal.
Securing the Funding
The substantial funding required for implementing this ambitious policy, amounting to ₹4,432.5 crore, will be sourced from multiple avenues. This includes a significant contribution of ₹1,386 crore from the Asian Development Bank. Additionally, ₹410 crore is slated to be generated through Public-Private Partnership (PPP) projects, with ₹904 crore coming from ongoing projects already earmarked in previous State Budgets (supported by the State or organizations like KKRDB, KMERC, NABARD). A further ₹807 crore will be allocated from continuing departmental schemes, regardless of specific policy provisions, while the Department of Electronics, IT, BT and S&T will contribute ₹38.5 crore, and the Department of Skill Development will provide ₹887 crore.
Lessons from the CAG Report
It’s important to note the findings of a Comptroller and Auditor General (CAG) of India report, which was presented during the Monsoon Session of the legislature. The report highlighted that only 18% of candidates trained under the Karnataka Skill Development Corporation (KSDC) secured employment after completing their programs, significantly missing the target of 70%.
The report also pointed out that the previous Skill Mission’s targets for 2017-23 were unrealistic. Against an ambitious goal of training five lakh youth annually during this period, only 1,15,822 individuals actually received training.
This particular flagship training scheme, managed by the Department of Skill Development, Entrepreneurship and Livelihood, was originally launched in 2017 with the aim of training five lakh young people each year.