Light On The Problem Of Skilling India
Post on 08,September 2019   2:00 PM
By - Miss. Vibha Yadav
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Skill India is a campaign launched by Prime Minister Narendra Modi on 15 July 2015 which aims to train over 40 crore people in India in different skills by 2022 . It includes various initiatives of the government like "National Skill Development Mission", "National Policy for Skill Development and Entrepreneurship, 2015", "Pradhan Mantri Kaushal Vikas Yojana (PMKVY)" and the "Skill Loan scheme".

Need for attention: According to the last 2018 Periodic Labour Force Survey(PLFS) the unemployment rate among the urban 15-29-years-old was 23.7%.According to the Centre for Monitoring Indian Economy (CMIE), the Unemployment rate reached 34% among the 20-24 year-olds in the first quarter of 2019 — it was 37.9% among the urban. At least eight million new job seekers enter the job market every year. In 2017, only 5.5 million jobs had been created, and the situation is worsening: Unemployment rate is the highest in 45 years today.By observation of the data, it is clear that the unemployment rate is increasing continuously at high rate and this scenario of rapid increase need immediate attention of various stakeholders. 

Reason behind this trend : This joblessness is mainly due to the poor training of the youth as it is found in the survey of PLFS, only 7% of the people surveyed have any formal or informal training. The current data suggest that only 2.3% of the workforce in India has undergone formal skill training as compared to 68% in the UK, 75% in Germany, 52% in the USA, 80% in Japan and 96% in South Korea and the last PLFS for 2018 revealed that 33% of the formally trained 15-29-year-olds were jobless. On the other hand, 48% of Indian employers reported difficulties filling job vacancies due to skill shortage.The CMIE reports show that the more educated Indians are, the more likely they are to remain unemployed too. 

Initiatives taken by government
  • In 2014, Ministry of Skill Development and Entrepreneurship was created to harmonise training processes, assessments, certification and outcomes and, crucially, to develop Industrial Training Institutions (ITIs).
  • Pradhan Mantri Kaushal Vikas Yojana (PMKVY), a dimension of skill India, under which the training fees were paid by the government.Its main tool was the “short-term training”, which could last between 150 and 300 hours, and which included some placement assistance by Training Partners upon successful completion of their assessment by the candidates.
  • The National Skill Development Corporation India (NSDC) was setup as Public Private Partnership Company with the primary mandate of catalysing the skills landscape in India.
  • The objective of the National Policy on Skill Development and Entrepreneurship, 2015 will be to meet the challenge of skilling at scale with speed and standard (quality). It will aim to provide an umbrella framework to all skilling activities being carried out within the country, to align them to common standards and link the skilling with demand centres.

Problems in implemention:India is missing it's target in PMKVY, This is partly due to mismanagement and partly due to not spending available funds because of lack of candidates. The number of those who have benefited from the Skill India scheme has increased, from 3,50,000 in 2016-17 to 1.6 million in 2017-18, but the percentage of those who could find a job upon completion of their training has dropped from more than 50% to 30%. Other challenges are 
  • The training was not sufficient to ensure a job for those who got the training.
  • It was expected that some of the PMKVY-trainees would create their own enterprise, only 24% of the trainees started their business.
  • Low industry interface resulted in the poor performance  in terms of placement records and salaries offered.
  • Low enrollment in skill institutes like ITIs, and polytechnics, due to lack of awareness about skill development programs.
  • One major problem is the unwillingness of employers to recruit peoples.

Way forward:In the long run, Skill India will also not be enough if government expenditures in education remain low and if, therefore, the ground isn’t prepared for proper training.Government allocation for school education has declined from 2.81% of the budget in 2013-14 to 2.05% in 2018-19 which is further alarming situation. Other than this, there is need of proper evaluation of training institutions, awareness generation among students at various levels, skill surveys can be conducted to find the exact skill requirements from the employers etc.


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