Presently, India faces a dual challenge of shortage of trained workforce and non-employability of large number of educated youth, who possess little or no job skills. This is India’s skilling paradox: Dwindling opportunities in agriculture, much potential for jobs in manufacturing and services, but not enough people with the right skills.
Present Status: PLFS Report-> only 13% of workforce received training (11%- Informal Training, 2%- Formal Training)
People in working age-group (20-59 years)-> Expected to increase from 50% (2011) to 59% (2041)-> Need to skill the work force to reap demographic dividend.
National Skill Development Mission: Converge, coordinate, implement and monitor skilling activities through institutional structure
CHART: INSTITUTIONAL FRAMEWORK OF NSDM
| KEY INSTITUTIONAL MECHANISMS | FUNCTIONS | |
| Governing Council Chair: Prime Minister | Provide overall guidance and policy direction. Decide on Sub-Missions in high priority areas. Review overall progress and development of Mission activities Overlook convergence of all skill development initiatives/ schemes across Central Ministries/Departments with Mission objectives. | |
| Steering Committee Chair: Minister. SDE | Ensure implementation as per Government Council directions Set targets and approve annual Mission Plan Review overall progress of Mission activities on a quarterly basis | |
| Mission Directorate (Executive Committee) Chair: Secretary. SDE | Implement monitor Mission activities Coordinate implementation of Governing Council & Steering Committee decisions· Coordinate State efforts and submissionsCoordinate Sub-Missions. | |
| NDSA/NSDC/DGT | State Skill Development Missions | |
National Skill Development Agency: Quality Assurance and policy research body. Evaluate existing schemes to improve their efficacy and suggest improvements; Ensure skilling needs of marginalised sections are taken care of etc.
National Skill Development Corporation: PPP to promote skill development: Government (49%); Private Sector (51%) Financing of schemes such as Pradhan Mantri Kaushal Vikas Yojana (PMKVY), Pradhan Mantri Kaushal Kendra (PMKK) etc.
Pradhan Mantri Kaushal Vikas Yojana (PMKVY): Objective: Skill 1 crore people over the four years (2016-2020)
Components: (a) Short-term Training at training centers affiliated and accredited by NSDC and (b) Recognition of Prior learning: Issuing Skill certificates to the people with existing skill set.
Pradhan Mantri Kaushal Kendra: Establish state-of-art Model District training centres in every district of India. Strategy: Provide soft loan up to Rs 70 lakhs to create training infrastructure.
National Skill Development Fund: Set up by Government to receive contributions from Government and Non-Government agencies for skilling. Money spent by NSDC for building skills.
CONSTRAINTS AND CHALLENGES
Poor Penetration of Skills: PLFS Report-> only 13% of workforce received training (11%- Informal Training, 2%- Formal Training). This is quite lower as compared to 68 per cent in the UK, 75 per cent in Germany and 96 per cent in South Korea.
Lower Employability: Only 46 per cent of those coming out of higher educational institutions are employable. (India Skills Report 2021).
Informalisation of workforce: Difficult to upgrade the skills of 90% of the workers who are employed as informal workers.
Quantity and Quality of Training: India’s annual skilling capacity is significantly lower than the workforce entering the market annually. Further, the quality of skills imparted in the existing facilities is also poor.
Poor Linkages between Universities and Industry which leads to demand-supply mismatch in the skill
Poor participation of Women who constitute 50% of population
Fragmentation of skill development initiatives across ministries and state governments.
Low public perception on vocational training has reduced its attractiveness
WAY FORWARD
Shift in the Policy
- Implement the labour codes at the earliest to enable creation of formal sector jobs in the economy. Formalisation will increase firms’ incentives to invest in upskilling their workers.
- Promote public and private investments in labour intensive sectors such as Textiles and Leather.
Mapping skill requirements for a demand driven skill development ecosystem
- Industry stakeholders must be incentivized to provide data on their skill requirements on regular basis
- Regular labour market studies should be conducted to capture changes in industry requirements to assess the skill sets required.
- Regularly update the curriculum in Universities/Colleges/Training Institutes to address demand-supply mismatch of skill sets.
Improving training delivery and quality
- Capacities of teacher training institutes need to be upgraded to ensure the availability of qualified trainers
- A single regulatory body with branches in all states should be set up to lay down minimum standards for all players in the skilling system
Promote Vocational Education in secondary education
Alternative financial sources such as Corporate Social Responsibility (CSR) funds, MPLAD Fund, MGNREGA etc. need to be explored.
Overseas Employment Promotion Agency should be set up to train and certify Indian workers keen on overseas employment, in line with international standards.
Apprenticeship Training has to be promoted through National Apprenticeship Promotion Scheme (NAPS)
National Rural Livelihoods Mission (NRLM) has to be leveraged to provide necessary skill set to the people in the rural areas.