India May Allow Companies to Hire Up to 25% Apprentices Under New Proposal

Government Considering Expansion of Apprenticeship Hiring Limits

India’s Ministry of Skill Development and Entrepreneurship is exploring a proposal that would allow large companies to hire apprentices equivalent to up to 25% of their workforce.

Currently, establishments with 30 or more employees are required to maintain apprentices within a range of:

• 2.5% to 15% of total manpower

The proposed expansion would apply only under specific conditions designed to protect workers and improve long-term employability outcomes.

New Conditions Aimed at Preventing Exploitation

Debashree Mukherjee stated that companies seeking to raise apprenticeship limits would need to meet several requirements.

Proposed conditions include:

• Companies must have already reached the 15% apprentice threshold during the previous three years
• Apprentices must receive at least 30% above the mandated minimum stipend
• Companies should employ at least 35% of apprentices after training completion

Officials emphasized the rules are intended to ensure apprentices are not treated as low-cost temporary labor.

Government Pushes Industry-Led Skill Development

The announcement came during the Confederation of Indian Industry Annual Business Summit.

The government is encouraging industries to work more closely with:

• Industrial Training Institutes (ITIs)
• MSMEs
• Ancillary manufacturing networks
• Vocational training centers

Officials believe stronger collaboration between businesses and training institutions can better align workforce skills with industry requirements.

MSME Sector Remains Key Challenge

Despite growth in apprenticeship programs, the government acknowledged that small and medium-sized businesses have been slower to adopt apprenticeship systems.

Authorities are urging large corporations to support smaller supplier networks and partner ecosystems in expanding apprenticeship opportunities.

Industry leaders say increasing participation among MSMEs could significantly boost:

• Youth employment
• Skill development
• Workforce productivity
• Manufacturing competitiveness

PM-SETU Scheme Targets Vocational Training Modernization

The government also highlighted the ₹60,000 crore PM-SETU initiative aimed at modernizing 1,000 government Industrial Training Institutes across India.

The program focuses on:

• Industry-led governance
• Infrastructure upgrades
• Future-ready vocational courses
• Long-term employability
• Skill alignment with economic goals

The initiative forms part of India’s broader vision for “Viksit Bharat 2047.”

Migration and Worker Welfare Concerns Raised

Officials also discussed challenges faced by migrant workers moving from northern and eastern India to western and southern states for employment.

Concerns highlighted included:

• Low wages
• Lack of safe housing
• Cultural integration difficulties
• Limited worker protections

The government called for stronger collaboration between public policy and private sector initiatives to improve working conditions and labor mobility support systems.

Apprenticeships Seen as Key Employment Strategy

India continues expanding apprenticeship programs as part of its larger workforce development strategy.

The country currently operates:

• National Apprenticeship Promotion Scheme (NAPS)
• National Apprenticeship Training Scheme (NATS)

Together, these programs support an estimated three million apprentices across India.

Experts say apprenticeships are becoming increasingly important as industries adapt to:

• Automation
• AI adoption
• Advanced manufacturing
• Digital transformation
• Global workforce competition

Key Highlights

• India considering allowing companies to hire up to 25% apprentices
• New rules would require higher stipends and job absorption commitments
• Government aims to prevent misuse of apprentices as cheap labor
• MSME participation remains a major challenge
• PM-SETU scheme to modernize 1,000 ITIs
• Apprenticeships seen as critical for future workforce development