NSDC was set up as part of a national skill development mission to fulfil the growing need in India for skilled manpower across sectors and narrow the existing gap between the demand and supply of skills. The Union Finance Minister announced the formation of the National Skill Development Corporation (NSDC) in his Budget Speech (2008-09): “…There is a compelling need to launch a world-class skill development programme in a mission mode that will address the challenge of imparting the skills required by a growing economy. Both the structure and the leadership of the mission must be such that the programme can be scaled up quickly to cover the whole country.”

1- Upgrade skills to international standards through significant industry involvement and develop necessary frameworks for standards, curriculum and quality assurance.
2- Enhance, support and coordinate private sector initiatives for skill development through appropriate Public-Private Partnership (PPP) models; strive for significant operational and financial involvement from the private sector
3- Play the role of a “market-maker” by bringing financing, particularly in sectors where market mechanisms are ineffective or missing
4- Prioritize initiatives that can have a multiplier or catalytic effect as opposed to one-off impact.

The objective of this Scheme is to encourage skill development for youth by providing monetary rewards for successful completion of approved training programs. Specifically, the Scheme aims to:
1- encourage standardization in the certification process and initiate a process of creating a registry of skills; and
2- increase productivity of the existing workforce and align the training and certification to the needs of the country.
3- provide Monetary Awards for Skill Certification to boost employ-ability and productivity of youth by incentivizing them for skill trainings
4-Reward candidates undergoing skill training by authorized institutions at an average monetary reward of Rs. 10,000 (Rupees Ten Thousand) per candidate.
5- benefit 10 lakh youth at an approximate total cost of Rs. 1,000 Crores.