Karnataka Government to Announce ₹5,000 Crore Budget for Skill Development

Karnataka Chief Minister D.K. Shivakumar has announced a major plan to unify the state's fragmented skill development efforts into a single unified system. Providing information on this during the Bengaluru Skill Summit on Wednesday, the Chief Minister stated that approximately ₹5,000 crore will be invested under this scheme over the next seven years, with the primary objective of training 30 lakh beneficiaries.

To bring fundamental changes to the state's workforce structure to meet future requirements, the 'State Vision Group for Skill Development' has been constituted. This new group will function under the chairmanship of Mindtree co-founder Subroto Bagchi. The vision group will oversee the implementation of specialised training programmes in highly technical and emerging fields such as Artificial Intelligence, Green Energy, Advanced Manufacturing, and Digital Services.

According to a report by The Hindu, this policy shift comes at a time when Karnataka produces over one lakh engineering graduates every year, many of whom are forced to take low-income entry-level jobs or face underemployment. Currently, more than 550 Global Capability Centres (GCCs) are operational in Bengaluru, and with a target of 500 more centres by 2029, the state government is racing to upgrade the vocational training ecosystem before the next 3.5 lakh potential jobs enter the market.

Chief Minister Shivakumar emphasised that traditional degrees are no longer the primary criterion for corporate recruitment. Comparing this with international markets, he noted that practical capability is given more importance than formal certification. With 65% of the state's population under the age of 35, this plan is a crucial part of leveraging the state's demographic dividend.

During the summit, more than 40 Memoranda of Understanding (MoUs) were signed with local Industrial Training Institutes (ITIs). According to officials, these agreements will secure more than 10,000 immediate jobs for regional youth under the framework of the 'Kaushalya Karnataka Yojana'.

To connect skilled talent with employment opportunities, the Chief Minister launched a digital employment platform named 'Udyog Setu'. This platform is an AI-based integrated skill development and employment portal that directly connects local job seekers with certified private sector employers. The platform operates under the Karnataka Skill Development Corporation (KSDC) and the Department of Skill Development, Entrepreneurship, and Livelihood. It will provide 'seamless job matching' by creating a direct link between job seekers and corporate employers. Companies can register on this portal completely free of cost and post their vacancies. The platform will also facilitate targeted training programmes such as the Chief Minister Kaushalya Karnataka Yojana (CMKKY), 'Nal Jal Mitra', and special training for prison inmates.

Karnataka is one of the key states in South India considered a hub for technology and industries. The state government has long been attempting to prepare the youth for the modern era through various skill development schemes.