Context:
Despite massive public investment, India’s skilling ecosystem faces an accountability and outcome deficit, raising concerns about employability, industry relevance, and economic returns from skill development programmes.
Key Highlights:
- Current State of Skilling
- Around 1.40 crore candidates trained under Pradhan Mantri Kaushal Vikas Yojana (PMKVY) (2015–2025).
- Only 4.1% of India’s workforce has formal vocational training, marginally up from ~2% a decade ago.
- High attrition rates (30–40%) in sectors like retail, logistics, hospitality, and manufacturing signal skill mismatches.
- Structural Weaknesses
- Sector Skill Councils (SSCs):
- Primarily focus on standard-setting.
- Lack accountability for placement and wage outcomes.
- Employers often prefer in-house training over public skilling certifications.
- Skilling is yet to become a preferred pathway due to modest wage gains and informal employment dominance.
- Policy Initiatives & Gaps
- National Apprenticeship Promotion Scheme (NAPS) improved industry participation but unevenly, favouring large firms.
- National Education Policy (NEP) 2020 targets 50% Gross Enrolment Ratio (GER) by 2035, but skilling-education integration remains weak.
- PM-SETU (ITI modernisation) signals a shift toward industry ownership and execution accountability.
Relevant Prelims Points:
- PMKVY – objectives and coverage.
- Sector Skill Councils (SSCs) – intended role.
- NAPS – incentives and scope.
- Gross Enrolment Ratio (GER).
- Difference between formal and informal skilling.
Relevant Mains Points:
- Significance:
- Skilling is vital for demographic dividend and economic growth.
- Reduces unemployment and labour market friction.
- Concerns:
- Weak industry linkage.
- Absence of outcome-based accountability.
- Way Forward:
- Integrate skilling with formal education pathways.
- Make SSCs accountable for placements and wages.
- Expand apprenticeships across MSMEs.
- Align skilling with local and global labour demand.
UPSC Relevance:
GS 2 – Governance, Social Justice | GS 3 – Economy