Knowledge Paper on Skill Development in India

Learner first September 2012 Knowledge paper on skill development in India Foreword Abhaya Krishna Agarwal Partner, Government Services, Ernst & Young Pvt. Ltd. Low labor-cost and a rich talent pool are distinct advantages available to India, clearly powering its global competiveness as a knowledge-based society. Education and training are both strategic necessities, which will deliver employment-enhancing skills, in turn increasing productivity and accelerating the future economic growth of the country.

To further strengthen India’s position of being a dominant service economy, it is imperative for the government to invest in skilling and training the available human capital, especially to provide for the knowledgeintensive sectors. In collaboration with FICCI, Ernst & Young has prepared this paper, highlighting the current vocational education and training (VET) scenario of India in terms of current capacity, available infrastructure, projected growth and quality of education. The need for skill development has been assessed in comparison with the projected growth and demand for the same.

Keeping the theme “learner first” in mind, the paper provides a comprehensive profile of today’s learner in terms of his/her demographic, social and educational status. Furthermore, the report voices the opinion of the learner, regarding his/her understanding, expectations and need for skill development. Being the prime provider for skill development in India, the government has established various avenues and pathways to increase employability of the learner, under the national policy on skills. Furthermore, the private sector too has entered this space by being both a supplier and consumer of skilled manpower.

Initiatives under the public private partnership mode (PPP) such as the National Skills Development Corporation currently has 59 partners who are paramount in catalyzing vocational education and training in the country. Learning from the case studies of state governments and other countries addressing the issues and challenges of imparting vocational education have been analyzed to reveal lessons for existing and upcoming participants of this field. For India, it is critical to accommodate evolving growth/ trends to be responsive to the constantly changing dynamics of the economy.

Skills and education will enhance the employability of the learner. With the acquired knowledge, workers will contribute toward productivity at a national level to determine India’s competitive edge. We would like to extend our gratitude to FICCI for giving us this opportunity to present our findings and views at the Global Skills Summit 2012. Regards, Abhaya Krishna Agarwal Partner, Government Services, Ernst & Young Pvt. Ltd. 2 Knowledge paper on skill development in India: Learner first Foreword Dr. Rajiv Kumar Secretary General – FICCI

The development of skills for 500 million Indians in less than 10 years is not only a matter of national urgency; it is astounding in its scale. Thus far, the development of skills has been driven by the requirements of the market; while much progress has been made with considerable help from the private sector, it is a travesty that little has been done to understand the needs of the learners, who are at the heart of the skills development mission. This report explores the idea of putting the Learner first and focuses on ways to empower the learner through improved skills, which is the crux of the National Policy on Skills.

The idea is to “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 market”. The perspective of the learner regarding skills and vocational training is little known; at the same time the judgement of learners is clouded by the challenges of survival. There could be a plethora of opportunities for skilled people, but there is much resistance when it comes to carving a career path outside of conventional education.

Hence, a situation has been created where opportunities are available in terms of jobs and training, but, the end users and clients are often unaware of them, or not motivated because the choices offered are not the traditionally accepted ones. It is important to explore the relevance of the national skills action plan from the point of view of the end user – the Learner. It is also critical that expectations of learners are calibrated so that vocational training is considered respectable and the dignity of labour is restored.

This report, commissioned by FICCI, identifies the vast array of learners and addresses various issues concerning them. The report discusses the opportunities available to the learners as well as the projected demand and growth of sectors that will employ them in future. It further describes, through various case studies, how different stakeholders are overcoming the challenge of training their people. I am confident that the information provided in the report will prove extremely relevant to industry, academia, government and all the other stakeholders who are together developing the required skills for a modern, confident India.

Regards, Dr. Rajiv Kumar Secretary General – FICCI Knowledge paper on skill development in India: Learner first 3 Table of contents Executive summary ………………………………………………………………………… 2 Where are we on skills ……………………………………………………………………… 3 Who are the learners ……………………………………………………………………… 14 What are the opportunities available to them? …………………………………… 9 How is the world doing it? ………………………………………………………………. 31 What is the way forward? ……………………………………………………………….. 33 1 Knowledge paper on skill development in India: Learner first Executive summary India has gradually evolved as a knowledge-based economy due to the abundance of capable, flexible and qualified human capital. With the constantly rising influence of globalization, India has immense opportunities to establish its distinctive position in the world.

However, there is a need to further develop and empower the human capital to ensure the nation’s global competiveness. Despite the emphatic stress laid on education and training in this country, there is still a shortage of skilled manpower to address the mounting needs and demands of the economy. As an immediate necessity that has urgently arisen from the current scenario, the government is dedicatedly striving to initiate and achieve formal/informal skill development of the working population via education/vocational education/skill training and other upcoming learning methods.

The skill development of the working population is a priority for the government. This is evident by the exceptional progress India has witnessed under the National Policy on Skills (2009) over the years. The objective of the policy is to expand on outreach, equity and access of education and training, which it has aimed to fulfil by establishing several industrial training institutes (ITIs), vocational schools, technical schools, polytechnics and professional colleges to facilitate adult leaning, apprenticeships, sector-specific skill development, e-learning, training for self employment and other forms of training.

The government therefore provides holistic sustenance through all its initiatives in the form of necessary financial support, infrastructure support and policy support. In addition, the private sector has also recognized the importance of skill development and has begun facilitating the same via three key dimensions — non-profit initiatives, for profit enterprises, and as a consumer. Currently, there are many skilling opportunities fashioned by the government, the private sector and collaboration between the two (PPP mode). This paper expands on the avenues nd channels available to learners as provided by the central and state governments, private institutions, corporate houses and non-profit organizations, among others. The current focus of skill development has shifted to the learner and his/her needs and expectations from vocational education and training (VET). To empower the working population, is it essential to start from the source, i. e. , the learner. The “voice” of the learner is the focal point of the mission, without which an effective conclusion to and attainment of the final goal would be incomplete.

India has the advantage of the ”demographic dividend” (younger population compared to the ageing population of developed countries), which can be cultivated to build a skilled workforce in the near future. For these reasons and several others, the aim of the paper is to understand and comprehend the issues surrounding vocational education and training by putting the Learner first. This paper makes an effort to identify the learner of today’s India. The comprehensive profiling of the learner is attempted by considering key questions on the topic such as: Who is the learner? What are his/her goals, aspiration, challenges?

Why does he/she seek any form of education? When does he/she seek education? Where can he be found? How can a platform be created to address all his/her concerns? The analysis of the Indian system displays a grieve picture of the current scenario, although the current primary education enrolment is high, not many students complete their high school education in order to graduate to tertiary education. As a result, there are many youth drop outs. They are not aware about the right direction and do not have access to any guidance around their future or the path that would lead them toward employability.

Going forward, there needs to be more emphasis on the learners’ challenges and apprehensions regarding vocational education and training. The government may continue to provide financial support to learners for all school years; however to withdraw this support in the final stage of education seems unreasonable. The learner may end up in a vicious circle, where she or he lacks the funds for training in order to eventually become financially self-sustained. The learner therefore requires external support, in this case through government initiatives, to complete the last tread of her or his educational journey.

Furthermore, the overload of information and choices may confuse the learner compelling him/her to make hasty and conflicting career decisions. A regional Career and Counselling Window under the guidance of professionals can provide the right information, career counselling, direction and confidence to the learner regarding the optimum options of vocational education apt for him/her. Such a system would eliminate uncertainty in the mind of the learner and enable him/her to disregard futile incentives and prudently choose her or his educational direction in accordance with the individual’s inner competencies.

Finally, a need for intensive efforts in achieving the skilling target of 500 million workers by 2022 exists. However, the good news is that a sense of realism and realization has evolved among both the government and private sector, which will lead the country toward further economic prosperity through their pooled endeavors. Knowledge paper on skill development in India: Learner first 2 1. Where are we on skills? India has seen rapid growth in recent years, driven by the growth in new-age industries. The increase in purchasing power has resulted in the demand for a new level of quality of service.

However, there is a large shortage of skilled manpower in the country. In the wake of the changing economic environment, it is necessary to focus on inculcating and advancing the skill sets of the young population of the country. India lags far behind in imparting skill training as compared to other countries. Only 10% of the total workforce in the country receive some kind of skill training (2% with formal training and 8% with informal training). Further, 80% of the entrants into the workforce do not have the opportunity for skill training1. Percentage of worforce receiving skill training (2008) 96% 80% 75% 68%

The accelerated economic growth has increased the demand for skilled manpower that has highlighted the shortage of skilled manpower in the country. Employees worldwide state a variety of reasons for their inability to fill jobs, ranging from undesirable geographic locations to candidates looking for more pay than what the employers have been offering. India is among the top countries in which employers are facing difficulty in filling up the jobs. For India, the difficulty to fill up the jobs is 48%, which is above the global standard of 34% in 2012.

The lack of available applicants, shortage of hard skills and shortage of suitable employability, including soft skills, are some of the key reasons in finding a suitable candidate for available jobs in the country. 10% Korea Japan Germany UK India Source: Planning Commission Report (2008) 1. “Labour market performance and the challenges of creating employment in India,” International Labour Organisation, 23 June 2011, p. 7. 3 Knowledge paper on skill development in India: Learner first Percentage of employers having dif? culty in ? lling jobs (2012) 81% 71% 49% 48% 42% 29% 25% 23% 10% 9% Spain China South Africa Japan

Source: ILO Brazil US India Germany France Canada According to the NSSO survey (2004–05), only ~6% of the total workforce (459 million) is in the organized sector. The World Economic Forum indicates that only 25%2 of the total Indian professionals are considered employable by the organized sector. The unorganized sector is not supported by any structured skill development and training system of acquiring or upgrading skills. The skill formation takes place through informal channels such as family occupations, on-the-job training under master craftsmen with no linkages to formal education training and certification. •

Increasing capacity and capability of the existing system to ensure equitable access for all Maintaining quality and relevance Creating effective convergence between school education and the government’s skill development efforts Creating institutional mechanism for research development quality assurance, examinations and certification, affiliations and accreditation Mobilizing adequate investment for financing skill development • • • • National policy on skill development There are several challenges that are faced by the government in imparting quality skill training to the youth of the country. These challenges include:

In order to provide adequate training to the youth and develop necessary skills, the Government of India took steps to improve the skill training scenario in the country. In 2009, the government formulated the national skill development policy that laid the framework for skill development, ensuring that individuals get improved access to skills and knowledge. 2. “A skilled India,” indiatoday website, http://indiatoday. intoday. in/story/a-skilled-india/1/146363. html, accessed 4 August 2012 Knowledge paper on skill development in India: Learner first 4 Key features of the National Skill Development policy • •

Scope: The skill development policy includes: • Institution-based skill development, including ITIs/ vocational schools/technical schools/ polytechnics/ professional colleges, etc. Learning initiatives of sectoral skill development organized by different ministries/ departments Formal and informal apprenticeships and other types of training by enterprises Training for self-employment/entrepreneurial development Adult learning, retraining of retired or retiring employees and lifelong learning Non-formal training, including training by civil society organizations E-learning, web-based learning and distance learning

Lays down standards for quality and relevance: The policy provides for quality standards to achieve global competitiveness. It lays downs standards for: • • • Quality assurance (based on validation of qualifications for ensuring that qualifications reflect market needs, validation of training process, accreditation of training providers/institutions, research and information) Quality of infrastructure Quality of trainer National vocational qualification framework Labor market information systems and HR planning mechanisms • • • • • • • • • Institutional framework: The policy lays down three the institutional framework comprising: • • • • Prime Minister’s National Council on Skill Development National Skill Development Co-ordination Board National Skill Development Corporation (NSDC) National Council for Vocational Training (NCVT) Emphasizes on skill development for the unorganized sector: The policy lays down special emphasis on skill development for the unorganized sector.

The policy provides for having a separate institutional mechanism to plan, implement and monitor the skill development for the unorganized sector. It focuses on having target groups within the unorganized sector, literacy and soft skills, recognition of prior learning, and skill development for self-employment. The policy states the roles and responsibilities of stakeholders, which include the government, industry, trade unions, local governments, civil society institutions and all skill providers. • Advantage India

As compared to western economies where there is a burden of an ageing population, India has a unique 20–25 years window of opportunity called the “demographic dividend. ” This “demographic dividend” means that as compared to other large developing and developed countries, India has a higher proportion of working age population vis-a-vis its entire population. ” The result is low dependency ratio, which can provide a comparative cost advantage and competitiveness to the economy3. The following charts provide a glimpse of the demographic dividend that India would be able to achieve.

Promotes the expansion of outreach, equity and access under the skill development initiative: The skill development initiative requires that there is a considerable amount of capacity expansion, innovative delivery approaches and PPPs. The policy provides for equal access of skill development for women, disadvantaged groups (SC, ST and OBCs), minorities, disabled persons and economically challenged people. 3. Lakshman Krishnamurthi and Sugandha Khandelwal, “India Journal: Why India’s Demographic Dividend Will Lag China’s,” WSJ, 10 April 2011, (c) 2011 Dow Jones & Company, Inc. Knowledge paper on skill development in India: Learner first Population in 15-59 age group by 2022 UK 38,133,894 0. 8% France US 195,489,469 4. 1% 37,332,831 0. 8% Germany 44,408,764 0. 9% China 904,481,837 18. 9% Japan 64,950,362 1. 4% India 861,235,123 18. 0% Brazil 139,520,976 2. 9% Australia 14,420,441 0. 3% Population in 15-59 age group Source: Ernst & Young research Proportion of country’s 15-59 age group population to world’s 15-59 age group population Further, it is expected that the ageing economy phenomenon will globally create a skilled manpower shortage of about 56. million by 20204. With the rising trend of outsourcing work globally, India has the opportunity to become a global reservoir of skilled manpower, accounting for 28% of the graduate talent pool among 28 of the world’s lowest-cost economies. Among all the countries, India enjoys a unique advantage not only to fulfil its internal demand of skill manpower, but also cater to the labor shortage in other countries. The government is taking proactive steps to fill the existing skill gap in order to leverage its position as a supplier of skilled manpower to the world.

India has the world’s youngest work force with a median age way below that of China and OECD countries. Half the population of India was younger than 25 in 2010. It will change to half the population being under 28 in 2030, making India a very young country for the next 20 years. 4. “Skill development and training,” Planning commission (Government of India), 2008 Knowledge paper on skill development in India: Learner first 6 Projected growth and sector demand India is expected to grow at a rate of 8%, on an average, in the next 10 years5. More than 700 million Indians are estimated to be of working age by 2022.

Out of these, more than 500 million require some kind of vocational or skill development training6. Twelfth Five Year Plan: The country has set a tough challenge in the field of vocational education and training in its approach paper in the Twelfth Five Year Plan. It aims to increase the percentage of workforce with formal skills to 25%7 at the end of the plan. It is estimated that 50–70 million jobs will be created in India over the next five years and about 75%–90% of these additional employment avenues will require some vocational training.

The following table presents the projected employment in the various sectors of economy for diverse growth scenarios till 2017. Year GDP growth Projected employment (in million) rate Agriculture Industry Services Total 9% 229. 2 225. 4 221. 5 240. 2 232 224 105 102 99. 1 126. 2 116. 8 108. 1 153. 5 149 144. 6 189. 5 174. 8 161. 2 487. 7 476. 4 465. 2 555. 9 523. 5 493. 3 2011–12 7% 5% 9% 2016–17 Source: NSDC 7% 5% Sector focus: The government has identified 20 high-growth sectors of industries and services that have the ability to provide expanded employment.

It consists of 10 high-growth sectors on the manufacturing side and an equal number on the services front. Out of these, the key sectors are manufacturing, textile, construction, automotive and health care8. It is necessary to develop proper skill training mechanisms as the skill sets that are required in the manufacturing and services sector are different from that of the agriculture sector. CAGR 2008-22 35 9. 8% 33 6. 2% 26. 2 4% 33. 8% Growth in manpower requirement by 2022 Auto and Auto components Building and construction industry Textile and clothing Organised Retail 0. Real Estate services IT and ITeS Gems and Jewellery Leather and Leather goods BFSI 11 2. 2 5. 3 3. 3 4. 7 2. 5 4. 5 17. 3 14 13 25 35. 4 6% 9. 2% 6. 5% 7. 6 % 5% 9. 2% 4. 3 4. 2 Furniture and Furnishings 1. 4 3. 4 0 10 20 Employment in 2008 30 40 50 60 70 Incremental HR requirement till 2022 5. “The skill development landscape in India and implementing quality skills training,” FICCI, August 2010, pg. 4. 6. “Transforming India’s skill development,” Economic times website, http://articles. economictimes. indiatimes. om/2012-02-17/news/31071290_1_nsdc-national-skilldevelopment-corporation-sector-skills-councils, accessed 5 August 2012 7. “Bridging India’s skills gap,” The Hindu website, http://www. thehindu. com/education/issues/article2963328. ece, accessed 30 June 2012 8. “Skills is the future,” The Times of India website, http://articles. timesofindia. indiatimes. com/2012-04-30/news/31506351_1_soft-skills-vocational-education-sectorskills-council, accessed 2 August 2012 7 Knowledge paper on skill development in India: Learner first Capacity development in India

In India, about 12 million people join the workforce each year comprising highly skilled (constitute a minuscule part), skilled, semi-skilled and un-skilled work force. The last category constitutes the majority of the population entering the workforce9. However, the current skill capacity of the country is about four million10. It is therefore required to enhance skilling and technical education capacity to about 15 million (considering that even sections of the existing workforce would have to trained). Number of schools in India: 2009–10 Pre- primary/ Pre-basic school No. f institutions Proportion (%) Source: Ministry of HRD, 2009–10 In addition, the National Institute of Open Schooling (NIOS) provides a number of vocational, life enrichment and community-oriented courses besides general and academic courses at the secondary and senior secondary level. The total enrolment in these open courses is only 388,371, a minimal portion as compared to regular schooling. Primary/ Junior basic schools 823,162 56. 8% Middle / Senior basic schools 367,745 25. 4% High/ Post basic schools 123,726 8. 5% Pre-degree junior colleges/Higher secondary schools 66,917 4. % Board of Intermediate Secondary Education 48 — Total 67,822 4. 7% 1,449,420 100% Enrolment in various levels of education in India (in ‘000s): 2009–10 Pre-primary No. of institutions Proportion (%) Source: Ministry of HRD, 2009–10 Class I–V 823,162 56. 8% Class VI–VIII 367,745 25. 4% Class IX–X 123,726 8. 5% Class XI–XII 66,917 4. 6% Total 48 — 67,822 4. 7% Current capacity and enrolment in school education11 There are about 1. 5 million schools in India with a total enrolment of ~250 million students starting from pre-primary to standard XII.

Schools at the primary/junior level constitute the majority where maximum enrolments occur. Current capacity and enrolment in higher and technical education12 The higher education in India comprises arts, science and commerce colleges (general college education), engineering, technical and architectural colleges, medical colleges, teacher training colleges, polytechnics, others (law, management, etc. ), apart from education directly delivered by universities and research institutions. 9. “Govt sets target to skill 500 million people by 2022,” The Times of India, 10 January 2012, (c) 2012 The Times of India Group 10. Transforming India’s skill development,” Economic times website, http://articles. economictimes. indiatimes. com/2012-02-17/news/31071290_1_nsdc-national-skilldevelopment-corporation-sector-skills-councils, accessed 5 August 2012 11. “Statistics of school education,” Ministry of HRD (Government of India), http://mhrd. gov. in/sites/upload_files/mhrd/files/SES-School-2009-10-P. pdf 12. “Statistics of higher and technical education education,” Ministry of HRD (Government of India), http://mhrd. gov. in/sites/upload_files/mhrd/files/Abstract 2009-10_0. pdf Knowledge paper on skill development in India: Learner first The following tables illustrate the number of institutions available and enrolment at various streams of higher education. Number of higher education institutions in India: 2009–10 Institution Universities and other institutions Central university State university Private university Deemed university Institution established under the State Legislature Act Institution of National Importance Total Higher education institutions Arts, fine arts, social work, science and commerce Engineering/Technology/Architecture Medical Education/Teacher training Polytechnics Others Total Source: Ministry of HRD, 2009–10

No. of institutes 40 227 18 105 5 41 436 14,321 2,894 2,074 3,357 3,292 1,914 27,852 Proportion (%) 9. 2% 52. 1% 4. 1% 24. 1% 1,1% 9. 4% 100% 51. 4% 10. 4% 7. 4% 12. 1% 11. 8% 6. 9% 100% The total enrolment in higher education is about 20. 7 million. The total number of students enrolling for open universities and other diploma courses constitute 24. 3% of the total students. BA/BA (Honors) is the most preferred course of the higher and technical education. Enrolment in higher and technical education in India: 2009-10 Institution Postgraduation and above Ph.

D / D. Sc/ D. Phil MA MSc MCom Others Total PG and above students Undergraduate courses BA/BA (Hons). B. Sc. B. Com BE/ B Arch Medicine, dentistry, nursing, etc. B. Ed. Others undergraduate programs Total UG students Other courses Enrolment in open universities Others (Post school diploma and postgraduate diploma) Total students in higher and technical education Source: Ministry of HRD, 2009–10 No. of students (‘000) 92 753 440 208 341 1,834 6,305 2,149 2,062 1,929 319 518 592 13,873 3,446 1,589 20,741 Proportion (%) 0. 4% 3. 6% 2. 1% 1. 0% 1. 6% 8. 8% 30. % 10. 4% 9. 9% 9. 3% 1. 5% 2. 5% 2. 9% 66. 9% 16. 6% 7. 7% 100% 9 Knowledge paper on skill development in India: Learner first Current capacity in vocational education and training13 Vocational training in India is primarily imparted through the government and private industrial training institutes (ITIs). As of February 2012, there are in total 9,447 ITIs, with a total seating capacity of 1. 3 million. The total numbers of government ITIs are 2,244 with a total seating capacity of 472,738. The total number of ITIs has increased at a CAGR (2007–2012) of 11. %, while the total number of seats has increased at a CAGR (2007–2012) of 12. 2%. Total no. and seating capacity of ITI/ITCs 12000 1,062,524 749,510 4000 0 5,465 2007 6,079 2008 Number of ITI/ITCs 7,886 2009 8,642 2010 9,447 Feb’2012 829,377 1,206,448 1,335,488 1600000 1200000 800000 400000 0 8000 Total seats in ITI/ITCs Source: Ministry of Labor and Employment, Annual report, 2011–12 Region name Northern Southern Eastern Western Grand total No. of government ITIs 797 424 201 822 2,244 Seating capacity (Govt. ) 122,354 95,404 50,138 204,842 472,738 Number of private ITCs 2,173 2,914 1,212 904 7,203

Seating capacity (private) 252,753 325,702 197,885 86,410 862,750 Total ITI/ITCs 2,970 3,338 1,413 1,726 9,447 Total seating capacity 375,107 421,106 248,023 291,252 1,335,488 Source: Ministry of Labor and Employment, Annual report, 2011–12 Learner at the fulcrum of growth and willingness While the country has distinct advantages in terms of enjoying a “demographic dividend” and a heightened government focus on skill development, most of the industries in the economy are currently experiencing a dearth of skilled labor, resulting in the need for an effective skill delivery framework.

The current education system in India primarily targets on making skill-based training available to a larger pool of people. As a result, the focus has primarily been supply-driven and not market-driven. To understand what a learner wants, we need to first define who a learner is. A learner, through a lay perspective, can be defined as an individual who seeks to gain knowledge, comprehension, or mastery through experience or study. In the above context of skill development in India, a learner is an individual who is eligible to acquire skills in accordance with the country’s skill delivery framework.

India had not focused on skill development before the Eleventh Five Year Plan, which has created a gap with a large supply of learners. In further sections, we have defined a learner, who has either dropped out of school or who has not continued with the standard educational system after completing class 12th. Individuals who are not employed and are looking to upgrade some kind of skills are also identified as potential learners. 13. Ministry of Labour and Employment 2011-12 annual report Knowledge paper on skill development in India: Learner first 10

Framework for the creation of an ef? cient education delivery model Availability ; Accessibility ; Adaptability ; Acceptability ; Focuses on the needs of both learners and the labor market in order to make these skills available by forging partnerships between public administrators, suppliers of educational services, industry and civil society Directly addresses learners’ demand coming from varied geographies and socio-economic backgrounds such as education levels, income levels, industrial growth, etc.

Focuses on learners’ priorities of vertical mobility for those pursuing skills, and will enable learners to shift from skill-based training to academics and vice versa Meets learners’ requirements for well-established competency standards, af? liation and accreditation Facilitates learners’ priorities in terms of quality of infrastructure (ICT and physical infrastructure), pedagogy and skill delivery methods Focuses on learners’ needs for developing an advanced curriculum framework based on best industry practices > > Availability

The capacity of just over four million a year needs to be upgraded substantially in order to meet the targeted skill requirements till 2022. There exist a significant mismatch between the massive populace of unemployed youth and existing vacancies, which leads to low employability quotient of people. It is therefore a critical next step to focus on the needs of both learners and the labor market in order to make the requisite kinds of skills available by forging partnerships between public administrators, suppliers of educational services, industry and civil society14.

The availability of both physical infrastructure and human resource (teachers) to impart skill-based training forms the basic requirement of a learner, which should be addressed in an effective manner. terrain and varying social economic conditions. Some of the states have limited access to such training. As a result, the population comprises a large unskilled workforce. Significant disparities exist across states in terms of socio-economic factors such as education levels, income levels, industrial growth, etc. A significant portion of the population below the poverty line cannot afford even basic amenities, leave aside education and raining15. It is important that there is a focus on the informal sector, which reaches out to the people and livelihood promotion institutions. NGOs are engaged effectively to address the needs of all the learners. Adaptability The economic growth over the years has only brought forth the shortcomings of skill development processes. Learners require a national vocational qualification framework that offers vertical mobility for those pursuing skills and enables learners to shift from skill-based training to academics and vice versa. They need a clear vocational qualification Accessibility

The accessibility of skill-based training faces a huge challenge on account of India’s large geographical territory, difficult 14. “Transforming India’s skill development,” Economic times website, http://articles. economictimes. indiatimes. com/2012-02-17/news/31071290_1_nsdc-national-skilldevelopment-corporation-sector-skills-councils, accessed 5 August 2012 15. “Skill development – sector profile,” FICCI, http://www. ficci. com/sector/74/Project_docs/SectorProfile. pdf 11 Knowledge paper on skill development in India: Learner first framework for competency standards, affiliation and accreditation.

The required framework will integrate skill training with academic standards. A more formalized structure for vocational training will also help elicit greater respect and acceptability for this initiative among the beneficiaries and the society at large. Acceptability • The skill development programs being imparted to learners should meet their needs in terms of quality of infrastructure (ICT and physical infrastructure), pedagogy and skill delivery methods. The current education system does not lead to trained young people in employable skills who are open to immediate employment opportunities.

With current and expected economic growth, this problem is expected to aggravate as more than 75% of the new job opportunities are expected to be skill-based. As a result, there is a need to develop an advanced curriculum framework derived from industry best practices. It is equally critical to use these upcoming and widely used learning approaches to design skill development programs in order to train learners with what is relevant and not obsolete. • “Of late, employability of graduates coming out of our educational system is becoming a matter of great concern.

I am told only 25% of the general graduates across all streams have employable skills. ” — E Ahamed, (Minister of State for HRD and External Affairs) As is evident, the success of the aforementioned skill framework highly depends on what a learner wants. Therefore, all efforts, actions, plans should be dedicated in a channelized manner that keeps the needs, priorities and perspectives of the Learner first. Knowledge paper on skill development in India: Learner first 12 2. Who are the learners? India has the second-highest population of the working age (15– 59 years) individuals in the world.

The skill set of this population group plays a critical role in the growth of the country. It is imperative that adequate skill training is provided to this age group to make them productive. India is facing a skill deficit on account of the large demand-supply gap, which results in a large pool of potential learners. The following section profiles a learner based on various parameters such as gender, social and education status. The learners are divided into three broad age categories: 15–18 years (school education), 19–23 years (college education) and 24–59 years (working age population).

The learners are also classified based on the dropout rates at various class levels. More than 50% of the total population in the age group of 15–59 years are potential learners and require some type of skill training. There is a very strong gender bias in the enrolment for some type of vocational courses. Many skills are culturally and historically associated with a specific gender, such as home science and secretarial skills with women and industrial skills with men. 13 Knowledge paper on skill development in India: Learner first

Entire gamut of learner’s Type of gender Place of residenced Economic status Class I-V drop out Educational background Normal with no disability Class VI-VII drop out Class IX-X drop out Class XI-XII drop out Class XII passed discontinuing formal education system Graduates/Post-graduates that require skill training People working in the information sector/illiterate people SC/ST/OBC other backward Social status Physical status Abvoe poverty lane Below poverty lane Source: Ernst & Young analysis Knowledge paper on skill development in India: Learner first 14

Differently abled General Female Urban Rural Male Most sought-after trades by learners in ITIs Welder (Gas and electric) Plumber Carpenter Sheet metal worker Mechanic (Refrigeration and air-conditioner) Mechanic (Tractor) Source: Directorate General of Employment & Training Draughtsman (Civil) Draughtsman (Mechanical) Surveyor Fitter Turner Machinist Electrician Wireman Instrument mechanic Electronic mechanic Mechanic (Radio and TV) Information technology and electronics system maintenance Women constitute 68. 2% of the total potential learners

The contribution of women to potential learners is consistent with their contribution toward the population for age groups between 15–18 years and 19–23 years. However, they constitute around 48% of the population in the age group of 24–59 years and around 78% of the learners in this group. This can be attributed to the social and cultural norms, which lead a large number of women toward household duties. Therefore, the program developed for the age group of 24–59 needs to have a stronger focus on women. Share of SC/ST in various segments 47. 1% 52. 9% Population (15-18) Male 50. 1% 49. % Learner (15-18) Female 47. 7% 52. 3% Population (19-23) Male 49. 2% 50. 8% Learner (19-23) Female 48. 6% 51. 4% Population (24-59) Male 78. 3% 21. 4% Learner (24-59) Female Source: Ministry of HRD, 2009–10; Ernst & Young analysis Low enrolment rates above class XII contribute most of the increase toward potential learners The percentage of enrolment for respective courses is decreasing with the level of education. There is a sharp rise in learners at the graduation and post graduation level as the higher and technical education is inadequate on account of the following parameters: Regional disparity in economic development has led to the uneven distribution of higher education Educational institution in the country face shortage of quality faculty that results in inadequate quality of education Increase in the cost of higher education on account of reduced government funding and increase of private investment in the education system • • 15 Knowledge paper on skill development in India: Learner first Potential learners by grades Class IX Class X Class XI Class XII Graduation Source: Ministry of HRD, 2009–10; Ernst & Young analysis

Male 3,023,570 3,791,797 6,319,612 6,770,505 23,930,684 Female 3,328,518 4,007,130 6,170,156 6,465,556 24,036,504 Total 6,352,088 7,798,927 12,489,768 13,236,061 47,967,188 SC/ST constitute 28% of the total learners, consistent with the national average The socially disadvantaged groups (SC and ST) have received a special focus over the years for their social and economic advancement. The total number of SC and ST learners is 67 million and 35 million, respectively. Notably, the share of SC and ST among the learners in their respective age group is consistent with the share of SC and ST in the orking age population. Share of SC/ST in various segments 17% 19% 8% 11% 9% 12% 16% 15% SC Population (15-59) Source: Ministry of HRD, 2009-10; EY analysis; ST Learner (15-18) Learner (19-23) Learner (24-59) Dropout rate of learners Class I-V I-VIII I-X Source: Ministry of HRD, 2009-10 Dropout rate 28. 9% 42. 4% 52. 8% The total enrolment in the schools during 2009–10 was 243. 3 million, representing 21% of the total population. The enrolments have increased over the years, resulting in a high literacy rate of 74%.

During the same time, a high drop rate of more than 50% (till class Xth) is proving a major hurdle to the growth of the economy and creating a pool of potential learners. Knowledge paper on skill development in India: Learner first 16 Males accounted for 53% of the total school dropout The total number of dropout from school (class I-X) was 16. 7 million during 2009–10. The majority of the learners drop out of class before completing class V, indicating that a strong emphasis should be put for this group to providing some type of skill training. Number of Dropout by gender and grade ‘000), 2009-10 5,000 4,102 1,709 2,580 2,114 1,141 Total students dropping out after completing class XII 3,260 2,659 Total dropouts between class I-V Total dropouts between class VI -VIII Male Total dropouts between class IX-X Female Source: Ministry of HRD, 2009-10; EY analysis 7. 4% of the total enrolled students of class I–X dropout The dropout-to-enrolment ratio is slightly higher in each consecutive class — class I–V has the lowest ratio and class IX–X has the highest ratio. • SC/ST constitute 33% of the total school dropouts (class I–X) SC and ST together constitute 24. % of the total population. The total number of SC and ST dropouts from school is 4. 7 million and 3. 2 million, respectively. Statistics indicate that 67% of the total SC dropouts and 69% of the total ST dropouts leave school before completing class VIII, which represents more than the overall average of 59%. The ratio is the highest for males in the class IX–X category, indicating that a large number of male students drop outs after completing the VIIIth standard, but before completing the Xth standard. The total students in this category are ~2. 1 million.

For females, the highest ratio is for class VI–VIII category with a total dropout of ~2. 6 million students. In terms of value, the largest number of dropouts for male (5 million) and female (4 million) are in the class I–V category. Drop out-to-total enrolment ratio for various standards (2009–10) Class I–V Class VI–VIII Class IX–X Male 7. 06% 5. 37% 12. 51% Female 6. 33% 9. 35% 8. 33% Total 6. 72% 7. 19% 10. 70% • • Higher SC/ST dropout rate as compared to the national average requires a special focus of the government. Source: Ministry of HRD, 2009-10; Ernst ; Young analysis 7 Knowledge paper on skill development in India: Learner first Number of SC/ST dropouts by gender and grade (‘000), 2009-10 1,809 1,332 1,352 1,086 324 Total students dropping out after completing class XII 899 480 673 Total dropouts between class I-V Total dropouts between class VI -VIII Male Total dropouts between class IX-X Female Source: Ministry of HRD, 2009-10; EY Analysis Dropout-to-enrolment ratio of SC and ST is greater than the overall average The overall enrolment for SC and ST in school (class I–X) is ~43 million and ~22 million respectively.

The overall ratio from class I–X for SC and ST is 8. 5% and 13%, respectively, more than the overall average of 7. 4%. Drop out to total enrolment ratio for various standards (2009–10) Class I–V Class VI–VIII Class IX–X Overall average 6. 72% 7. 19% 10. 70% Snapshot The total number of potential learners in the country during 2009–10 is about 363 million. These constituted ~51% of the total working age population in the age group of 15–59 years. More than 65% of the total learners fall in the age group of 24– 59 years with the majority of them being female, on account of various social reasons.

The SC/ST constitutes 28% of the total learners’ category in line with the national average. The following provides a snapshot of the learner’s profile. Parameter Overall Population of India (in age group 15–59 years) Potential learners (in age group 15–59 years) Classification by age group Learners in the age group (15–18 years) Learners in the age group (19–23 years) Learners in the age group (24–59 years) No. of SC/ST learners Learners in the age group (15–18 years) Learners in the age group (19–23 years) Learners in the age group (24–59 years) 10,275,360 22,562,933 69,313,759 25. 6% 25. 87% 29. 31% 39,876,844 87,208,589 236,461,156 10. 96% 23. 98% 65. 04% 711,109,338 363,546,589 100% 51. 12% Number of people Percentage SC 6. 83% 12. 39% 8. 83% ST 8. 78% 17. 63% 33. 13% Source: Ministry of HRD, 2009-10; Ernst & Young analysis Source: Ministry of HRD, 2009–10; Ernst & Young analysis Knowledge paper on skill development in India: Learner first 18 3. What are the opportunities available to them? The current vocational education is shifting from its earlier supply mode largely with a welfare approach to a demanddriven approach.

The government has undertaken various efforts to consolidate its scattered VET delivery system under various departments and ministries, e. g. , the Ministry of Human Resource Development (MHRD), the Ministry of Labour and Employment (MOLE) through its Director General of Employment and Training (DGET), the Ministry of Urban Affairs and the Ministry of Rural Development. This section highlights opportunities available to learners for skill development facilitated by the following: • • • Financial support16

The government has doubled the allocation of funds for skill development under the National Skill Development Fund (NSDF) by INR10 billion in the Union Budget 2012–13. The total corpus of funds has been increased to INR25 billion. Infrastructure support The various ministries have created infrastructure for skill development such as ITIs, polytechnics, community polytechnics, secondary schools (in association with private sector). Some of the key initiatives of the government are as follows17: • Central Government State government Private sector

Government focus on skill development Skill development is one of the priority agendas of the government for the Twelfth Five Year Plan. The government plans to set up sector skill councils to prepare standards required for training programs. The industries are also proactively taking steps to partner with the government and reduce the skill gap. Establishment of new ITIs in underserved regions and the existing ITIs being upgraded to centers of excellence to produce multi-skilled workforce of world standards MoUs with states and it is defining outcomes and reforms and mposing an obligation to transfer autonomy to PPP Setting up more polytechnics in the PPP mode and 400 government polytechnics being upgraded Expansion of vocational education from 9,500 senior secondary schools to 20,000 schools; intake capacity to increase from 1 million to 2. 5 million • • • 16 “Skills is the future,” The Times of India website, http://articles. timesofindia. indiatimes. com/2012-04-30/news/31506351_1_soft-skills-vocational-education-sectorskills-council, accessed 2 August 2012 17. “Skill Development and Training”, Planning Commission website, http://planningcommission. nic. n/plans/planrel/fiveyr/11th/11_v1/11v1_ch5. pdf, accessed 2 August 2012 19 Knowledge paper on skill development in India: Learner first • Establishment of 600 rural development and selfemployment training institutes (RUDSETI) To set up a virtual skill development resource network linking 50,000 skill development centers (SDCs) Skills training has been made more affordable by exempting vocational education institution from paying service tax The figure below highlights NSDC’s target and progress so far in achieving the same. NSDC’s Skilling Mission (million) 150 67. 8 • • Private partnership support

The private sector, in association with the government, will work to identify and quantify skill deficiencies in their respective sectors and constitute a sector plan to address these deficiencies. The National Skill Development Corporation or National Skill Development Trust is entrusted with the job to identify areas where support and implementation will be required from the government. NSDC has identified 21 high-growth sectors (including the unorganized sector) to provide expanded employment. It has 10 high-growths sectors on the manufacturing side and an equal number on the services side.

Of these, manufacturing, textile, construction, automotive, retail and health care are the key focus sectors. Currently, 59 corporate houses/private players/private education institutes are associated with NSDC for imparting vocational education and training in India. With the help of private players, NSDC aims to reach its desired target (150 million skilled persons) by year 2022. NSDC’s Achievement thusfar Source: National Skill Development Council NSDC’s target NSDC has been given significant responsibility of skilling 150 million learners across 20 high-growth sectors.

NSDC has formed 14 sector skill councils (SSC) to complement the existing vocational education system for the sector in meeting the entire value chain’s requirements for appropriately trained manpower in quantity and quality across all levels on a sustained and evolving basis. The figure below elucidates NSDC’s target of producing skilled workers per sector over the next ten years. 20 Knowledge paper on skill development in India: Learner first Sector wise skilling target (million) 101. 65 84. 25 64. 54 51. 4 48. 1 34. 43 29. 03 36. 06 50. 1 13. 95 17. 89 56. 74 12. 67 0. 06 11. 48 4. 44 4. 63 5. 53 14 3. 85 0. 72 2. 24 0. 18 0. 18 2. 45 3. 87 Rural Services 7. 3 0. 12 Other Management Courses 0 0 IT and ITES (formal employment) IT and ITES (informal employment) 0 Soft skills and english communication Real Estate and Services Toursim and Hospitality Building and Construction Textiles and Clothing Electronics and IT Hardwa Furniture and Furnishings Gems and Jewellery Food Processing Chemicals and Pharmaceuticals Media and Entertainment Select Informal sectors Organised Retail BFSI Handloom and Handicrafts Poultry and dairy Construction

Health Care Transportation Education Alternative energy Source: NSDC Policy support The government has rolled out targets for various ministries based on the employment potential in those sectors. The ministries have introduced schemes in the field of infrastructure development and employment linkages in order to impart quality skill training. S. no. Ministry/ Department/ Organization National Skill Development Corporation Labor and employment Key schemes/Programs/Institutions with a provision for vocational education and training program18 • Enterprenurial skills

Infrastructure Manufacturing Projected number of trained individuals in 2022 (in million) 150 1 It has so far signed agreements with 59 training partners. These partners ; have a target to train 60. 6 million people by 202219. Craftsmen training scheme: It aims to provide a supply of semi-skilled labor ; and reduce unemployment among the educated youth. Apprenticeship scheme: It aims to provide in-house training to employees working in the company. Center of excellence scheme: The scheme discusses the facilitation of multiskilling courses in 21 industry sectors.

Modular employable skills scheme: It focuses on the delivery of short-term courses of the National Council for Vocational Training ( NCVT) with the objective of providing employment. 2 • • • • 18. “National Policy on skill Development“, World Bank website, http://siteresources. worldbank. org/EDUCATION/ Resources/278200-1121703274255/1439264-1242337549970/6124382-1288297991092/IndiaGovDocMar09. pdf? bcsi_scan_debb0e326e6a7dd8=0;bcsi_ scan_filename=IndiaGovDocMar09. pdf , accessed 4 August 2012 19. Prashant K.

Nanda, Sangeeta Singh, “World Bank plans to fund skill development in India”, Mint, 14 February 2012, via Factiva, © 2012 HT Media Ltd. and “Knowledge Bank”, National Skill Development Corporation website, http://www. nsdcindia. org/knowledge-bank/index. aspx , accessed 12 August 2012 21 Knowledge paper on skill development in India: Learner first Government 100 Engineering Leather Agriculture Auto 0. 08 6 S. no. Ministry/ Department/ Organization HRD higher education Key schemes/Programs/Institutions with a provision for vocational education and training program18 •

Projected number of trained individuals in 2022 (in million) 50 3 Vocationalization of secondary education: It has created infrastructure of ; 21,000 sections in 9,619 schools and a capacity of about 1 million students at the 12th level20. Community polytechnic scheme: CPS acts a focal point to promote the transfer of science and technology to the rural sector. Jan Shikshan Sansthan: It has 157 vocational training centers that are run by NGOs offering more than 250 courses. In its Twelfth Five Year Plan, the ministry has allocated INR20 billion for ; training and skill development21.

Special projects for the Placement Linked Skill Development of Rural BPL ; Youth under Swarnjayanti Gram Swarozgar Yojana (SGSY–SP) Rural Development and Self-Employment Training Institutes (RUDSETIs): Set up dedicated infrastructure for skill development in each district in the country Providing training in agriculture extension (21 training centers), training in ; the use of agricultural implements and machinery, soil conservation training center HUDCO and others in the construction sector under the Ministry of Urban Development ; Planning Commission has taken the following initiatives: Construction Industry Development Council (CIDC) Company run schools (NBCC, HCC, L;T, ECC, etc. ) Urban Self Employment Programme under Swarna Jayanti Shahari Rozgar ; Yojana (SJSRY) It conducts the Entrepreneurship Development Programme (EDP), Skill ; Development Programme (SDP) and the Management Development Programme (MDP). Khadi and village industries commissioned under the Ministry of MSME have 51 training centers that run more than 30 types of programs.

Decentralized training program with 24 weavers service centers,13 power ; loom centers and many other boards and councils Apparel Export Promotion Council Support to Training and Employment Programme for Women (STEP) ; Training in home scale preservation of fruits and vegetables Women empowerment program in collaboration with IGNOU Counselling, retraining and redeployment of rationalized workers of CPSEs ; ; DOEACC — “O; level CEDTI — conducts courses in the field of electronics, telecommunications, IT, process control and instrumentation Training of multipurpose health workers (female and male) ; Promotional training of female health assistants in 42 training centers • • 4 5 Transport Rural development (RUDSETI) and IL ; FS • 30 20 • • 6 Agriculture • 20 7 Construction Industry Development Council • • • 20 8 9 Urban development Micro small medium enterprises • 15 15 • • 10 Textiles • • 10 11

Women and child welfare Department of Heavy Industry Department of Information Technology Health and family welfare Finance-Insurance/ Banking • • • 10 12 13 • 10 10 • • 14 15 • • 10 10 NA 20. “Vocationalisation of Secondary Education 2011”, Ministry of Human Resource Development website, http://mhrd. gov. in/scheme_vocationalisation , accessed 14 August 2012 21. “Report on the working group on central roads sector, 12th Five Year Plan“, Planning Commission website, http://planningcommission. nic. in/aboutus/committee/ wrkgrp12/transport/report/wg_cen_roads. pdf, accessed 16August 2012 Knowledge paper on skill development in India: Learner first 22 S. no. Ministry/ Department/ Organization Consumer affairs Tourism Food processing industries

Key schemes/Programs/Institutions with a provision for vocational education and training program18 NA 15 food craft institutes under state governments ; Training courses are run by various research institutes such as Central Food ; Technology Research Institute, Paddy Processing Research Centre, PHTC, Council of Entrepreneurial Development Programme (EDP) Establishment of food processing and training centers (FPTCs) National Institute of Mentally Handicapped ; National Institute for the Orthopaedically Handicapped Institute for Physically Handicapped National Institute for the Hearing Handicapped Projected number of trained individuals in 2022 (in million) 10 5 5 16 17 18 19 Social justice and empowerment 5 20 21 22 Overseas Indian affairs Chemicals and fertilizers Others (Power, petroleum, etc. ) Not available Not available Not available Total 5 5 15 53022 Source: National Skill Development Corporation NOTE: Distribution among ministries/departments has been kept higher than 500 million23. 22. Achieves, 2010”, Press Information Bureau website, http://www. pib. nic. in/archieve/others/2010/aug/d2010081601. pdf accessed 10 August 2012 23. “National Skill Development Mission 2010”, Press Information Bureau website, http://pib. nic. in/newsite/erelease. aspx? relid=64862, accessed 10 August 2012 23 Knowledge paper on skill development in India: Learner first State governments have actively been promoting vocational training by forging alliances with private partners and creating employment opportunities for Indian citizens. Several best practices exist across the country in imparting vocational education through the public private partnership mode. Some of them are elucidated below:

State case 1: Government of Gujarat — Skill voucher scheme The Government of Gujarat has come up with a skill voucher scheme, where the aim is to ensure that the funds allocated for the training reaches the actual beneficiary or the candidates and empowers them by giving freedom to select the course and institute they would opt to get trained in. Skill voucher is a pre-paid voucher that can be purchased from the Gujarat Skill Development Mission (GSDM) after paying the value amount. GSDM is a Government of Gujarat entity formed with nondelivery functions of Technical Vocational Education ; Training (TVET) and as an apex level body at state for TVET efforts. Incentives provided under the scheme: This scheme effectively decreases the work of the entities involved in funding the training. These entities will have to just identify the beneficiary, get a skill voucher in his/her name and hand it over to the beneficiary.

The system created by the mission is fairly simple with an approach wherein anyone can fund through the skill voucher and anyone can utilize it to train the candidates. This system created by GSDM that is market force-driven will ensure that the candidate either gets the certificate in the course of his choice or the money goes back to the funding entity. GSDM just stands as a guarantor to the funding agency that the money will not go waste. Services delivered: These skill vouchers are intended to stimulate the supply side of the TVET system, i. e. , mobilize candidates and incentivize them to undertake training. The skill vouchers scheme achieves the objective of acting as a catalyst with a high level of efficiency.

The vouchers are serial numbered and issued directly in the name of the candidate/beneficiary, who can use it to avail training for specified courses at any eligible institute. Once the candidate enrols in any of the eligible institutes for any specified course and submits the skill voucher to the institute, the training will be then imparted as in a normal case. After the training, the candidate will be assessed by one of the allocated agency empanelled (currently GSDM utilizes empanelment of NCVT). If the candidate passes the assessment exams, then the institute gets paid by the GSDM in lieu of the skill voucher. In case the candidate fails to clear the exams, the money gets refunded to the funding entity.

The institutes are not bound to admit students with skill vouchers and are free to charge any amount over and above the skill voucher value toward the training cost. Process of issuing skill vouchers: Skill vouchers can be purchased by anybody and used to fund the training of anyone. Both the private sector and government department can purchase skill vouchers. The government department/agency-sponsored skill voucher is called a government skill voucher and accordingly private sector sponsored vouchers are called a private skill voucher. Both these vouchers can be utilized in a similar way. Knowledge paper on skill development in India: Learner first 24 State case 1: Government of Gujarat — Skill voucher scheme (cont’d. Process of redemption of skill vouchers: Post the successful training and certification of the candidate, the training institute will redeem the skill voucher in following manner: i. ii. Post successful training, assessment and certification of the candidate, the institute will notify GSDM as per the procedure (refer annexure for details) GSDM upon verification of and scrutiny of claims by institute would deposit the amount in the designated bank account of the institute Key learning: The introduction of the voucher system in TVET is a new concept in the country and the state of Gujarat has taken a lead in this. Though this scheme has been introduced recently and still is not fully operational, its utility and success cannot be commented upon.

It is important to note that there have been many other initiatives introduced by Government of Gujarat, which are enabling improvements in the TVET system such as the creation of a web portal, which acts as database for all TVET activities in the state, creation of a non-delivery function entity, i. e. , GSDM, etc. The skill voucher scheme, along with the above mentioned initiatives, will stimulate the supply side and create an efficient funding mechanism for the TVET system. State case 2: Government of Rajasthan — Establishing technical institutes in a lagging area scheme The Government of Rajasthan introduced a scheme in the year 2007 to expand the TVET system in the lagging areas or unserviced areas of the state. The scheme was called “Scheme for private investments in establishing technical institutes in the lagging areas. ” The main objective of the scheme was to provide access to the TVET facility across the entire state.

The scheme was applicable in lagging areas, which was identified by the state government and defined for various technical institutes as follows: • • • Lagging district: Defined as a district that does not have even one engineering college or polytechnic college Lagging sub-divisions: Defined as a sub-division, which does not have a polytechnic college Lagging blocks: Defined as a block that does not have an ITI Incentives provided under the scheme: Under this scheme, the state government provides incentives for the private sector investor to set up technical institutes in lagging areas such as: 1. The state government will provide a converted land free of cost as per prescribed by the statutory body (AICTE / NCVT).

The land will be leased for 25 years and will be renewable for another such period as decided by the government. 25 Knowledge paper on skill development in India: Learner first State case 2: Government of Rajasthan — Establishing technical institutes in a lagging area scheme (cont’d. ) 2. 3. In case of a polytechnic set up at a lagging district level, a maximum of 10 acres will be provided. Further, at a lagging sub-division level, a maximum of 5 acres of land will be provided, and in case an ITI land, 5 bighas will be allotted. In case a private investor intends setting up a polytechnic college for women, the government will also reimburse the cost of construction of building (with an upper limit of INR500/sq. ft. of built up space) besides the land.

Apart from the aforementioned incentives, the state government will provide free consultancy services on any issue related to the establishment of a technical institute. In this regard, a consultancy cell has been established under the administration of the Department of Technical Education as well as at the secretariat level in the office of OSD (TE). The private sector investor is expected to establish the institute within 18 months of land allotment, failing which the land will revert back to the government. The investor will ensure the completion of the project as per the AICTE/NCVT norms. Procedure for selection of private sector investors: 1. 2. 3. 4.

The scheme has laid down the following procedure for selection of private sector investors. The Department of Technical Education will invite applications from private sector investors to set up technical institutions under this scheme. The applicant will specify the place where it intends to set up the technical institution. One investor can apply for a maximum of two districts, two lagging sub-divisions and four lagging blocks. In case of setting up a polytechnic for women, the applicant will have to indicate the number and types of branches they intend to start. This will help in assessing the space requirement and estimating the cost of construction thereof.

The applicant will start a minimum of three branches proposed to make the private sector investors eligible for the reimbursement of the cost of building. A committee will be formed under the chairmanship of Principal Secretary, Technical Education. In case of a single application for a location, the proposal will be accepted. In case of more than two proposals, the committee will evaluate the proposal in order of the preference given below: • • • 5. 6. 7. Proposals from the industrial house Investors who are already running such institutions anywhere in the country Financial and technical solutions Key learning This initiative is an ideal example for reaching out to the people in under-serviced regions and population.

As this initiative requires setting up of the TVET facility in remote areas, the left wing extremist affected area (in case of West Bengal), etc. , incentives such as land and cost of building have to be given by the state government to attract private sector participation. The Government of Rajasthan has successfully implemented about 50 institutions (either operational or various stages of implementation) under this scheme. Knowledge paper on skill development in India: Learner first 26 Private sector Over the years, the private sector has increased its presence in the field of vocational education in India. Unemployment and underemployment are two of the most serious development problems currently being faced by the country.

The solution to which is a skilled workforce, developed through quality vocational education and training courses for the learner. The private sector comes into play here with its ability to match better the demand for workforce by the industry with a supply of superior skilled manpower. The private sector can contribute to supplement infrastructure, facilities, technology and pedagogy. There are several roles that the private sector plays in this domain, namely, as a consumer of skilled manpower, as a non-profit facilitator of quality knowledge or as a for-profit enterprise providing education. Roles of the private sector Many private sector players have also entered this space as a way of giving back to the society from which they otherwise gain immensely.

These players have the requisite funds, expertise and infrastructure to invest in constructing an appropriate platform for vocational education and training. Many industry experts or young business leaders interact with the learners via this mode to provide a unique training package. Finally, the private sector may enter vocational education and training with a sole purpose of profit building. By constructing infrastructure facilities in terms of schools, training institutes and universities, such players provide education at a price. In a nation such as India where maximum emphasis is laid on education, there are immense opportunities and a vacant capacity to tap this sector. Vocational education and training space in India For-profit enterprises Consumer Non-profit initiatives

In addition to the corporate houses and education institutes, several other entities have come together to create a framework for vocational education and training in India. The figure below expands on the current Indian VET space. Organization types Organization names • • • In the first role, the private sector would deeply benefit by training the available manpower with appropriate skills and then ultimately employ them. Corporate houses can train learners by diverse methods and in varied fields such as research and development, academic internships, on-job training, programs in line with the market demand and several collaborative programs.

As a consumer, the private sector can educate learners with the right balance of academic skills, analytical skills, attitude and exposure. This approach ensures only industry demanded skills/expertise being imparted to develop a suitable talent pool. Scope • • Industry associations FICCI CII ASSOCHAM International Labour Organization World Bank European Union IL;FS Education India Can India Skills Bharti and many more Voice the needs of the market Voice opinions on relevant policies Advisory role to government bodies Provide essential funds Provide funding Develop vocational education training institutes International bodies • • • • • Private players • • • • • • Source: Ernst ; Young research 27 Knowledge paper on skill development in India: Learner first

Private sector initiatives A few examples of private sector initiatives in vocational education and training in India have been further expanded below: Apollo Med Skills Limited • • NIIT Ltd. • • Own centers in tier I and II cities to provide innovation class room training with video conferencing, e-learning and simulator learning Provides programs for skilling doctors, nurses in fields of medical lab technology, radiology, dialysis and non-invasive cardiac courses and certain support activities Own 47 centers in Andhra Pradesh, Tamil Nadu, Bihar, Meghalaya, Karnataka, Chhattisgarh, Jharkhand, West Bengal and Orissa Been involved with education nd skills training for the past 15 years 100 skill schools with locations across India, with a special focus on 10th and 12th school dropouts and graduates Offers skilling for sectors such as textiles, construction, leather and leather products, automotive and auto components and logistics, general engineering and services sector Players are leveraging the captive customer base of education institutions and using technology to acquire students as well as reduce infrastructure costs. Private players are providing VSAT-based continuing education and vocational training programs. The average program fee for continuing education is INR80,000 to INR2,00,000 p. a. and INR10,000 for vocational.

Leading global talent development corporation focused on building a skilled manpower pool Provides training and training solutions in information technology, business process outsourcing, banking, finance and insurance, executive management education, and communication and professional life skills Owns a total of 1,575 centers in locations across India A subsidiary (100%) of BASIX, a micro finance institution (MFI) promoted by industry professionals Key focus on technology enablement in targeted sectors such as construction, tourism, banking, rural farm, hospitality and food processing Targeted at school dropouts and socially unprivileged classes • • IL;FS Education • • • B-ABLE • • • New channels and use of technology •