Home India Ministry of Skill Development and Entrepreneurship Parliament Question: MSMEs under NAPS...
Date: 2025-12-08 Category: Not Applicable State: Union Government Country: India

Parliament Question: MSMEs under NAPS

Issued by Ministry of Skill Development and Entrepreneurship · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** This document responds to a parliamentary question regarding the National Apprenticeship Promotion Scheme (NAPS) and MSME engagement. The document details the NAPS scheme, its implementation, and its impact. The document references data up to the current year and specifies that Direct Benefit Transfer (DBT) for the stipend was launched in July 2023. **Key Points / Main Content** * **National Apprenticeship Promotion Scheme (NAPS):** * Launched in August 2016 to promote apprenticeship training and increase engagement. * Continued as NAPS-2 from 2022-23, implemented nationwide, including Uttar Pradesh. * Provides partial stipend support (up to 25% of stipend, maximum Rs. 1,500 per month) to apprentices via Direct Benefit Transfer (DBT). DBT effective from July 2023. * **MSME Engagement:** * NAPS encourages enrolment of apprentices in MSMEs. * 32,364 MSMEs have engaged apprentices across the country (4,102 in Uttar Pradesh) over the last five years and the current year. * Government share of stipend is Rs 1,500/- per month for apprentices in all establishments. * **Apprentice Outcomes:** * On-the-Job Training (OJT) helps apprentices become industry-ready. * Impact Evaluation study (2016-2020): * 91% of youth felt the program improved their self-worthiness for employment. * Employment rate: 41% within 3 months, 64% within 6 months, 74% within 12 months after completion. * 89% felt that the training improved self-employability. * **Stipend Information:** * Average stipend rate for an apprentice in Uttar Pradesh is Rs. 11,393/- per month during the current year. * **Apprenticeship Portal:** * Enhanced version introduced with improved UI/UX features. * Includes integrated digital processes for establishments (including MSMEs). * Facilitates registration, course selection, candidate engagement, contract issuance, training monitoring, stipend management, and assessment uploads. * Support available from district-level Assistant Apprenticeship Advisers and empaneled Third Party Aggregators (TPAs). **Impact Analysis** **Micro, Small, and Medium Enterprises (MSMEs)** * **Impact:** Encouraged to participate in NAPS by providing financial assistance via the stipend. The enhanced portal will reduce administrative overhead. * **Action Required:** Utilize the apprenticeship portal for registration, training management, and stipend administration. **Apprentices** * **Impact:** Provided with opportunities for industry training, stipend support, and enhanced employability. * **Action Required:** Engage in the apprenticeship program to acquire skills and improve job prospects. **Government of India (Ministry of Skill Development and Entrepreneurship)** * **Impact:** Tasked with overseeing the implementation and effectiveness of the NAPS scheme. * **Action Required:** Continue to monitor and improve the NAPS scheme based on feedback and impact assessments.

Key Entities Referenced

National Apprenticeship Promotion Scheme (NAPS): Scheme to promote apprenticeship training and increase the engagement of apprentices in India. Apprentice Act, 1961: The principal legislation governing apprenticeships in India, under which the NAPS scheme operates. Uttar Pradesh: A state in India that is specifically referenced regarding data on MSMEs and apprentice stipends. Ministry of Skill Development and Entrepreneurship: The central ministry responsible for the National Apprenticeship Promotion Scheme. Micro, Small, and Medium Enterprises (MSMEs): A category of business that the scheme encourages to hire apprentices.
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GOVERNMENT OF INDIA MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP LOK SABHA UNSTARRED QUESTION NO – 1245 ANSWERED ON 08/12/2025 “MSMEs UNDER NAPS” 1245. MS IQRA CHOUDHARY: Will the Minister of SKILL DEVELOPMENT AND ENTREPRENEURSHIP be pleased to state: (a) the number of Micro, Small, and Medium Enterprises (MSMEs) that have engaged apprentices under the National Apprenticeship Promotion Scheme (NAPS) during the last five years and the current year, along with the rate of incentive utilisation by MSMEs compared to large industries, State-wise and district-wise, for Uttar Pradesh; (b) the number of apprentices engaged under NAPS and the number of persons who secured regular employment within three months after completing their apprenticeship, year, State and social-category wise; (c) whether the Government has compiled data on the average stipend amounts received by apprentices in Uttar Pradesh, if so, the details thereof; and (d) the major challenges hindering MSME participation in NAPS and the steps taken by the Government to simplify the application and approval process? ANSWER THE MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP (SHRI JAYANT CHAUDHARY) (a) The Government of India launched ‘National Apprenticeship Promotion Scheme’ (NAPS) in August, 2016 with the objective to promote apprenticeship training and to increase the engagement of apprentices. Since 2022-23, the scheme continues as NAPS-2 and implemented throughout the country, including Uttar Pradesh. The scheme promotes apprenticeship training in the country, by providing partial stipend support to the apprentices engaged under the Apprentice Act, 1961, undertaking capacity building of the apprenticeship ecosystem, and providing advocacy assistance to the stakeholders. The partial stipend support limited to 25% of stipend paid, up to a maximum of Rs.1,500 per month, per apprentice during the training period is paid through Direct Benefit Transfer (DBT) to the bank account of apprentice. DBT was launched effective July 2023. The scheme encourages enrolment of apprentices in Micro, Small and Medium Enterprises (MSMEs). The number of MSMEs that have engaged apprentices during the last five years and the current year throughout the country is 32,364, out of which 4,102 are in Uttar Pradesh. The State-wise and year-wise data of MSMEs engaging apprentices pan-India including Uttar Pradesh is at Annexure. Under the scheme, the government share of stipend of Rs 1,500/- per month is provided to apprentices of all categories of establishments. (b) The On-the-Job Training (OJT) provided during apprenticeship helps apprentices become industry-ready, giving employers a pool of trained candidates to choose from as per organisational needs. moreover, an Impact Evaluation study of the scheme conducted for the period 2016-2020, indicates that the youth find it as an extremely useful programme to increase their chances of employment. 91% felt that the programme improved their self-worthiness for employment. Employment rate among pass-outs is 41% in first three months, 64% within 6 months and 74%within 12 months after completion. Further, 89% felt that the apprenticeship training has worthiness for self-employability. (c) Considering first year stipend, the average stipend rate for an apprentice in Uttar Pradesh is Rs. 11,393/- per month during the current year. (d) An enhanced version of the apprenticeship portal has been introduced making it easier and user friendly. The revamped version includes better User Interface / User Experience (UI/UX) features, integrated digital process for establishments (including MSMEs) facilitating better management of activities such as registration, course selection, candidate engagement, contract issuance, training monitoring, stipend management, and assessment uploads. Establishments may also avail support from district-level Assistant Apprenticeship Advisers and empaneled Third Party Aggregators (TPAs).Annexure ANNEXURE REFERRED TO IN REPLY TO PART (c) OF LOK SABHA UNSTARRED QUESTION NO. 1245 ANSWERED ON 08.12.2025 State-wise and year-wise data of MSMEs engaging apprentices pan-India including Uttar Pradesh S. State/UT FY 20- FY 21- FY 22- FY 23- FY 24- FY 25- Grand No 21 22 23 24 25 26 Total 1. Andaman And Nicobar Islands 1 2 3 4 6 8 2. Andhra Pradesh 103 259 341 282 300 260 772 3. Arunachal Pradesh 1 1 5 4 5 9 4. Assam 23 165 80 95 96 88 383 5. Bihar 38 162 106 101 133 169 453 6. Chandigarh 14 21 27 37 48 43 99 7. Chhattisgarh 21 24 50 67 78 69 170 8. Delhi 64 98 162 235 279 284 518 9. Goa 25 40 71 127 122 112 211 10. Gujarat 2,978 3,270 3,294 3,524 3,578 2,891 7,936 11. Haryana 970 1,263 1,765 1,640 1,579 1,199 3,349 12. Himachal Pradesh 49 119 200 213 219 189 412 13. Jammu And Kashmir 9 113 181 124 125 126 438 14. Jharkhand 55 73 90 128 132 116 266 15. Karnataka 161 406 529 631 848 859 1,811 16. Kerala 230 307 412 455 432 328 982 17. Ladakh - - 1 5 3 1 6 18. Lakshadweep - - - - - 1 1 19. Madhya Pradesh 130 213 275 311 340 347 758 20. Maharashtra 1,887 2,167 2,570 2,898 3,147 2,765 7,091 21. Manipur 2 2 3 1 1 3 10 22. Meghalaya 1 4 4 9 7 8 17 23. Mizoram 1 2 1 8 8 12 24. Nagaland 1 1 3 3 5 10 25. Odisha 52 89 179 149 154 130 407 26. Puducherry 8 22 26 38 41 38 79 27. Punjab 73 129 221 247 235 249 577 28. Rajasthan 89 118 198 293 345 372 643 29. Sikkim 1 12 8 14 28 20 44 30. Tamil Nadu 215 401 701 709 829 759 1,765 31. Telangana 122 327 326 311 347 358 882 32. The Dadra And Nagar Haveli and 22 25 27 48 56 51 83 Daman and Diu 33. Tripura 10 13 9 11 14 13 48 34. Uttar Pradesh 654 1,239 2,040 1,263 1,766 1,399 4,102 35. Uttarakhand 84 134 200 263 334 332 520 36. West Bengal 177 232 209 271 404 345 999 37. Grand Total 7,943 10,938 13,399 13,172 14,342 12,163 32,364 Source: https://www.apprenticeshipindia.gov.in/ *****

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