India’s caregiver training target needs a labour market on the other side

India’s plan to train 1.5 lakh caregivers can address a skills gap. It will create a durable care workforce only if employers and households can finance jobs workers are willing to keep. The Union Budget proposes multiskilled training combining core care and allied skills, including support with assistive devices. The target measures training, not hires or people receiving care. The investment case depends on the tasks graduates can perform competently, the terms on which services are bought and whether workers remain in the occupation after their first assignment. Union Budget 2026–27 speech, care ecosystem section · ILO brief on unpaid care and labour-force participation

A training seat is only one side of the market

Demand for care can be substantial even where few households can pay enough to support a stable job. Needs may be intermittent, geographically dispersed or difficult to schedule. A worker has to spend time travelling, coordinating with families and waiting between assignments. An hourly price that looks attractive to a household can translate into modest monthly earnings after those unpaid hours. A training programme can improve competence and confidence. It does not automatically create a way for multiple buyers to support reliable hours and reasonable working conditions.

Consider a hypothetical caregiver paid ₹200 for each billed hour, working 22 days a month with four billed hours per day. Gross billed revenue is ₹17,600. If another two hours per day go to travel and coordination, the gross revenue per hour of work-related time falls to about ₹133 before travel, intermediary fees or other expenses. At six billed hours per day with one additional hour of travel, monthly revenue is ₹26,400 and about ₹171 per hour of work-related time. These are assumed prices and schedules. The comparison shows why organisation and utilisation can matter as much as the quoted wage rate.

The buyer needs assurance about the service

Families can have difficulty comparing qualifications and working out which tasks a worker is trained to perform. A credible certificate can reduce that information gap if it reflects demonstrated competence. The assessment should distinguish routine assistance, tasks that require supervision and tasks outside the worker’s role. Clear terms protect both sides. If the programme rewards enrolments and certificates without checking skills in practice, it can expand the number of credentials while families still rely on informal referrals or ask workers to perform services they are not equipped to deliver. Union Budget 2026–27 speech, care ecosystem section · ILO brief on unpaid care and labour-force participation

For workers, mobility matters. A certificate recognised by several providers can make it easier to change employers or locations. The value falls if an employer recognises it only for a narrow set of jobs or if a worker must pay a new fee each time they take an assignment. Evaluating progression requires following pay, job continuity, actual duties and the reasons workers leave. A higher first placement rate is useful evidence, while retention and improved conditions show whether the occupation offers a viable career.

Different services need different ways to pay

A household may be able to purchase a few hours a week and be unable to finance intensive or long-duration care. Public programmes, insurance where applicable, institutions and households can support different parts of the market. Each arrangement should identify what service is covered, how workers are paid and what quality standards are enforced. Subsidising training can lower a fixed entry cost. Subsidising demand can help people obtain care they otherwise could not afford. If demand is the main constraint, producing more graduates alone may lower earnings or increase turnover without improving coverage. Union Budget 2026–27 speech, care ecosystem section · ILO brief on unpaid care and labour-force participation

The strongest case for acting first on training is that providers cannot build dependable services without workers whose skills they can trust. An initial cohort can help reveal demand and lower the cost of entering the market. A phased approach would compare outcomes for different locations and training providers before scaling every course. Some locations may need employer coordination or a reliable mechanism for referring clients. Others may already have enough demand and simply need training that matches it. Evidence of vacancies, repeat contracts and retention can distinguish those cases. Union Budget 2026–27 speech, care ecosystem section

There is a practical risk in paying training providers largely for completions. A provider can choose a course that is easy to fill and assess even where employers are looking for different abilities. Linking some payment to independently verified retention can strengthen the incentive to match training with vacancies. It can also encourage providers to select only candidates likely to find work anyway. Report results for all entrants, including people who leave before assessment, and compare with similar people not offered the course at the same time.

The training budget should also be evaluated against the additional capacity it produces. An illustrative programme spending ₹1 crore on 500 participants costs ₹20,000 per participant. If 250 are in sustained care jobs that they would not otherwise have obtained, the cost per additional sustained job is ₹40,000. Both numbers use assumed inputs and omit benefits to care recipients. The difference illustrates why counting seats tells the government little about the value it received. Evidence on additional employment and service quality is needed to evaluate the next round of spending.

Test whether the capacity stays in care

Follow trainees from enrolment through assessment, first assignment and work after six and twelve months. Measure earnings after work-related costs, paid hours, retention and any progression. Also record where services become available, who can pay for them and whether families see continuity. If graduates can obtain predictable work and people who previously lacked care can access it, training has helped expand the market. If many complete courses but leave the occupation after brief assignments, investigate pay, scheduling and demand before expanding the training target. The goal is dependable care and sustainable work, with the training count serving as an intermediate measure. Union Budget 2026–27 speech, care ecosystem section · ILO brief on unpaid care and labour-force participation