Professional Documents
Culture Documents
September 2011
Knowledge paper on
Foreword
Abhaya Krishna Agarwal
Executive Director and National Leader PPP
India is currently poised on a huge opportunity to meet the future demands of the world. When developed countries are struggling with shrinking domestic demands and capacity challenges in meeting them, India, with its huge young demographic dividend, is well positioned to become the sourcing hub of the world. This is not only limited to an exponential growth in demand in its manufacturing and service sectors, but is also applicable to its capacity to meet global manpower demands as well. Talent acquisition is one of the largest challenges for organizations across positions and levels worldwide, specifically in the case of blue collar jobs. Governments across the world, in developed and developing countries, have been focusing intensely on developing skills and evolved delivery frameworks to meet the skill demand and effectively utilize and divert the positive energies of its working age people. According to a global study, India is one of the largest labor-surplus countries worldwide in terms of its working age population. Furthermore, of the countrys workforce comprises only one million people per annum against the current domestic demand for 50 million. This deficit is estimated to grow to 57 million by 2013. Therefore, it is imperative for India to develop a robust mechanism for vocational education and training, and invite the private sector and other social agencies to participate and deliver within the shortest possible time. Rising to the occasion, the Government of India has launched the National Policy on Skill Development and developed a three-tier structure for strategy, coordination and finance or delivery of imparting the requisite skills to a workforce of 500 million by 2022. The 4th Global Skills Summit 2011, organized by FICCI, is an important initiative at the most opportune time to discuss, debate and fine-tune the implementation and delivery of this framework in India. This paper focuses on existing skill gaps in India and the world, an overview of skill development in the country, private sector initiatives in vocational training, effective practices followed in other countries and learning for India from these practices, and recommendations for the future. I am privileged to present Ernst & Young-FICCIs Knowledge paper on strategic and implementation framework for skill development in India, which especially focuses on implementable ideas for the Twelfth Five Year Plan on the eve of the 4th Global Skills Summit.
Regards Abhaya Krishna Agarwal Executive Director and National Leader Public Private Partnerships Government & Transaction Advisory Services
Knowledge paper on strategic and implementation framework for skill development in India
Foreword
Dr. Rajiv Kumar
Secretary General - FICCI
It is now universally recognized that a nations economic strength and growth squarely rests on the skills and knowledge base of its human resources. In todays highly competitive world, trained, certified and skilled manpower is critical for addressing the challenges of growth and converting them to opportunities. As India moves towards achieving its ambitious economic and social inclusion targets, engaging human resources to empower them with the requisite skills becomes imperative for driving the economy into a new trajectory. For a country like India, the challenges get magnified because of the dire need to reach out to its teemining millions; the inevitable shift of labour from agriculture to manufacturing and services sectors and the manifold challenges in implementation of programmes at the grass roots level. The 11th Five Year Plan was instrumental in bringing skills development to the forefront of the national agenda. The Government of India through various Central and state initiatives has launched a number schemes and programmes to empower the workforce, particularly the youth. The task is onerous as it is imperative. The accent in the 12th Plan must therefore be on implementing the nations skill development strategies. The world today is looking at India with an interest never seen before. Countries across the world are enthused at the journey India has embarked upon in skilling 500 million people by 2022. Engaging with the world in partnerships is the way forward to make the skills development mission a success. Countries such as the UK, Germany, Switzerland, Australia, Singapore and South Africa have put the spotlight on quality and competiveness in Skills and Education space. India can certainly profit from the lessons available from these countries. This report attempts to address the various issues and drivers of Skills Development. It is a unique presentation of existing strategic and implementation models both nationally and globally. I am confident that the information presented in the report would serve as valuable material for all stakeholders, including industry and academia for developing the required skills for a modern, confident India of the 21st century.
Knowledge paper on strategic and implementation framework for skill development in India
Table of contents
1. Global skill mismatch ............................................................................6
Increasing battle for brainpower worldwide .................................................................. 6 Global supply of skilled manpower................................................................................ 8 Increasing trend toward demand for skilled manpower ................................................. 9 Indias capacity to overcome shortage of skilled labor ................................................ 10
Skill gap in India......................................................................................................................... 10
Key directions for the draft twelfth five year plan ....................................................... 39 Recommendations for the future ............................................................................... 40
Implementation strategies .................................................................................................. 40 Operational strategies ......................................................................................................... 41 Focus on delivery ................................................................................................................ 42
Knowledge paper on strategic and implementation framework for skill development in India
Executive summary
In the wake of the rapidly increasing demand-supply gap and global competition, it has become imperative for organizations to ensure an adequate supply of skills and optimize their use. However, the worlds population is ageing fast. By 2040, the global population, aged 65 and above, is expected to reach 1.3 billion more than double of 530 million in 2010. This trend is expected to result in severe labor shortage across the world. Shortage of skilled workers is expected to be acute in some of the worlds largest economies, including the US, France and Germany. On other hand, India has the distinct advantage of having one of the youngest populations in the world. The country has a very large pool of young English-speaking people and has the potential to meet the skill needs of other countries and also cater to its own demand for skilled manpower. Ironically, most industries in India are currently struggling with scarcity of skilled labor. Although more than 40 million people are registered in employment exchanges, only 0.2 million get jobs. This is because the current education system does not train young people in employable skills that will open up immediate employment opportunities for them. Today, a large section of Indias labor force has outdated skills. With current and expected economic growth, this challenge is going to only increase further, since more than 75% of new job opportunities are expected to be skill-based. The Government is therefore strongly emphasizing on upgrading peoples skills by providing vocational education and training to them. It has formulated the National Policy on Skill Development and set a target for providing skills to 500 million people by 2022. Various stakeholders are involved in this process. In the current framework, the Ministry of Labor & Employment is running various schemes and has set up industrial training institutions across the country. Other ministries such as the Ministry of Human Resource Development, the Ministry of Rural Development and the Ministry of Urban Development & Poverty Alleviation have also launched their skill upgrading programs and self-employment schemes. In addition, as part of its National Skill Development Mission, the Government has established the National Skill Development Corporation in the Public Private Partnership mode to facilitate setting up of large, high quality, for-profit vocational institutions. It also aims to set up 1,500 new ITIs and 5,000 skill development centers across the country as well a National Vocational Qualification Framework (NVQF) for affiliations and accreditation in vocational, educational and training systems. Realizing the significance and need for skilled manpower, private sector entities are taking several initiatives to contribute effectively to the Governments endeavors. Across business sectors, companies and industry associations are not only boosting their in-house training facilities, but are also taking steps to make potential employees job-ready before they join organizations. However, to make this exercise a success, India has many lessons to learn and implement from international practices as compared to 75% of Germanys and 68% of the UKs skilled workforce, India can only account for 2%. Therefore, far-reaching and deep rooted reforms are urgently needed if it wants to emulate countries, whose vocational education and training systems has been successful. Focused initiatives need to be taken in key areas to improve quality, enhance accessibility and increase affordability of vocational education and training. It is also important to spread awareness about the system so that vocational education and training is given equal importance as formal education. Therefore, it is clear that India requires a strong implementation and operational framework, to set up and implement which the Government and the private sector work need to work in a cohesive manner to achieve their common goal of rapid skill development.
Knowledge paper on strategic and implementation framework for skill development in India
1.
2006
2007
2008
2009
2010
2011
Talent Shortage 2011 Survey Results, Manpower Group website, http://us.manpower.com/us/ en/multimedia/2011-Talent-Shortage-Survey.pdf, accessed 19 July, 2011.
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Knowledge paper on strategic and implementation framework for skill development in India
Germany 40 %
India 67 % Brazil 57 %
Australia 54 %
Employers in Japan, the US and India are facing the highest difficulty in filling jobs. India and the US have reported the largest increases in difficulty. In India, difficulty to fill jobs increased to 67% in 2011 from only 16% in 2010. However, among all countries, India enjoys a unique advantage to not only fulfill its own requirement for skilled labor but also cater to the labor shortage in other countries
Knowledge paper on strategic and implementation framework for skill development in India 7
82 Germany 11.2% 99% 7.1% France 63 US 310 14% 99% 9.6% UK 62 13.1% 99% 7.8% Brazil 195 17.2% 89% 6.7% India 1,225 19.2% 74% 10.8% Australia 22 14.1% 99% 5.2% 12.4% 99% 9.3% China 1,341 16.8% 92% 4.3% Japan 127 10% 99% 5%
Total population (in million) Young population (15 -24 yrs) as % of total population
Source: United Nation Population Division, CIA World Factbook
Among developing countries, India has the highest potential to meet the skill gap with its huge population, the largest number of young people worldwide, a low literacy rate and the highest global unemployment rate.
Knowledge paper on strategic and implementation framework for skill development in India
Over the last 20 years, the share of low skilled working age immigrants in the US has reduced from approximately 37% to 28%, while the share of high- and middle-skilled workers has increased. Highly skilled immigrants primarily come from countries such as India, China and the Philippines.
41%
43%
New destinations such as Australia, Singapore and New Zealand have also become popular for skilled Indian professionals. Even in Gulf countries, skilled talent immigration is steadily becoming more important than that of unskilled workers.
Australia has opened its doors to skilled workers from India to handle the shortage of skilled workers. We have made some changes to our Skilled Migration Policy to get more skilled talent from IndiaIndia figures among the top three countries in providing manpower to us David Holly, Australian Consul-General for South India (June 2011)
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However, migration can have several repercussions, e.g., high unemployment rates, brain drain and political pressure due to civil unrest. Governments worldwide have realized that these as critical issues, and have begun taking measures to preempt the negative impact of these. They are formulating new policies, wherein vocational training will be introduced along with school education, thereby aligning education programs with the anticipated labor force requirements of different industries. Skill-sets are becoming obsolete more quickly, due to which skill development centers are being set up to address ever-changing dynamics in employment markets. Innovative use of information and communication technology (ICT) is also gaining increasing importance to impart and disseminate skills worldwide.
India has set a target of training 500 million skilled workers by 2022, Press Information Bureau website, http://labour.nic.in/pib/PressRelease/ SkilledWorkers.pdf, 15 June, 2011.
Australia welcomes Indian workers, IBNLive website, http://ibnlive.in.com/ news/australia-welcomes-indian-workers/160160-60-119.html, 18 June, 2011.
With a projected skilled manpower shortage of approximately 56.5 million by 2020, countries across the world are focusing on meeting this demand through innovative measures.
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Knowledge paper on strategic and implementation framework for skill development in India
human resources to other countries. It is estimated that India will have two billion English-speaking people by the end of 2020. High demand for mobile Indian labor force: The mobility of human resources is the long-term solution for sustaining the growth rates of countries and enabling them to surmount issues including demographic asymmetry and globalization of economies. Indias strength as a source of a large young and mobile workforce is widely acknowledged.
2010 India
Approximately 80% of the workforce in rural and urban India does not possess any identifiable marketable skills
India has set a target of training 500 million skilled workers by 2022, Press Information Bureau website, http://labour.nic.in/pib/PressRelease/SkilledWorkers.pdf, 15 June, 2011. World Economic Forum website, http://www.weforum.org/news/world-economic-forum-report-calls-greater-talent-mobility-prevent-global-labour-crisis, accessed 24 August 2011 Talent mobility report, World Economic Forum website, http://www3.weforum.org/docs/WEF_PS_TalentMobility_report_2010.pdf, accessed 24 August 2011 where is the Talent, India Today website, http://indiatoday.intoday.in/site/story/where-is-the-talent/0/108230.html, 8 August , 2010 Knowledge paper on strategic and implementation framework for skill development in India
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Human resource requirements across key sectors till 2022 (in million)
61.6 58.0 48.0 25.0 17.6 8.5 7.5
Textile and clothing Building and construction Auto and auto components Real estate Organised retail Banking, nancial services and insurance IT -ITeS Electronics and IT hardware 0.3 4.3 2.2 0.9 13.0 11.0 25.0
35.4
4.2
2022
Source: NSDC
2008
If this skill gap is plugged, India can become the hub for skilled manpower, with it being capable of building a skilled manpower surplus of approximately 47 million by 2020. India, with its huge population, the largest number of young people worldwide, a relatively higher unemployment rate as compared to global figures and its advantage of having a huge English-speaking labor pool can mould its people to become more productive by acquiring enhanced skills and capabilities to help economies grow at a much faster rate as compared to present times. Currently, India has significant potential to evolve as the worlds skill center and also meet its domestic demand, which is continuously increasing. It is therefore essential that a comprehensive regulatory and delivery framework for skill development in India is formulated and implemented at this stage to divert the positive energies of
its people toward innovative and integrated skill development with the aid of outcome-based orientation. The time is ripe for Indias political and administrative authorities to initiate actions that will enable achievement of these goals.
Developing countries, not affected by ageing populations (the workforces of India and Brazil will grow by more than 200 million people over the next two decades), will also face huge skill gaps in some job categories due to low employability. Global Talent Risk report 2011, World Economic Forum
Knowledge paper on strategic and implementation framework for skill development in India
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3.
Last year (2010), we concentrated on formal higher education. While universities are important, we must not forget that a huge number of high school graduates do not enter formal higher education. India, therefore, needs a strong vocational education network such as that in the US.
Due to the varying quality of Indian education systems, only 25% of the countrys professionals are considered employable by multinationals.
Global Talent Risk Seven Responses, World Economic Forum website, www3. weforum.org/docs/PS_WEF_GlobalTalentRisk_Report_2011.pdf, January, 2011. Knowledge paper on strategic and implementation framework for skill development in India
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There are 3,600 blocks in the country where there are no government institutes, funding or a mechanism to provide industrial training to the youth. We need to look into this to achieve the target of providing industrial training to over 50 crore people by 2022.
Skill development in India- The vocational education and training system, World Bank, January 2007, p.35 Everonn Education, NSDC in joint venture to train 15 mn by 2022, Business Today website, http://businesstoday.intoday.in/story/ everonn-education-joint-venture-national-skill-development-corporation-(nsdc)/1/14866.html, 19 April, 2011. Knowledge paper on strategic and implementation framework for skill development in India 13
We have the highest young population and the Government of India attaches great emphasis on Skill Development, as it is critically important to address the twin issues of enhancing the competitive strength of industry and employment generation.
60% of Indias 1.2 billion people are in the working age group. However, only 10% of the 300 million children in India between the age of 6 and 16 will pass school and go beyond. Only 5% of Indias labor force in the age group 19-24 years is estimated to have acquired formal training. Despite this, our economy is clocking an 8.5% growth. Imagine what could be if we could leverage our demographic dividend fully.
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Knowledge paper on strategic and implementation framework for skill development in India
22-23
Post Graduate Degree - Master s Program (2 year) Management/Professional/Medical/Engineering Select Course Bachelors Degree -University Education (3 -4 years) Technical/Medical/Professional/Degree Courses (Regular and Lateral Only)
Select Courses
19-22
Polytechnic Diploma 2/3 Years Diploma in Engineering and other Vocations (Regular or Lateral)
After passing class 10 & 12 Select Courses Craftsmen DGET Certicate Industrial Training Institute/Centres (6 months- 3 years) Craftsmen Apprentices 2-4 Years Certicate (Duration will be reduced by amount of Craftsmen Training)
17-18
Select Course 15-16 Secondary School (Class 9 to 10) Class 8 passed and above
11-14
6 -10
3 -5
Although these are concurrent subjects for the Central and state governments, the Central Government is primarily responsible for the development of vocational education and training schemes at the national level, e.g., evolution of policy, laying training standards and norms, conducting examinations, certification, etc., whereas state governments undertake the implementation of training schemes along with their own training programs. The National Council for Vocational Training (NCVT) advises the Government on issues relating to various vocational training schemes. Similarly, the State Council for Vocational Training (SCVT) is constituted by the respective state governments to carry out the same functions at state levels.
Knowledge paper on strategic and implementation framework for skill development in India
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The Government has formulated a National Policy on Skill Development, which envisages the exponential expansion of the current capacity for skill development in the country to facilitate its target of imparting requisite skills to 500 million people by 2022. It also envisions the establishment of a National Skill Development Initiative that will have the following mission: The 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 Indias competitiveness in the global market. The salient features of the policy include setting up a system that achieves the following: Is driven by demand from the labor market Focuses on new and emerging occupations and promotes excellence Inculcates competencies that are in line with nationally and internationally recognized standards Lays emphasis on research and planning Provides adequate participation opportunities to women, disabled persons and economically backward sections of society A three-layer structure is proposed to develop the skill scenario in India. 1. Prime Ministers National Council on Skill Development The Prime Ministers National Council on Skill Development under the Chairmanship of the Honble Prime Minister has been set up as an apex institution for policy direction and review. The ministers for Human Resource Development, Finance, Industries, Rural Development, Housing and Urban Poverty Alleviation, Labour and Employment and Micro Small & Medium Enterprises are members of the council. The Principal Secretary to the Prime Minister is its Member Secretary. 2. National Skill Development Co-ordination Board (NSDCB) The National Skill Development Co-ordination Board has been set up under the chairmanship of the Deputy Chairman of the Planning Commission. The secretaries of the Ministries of Human Resource Development, Labour
and Employment, Rural Development, Housing and Urban Poverty Alleviation and Finance are members of the board. The Chairperson/Chief Executive officer of the National Skill Development Corporation, secretaries of four states (by rotation) for period of two years, and three distinguished academicians/subject area specialist are its other members. The Secretary of the Planning Commission is the member secretary of the board. The functions of the NSDCB: (i) Formulating strategies to implement the decisions of the Prime Ministers National Council on Skill Development (ii) Developing appropriate and practical solutions and strategies to address regional and social Imbalances, the quality of vocational education and training, the evolution of a robust regulatory structure, private participation strategies and putting in place sectoral action plans (iii) Encouraging state governments to structure their initiatives in a way that can be modeled on similar lines (or in any other way), as deemed suitable by them (iv) Monitoring, evaluating and analyzing the outcome of the various schemes and programs and apprising the Prime Ministers National Council on Skill Development about this 3. National Skill Development Corporation The National Skill Development Corporation (NSDC) is a not-for-profit company formed in 2008-09. It is a first of its kind PPP initiative in India, which facilitates skill development. A large part of its skill development efforts are directed at the countrys unorganized sectors. The NSDC acts as a catalyst in skill development by providing viability gap funding to organizations that provide skill training. It also develops appropriate PPP models to enhance, support and coordinate private sector initiatives. The differentiated focus on the 21 sectors under the NSDCs purview, and its understanding of their viability, is aimed at making every sector attractive to private investment.
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Knowledge paper on strategic and implementation framework for skill development in India
Labour & Employment Human Resources Urban Development Rural Development Textile Finance Commerce Agriculture Food Processing Health & Family Welfare Information Technology Heavy Industries MSME Tourism Women & Child Development Tribal Affairs Others.. SIDO KVIC NSDC HUDCO
Technical training Advanced training Training of trainers Regional vocational training institutes Modular employable skills Content design and afliations Region and social schemes
Standards & Assessments Curriculum & instructions Professional development Learning Environments
Knowledge paper on strategic and implementation framework for skill development in India
Standards & Assessments Curriculum & instructions Professional development Learning Environments
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Indicators
End result
Ministry of Labour & Employment 2010-11 annual report Guidelines for setting up of Institute for Training of Trainers, Directorate General of Employment & Training, Ministry of Labour website, http://dget.nic.in/GuidelinesforInstituteforTrgofTrainers.pdf, accessed 19 July, 2011. Knowledge paper on strategic and implementation framework for skill development in India
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Craftsmen Training Scheme Objective: To ensure a supply of semi-skilled labor and reduce unemployment among educated youth Pedagogy: Includes 70% of practical training and 30% of theoretical training Theoretical training involves training in subjects related to trade theory, workshop calculations and science, engineering drawing and social studies. Industry associations are involved at every stage of the formulation of policies, norms, standards and procedures. The NCVT is primarily responsible for designing course contents, standards, procedures, affiliation norms, etc. The course curricula are developed by trade expert committees and constituted by a representative from each trade, comprising experts drawn from the relevant industry and technical institutes involved in imparting skills. Coverage: Under this scheme, vocational training is provided through 8,687 ITIs/ITCs across the country. Training is provided on 116 trades and the training period varies from six months to three years. Craftsmen training scheme expansion ( in '000)
1,400 1,200 Seating Capacity 1,000 800 600 400 200 0 4.3 652 2000 5.1 1,206 742 8.6 10 Number of ITIs 8 6 4 2 2010 ITIs/ITCs 0
Course content and duration: The Craftsmen Training Scheme (CTS) currently focusses on offering long-term courses (in a one- or two-year format). However, there has been an increasing demand for short-term courses in the country, which can be catered to through this scheme. The current scheme can be complemented by incorporating industry-specific training. Certification: The skill-imparting and certification procedures should be more standardized and reliable. Human resource: Fewer instructors than needed for training and the quality of such trainers has led to limited attention being paid to ITIs. This brings to the surface the need to recruit suitably trained instructors and train existing ones in a time-bound manner. Physical infrastructure: Currently, many workshops and laboratories have obsolete equipment. Thus, the issue of poorly maintained infrastructure facilities at ITIs should be addressed on a priority basis. Job opportunities: Only a limited number of training institutes offer job placement services following the completion of the course. Therefore, monitoring the effectiveness of these placement bodies is a challenging task. A proper mechanism to rectify this situation should be put in place.
2005
Seating capacity
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Upgradation of 1396 ITIs through PPP Objective: The scheme aims to upgrade 1396 ITIs with private sector participation at an estimated outlay of INR35.5 billion. Methodology: Under the scheme, an industry partner collaborates with an ITI to upgrade it. An IMC is constituted with the industry partner, which is granted an interest-free loan of up to INR25 million. The partner is also given the authority to determine up to 20% of the admission in the ITI. The state government retains the ownership of the ITI and regulates its admission and fees. Achievement: Industry partners have been assigned the task of to upgrading 924 ITIs. Year 2007-08 2008-09 2009-10 2010-11
Source: Ministry of Labour & Employment 2010-11 annual report
Coverage: There are around 254 group industries covered under the Act and around 24,815 establishments, which engage trade apprentices. The scheme has imparted training to 2, 11,218 apprentices in 235 trades till now. Industry participation: As of now, the apprenticeship training scheme has not been highly successful on account of its rigid norms, limited private sector participation and low stipends. Hiring of apprentices by the private sector needs to be changed from being employer-enforced to voluntary hiring. The rules, in the form of cumbersome compliance procedures and inspection by labor officials, can also be made less stringent. This is likely to enable the private sector to voluntarily hire apprentices. It is therefore imperative that the scheme is made development-oriented rather than regulation-oriented.
ITIs upgraded 300 300 300 24 Center of Excellence Scheme Objective: These centers provide multi-skilling courses in 21 industry sectors. Pedagogy: The courses are imparted in three parts, i.e., training in basic skills (broad-based basic training) for a period of one year, training in advanced modules for six months and training in specialized modules, mainly in the industry. Coverage: Under this scheme, 500 existing ITIs are upgraded into CoEs.
Authority: The IMCs have limited controlling power in terms of their authority to hire teachers and principals. This impacts the quality of education. IMCs also do not have financial autonomy for operational sustenance, as these are government-owned institutions. It is imperative that they are given more authority. Apprenticeship scheme Objective: The Apprentice Act, enacted in 1961, regulates the program of training apprentices in the industry. It is obligatory for employers in public and private sector establishments to have in place the requisite training infrastructure, as laid down in the Act, to engage apprentices. Pedagogy: Under this scheme, training is imparted at the actual work place to supplement training imparted at institutions. NCVT conducts All India Trade Tests (AITTs) and gives awards including National Apprenticeship Certificates (NAC) for Apprentices who pass these tests.
The Center of Excellence (CoE) scheme has so far trained 1.1 million people with the help of 6,381 registered voluntary training providers. The Government has allocated INR2.7 billion and the World Bank has extended total credit of US$280 million so far.
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Knowledge paper on strategic and implementation framework for skill development in India
Industry linkage and certification: The newly launched Centres of Excellence scheme presently has limited acceptance and awareness. This is also on account of limited acceptance of students under the scheme by public sector entities, since they do not have the requisite certification. This leads to poor industry linkages, and as a result, these institutes are unable to organize specialized module training and certification. Hence, it is imperative that more awareness is created about the students certified under this scheme.
Private sector participation: The MES scheme fails to generate sufficient lucrative opportunities for private sector partnership on establishment of infrastructure. It can be made much more attractive. Monitoring framework: The MES scheme requires the implementation of a robust monitoring framework that ensures trickling down of operational support (provided by the Government to any VTPs) to those who needs it and have the right skills.
Modular Employable Skills Scheme Objective: The Ministry of Labour And Employment has introduced Modular Employable Skills (MES) under the Skills Development Initiative Scheme (SDIS), which targets school leavers, existing workers and ITI graduates. Pedagogy: The MES scheme focuses on the delivery of short-term NCVT courses with the objective of providing employment. Under this scheme, the Government provides operational support on an INR15 per hour per student basis to Vocational Training Providers (VTPs) offering such courses. Modular Employable Skills (MES) Scheme Achievements
520,000 Expenditure (INR million) 3,000 2,500 Trainees 2,000 1,500 1,000 600,000 500,000 400,000 2,670 300,000
Other schemes Some of the other skill development schemes include the following: Setting up 1,500 ITIs and 5,000 Skill Development Centers: The scheme, known as the Kaushal Vikas Yojana, aims to set up 1,500 new ITIs and 5000 skill development centers (SDCs) in un-serviced blocks and backward areas so that the large unskilled workforce in these areas can acquire skills. The projects will be executed in the PPP mode. Skill development for 34 districts affected by Left Wing Extremism: around 34 ITIs and 68 SDCs will be developed in 34 Left Wing Extremism (LWE)-affected districts across the country. Craft Instructor Training Scheme: The Craft Instructor Training Scheme (CITS) is designed to provide training to instructors in vocational training institutes. The courses are imparted through five Advanced Training Institutes (ATIs), one Central Training Institute (CTI), one National Vocational Training Institute for Women (NVTI) and 12 Regional Vocational Training Institutes for Women (RVTIs). They are offered in 27 trades. The demand for qualified instructors is huge, as compared to the gross capacity of instructor training of DGE&T field institutes. The present instructor requirement for the two major schemes of DGE&T (CTS & Apprenticeship scheme) is more than 70,000, and the present instructor training capacity of 1600 per annum is grossly inadequate. It is proposed that new institutes, known as Institutes for Training of Trainers (ITOTs), are set up to meet the huge demand for qualified instructors. ITOTs can be set
300,000
200,000 120,000 1,570 500 10,000 50,000 100,000 160 710 390 0 0 2007-08 2008 -09 2009-10 2010-11 2011-12 Expenditure (in INR million) Trainees
Knowledge paper on strategic and implementation framework for skill development in India
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up by state governments, sole propriety firms, private or public limited companies, registered societies and trusts, and promoters of SEZs. The institutes would need to be affiliated to the National Council for Vocational Training. A standing committee will need to be put in place to supervise the setting up of an ITOT, and would require a predetermined standard of infrastructure, building (workshop, class-room), electricity, machinery, equipment, tools and implements, human resources (including principals and trainers). DGE&T would need to extend its help and guidance to the organizations including state governments that want to establish ITOTs. In the event there is a need for them, mentors will also be provided to render assistance in setting up of such institutes.
National Vocational Qualification Framework (NVQF): a special initiative of the Ministry of Labour and Employment The National Skill Development Policy proposes setting up of a National Vocational Qualification Framework (NVQF) of affiliations and accreditations granted by institutions. The key features of the proposed framework are listed below: NVQF will be a flexible system that permits individuals to accumulate skills and convert them into advanced diplomas and degrees through certification. It will provide opportunities for horizontal and vertical mobility between general and vocational education. It will also provide learning paths with standards that are comparable with those of any international qualification framework and will support lifelong learning and continuous upgrading of skills. All institutions, boards and councils involved in skill development will be encouraged to follow the NVQF.
Through its various schemes and the proposed NVQF, the Ministry of Labour and Employment is playing a crucial role in building an infrastructure that will help it achieve its target of training 100 million young people in the country by 2022.
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Knowledge paper on strategic and implementation framework for skill development in India
Technical education and vocational training (TVET) leads to human resource development through creation of skilled manpower, enhancement of industrial productivity and improvement in the general quality of life. The Ministry of Human Resource Development functions through its following two departments: Department of School Education and Literacy to enable TVET programs in senior secondary schools Department of Higher Education to impart higher and technical education The Ministry of Human Resource Development has multiple schemes for facilitating skilled manpower creation:
Schemes/Programs Vocationalisation of Secondary Education (6800 schools covered) Duration 2 years Target group Students who have passed 10th class Details
Polytechnics (1244) + Institutions for diploma in pharmacy (415), hotel management (63), architecture (25) Community Polytechnic Scheme (675 CPS) Jan Shikshan Sansthan (JSS) (157 Vocational Training Centers run by NGOs offering more than 250 courses)
3 year- diploma
Poor sections of society in rural and urban areas Disadvantaged groups of adults priority being given to adult neo-literates/ semi literates, SC and ST, women/girls, oppressed people, migrants, slum/ pavement dwellers and working children Engineering and physical science under-graduate/ post-graduate and all teachers/ faculty members in science and engineering fields
CPS acts as a focal point to promote transfer of These act as district level resources to organize
National Program on Technology Enhanced Learning (NPTEL) Support for Distance Education & Web-based Learning
quality engineering education in the country by developing curriculum-based video courses (at least 100) and web-based e-courses (at least 115) that will be prepared at the seven IITs (Delhi, Bombay, Madras, Kanpur, Kharagpur, Guwahati, Roorkee and IISc). and around 2,067 study centers .There are around 1,063 accredited vocational institutes in the the country. five years is 93,000.
6 months to 2 years
Recognized engineering colleges/ NPEEE was made with the objective of training teachers in engineering colleges, polytechnics and polytechnics and schools of schools of architecture, and to develop suitable architecture with related academic curricula. degree of diploma program
Technical And Vocational Education And Training (TVET) System In India For Sustainable Development, International Center for Technical and Vocational Education and Training website, http://www.unevoc.unesco.org/up/India_Country_Paper.pdf, accessed 29 July, 2011. Planning Commission website, http://planningcommission.nic.in/reports/genrep/rep_skillsch.pdf, accessed 19 July, 2011. Knowledge paper on strategic and implementation framework for skill development in India 23
National Vocational Education Qualification Framework (NVeQF): an initiative of the Ministry of Human Resource Development In order to emphasize the importance of integrating vocational education and training with general education at all levels, the Ministry of Human Resource Development aims to set up a National Vocational Education Qualifications Framework (NVeQF). The key features of the proposed framework are listed below: The NVeQF will lay down common principles for a nationally recognized qualification system. It will cover schools, vocational education institutes and institutes of higher education and define qualifications ranging from the secondary to the doctorate level, thereby leading to international recognition of the system. The framework will adopt a competency-based modular approach and allow for accumulation and transfer of credit. Linkage between education institutions and the industry will be a pre-requisite. Sector skill councils and Industry would collaborate on developing quality standards, model curricula, assessment standards and testing procedures.
The Ministry of Human Resource Development has thus been playing a pivotal role in vocational education the formulation and implementation of its Technical Education and Vocational Training (TVET) policy through the schemes mentioned above.
Skills Program for Inclusive Growth an IL&FS initiative IL&FS, in partnership with the MoRD, runs the Skills Program for Inclusive Growth (SPRING) program. SPRING aims to provide vocational training to 500,000 rural youth from BPL families and ensure their employment. Under this initiative, IL&FS has successfully trained more than 9,000 young people and placed more than 8,500 of them so far.
National Institute of Rural Development website, http://callippus.co.uk/rsetitest/, accessed 29 July, 2011. IL&FS Cluster Development Initiative Limited website, http://self.skillschools.com/?q=node/128, accessed 17August, 2011. Knowledge paper on strategic and implementation framework for skill development in India
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Rural Development and Self-Employment Training Institutes Objective: This initiative aims to set up dedicated infrastructure for skill development in each district in the country. The programs are geared toward entrepreneurship development. Rural Development and Self-Employment Training Institutes (RUDSETI) offers more than 60 types of short duration (one to six week) entrepreneurship development programs. Target: To set up RUDSETIs in all 600 plus districts in the country by 2012 Achievement: Indicator Rural youth trained Employment-generated Number of operational RUDSETIs Amount disbursed (INR billion) Progress (August 2011) 211,707 83,202 242 1.1
Support skill development and training of the urban poor and improve access to employment opportunities or promote self-employment for them Empower the community to tackle urban poverty through self-managed community structures and capacity-building programs The scheme has five main components an Urban Self Employment Programme, an Urban Women Self-help Programme, Skill Training for Employment Promotion Among the Urban Poor, an Urban Wage Employment Programme and an Urban Community Development Network. Achievement: Funding for the scheme is shared in the ratio of 75:25 between the Centre and the states. Central funds worth around INR5.8 billion were released for the scheme in 201011 and assistance was provided to more than 3,50,000 beneficiaries against a target of 300,000. STEP-UP: a key component of the Swarna Jayanti Shahari Rozgar Yojana Aim: Skill Training for Employment Promotion Amongst the Urban Poor (STEP-UP) aims to alleviate poverty in urban areas by facilitating skill development through well-structured market-oriented programs that can make poor and unskilled employable workers wage-earning ones or successful microentrepreneurs. It also aims to promote economic growth and the contribution of the urban economy to Indias national GDP by ensuring a supply of appropriate skilled workers at the lower end, thereby enabling inclusive growth in this section. Methodology: STEP-UP will provide training to the urban poor in a variety of service, business and manufacturing activities as well as in local skills and local crafts, so that they can set up self-employment ventures or secure salaried employment with enhanced remuneration. Training will also be imparted in vital components of the service sector such as in construction trade and allied services including carpentry, plumbing, electrical and manufacturing low-cost building materials, based on improved or cost-effective technology, using local materials. Target: In line with the Governments target of creating a pool of 500 million skilled workers by 2022, the annual target under STEP-UP is estimated at 200,000 workers 150,000 for skills training to secure wage/salaried employment and 50,000 for self-employment.
Through these initiatives, the MoRD is playing a key role in building the countrys skill development infrastructure and uplifting young people from weaker sections of society by upgrading their skills and providing them employment.
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Ministry of Urban Development & Poverty Alleviation website, http://mhupa.gov.in/w_ new/STEP-UP-OperationalGuidelines-2009-2010.pdf, accessed 24 August 2011. Knowledge paper on strategic and implementation framework for skill development in India 25
Training in agricultural extension (21 training centres) Training in use of agricultural implements and machinery Soil conservation training center Cooperative education and training Educational institutions:
One central agricultural university 31 state agricultural universities (SAUs) 4 National Institutes of Indian Council of Agricultural Research
Food processing
Established of more than 300 food processing and training centers Training institutions: Central Food Technology Research Institute Paddy Processing Research Centre (PHTC) Council of Entrepreneurial Development Programme Entrepreneurship Development Programme for development of human resources Promotional training of female health assistants in 42 training centers Basic training to health workers through: 478 Multipurpose Health Worker Training Schools (MPW) for women 28 Health and Family Welfare Training Centers (HFWTC) and 30 MPW for men Counseling, retraining and redeployment of workers of Central Public Sector Enterprises (CPSEs) DOEACC - O level CEDTI: conducts courses in the field of electronics, telecommunications, IT, process control and
instrumentation
MSME (Small Industries Development Organization (SIDO)) Khadi & Village Industries Commission under Ministry of MSME Social justice and empowerment
Entrepreneurship Development Programme Skill Development Programme (SDP) Management Development Programme 51 training centers run 35 types of programs National Institute of Mentally Handicapped National Institute for the Orthopaedically Handicapped Institute for Physically Handicapped National Institute for the Hearing Handicapped National Handicapped Finance and Development Corporation National Scheme of Liberation and Rehabilitation of Scavengers and their Dependents The Integrated Skill Development Scheme (ISDC) for the textile and apparel sector with the launch of ATDC-SMART (Skill for Manufacturing Apparels through Research and Training) many other boards and councils
Textiles
Decentralized training program with 24 weavers service centers,13 power loom centers and
Tourism Tribal affairs Urban development and poverty alleviation HUDCO and others in construction sector under Ministry of Urban Development & Planning Commission Women and child development
15 Food Craft Institutes under state governments Vocational training centers (VTC) in tribal areas Urban Self Employment Programme under Swarna Jayanti Shahari Rozgar Yojana (SJSRY) Construction Industry Development Council (CIDC)
Support to Training and Employment Programme for Women (STEP) Women Empowerment Programme in collaboration with IGNOU (training program on
Empowering women through SHG)
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Skill Development And Training Programmes Of Central Governments, Planning Commission, 24 March 2009. Knowledge paper on strategic and implementation framework for skill development in India
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23 of the 26 projects awarded in PPP mode under the aegis of NSDC Partners name Fides Global Academy Pvt. Ltd. Everonn Skill Development Limited Project cost (INR million) 245.4 1,537.6 No. of trainees in 10 years Sectors targeted 1.7 million BFSI, BPO, unorganized sectors 11.7 million Tourism, hospitality, health care services, organized retail, media and entertainment, IT and ITeS, textile, construction and automotive 0.5 million IT, ITeS & BFSI 1.0 million Construction, tourism, banking, rural farm, hospitality, food processing 11.6 million Automobile, organized retail, telecom, healthcare, and building and construction 0.7 million IT-BPO, microfinance, banking and insurance, organized retail, sales and marketing in rural areas 1.3 million Organized retail, health care services, building and construction, automobile/ auto component, tourism hospitality and travel trade, electronics, IT, banking and insurance, spoken English 21,000 Production-related (50%) and construction, tailoring, plumbing, textiles, security guards, retail, computer-related (remaining 50%) 18,000 Jewelry design, stone-setting, diploma in jewelry-making 0.74 million Agriculture (para-agri experts), animal husbandry (para-vet experts), food processing, transportation and rural service provider 1.95 million Textile, construction, leather and leather products, automotive and auto components and logistics, general engineering and service sector 0.13 million Retail and BFSI 1.69 million Education /skill development services, hospitality, construction, organized retail, electronics/hardware, automotive work, agriculture
Talent Sprint Education Services Private Limited BASIX Academy for Building Lifelong Employability Limited (B-ABLE) Centum Learning Ltd. Edubridge Learning Pvt. Ltd. (ELPL) GRAS Hospitality Services Ltd.
Gram Tarang Employability Training Services Private Limited (GT) Indian Institute for Gems and Jewellery (IIGJ) Red Hat Investments Private Limited (RHIPL) IL&FS Cluster Development Initiative Limited (IL&FS CDI) iSTAR Skill Development Private Limited (ISDPL) Pratham Education Foundation, a not for-profit entity
145
111.4 220
2168.2
13.2 230
12
Organisation Profile, NSDC website, http://www.nsdcindia.org/about-us/organization-profile.aspx, accessed 20 July 2011. Our Role, NSDC website, http://www.nsdcindia.org/about-us/our-role.aspx, accessed 20 July 2011. Knowledge paper on strategic and implementation framework for skill development in India 27
23 of the 26 projects awarded in PPP mode under the aegis of NSDC Partners name International Association for Human Values (IAHV) (an NGO) Managerial Excellence Resource Centre (MERC) TMI Input & Service Pvt. Ltd. Empower Pragati Vocational & Staffing Construction & Real Estate Developers Association of India (CREDAI) Indian Institute of Skill Development Pvt. Ltd. (IISD) Globsyn Technologies Ltd. Laqsh Job Skills Academy Private Limited Laurus Edutech Private Limited Project cost (INR million) 5.1 No. of trainees in 10 years Sectors targeted 128 Self-development training and technical training in garment industry, driving, computer operation, mobile repair, electrician-training, plumbing, domestic BPO, etc. 96,665 Finance, retail, sales-related, ICT, and gems and jewelry 0.53 million BFSI, FMCG, telecom, pharma, hospitality, IT&ITES, e-learning & Education 2.1 million ITES/BPO, tourism, hospitality and travel, organized retail, informal sector 97,920 over 12 years Construction
0.24 million Automotive (light Engg.), building construction, real estate and retail 0.35 million ITES, electronics and IT hardware, and organized retail 1.054 million IT, ITES/BPO, retail, hospitality, banking and education
536 1.11 million, 42,000 trainers Automotive, construction, textile, electronics and IT hardware and education and skill development sector (TOT for specified sectors) 836.1 8703.2 1.80 million (Yr 1 11,836; IT, retail, BFSI, health care, hospitality, manufacturing and Yr 5 1,44,173) construction 40.428 million
Sector Skill Councils (SSCs): NSDCs key initiative NSDC has been entrusted with the task of setting up SSCs. SSCs are partnership organizations that bring together all the stakeholders labor, industry and the academia. They identify skill gaps in their sectors and establish a sectorspecific Labour Market Information System (LMIS). They also determine competency standards and qualifications for jobs, which are used by companies to evaluate employee performance and skill development requirements. They also forecast changes in the labor market and facilitate standardization of accreditation processes. Three SSCs have been incorporated in the auto, security and the energy sectors, while seven (retail, media and entertainment, IT/ITeS, health care, foundry, BFSI, electronics and hardware) are at various stages of implementation.
Through its various initiatives, NSDC is well on course to create a skilled workforce of 150 million two years ahead of 2022 (the stipulated target year).
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Knowledge paper on strategic and implementation framework for skill development in India
Initiatives of companies
Organizations have realized the need to establish in-house training facilities to bridge the industry-academia disconnect and meet the shortage of higher education infrastructure in the country. Through these facilities, they can not only make potential employees job-ready even before they enter organizations, but also provide them with the right skill-sets molded on the basis of practical industry requirements. Such training practices are prevalent across the manufacturing and services sectors. Some key examples are listed below:
Manufacturing sector13 Sector Construction Company name Larsen & Toubro Training initiative
L&T has established Construction Skills Training Institutes (CSTIs) in Chennai, Panvel,
Ahmadabad, Bengaluru, Hyderabad, Delhi and Kolkata to impart construction vocational training. Ludhiana to enhance employee skills across all functions.
The group has established the Vardhman Training and Development Centre (VTDC) at Godrej has recently tied up with The George Telegraph Training Institute (the pioneer
in vocational training in eastern India) to launch specialized courses in refrigeration, air-conditioning and washing machine technology. On completing the course, deserving students will be offered employment with Godrej. its service network. It plans to ramp up its network to 53 ITIs and absorb 500600 more ITI students in coming months. Management and the ABT Technical Institute to conduct Maruti-certified courses. of employees working in the manufacturing domain and train them on the latest technologies.
Automotive
MSIL has tied up with 17 ITIs (in November 2010) and has placed nearly 400 students in The company has also tied up with other institutes such as the BGS Institute of Science & MSIL has also set up a Technical Training Centre (TTC) to cater to the training needs
13
Where Are Indias Skilled Workers?, Bloomberg Businessweek website, http://www.businessweek.com/magazine/content/11_03/b4211008095156. htm, accessed 19 July 2011. Careers, Vardhman Group website, http://www.vardhman.com/careers_overview.asp, accessed 30 July 2011. Knowledge paper on strategic and implementation framework for skill development in India 29
Services sector14 Sector Retail Hospitality Company name ITC Grand Hyatt Training initiative
ITC Wills Lifestyle has tied up with professional courses provider NIS Sparta, which is a
part of the Reliance ADA Group, to provide training in retail management. Grand Hyatt Mumbai.
Hyatt Hotels Corporation has its in-house training initiative, School of Hospitality at It also has three more schools of learning the School of Leadership, the School of
Management Studies and the School of General Studies.
Infosys global training center in Mysore is one of the largest corporate training
establishments in the world and can accommodate 15,000 people.
ICICI has established ICICI Manipal Academy (IMA), In association with Manipal Education,
to train newly recruited junior managers of the bank in banking and finance. The institute has an intake of 550600 students every three months. imparts knowledge on helicopters and their systems to students.
Aviation
PHHLs training institute provides Aircraft Maintenance Engineering (AME) courses and
CAIT is setting up retail schools across the country with the assistance of Indian Retail
School, to educate small traders on how to increase their business. format of retailing. Council (ASDC).
It will help kirana stores transform their business from traditional retail to the modern
Automotive Society of Indian Automobile Manufacturers (SIAM) Automotive Component Manufactures Association (ACMA) Federation of Automobile Dealers Associations (FADA) NASSCOM
Auto industry bodies have come together to form the Automotive Skills Development This is an independent society that will create the curriculum and engage agencies for
the delivery of the curriculum.
It will also conduct research on skill gaps, benchmarking standards for the industry and
improvement in productivity and technology.
IT/ITeS
It operates through 285 centers in 90 districts across 13 states and has trained more
than 8,600 people in IT skills and more than 3,200 in other livelihood skills and adult literacy programs. The network has positively affected more than 65,000 community members.
14
Case for Setting up Sector Skill Councils in India, Technopak, 21 April 2009, pg.10 NIS Sparta in deal with ITC Wills Lifestyle, Business Line website, http://www.thehindubusinessline.com/todays-paper/tp-marketing/article1658942.ece , accessed 18 July 2011. Grand Hyatt Mumbai launches School of Hospitality, Hospitality biz India website, http://www.hospitalitybizindia.com/detailNews.aspx?aid=5709&sid=37, accessed 19 July 2011. Knowledge paper on strategic and implementation framework for skill development in India
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Sector Energy
Association name University Petroleum & Energy Studies, Indian Wind Energy Society and World Energy Forum
Training initiative
Indian Energy Skill Development (IESD) is formed to carry out sustained research to
assess training facilities, demand/supply needs and skill gaps among semi-skilled/skilled manpower in the energy industry, including in the unorganized sector. academia linkages to develop its curriculum and training material. as well as undertake accreditation of training institutes.
Its task also includes developing industry-driven competencies and maintaining industry It is also expected to develop a feedback mechanism and processes for quality assurance
For creating opportunities in a young, aspiring India, industry will have to come together with the Government to train the workforce and provide skills while improving job opportunities and productivity.
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4.
15
Vocational education and training in the United Kingdom, Cedefop Panorama series, 2005, pg.2331 The skill development landscape in India and implementing quality skills training, FICCI, August 2010, pg.31. Knowledge paper on strategic and implementation framework for skill development in India
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Features In the UK, the labor market is not highly regulated; thus, there is easy movement of people from one occupation to another as compared with other countries. The National Vocational Qualifications (NVQs) were created to address the need for qualifications to be made flexible but rigorous and nationally recognized. The Department for Education and Skills is the national government department responsible for education and training. Accreditation of Prior Experiential Learning (APEL) aims to provide formal recognition to learning acquired from personal experience and learning gained in employment or voluntary work situations. Sector-specific councils draft a sector skill agreement, whereby employers and unions identify skills and productivity needs in their sectors and the actions required to be taken to address these needs.
Strengths The UKs system is largely outcome-based. Training providers have the flexibility to plan a delivery system that is based on the needs of the learner. The countrys apprenticeship schemes at every level create a vocational ladder, beginning at the age of 14 and ending with either a higher education qualification or employment. It is aimed at the high work readiness of dropouts aged 16 to 24 years, with 66% of the dropouts from school (aged around 16 years) and 84% of the higher education dropouts being willing to work. Employers invest in the learning and development of their employees. This amounted to 39.2 billion in 2009. The UK Government has formulated several programs for imparting vocational education and training. Its Lifelong Learning program aims to promote learning after the end of formal education and training.
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Features Under the dual system (which forms the core of vocational training), which is spread over three years, every young person who has completed full-time compulsory education has access to vocational training along with the former. Training takes place in companies and at part-time vocational schools. Successful completion of this training provides recognition to people for employment as a qualified skilled employee. Thereafter, companies enter contracts under private law and then train such employees according to their vocational training directives, which guarantees a national standard of competence. Around two-thirds of the instruction provided is vocation-oriented and one-third provides general education or knowledge applicable to a broad range of occupations. The cost of vocational training is primarily borne by companies and the vocational schools are financed by public funds. Business associations play a key role in monitoring the quality of training provided by companies under the dual system. Strengths of the dual system Low-cost trainee for industry for a fixed time-frame Assured availability of the next generation of skilled workers for employers Students trained on updated industry infrastructure on the job, with employment guaranteed Trainees paid by the industry and vocational training funded by the Government
bi
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Joint edu ca t
sponsibility l re na io
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lac
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Germanys Vocational Education at a glance, BMBF website, www.bmbf.de/pub/germanys_vocational_education_at_a_glance.pdf, accessed 29 July 2011. Knowledge paper on strategic and implementation framework for skill development in India
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The VET system includes credit transfer and articulation arrangements between a vocational educational system and higher education institutions. This enables the students to move from one qualification to another efficiently and effectively. It also allows them to move between education systems, from secondary school to VET and from VET to higher education. Strengths Strong linkages between VET and the labor market enabling employers and employees to meet their training and skill needs National portability of qualifications and units of competency credit transfer and articulation Flexibility, with the system offering a fair amount of local autonomy and innovation to adapt learning to local circumstances Easily available data and research on VET issues
An overview of vocational education and training in Australia and its links to the labour market, NCVER website, http://www.ncver.edu.au/vetsystem/publications/2117. html, accessed 29 July 2011. 18 Framework for national skill development strategy, Inseta website, http://www.inseta.org.za/downloads/framework_for_NSDS_3.pdf, accessed 24 August2011. The Institute of Health Risk Managers website, http://www.ihrm.co.za/index.php/training/skills-development, accessed 24 August2011. Knowledge paper on strategic and implementation framework for skill development in India 35
Features Institutions imparting training on skill development as well as higher education institutes have come under the ambit of the Department of Higher Education and Training. This department governs the work of SETAs. Skill development activities under the new framework can complement those conducted by public institutions, colleges and universities. Workplace learning can supplement institutional learning under it. Each SETA is required to prepare a Sector Skill Plan, which identifies the skills needs of an industry (skills shortages, skills gaps and skills supply) and constraints in the effective development of these. Instead of mainly conducting short-term courses, the new system will encompass a wide spectrum of programs for employed and unemployed people. Funding Subject to certain conditions, skill levies will continue to apply to companies. The levy is paid to the South African Revenue Services, which allocates it to the National Skills Fund and the SETAs. Companies that promote training and development in the workplace and a pay skill development levy can nominate a Skill Development Facilitator and submit a Workplace Skill Plan (describing the skill needs of their employees) and Annual Training Report to the relevant SETAs. These companies are then entitled to receive a Workplace Skill Plan grant. Strength Promotes collaboration between companies and learning organizations by giving special incentives such as grants, which are not limited to the levy paid by the companies Facilitates enhanced course structure and curricula aligned to industry practices Promotes innovation by providing Innovation grants
The Korean Case Study: Past Experience and New Trends in Training Policies, World Bank website, http://siteresources.worldbank.org/SOCIALPROTECTION/Resources/ SP-Discussion-papers/Labor-Market-DP/0931.pdf, accessed 29 July 2011. 20 Vocational Education and Training in Korea, OECD website, www.oecd.org/dataoecd/44/44/45166922.pdf, accessed 30 July 2011.
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Knowledge paper on strategic and implementation framework for skill development in India
The Government is highly committed to increase employer involvement in, and development and implementation of its VET policy. Koreas VET system has evolved from its Governments various initiatives, including its employment stabilization scheme, job skill development program and unemployment benefit program.
Features21 The VET system provides streaming in schools and opportunities for progression, depending on individual interests, aptitude and potential. ITE functions as the principal provider of career-focused technical education in Singapore at the technician or semiprofessional level and the principal authority for national occupational skills certification and standards. It offers pre-employment training to all the school-leavers in two modes full-time institutional on-the-job training in an ITE institute and apprenticeship training in partnership with companies. The countrys apprenticeship training system has been modeled on Germanys dual training system. Other post-secondary and tertiary institutions in Singapore include junior colleges, polytechnics and universities. According to national targets, 25% of the students, after completing secondary schooling, proceed to junior colleges; 40% to polytechnics and 25% to ITEs technical institutes. These students receive training through a wide range of full-time National ITE Certificate courses in engineering, communications technology, applied and health sciences, and business and services.
The Model builds on the ITE brand name and identity under a "One ITE System" to deliver consistent standards, quality programmes and successful graduates. ITE Headquarters oversees system and policy changes and ensures standards under "One ITE System while the institution's three Colleges are empowered to develop niche areas of excellence to enhance the attractiveness of ITE Education, and responsiveness to industry and student needs. Hands-on training to provide the required skill sets for employment. Minds-on learning to develop them into independent thinking and exible practioners. Hearts-on learning to develop passion and self belief in everything they do. Framework for accrediting ITE courses which are pegged to National Skills standards. There are four types of certication: Nitec, Higher Nitec, Master Nite and Diploma
ITE models
Strengths ITEs are unique in that they uniqueness cater to lower 25%30% segment of secondary school students and have been responding effectively to the dynamic changes and challenges impacting VET. Singapores apprenticeship training system is modeled on Germanys successful dual training system.
21
World-Class Vocational Technical Education System, World Bank website, siteresources.worldbank.org/EDUCATION/.../WorldClass_Technical_Vocational_Edu_Sys.ppt, accessed 30 July 2011 Knowledge paper on strategic and implementation framework for skill development in India 37
*This framework has been proposed, but has not been implemented as yet.
India can learn from the strengths of the vocational education and training systems of other countries, e.g., the following: Vocational education can be provided in schools, either by incorporating subjects into the curriculum or by providing the option to students to opt for vocational subjects at school and college levels. Australias vocational education and training system comprises both public and private training providers in a national training framework. India can emulate this system, with PPPs mobilizing much needed funds and expertise for vocational education and training. India can also create a nationally recognized qualification framework that places general and vocational education at the same level.
Australia Partcipation of private sector South Africa Collaboration between industry and academia
As observed in the German model, excessive specialization in a particular skill limits workers employability due to their lack of multiple skills. Therefore, the system adopted by India should emphasize and focus on basic courses. In addition, advanced courses can be developed for reemployment or further specialization. Apprenticeship is an important method for training people in most countries. India needs to follow this method and expand its capacity to effectively train its large young population. It is apparent that there is a need to transition from a supply-driven to a demand-driven model in india. Furthermore, the participation of the industry in content design and curriculum is essential for keeping the VET framework updated and creating market-linked employability opportunities.
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5.
Implementation strategies
Initiating and successfully running skill centers in India poses a significant challenge, given the countrys economic, political, social and geographical diversity. A suggested framework for the establishment and operation of such institutions is depicted
Partnerships quality and willing players level playing eld outcome driven monitoring
Flexibility adopt global standards meet ever-evolving demand dened process to adopt
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Knowledge paper on strategic and implementation framework for skill development in India
Operational strategies
A suggested operational strategy framework for sustainable growth is depicted below:
Replicability Scalability
Employment linkages
Accessibility
Affordability across economic levels Inclusivity include all social strata Technology and innovation
Flexibility content and process design and induct students Standards acceptableand adoptable Team quality of trainers, training of trainers Impact
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Focus on delivery
Delivery of implementation and operational strategies is a huge challenge within the existing framework. Consequently, the adoption of a much more robust approach is essential for putting in place a quality vocational education and training framework in the country. The following four-pronged approach is suggested for achievement of this goal:
Increase affordability
Improving quality
Quality training of faculty with industry participation: Adopting flexible teaching methodology, facilitating movement of faculty to industry and industry personnel to institutions Designing fellowship programs for faculty Upgrading faculty with current and upcoming trades and technologies Development of curriculum with focus on IT: Increasing usage of computer-aided programs in curricula Laying enhanced focus on imparting practical on-the-job training through computers Linking curricula to practical industry experience using IT platforms Promoting prototype equipment and delivery structures (using IT)
Promotion of PPP model for infrastructure development: Promoting profit-making corporate model in the system to attract investments Easing regulatory hurdles and providing single-window clearance to private players Outsourcing short-term courses to organizations Establishment of robust certification and standardsetting mechanism: Setting up nationally recognized qualification framework to create a credible system of certification to ensure that skills are portable and recognized across sectors, industries, enterprises and educational institutions Industry collaborating with the Government to establish an appropriate certification mechanism
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Knowledge paper on strategic and implementation framework for skill development in India
Increasing affordability
Short duration courses with affordable fee structure: Providing short-term informal training at nominal fees Incentives to private training providers: Giving incentives such as tax breaks to private players to keep the cost of training low Availability of easy loans: Making available easy banks loans at low interest rates for self-employment Providing loans with income-contingent repayment clause
Enhancing accessibility
Adoption of a flexible system: Providing option to move from vocational training to higher education, and vice versa Allowing credit for the number of years spent by an ITI student in training while seeking admission to a university Integration of vocational education at the school level: Imparting basic technical skills at the school level Conducting special reorientation classes for school dropouts through professional career counseling Disadvantaged groups and backward regions: Designing special courses for people in remote areas and economically backward classes of society
A young population is an asset only if it is educated, skilled and finds productive employment. If this were to happen, our objective of realising Indias potential to grow at 10% or more per annum for a substantial period of time can become a reality.
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Notes
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Knowledge paper on strategic and implementation framework for skill development in India
FICCI contacts
Pooja Gianchandani Director and Head Skills Development Federation of Indian Chambers of Commerce and Industry (FICCI) Federation House, Tansen Marg, New Delhi - 110001 Tel: +91 11 23487280 F: +91 11 2332 0714 E-mail: pooja.gianchandani@ficci.com W: www.ficci.com FICCI Andhra Pradesh State Council 8-2-601, Plot # 13 4th Floor, NNR Arcade Above South Indian Bank Road Number 10, Banjara Hills Hyderabad 500 034 Phone: 040 2339 5275-76, 040 6454 8848 Fax: 040 2339 5275-76 FICCI Chhattisgarh State Council JSPL Campus Mandir Hasaud, Chhattisgarh Raipur - 492 001 Phone: 0771 2471 400 (D), 2471 205-07 Fax: 0771 2471 214/2471 404 FICCI Gujarat State Council A-311, Safal Pegasus, 100 ft Road, Prahladnagar, Ahmedabad - 380 015 Telefax: 079 2693 7581, 2693 7582, 2693 7583 FICCI Karnataka State Council VITC Building, 1st Floor, Kasturba Road Bangalore - 560 001 Phone: 080 2286 1949
FICCI Western Regional Council Krishnamai Cooperative Housing Society Ltd Ground Floor, Plot No. 33-B Pochkhanwala Road, Worli Mumbai - 400 025 Phone: 022 2496 6633-39 (O), 2496 8000 (PABX) Fax: 022 2496 6631-32 FICCI Rajasthan State Council 202 Rajputana Tower A-27-B, Shanti Path, Tilak Nagar Jaipur - 302 004 Phone: 0141 2621 345, 5103 768, 4061 345 Fax: 0141 5116 464 FICCI Tamil Nadu State Council 5, Vivekananda Road Off Spur Tank Road, Chetpet, Chennai 600031 Phone: 044 4284 9612 (D) 4284 9613/9614/9615 Fax: 044 4284 9618 FICCI Eastern Regional Council 4, Camac Street 2nd Floor, Wing B Kolkata 700 016 Phone: 91 033 3294 0580, 4003 5347 Fax: 91 033 4003 5348
About FICCI skill development forum FICCI recognizes that Skills Development is an important imperative for achieving Indias ambitious growth targets. It is committed to working with the stakeholders, especially the industry, government and academia to create sustainable and scalable skills propositions which will benefit the youth of the country from all sections of society. With this in mind, FICCI through its Skills Development activities is pursuing the following vision:
FICCI vision on skills development: FICCI would act as a skills development aggregator to complement Government of Indias ambition of training 500 million people by 2022. FICCI shall offer support and facilitation services through Policy Advocacy, Industry Intervention and International Collaboration so that the youth can acquire skills to meaningfully participate in and contribute to the economy The FICCI Skills Development Forum (SDF) was launched in 2008 to supplement the government initiatives with industry interventions. The forum has since start discussed and critically examined the skill development policies in the country.
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Ahmedabad 2nd floor, Shivalik Ishaan Near CN Vidhyalaya Ambawadi Ahmedabad 380 015 Tel: + 91 79 6608 3800 Fax: + 91 79 6608 3900 Bengaluru UB City, Canberra Block 12th & 13th floor No.24 Vittal Mallya Road Bengaluru 560 001 Tel: + 91 80 4027 5000 + 91 80 6727 5000 Fax: + 91 80 2210 6000 (12th floor) Fax: + 91 80 2224 0695 (13th floor) Chennai TPL House, 2nd floor No. 3 Cenotaph Road Teynampet Chennai 600 018 Tel: + 91 44 6632 8400 Fax: + 91 44 2431 1450 Hyderabad 205, 2nd floor Ashoka Bhoopal Chambers Sardar Patel Road Secunderabad 500 003 Tel: + 91 40 6627 4000 Fax: + 91 40 2789 8851 The Oval Office 18, iLabs Centre Madhapur Hyderabad 500 081 Tel: + 91 40 6736 2000 Fax: + 91 40 6736 2200
Kochi 9th Floor, Abad Nucleus NH-49, Maradu PO Kochi, Kerala 682 304. Tel: + 91 484 304 4000 Fax: + 91 484 270 5393 Kolkata 22 Camac Street Block C 3rd floor Kolkata 700 016 Tel: + 91 33 6615 3400 Fax: + 91 33 2281 7750 Mumbai 6th floor & 18th floor, Express Towers Nariman Point Mumbai 400 021 Tel: + 91 22 6657 9200 (6th floor) Fax: + 91 22 2287 6401 Tel: + 91 22 6665 5000 (18th floor) Fax: + 91 22 2282 6000 The Ruby 29 Senapati Bapat Marg, Dadar (W) Mumbai 400 028 Tel: + 91 022 6192 0000 Fax: + 91 022 6192 1000 5th floor, Block B2 Nirlon Knowledge Park Off Western Express Highway Goregaon (E) Mumbai 400 063 Tel: + 91 22 6749 8000 Fax: + 91 22 6749 8200
NCR Golf View Corporate Tower B Near DLF Golf Course Sector 42 Gurgaon 122 002 Tel: + 91 124 464 4000 Fax: + 91 124 464 4050 6th floor, HT House 18-20 Kasturba Gandhi Marg New Delhi 110 001 Tel: + 91 11 4363 3000 Fax: + 91 11 4363 3200 4th & 5th Floor, Plot No 2B, Tower 2, Sector 126, Noida 201 304 Gautam Budh Nagar. Tel: + 91 120 671 7000 Fax: + 91 120 671 7171 Pune C401, 4th floor Panchshil Tech Park Yerwada (Near Don Bosco School) Pune 411 006 Tel: + 91 20 6603 6000 Fax: + 91 20 6601 5900
Artwork by SS and JS
About FICCI
Established in 1927, FICCI is the largest and oldest apex business organisation in India. Its history is closely interwoven with Indias struggle for independence and its subsequent emergence as one of the most rapidly growing economies globally. FICCI plays a leading role in policy debates that are at the forefront of social, economic and political change. Through its 400 professionals, FICCI is active in 44 sectors of the economy. FICCIs stand on policy issues is sought out by think tanks, governments and academia. Its publications are widely read for their in-depth research and policy prescriptions. FICCI has joint business councils with 75 countries around the world. A non-government, not-for-profit organisation, FICCI is the voice of Indias business and industry. FICCI has direct membership from the private as well as public sectors, including SMEs and MNCs, and an indirect membership of over 2,50,000 companies from regional chambers of commerce. FICCI works closely with the government on policy issues, enhancing efficiency, competitiveness and expanding business opportunities for industry through a range of specialised services and global linkages. It also provides a platform for sector specific consensus building and networking. Partnerships with countries across the world carry forward our initiatives in inclusive development, which encompass health, education, livelihood, governance, skill development, etc. FICCI serves as the first port of call for Indian industry and the international business community.