Navigating India’s Skill Landscape

Context:

Recent tensions in the construction labor arrangement between India and Israel highlight the ongoing issue of skill mismatches between Indian workers’ abilities and their expectations.

Facts about India’s Skilling Landscape:

• Low Formal Skilling: Only 2.7% of India’s workforce has received formal skill training, compared to 52% in the United States, 80% in Japan, and 96% in South Korea.
• Employability: Only 51.25% of Indian graduates are considered employable (Economic Survey 2023-24).
• Vocational Training: About 2.2% of persons aged 15-59 have received formal vocational training, and 8.6% have received non-formal vocational training (NSSO, 2011-12).

Need for Skilling India:

• Improving Employability: Enhances job readiness, especially given the high unemployment rate among graduates (29%).
• Bridging Educational and Job Gaps: Helps align education with industry requirements.
• Global Competitiveness: Skills aligned with global standards can boost international competitiveness and attract foreign investment.
• Inclusive Development: Promotes growth, reduces income inequality, and empowers marginalized communities.
• Future-Proofing: Equips the workforce with digital literacy and adaptability to technological advancements.

Issues with Skilling in India:

• Insufficient Capacity: Current infrastructure and trainer availability are inadequate.
• Insufficient Mobilisation: Vocational education is often seen as a last resort, affecting its perception and uptake.
• Lack of Synergy: Skill development is managed by multiple ministries without a robust coordination mechanism.
• Inconsistent Certification: Multiple certification systems lead to varying outcomes and confusion for employers.
• Skills Mismatch: Poor industry-academia interaction results in skill sets that do not meet employer needs.
• Limited Mobility: Difficulties exist in transitioning between skill, higher education, and vocational programs.

Government’s Skill Development Initiatives:

• National Policy on Skill Development & Entrepreneurship (NPSDE): Focuses on bridging gaps, improving industry engagement, and establishing quality assurance frameworks.
• Pradhan Mantri Kaushal Vikas Yojana (PMKVY): Provides skill training nationwide, with a focus on new age and future skills, especially for women.
• Skill India Mission: An umbrella scheme to address industry demands and skill requirements.
• SANKALP and STRIVE: Focus on district-level skilling ecosystems and improving ITI performance.
• Craftsmen Training Scheme (CTS): Provides long-term training through ITIs.
• Jan Shikshan Sansthan (JSS): Offers vocational skills to non-literates and school dropouts.
• National Apprenticeship Promotion Scheme (NAPS): Promotes apprenticeship training with stipend support.
• Skill Impact Bond: Uses results-based finance to attract private sector involvement in skill development.
• Future Skills PRIME: Collaboration between MeitY and NASSCOM for up-skilling in emerging technologies.
• Skill India Digital Hub: Repository for all government skilling and entrepreneurship initiatives.

Skilling India at Global Standards:

• Skill India International Centers (SIIC): Establishment of 30 SIICs as per the FY24 interim budget.
• International MoUs: Agreements with countries like Australia, Denmark, France, and Germany to enhance international mobility and recognition of Indian qualifications.
• NSDC International Limited: Established for transparent international recruitment of skilled Indians.

Way Forward:

• Industry-Academia Linkages: Empower professionals with productivity training for immediate workplace effectiveness.
• Skilling, Re-skilling, and Up-skilling: Focus on improving economic productivity and firm profitability.
• Alternative Skilling Methods: Emphasize Skills on Wheels, MOOCs, and centers of excellence to expand training opportunities.