Monday, 4 June 2012


Skill requirement in India:

The current Indian economy growth is 6.7 percent and is expected to further grow in the coming years. According to Goldman Sachs, India is projected to become the second largest economy in the world by the year of 2050. It is considered that the India Economy will thive on its demographic profile. The current population of India is 1.2 billion and is expected to rise to 1.8 billion by  2045. This expansion in population is indicative of the fact that there would be increase in the working age (15-64 years population.
In order to achieve high growth rates with a growing population, skill development has emerged as an important aspect that needs strategic and planned policy cum intervention.
The numbers below depicts the sector wise projections for incremental human resource requirement till 2022.

Incremental human resource requirement till 2022 (in million):

Textiles and clothing: 26.2 (61.6*/35.4**)
Building and construction industry: 33 (58*/25**)
Auto and Auto Components: 35 (48*/13**)
Real Estate Services: 14 (25*/11**)
Organised retail: 17.3 (17.6*/0.3**)
BFSI: 4.3 (8.5*/4.2**)
Gems and Jewellery: 4.7 (8*/3.3**)
IT and ITES: 5.3 (7.5*/2.2**)
Leather and Leather goods: 4.5 (7*/2.5**)
Furniture and Furnishings: 3.4 (4.8*/1.4**)
Electronics and Hardware: 3.3 (4.2*/0.9**)

* =Employment by 2022 (in Mn)
** =Current Employment (in Mn) in 2008.

Together with the above projections, decline in agriculture will directly impact the employment scenario. This would pose the need for alternative livehood options. No doubt the employment market is rising rapidly and opening opportunities for both unorganized sector demand different set of skills and competencies. The growing sectors require huge quantity of workforce with limited formal education and low-end skills.
According to a study by CII- Planning Comission, it has been projected that 2/3rd of the jobs will be for low-end skills. That brings out the importance of short or medium duration vocational training to a large nuber of youth enabling them to get an access to skill-based employment. Many of these jobs can also be transformed into self employment. Thus the skill development will not only generate job employment but many of the trades can emerge as micro-enterprises wherein the trainees can exercise and option of self-employment.
The recent development history indicates fast growth in the service sector. Increasing urbanization, access to newer gadgets, facilities and services by rural people has opened up doors for micro-enterprises for repairs and maintenance services. Financial inclusion services also will lead to not only increase in consumption requirements but also in incnreased infrastructure development which will again requirement of newer esrvices.
Thus the manufacturing sector as well as service sector growth will create employment opportunities. Such employabillity requires creation of large number of youth having varied skills that can help to gain sustainable employment. The same is well recognized at policy level and a number of iniatives have been taken up by GOI. The global competition and thrust on efficiiency and quality improvement will demand induction of qualified as well as certified trainees in the industry.

Initiatives on Skill Development:
Prime Minister's National Council in Skill Development, under the Chalmanship of Prime Minister has been set up as an apex institution for policy dirction and review.
The policy envisions the stablishment of a National Skill Development initiative with thefollowing mission:

“National Skill Development Initiative will empower all individuals through improved
skills, knowledge, nationally and internationally recognized qualifications to gain
access to decent employment and ensure India’s competitiveness in the global

The aim of the of the national policy on skill development (March 2009) is to support
achieving rapid and Inclusive growth through;
 Enhancing individuals’ employability (wage/ self employment)
and  ability to adapt to changing technologies and labour
market demands
 Improving productivity and living standards of the people
 Strengthening competitiveness of the country
 Attracting investment in skill development
The relevance and quality of the skill development has been highlighted in the Policy
document. Quality assurance has been based of five key functions  – Validation of
Qualifications, Validation of Training process, Quality Assured Assessment of
Learners, Accreditation of Training Providers & Training Institutions and Research &
Information. The objective of enforcing quality and relevance in skill development is
to be realized through improving infrastructure, improving quality of trainers and
developing a National Vocational Quality Framework.
The Policy clearly highlights the importance of improving the quality of trainers by;
 Innovative ways of recruiting trainers
 Innovative skill development schemes (trainees acquiring
technical training at TI and practical skills at the work place)
 Retired employees mainly from  Defence  Forces to be
retrained to become Trainers
 Award and incentive mechanisms to be developed
 A system of granting Accredited Trainers status for a  limited
 Improvement in gender balance of trainers

Role of Institutions in Vocational Training:

1-) Major activities:
1.A-)Funding support: 
Institutions involved: 
Ministry of Rural Development/ Tribal Development/ Youth, Culture and Sports; Major Role: Fundind through various schemes (SGSY, NRI.M etc)
NSDC: Major role: Funding in the form of equity, loan and grant.
Intk Agencies & DONORS: Major Role: Providing grants for skill development.
1.B-)Research and Demand Assessment: 
Institutions involved: 
Industries bodies (CII,FICCI,NASSCOM etc), Social Sector Council; Major role: Up-to-date information and data to industry and government; Create skill database;
Insitutions involved:
CII, FICCI, ASSOCHAM, NSDC, SSGCs. Major Role: Provides a platform for sector specific conssensus building and networking; involvement of the industry for skill assessment and certification;
1.D-) Standardization and Certification: 
Institutions Involved:
SSC: Major role: Develop sector specific competency standards; Brenchmark international standard; streamline certification framework; certification tests for employees and trainers at institutes; Accreditation of sector specific and related courses.
DGET: Major role: Setting common standards and procedures, training of instructors and trade testing.
NCVT: Major Role: Prescribe standards in respect of syllabi, equipment, and scale of accommodation; Duration of courses and methods of training; Arrange trade tests in various trade courses and lay down standarts of proficiency required; Prescribe qualification for the technical staff of training institutions.
Export promotion Council (Sector wise). Major role: Professional advice to their members in areas such as technology up-gradation, quality and design improvement, standards and specifications, product development, innovation, etc.
CREDAI, ARAI, etc.. Major role: Testing as per the standards set and certification.
PSSCIVE. Major role: To ensure uniformity and maintain quality standards in vocational teaching and learning.
1.E-)Curriculum Development and its up gradation: 
SSC, NCVT, PSSCIVE. Major role: Curriculum development.
PSSCIVE, CII, FICCI, ASSOCHAM. Major role: Provide inputs for curriculum development.
1.F-)Train the trainers:
ATI, NITTTR, CSTARI. Major role: training the trainers.
1.G-) Implementers:
Training Institutes-Govt., NGO/Society, Private including Industry. Major Role: Porviding training for different trades and placement of trainees in various sectors.

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