Budget 2026 skill boost for youth: Govt may launch Pradhan Mantri Kaushal Mudra Yojana; check details

Budget 2026: The government is looking to launch a new scheme Pradhan Mantri Kaushal Mudra Yojana (PMKMY) aimed at funding skill training for the country’s growing workforce.The scheme, likely to be announced in the upcoming 2026-27 Budget, will mark a major policy push to make financing a central pillar of the national skilling ecosystem, as reported by ET.According to officials, the scheme could be rolled out over a five-year period. It will focus on improving access to skill development programs, particularly for women, rural youth and persons with disabilities.The Ministry of Skill Development and Entrepreneurship is finalizing details of the scheme, including its scale, target groups and implementation plan.A senior government official said that the funding will help beneficiaries access high-quality training from both government and private institutions, where costs are often higher.The scheme will also prioritize emerging sectors such as renewable energy, semiconductors, electric vehicles, defence, and other high-tech industries, helping India build a future-ready workforce and advance towards the goal of a self-reliant and Viksit Bharat.In addition, the government is considering measures such as interest subvention for marginalized groups and regions. It also plans to expand blended finance models that combine public, private and philanthropic funding for skill development.The government expressed optimism that strengthening India’s skill finance ecosystem through credit guarantees and better data for loan underwriting will encourage more lenders to participate and make skill financing more accessible across the country.