After the formation of the first government of Narendra Modi on 26 May 2014, the Ministry of Youth Affairs and Sports was renamed as the "Ministry of Skill Development, Entrepreneurship, Youth Affairs and Sports" and was thereupon bifurcated after a cabinet reshuffle on 9 November 2014.

The ministry is responsible for coordination of all skill development efforts across the country.

The ministry was formed with matters pertaining to industrial training, apprenticeship and other skill development responsibilities which earlier belonged to the Ministry of Labour and Employment.

The ministry aims to remove the disconnect between demand and supply of skilled manpower, to build the new skills and innovative thinking not only for existing jobs but also for jobs that are to be created.

The Ministry is in charge of providing and facilitating skill development initiatives and training infrastructure with the following institutions.