SAMARTH Scheme: Key Features, Budget Allocation & Employment Impact for UPSC

11 Aug SAMARTH Scheme: Key Features, Budget Allocation & Employment Impact for UPSC

✎ SAMARTH Scheme: A Ministry of Textiles initiative (2017) for demand-driven, placement-oriented skill development in the organised textile sector, excluding spinning and weaving, with direct fund allocation to implementation…

Subject Relevance — Where This Topic Fits

• GS Paper III — Economy (Skill Development, Employment Generation, MSMEs, Government Schemes)  |  GS Paper III — Economy (Textile Industry: Structure, Challenges, and Policy Interventions)
• Prelims: SAMARTH Scheme, Textile Sector Skill Development, Placement-Linked Training, Ministry of Textiles, Skill India Mission, MSMEs in Textiles, Employment Generation in Textiles
• Essay: Skill Development and Employment Generation: A Pathway to Inclusive Growth in India, Role of Government Schemes in Transforming Traditional Industries: A Case Study of the Textile Sector

Quick Revision: SAMARTH Scheme: A Ministry of Textiles initiative (2017) for demand-driven, placement-oriented skill development in the organised textile sector, excluding spinning and weaving, with direct fund allocation to implementation partners and a placement rate of 83% among 6.17 lakh trained beneficiaries.

Why is this in the news?

The Press Information Bureau (PIB) released an official update on 11 August 2026 regarding the SAMARTH Scheme, highlighting its financial allocations, implementation model, and employment outcomes from 2017–18 to 2025–26. The scheme’s focus on demand-driven, placement-oriented skill development in the organised textile sector—excluding spinning and weaving—has been underscored, along with its role in empowering marginalised groups such as women, Scheduled Castes (SCs), and Scheduled Tribes (STs). The data also reflects the scheme’s adaptability in rationalising or cancelling targets for underperforming implementation partners.

Background

• The textile sector is a significant contributor to India’s GDP, employment, and export earnings, employing over 45 million people directly and indirectly.
• Despite its potential, the sector faces challenges such as low productivity, skill gaps, and lack of formal training infrastructure, particularly in the organised segment.
• The Government of India launched the SAMARTH Scheme in 2017 as part of its broader Skill India Mission to address these gaps by providing structured, industry-aligned skill development in the textile value chain.
• The scheme operates under the Ministry of Textiles and aligns with the National Skill Development Policy (2009) and the National Skill Development Mission (2015).
• SAMARTH is distinct from other textile schemes (e.g., Amended Technology Upgradation Fund Scheme or ATUFS) as it focuses exclusively on capacity building and employability rather than technology upgradation or financial subsidies.
• The scheme’s implementation model leverages public-private partnerships, with funds directly allocated to implementation partners (IPs) rather than state or district-wise disbursement.

What is the SAMARTH Scheme?

• SAMARTH is a demand-driven, placement-oriented skill development scheme launched by the Ministry of Textiles in 2017 to enhance employability in the organised textile and related sectors, excluding spinning and weaving.
• The scheme covers the entire textile value chain, including garment manufacturing, apparel design, retail, and allied services, with a focus on formal employment generation.
• Funds under SAMARTH are directly allocated to pre-approved implementation partners (IPs), which include textile industry associations, government agencies, and regional organisations.
• Training targets are assigned to IPs, who then establish and operate training centres across India based on their approved projects, ensuring flexibility in geographical coverage.
• The scheme prioritises marginalised groups, including women, Scheduled Castes (SCs), and Scheduled Tribes (STs).
• From 2017 to March 2026, SAMARTH has successfully trained 6.17 lakh beneficiaries and placed 5.17 lakh individuals in jobs, demonstrating a high placement rate of over 83%.
• The scheme’s financial outlay has varied annually, with a notable increase in allocations from ₹25 crore in 2022–23 to ₹331 crore in 2024–25, reflecting growing prioritisation of skill development in the sector.
• Implementation partners are periodically reviewed, with targets rationalised for underperforming IPs (97 rationalised) and cancelled for those failing to initiate training (32 cancelled), ensuring accountability and efficiency.

Key Features

Feature	Significance
Demand-driven skill programmes	Aligns training with industry needs, enhancing employability in the textile sector.
Placement-oriented curriculum	Ensures certified trainees are linked to employment, reducing skill-job mismatch.
Direct fund allocation to Implementing Partners (IPs)	Streamlines fund flow, enabling faster disbursement and operational flexibility for IPs.
All-India coverage (excluding spinning & weaving)	Covers the entire textile value chain, fostering inclusive growth across regions.
Monitoring and rationalisation of IPs	Targets rationalisation of underperforming IPs (97 rationalised, 32 cancelled) to improve efficiency.

Why it Matters

Economic Impact

• Enhances human capital in the textile sector, a labour-intensive industry contributing ~2% to India’s GDP.
• Boosts formal employment in organised textile and allied industries, reducing informality in the sector.
• Supports the ‘Make in India’ initiative by strengthening the skilled workforce in a key manufacturing domain.

Social Inclusion

• Significant gender parity: 23,102 women (84% of Rajasthan beneficiaries) trained and employed, advancing SDG 5 (Gender Equality).
• Targeted inclusion of SC (10,727 beneficiaries) and ST (4,753 beneficiaries) categories, aligning with constitutional provisions for affirmative action.
• Rural and semi-urban focus (e.g., Jhunjhunu) addresses regional disparities in skill development.

Governance Efficiency

• Direct fund allocation to IPs reduces bureaucratic delays, improving programme execution and accountability.
• Rationalisation of underperforming IPs ensures optimal utilisation of public funds and enhances programme effectiveness.
• Transparent year-wise fund utilisation data (₹370 crore allocated, ₹255.42 crore utilised in 2025-26) promotes fiscal discipline.

Challenges

1. Regional Disparities in Beneficiary Coverage

• Despite all-India coverage, beneficiary distribution is uneven, with Rajasthan accounting for only 4.46% of total trained beneficiaries.
• Need for targeted interventions in low-coverage states to ensure equitable skill development across regions.

UPSC Link: GS3: Regional development disparities

2. Sustainability of Employment Outcomes

• While 5.17 lakh beneficiaries have been placed, long-term job retention and career progression remain unassessed.
• Industry linkages must be strengthened to ensure continuous demand for trained personnel beyond initial placements.

UPSC Link: GS3: Employment generation and sustainability

3. Monitoring and Evaluation Gaps

• Absence of state/district-wise fund allocation complicates granular performance tracking and accountability.
• Need for robust MIS (Management Information System) to monitor real-time progress and address implementation bottlenecks.

UPSC Link: GS2: Governance and e-governance

4. Curriculum Relevance and Industry Alignment

• Rapid technological advancements in textiles (e.g., automation, AI) necessitate continuous curriculum updates.
• Ensuring IPs collaborate with industry to design future-ready training programmes is critical.

UPSC Link: GS3: Technology in skill development

5. Financial Constraints and Fund Utilisation

• Fluctuations in annual fund allocation (e.g., ₹25 crore in 2022-23 vs. ₹331 crore in 2024-25) may disrupt long-term planning.
• Underutilisation in some years (e.g., only ₹16.99 crore utilised in 2018-19 against ₹42 crore allocated) indicates administrative or operational inefficiencies.

UPSC Link: GS3: Resource mobilisation and utilisation

Challenges — UPSC Perspective

Issue	Concern
Uneven beneficiary distribution	Limited reach in low-coverage states despite all-India coverage.
Job retention and career growth	Long-term employment sustainability post-placement remains unassessed.
Fund utilisation disparities	Underutilisation in certain years suggests administrative inefficiencies.
Curriculum obsolescence	Rapid technological changes may render training programmes outdated.
Monitoring gaps	Lack of state/district-wise fund allocation complicates performance tracking.

Way Forward

• Strengthen state/district-wise beneficiary mapping to address regional disparities in skill development coverage.
• Introduce outcome-based funding mechanisms tied to employment retention and career progression metrics.
• Establish a real-time MIS portal for transparent fund tracking and performance monitoring of IPs.
• Collaborate with industry bodies (e.g., CITI, AEPC) to design dynamic, technology-integrated curricula.
• Conduct periodic reviews of IP performance, with stringent penalties for underperforming partners.
• Expand partnerships with MSMEs in textiles to create localised employment opportunities.
• Integrate digital literacy and soft skills into training programmes to enhance holistic employability.

UPSC Value Addition

Prelims Practice Questions

Q1. Consider the following statements about the Samarth Scheme:

1. The Samarth Scheme is implemented by the Ministry of Textiles.
2. Funds under the Samarth Scheme are directly allocated to Implementation Partners (IPs).
3. The scheme covers the entire textile value chain including spinning and weaving.
4. The scheme provides placement-linked skill training to beneficiaries.

How many of the above statements are correct?

1. Only one
2. Only two
3. Only three
4. All four

Answer: Only three — Statements 1, 2, and 4 are correct. Statement 3 is incorrect as the scheme excludes spinning and weaving from its coverage.

Q2. Assertion (A): The Samarth Scheme allocates funds to states and districts for skill training.
Reason (R): The scheme aims to decentralise skill development initiatives across India.

In the context of the above two statements, which one of the following is correct?

1. Both A and R are true and R is the correct explanation of A
2. Both A and R are true but R is not the correct explanation of A
3. A is true but R is false
4. A is false but R is true

Answer: A is false but R is true — Assertion (A) is false because funds are directly allocated to Implementation Partners, not states or districts. Reason (R) is also false as decentralisation is not the stated objective of fund allocation.

Mains Practice Question

✍ The Samarth Scheme represents a significant intervention in India’s skill development ecosystem, particularly within the textiles sector. Critically examine its design, implementation mechanisms, and outcomes in the context of the broader Skill India Mission. Also, analyse how the scheme addresses gender and social inclusion in employment. (15 Marks)

Approach: MODEL-ANSWER SKELETON:

1. **Introduction (2 Marks)**
– Briefly define the Samarth Scheme: Ministry of Textiles initiative launched under Skill India Mission to provide demand-driven, placement-oriented skill training in the organised textile and related sectors.
– State its coverage: Excludes spinning and weaving; focuses on entire value chain (design, garmenting, technical textiles, etc.).

2. **Design and Implementation (4 Marks)**
– **Demand-driven approach**: Explain how the scheme aligns training with industry needs through sectoral councils and employer partnerships.
– **Fund flow mechanism**: Direct allocation to Implementation Partners (IPs) — list types of IPs (textile industry associations, government agencies, regional organisations).
– **Flexibility in training delivery**: IPs operate across states/districts; no fixed state/district-wise targets; rationalisation of targets based on performance.
– **Placement linkage**: Emphasise certification and job placement as core outcomes.

3. **Outcomes and Data (4 Marks)**
– **Scale**: 6.17 lakh trained, 5.17 lakh placed (March 2026).
– **Fund utilisation**: Year-wise allocation and expenditure data (2017–2026) to show funding trends and efficiency.
– **Performance metrics**: 97 IPs had targets rationalised; 32 IPs’ targets cancelled due to poor performance.

4. **Gender and Social Inclusion (3 Marks)**
– **Gender**: 23,102 women employed out of 27,497 in Rajasthan; highlight broader national data if available.
– **Social inclusion**: 10,727 SC and 4,753 ST beneficiaries employed in Rajasthan; discuss how the scheme targets marginalised groups through outreach and reservation in training programmes.
– **Policy alignment**: Link to Skill India Mission’s focus on inclusive growth (e.g., National Skill Development Mission guidelines).

5. **Critical Appraisal (2 Marks)**
– **Strengths**: Demand-driven model, industry partnership, flexible delivery, measurable outcomes.
– **Challenges**: Exclusion of spinning/weaving may limit sectoral coverage; performance-based rationalisation risks inequities; need for long-term sustainability of placements.
– **Way forward**: Suggest integration with formal education, upskilling of existing workforce, and expansion to allied sectors.

Source: PIB (Press Information Bureau)

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