Skills and knowledge are the driving forces of economic growth and social development for any country. India is blessed with 65% percent of its youth in the working age group. As per the National Policy for Skill Development and Entrepreneurship 2015, it is estimated that the average age of the population in India by 2020 will be 29 years as against 40 years in USA, 46 years in Europe and 47 years in Japan. In next 20 years, the labor force in the industrialized world is expected to decline by 4%, while in India it will increase by 32% which creates a need and opportunity to provide its workforce with required skill sets and knowledge to enable them to contribute substantially to the economic growth of India.1
The skill ecosystem in India is undergoing major reforms and policy interventions as India embarks on its journey to become a Knowledge Economy. The skill gap study by the National Skill Development Corporation (NSDC) for the period of 2010-2014 reports that over 109.73 million additional skilled manpower will be required by 2022 across different sectors.
In the last two years, the government has taken a host of initiatives to channelize the efforts and provide impetus to the Skill Development ecosystem.
To steer and coordinate the current skilling initiatives with quality deliverables, the Ministry of Skill Development and Entrepreneurship (MSDE) was created in November 2014 to drive the ‘Skill India’ agenda in mission mode.
Key interventions taken up by the government during the last two years have resulted in the number of trained Indians growing by 36.8% from 0.76 crores in FY 2014-15 to 1.04 crores in FY 2015-16. These trainings were done through Central Government Programs and NSDC associated training partners in the private sector.
MSDE has made great strides in a relatively short span of time and the key policy initiatives have been launched to support the skilling mandate.
Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
Launched in July 2015 with the mission statement “KaushalBharat Kushal Bharat’, PMKVY is the flagship scheme of MSDE aimed to benefit 1 crore youth. PMKVY is being implemented through National Skill Development Corporation (NSDC).
A new version of PMKVY was launched on July 13, 2016 with modification and continuation of PMKVY as ‘Skill Development Component’ of umbrella PMKVY with a target to skill 10 million people over four years (2016-2020) at an outlay of INR 12,000 crore.
Revitalizing the landscape of Industrial Training Institutes (ITI’s) across the nation
The scheme envisages up-gradation of an existing Government ITI in a State to Model ITI through Institute Management Committees (IMC’s)with a representative as chairperson from Industry. The scheme was approved in December 2014 for a total cost of INR 300 crore. Implementation period is for 3 years with a funding pattern 70:30 between Center and States. For North Eastern states, the funding pattern is 90:10 between Center and States. Some of the major achievements are:
National Skills Qualifications Framework (NSQF)
NSQF is a competency-based framework that organizes all qualifications according to a series of levels of knowledge, skills and aptitude. NSQF aims to safeguard the consistency in outcome of skills training. Over 1661 qualifications from both the NSDC and ITI ecosystems have been aligned to NSQF during the last two years.
Apprenticeship Act reformed to scale up Apprenticeship training
The Apprenticeship Act was modified in December 2014 to incentivise employers to take on more apprentices. Advocacy campaign amongst industry partners has been taken up and an online portal has been launched. Employers can now engage up to 10% of its total workforce as apprentices. The number of apprentices in the country has increased from 2.70 lakh to 3.10 lakh in FY2015- 16, which is 15% higher as compared to FY 2014- 15.
National Skill Development Corporation (NSDC)
NSDC which was established to catalyse private sector involvement in the area of skill development was further strengthened and entrusted with responsibility of setting up Pradhan Mantri Kaushal Kendra (PMKK) to run industry-driven courses of high quality with focus on employability. Some of the initiatives taken by NSDC are:
The details of NSDC centers operational during FY 2015-1 6 are in Annexure II.
Pradhan Mantri YUVA Yojana (PMYY)
MSDE launched its flagship scheme on entrepreneurship education and training in November 2016. The scheme spans over five years (2016-17 to 2020-21) with a project outlay of INR 499.94 crore, and will provide entrepreneurship education and training to over 7 lakh students in 5 years through 3050 Institutes. The institutes under the PM’s YUVA Yojana include 2200 Institutes of Higher Learning (colleges, universities, and premier institutes), 300 schools, 500 ITIs and 50 Entrepreneurship Development Centers, through Massive Open Online Courses (MOOCs).
Sector Skills Councils r66C’s)
Special Focus on skilling and empowering Women
In an endeavor to create a conducive socio-cultural and economic environment for women, several initiatives have been taken to further strengthen the ecosystem.
Department of Industrial Policy and Promotion,
Ministry of Commerce and Industry,
Udyog Bhawan, Rafi Ahmed Kidwai Marg,
Rajpath Road Area, Central Secretariat,
New Delhi, Delhi 110011
Ministry of Skill Development and Entrepreneurship
2nd Floor, Annexe Building Shivaji Stadium, Shaheed
Bhagat Singh Marg, Connaught Place,
New Delhi, Delhi 110001
Knowledge Partner : KPMG
Building No. 10, 8th Floor, Tower B & C,
DLF Cyber City, Phase II,
Gurgaon, Haryana 122 002