Why NEP 2020 Focuses on Skills and Research, and How Students Benefit from Central and State Policies | ThesisLikho

ThesisLikho Editorial Team · November 2026 · 15 min read

For decades, Indian education was judged by marks and degrees. The National Education Policy 2020 changed the question. It no longer asks only "What did you study?" It also asks "What can you do?" and "What new knowledge can you create?" This guide explains why the policy puts so much weight on skills and research, and how students, from undergraduates to PhD scholars, can turn central and state schemes into real advantages.

1. Why NEP 2020 Pushes Skills and Research

NEP 2020 was approved on 29 July 2020. It replaced the National Policy on Education of 1986 and became India's first comprehensive education policy of the 21st century. Its stated goal is to turn India into a knowledge society and a global knowledge superpower.^[1] Two problems shaped its design.

The employability gap

India has one of the youngest populations in the world, but many graduates finish college without skills employers want. The Tamil Nadu government, for example, launched its Naan Mudhalvan programme partly in response to complaints that engineering students were not being trained properly for jobs.^[2] A degree without practical skills does not lead to a career. NEP addresses this by placing vocational education inside mainstream schooling and higher education rather than treating it as a lesser option.

The research gap

India publishes a large volume of research, but most of it comes from a small group of elite institutions, while state universities, where the majority of students study, often lack funding and research culture. NEP proposed a National Research Foundation to fund research in four broad areas: technology, science, social sciences, and arts and humanities. It also asked ministries to set aside funds for research and to connect universities more closely with the economy and society.^[3]

Skills and research are two sides of one idea. Skills make a student employable today. Research builds the knowledge and innovation that create the jobs of tomorrow. NEP wants every student to have access to both.

2. What NEP 2020 Says About Skills and Vocational Education

The policy's key recommendations on skills, as summarised in a Ministry of Education background note, include:^[4]

• No hard walls between streams. There should be no rigid separation between arts and sciences, between curricular and extracurricular activities, or between vocational and academic streams (NEP para 3.1).
• Early exposure. Vocational education is to be phased into mainstream education, starting in middle and secondary school (NEP para 16.4). Vocational learning begins from Class 6, with provision for internships.^[5]
• Lok Vidya. Important vocational knowledge developed in India, such as traditional crafts and local know-how, is to be brought into vocational courses (NEP para 16.5).
• Mobility. Students should be able to move between "general" and vocational education without losing progress (NEP para 16.8).

Academic Bank of Credits and APAAR ID

To make this flexibility real, the government built a digital system. The Academic Bank of Credits (ABC) stores the credits a student earns, and the APAAR ID works as a lifelong academic identity. Students can accumulate, transfer and redeem credits across higher education institutions without losing academic progress.^[6] ABC is aligned with the National Credit Framework (NCrF), which covers academic, vocational and experiential learning.^[6]

As of 2026, the NCrF had been adopted by 196 universities.^[8] In practical terms, a skill certificate you earn today can be counted toward a degree tomorrow. If you leave a programme mid-way, your earned credits remain in your account.

Flexible degrees with exit options

NEP introduced a flexible four-year undergraduate degree with multiple entry and exit points: a certificate after one year, a diploma after two, a degree after three, and an honours or research degree after four. It also moves colleges from affiliation toward autonomy.^[9] For students, this reduces the risk that a break in studies means losing years of effort.

3. What NEP 2020 Says About Research

NEP describes the National Research Foundation as an apex body to build a strong research culture and research capacity across higher education.^[5] This proposal became law as the Anusandhan National Research Foundation (ANRF).

Anusandhan National Research Foundation (ANRF)

The government established ANRF under the ANRF Act, 2023, and notified it in February 2024.^[10] It replaced the Science and Engineering Research Board (SERB), and its Governing Board is headed by the Prime Minister.^[11]

ANRF's early initiatives include the PAIR programme, SURE, and the National Post-Doctoral Fellowship (N-PDF).^[11]

PAIR: bringing research to state universities

The Partnerships for Accelerated Innovation and Research (PAIR) programme was launched in November 2024. It uses a "hub-and-spoke" model in which top institutions mentor emerging ones. Each PAIR network can receive up to ₹100 crore, with 30% going to the hub and 70% to the spokes.^[13] The overall PAIR budget is ₹1,500 crore over five years, and the programme now has 18 hubs and 155 spokes.^[14]

The 70% share for spokes is the key point for scholars in state universities. For example, IISc's ₹100-crore PAIR network includes spoke institutions such as Kumaun University, Shivaji University, the University of Calicut and NIT Nagaland.^[15] Students in such spokes gain access to better labs, mentors and joint projects.

Prime Minister's Research Fellowship (PMRF)

PMRF began with the 2018–19 Union Budget to attract top talent into PhD programmes. Fellows receive ₹70,000 a month in years one and two, ₹75,000 in year three, and ₹80,000 in years four and five.^[16] They also receive a research grant of ₹2 lakh per year.^[17] The first phase awarded 3,688 fellowships. PMRF 2.0, announced for 2025–26, expands the scheme to 10,000 fellowships over five years.^[18]

For comparison, a regular JRF or SRF holder receives about ₹37,000–42,000 a month, much less than a PMRF fellow.^[18] PMRF is competitive and centred on IITs, IISc, IISERs, NITs and similar institutes, but it shows how seriously the government now rewards research talent.

Private-sector R&D push

Alongside ANRF, the government introduced the Research Development and Innovation (RDI) Scheme with a ₹1 lakh crore fund. It provides long-term financing at low or nil interest to support corporate and start-up investment in emerging sectors.^[19] For scholars, more industry R&D means more industry-funded projects, fellowships and research jobs after the PhD.

4. Central Government Schemes Students Can Use

The table below lists major central schemes that support NEP's skill and research goals.

PM Internship Scheme

Interns under PMIS receive a ₹5,000 monthly stipend: ₹4,500 from the government through Direct Benefit Transfer and ₹500 from the company's CSR funds.^[20] The package also includes a one-time grant of ₹6,000, insurance cover and 12 months of industry exposure.^[21] Candidates from families earning over ₹8 lakh a year, or with a family member in a permanent government job, are not eligible.^[20] Registration is through pminternship.mca.gov.in.

PMKVY and the Skill India Mission

The restructured Skill India Mission (2022–26) brings PMKVY 4.0, PM-NAPS and the Jan Shikshan Sansthan scheme under one umbrella.^[22] PMKVY, launched in 2015, provides free short-term skill training and had trained over 1.63 crore candidates across its four phases by July 2025.^[22] PMKVY 4.0 focuses on Industry 4.0 skills such as AI, data analytics, cybersecurity, drones, EVs and IoT. Under NEP, these certificates can also be stacked toward academic degrees through the credit system.^[23]

5. State Governments Moving in the Same Direction

Education is on the Concurrent List, so states play a large role. Several states, from different political parties, have launched their own programmes that push skills and research. This shows that the focus on employability and research is now a national consensus, not one government's agenda.

Haryana: skill university and a state research fund

Haryana set an aim to implement NEP 2020 by 2025, five years ahead of the national 2030 timeline. It also established the Shri Vishwakarma Skill University, described as the country's first of its kind.^[24] Located at Dudhola in Palwal district, the university offers skill education from certificate to doctorate level.^[25]

The state has announced that skill development will be a compulsory subject for Classes 9 to 12.^[26] In 2025, Chief Minister Nayab Singh Saini asked every state university to run at least 10% of its programmes with industry partners, and announced plans for a Model Skill College and a Model Skill School in every district.^[27] He also highlighted that the Haryana State Research Fund (HSRF) has been set up to promote research in the state's higher education institutions.^[28]

What this means for students: If you study in Haryana, look out for industry-linked programmes in your university, skill courses at Shri Vishwakarma Skill University, and research grants under HSRF.

Tamil Nadu: Naan Mudhalvan

Chief Minister M.K. Stalin launched Naan Mudhalvan on 1 March 2022. It aims to give industry-relevant skills to about 10 lakh youth every year.^[29] It is run by the Tamil Nadu Skill Development Corporation, and was later extended from engineering to arts and science colleges.^[2]

Tamil Nadu follows its own State Education Policy and has disagreed with parts of NEP. Yet Naan Mudhalvan pursues the same goal of making graduates job-ready through skills built into academic courses. Different politics, same direction.

Kerala: research fellowships and an R&D budget

Kerala created the Chief Minister's Nava Kerala Post-Doctoral Fellowship, announced in the 2021–22 state budget. Fellows receive ₹50,000 a month in the first year and ₹1 lakh a month in the second, plus an annual contingency grant of ₹2 lakh (science) or ₹50,000 (non-science).^[31] The fellowships are tied to the state's development needs across ten domains.^[32] Kerala's Chief Minister has also said that the state budget allocated ₹3,500 crore for research and development.^[33]

What this means for scholars: Researchers of Keralite origin, or those working on Kerala-related research in Kerala institutions, can apply for one of India's best-paid post-doctoral fellowships.

6. How Students Can Get the Most Out of These Policies

For undergraduate and postgraduate students

1. Create your APAAR/ABC ID early and make sure your institution uploads your credits. It is your lifelong academic record.
2. Add one skill course every year. Use PMKVY, SWAYAM or your state skill mission. Choose courses that carry credits under NCrF.
3. Apply for the PM Internship Scheme if you are eligible. A year in a top company can matter more than an extra degree.
4. Use your state's programme. If you are in Tamil Nadu, Naan Mudhalvan courses are built into college study. In Haryana, look for industry-partnered programmes.
5. Try research early. The four-year honours-with-research degree gives undergraduates a real path into research.

For PhD scholars

1. Check whether your university is a PAIR hub or spoke. If it is, ask your supervisor how to join network projects and use shared facilities.
2. Track fellowships at all levels: PMRF and ANRF schemes nationally, and state fellowships such as Kerala's Nava Kerala PDF or Haryana's HSRF.
3. Link your research to national and state priorities. Proposals tied to energy, health, agriculture, AI or regional development tend to fit funding calls better.
4. Publish in quality, indexed journals. Funding agencies and fellowship committees judge you by your publication record.
5. Build industry connections. With the RDI scheme encouraging private R&D, industry-funded projects are a growing option.
6. Learn transferable skills: data analysis, scientific writing, grant writing and project management. NEP's skill focus applies to researchers too.

7. An Honest View: Gaps and Challenges

A good researcher looks at evidence on both sides. These policies are promising, but implementation has been uneven.

• ANRF has been slow to spend. A parliamentary committee reported that ANRF used none of its ₹2,000 crore budget in its first two years, and only 61% of the revised outlay in 2025–26.^[34]
• PAIR funding is uneven. Only 7 hub-spoke networks received the full ₹100 crore; others received token grants of ₹2 crore as one-year bridge support.^[14]
• The internship stipend is low. Critics note that ₹5,000 a month does not cover living costs in cities, which reduces participation.^[21]
• Fellowship inequality. Some researchers argue that the large gap between PMRF and regular JRF/SRF stipends creates inequality within the same labs.^[18]
• Placement remains the hardest metric. Skill schemes have reached scale, but lasting job placement is still a challenge.^[23]

These gaps do not cancel the opportunities. They mean students should be proactive: apply early, track deadlines, and not depend on a single scheme.

Conclusion

NEP 2020 marks a real shift in Indian education, from rote learning and rigid streams toward skills, flexibility and research. The central government has built the framework: ABC and APAAR for flexible learning, PMKVY and PM Internship for skills, and ANRF and PMRF for research. States as different as Haryana, Tamil Nadu and Kerala are pursuing the same goals through their own programmes.

The benefits do not arrive automatically. They reach students who know the schemes, register on time, add skills deliberately and build a strong research record. Whether you are a first-year student or a final-year PhD scholar, the policy environment has never offered more support. The next step is to use it.