Skill development and its importance
India is likely to have more than 700 million people in the working age group by 2022. Of this, only around 200 million people are expected to be graduates and the remaining 500 million need some kind of vocational skills, validated through a certificate issued by the industry. The studies commissioned by the NSDC in 20 high-growth sectors indicate these sectors would require over 300 million trained manpower by 2022, with informal sectors requiring another 37.6 million.
How does NSDC plan to address this issue?
To address these issues, the NSDC is actively engaging with all the key stakeholders in the skilling ecosystem for creating training capacity, setting standards and curriculum, developing a policy framework to encourage vocational training and also undertaking a media campaign. NSDC is also operating one of the world’s largest skill reward programmes called STAR. This is to encourage the youth to voluntarily take up skill development initiatives and join programmes run by approved training providers who train according to the standards developed by the Skill Sector Councils (SSC) and get assessed by approved assessment agencies and qualify for a certificate issued by the SSC. Successful candidates, who obtain a certificate, are eligible for monetary reward of Rs. 10,000. Once a youth obtains a certificate they qualify for monetary reward on an average of Rs. 10,000.
What are the challenges faced in improving technical skills?
Student Mobilisation: This is one of the key issues that our partners are facing currently, and is mainly due to two factors — the ability to pay and the willingness of the students.
Ability to pay: NSDC has tied up with several banks to provide loans to students for pursuing skills-training programmes. Also the STAR scheme launched by the Government in August last year, will motivate the youth to voluntarily join vocational training programmes. Students can know more about this programme by giving a miss call to 088000-55555.
Willingness: NSDC has planned a marketing campaign to make skills-training aspirational among the youth of our country. The social media activation has already started, while work on TV and radio commercials is in the final stage.
Lack of information: NSDC is conducting district-wise skill-gap studies across the country. In 25 states the studies are already completed, while in four other states they are in progress. We are also conducting a revised sector-wise skill-gap study to identify the shortfalls in the changing economic environment. Also methods to inform the youth about the opportunities are being explored and would be launched shortly.
Standards and Quality: The SSCs have already developed occupational standards for different job roles, across 17 sectors. More are being processed. This would lead to standardisation and ensure the quality of vocational training programmes across the country.
Engagement of employers: NSDC is actively engaging with the employers to recognise skills and provide incentives to the skilled manpower.
Innovation: NSDC is also working on several innovative models to develop the skilling eco-system. The various technological interventions such as simulators and satellite training centres, will help in ensuring quality and reducing the cost.
How much are we losing by not having a skilled workforce and how much we can gain with more skilled workers?
Many studies conducted by NASSCOM have suggested that only 25 per cent of the engineers graduating every year are employable. Also the studies conducted by Aspiring Minds for IT/ITeS, MBA and Hotel Management graduates, indicate that only a fraction of people coming out of the education system every year are employable. Similar results have come up from the studies done on ITIs in the past. Industry-ready, skilled workforce will script India’s growth story in the next decade.
In addition, there is a study conducted by BCG which suggests that the world would require 46 million skilled people in various sectors. It would be a great opportunity for people in India to look at filling this gap.
Having an adequate number of skilled people in the country is not just important, but essential for India’s economic progress.
