Challenges for India's Skill Development in 2024

As India eagerly awaits the upcoming elections, the anticipation of a new government brings with it a sense of opportunity and renewal. At the forefront of the nation's agenda lies the imperative task of overcoming the challenges of unemployment. It's important to recognize that tackling this head-on will be instrumental in steering India's growth trajectory.

According to the National Sample Survey Organization Employment-Unemployment Survey (NSSO EUS) 2011-12, only 2.2% of the workforce in India had received formal Vocational Education and Training. As per the Periodic Labor Force Survey (PLFS) data, the percentage of formally vocationally trained individuals decreased from 2.2% (10.43 million) in 2011-12 to 2% (9.14 million) in 2017-18 but rose to 3.7% (21.05 million) in 2022-23. (The Wire)

A Brief History of Skill Development in India

India's economic transformation is a story of constant juggling. After independence, it swapped farms for factories. New industries boomed, but who'd run the machines? Enter the IITs, churning out engineers and and ITIs training technicians. Great, but were they enough?

The 1960s saw a service sector explosion, demanding a different skillset. The existing system, built for nuts and bolts, wasn't ready for the service industry's tremors. The 1961 Apprenticeship Act was the first attempt to adjust the approach.

By the 2000s, the script needed a major rewrite. Short-term service training became crucial. Modular Employable Skills (MES) arrived – a pick-and-mix approach to skilling. School dropouts and informal workers could now build their skillsets here.

But a problem emerged: the government couldn't do it alone. The private sector, with its ear to the industry ground, needed to be involved. In 2008, the National Skill Development Corporation (NSDC) was born. It brought together industry experts to create Sector Skill Councils.

Education wasn't left out. Community Colleges, inspired by the US model, aimed to bridge the gap between vocational training and traditional degrees. Now you could be a welder with a diploma, a plumber with a degree – a skilled professional with a well-rounded education, at least in theory.

The story continues. India's skill development focus has its sights set on the future – IT, healthcare, hospitality, the whole package. The goal? To empower every citizen to compete on the global stage, equipped with the skills to navigate a constantly changing world.

Only 2.7% of India’s workforce has received formal skill training, compared to 52% in the United States, 80% in Japan, and 96% in South Korea. (NSP 2015)

Challenges for 2024

The India Skills Report 2021 argues that nearly half of India’s graduates are unemployable. Open unemployment was barely 2.1% in 2012 and had already nearly tripled to 6.1% in 2018, the highest rate in 45 years of India’s labor force surveys. (The Wire)

Centralized Control vs. Regional Nuances

The current system heavily relies on the central government to execute skilling initiatives. While this approach ensures policy consistency, it risks overlooking the diverse needs of different states and regions. The lack of regional adaptability can hinder the effectiveness of the programs.

Bias Towards Large Corporations

The tendency to prioritize collaboration with large corporations can inadvertently neglect the vast majority of small and medium businesses. This skews resource allocation and attention, creating an uneven playing field. A more inclusive approach that fosters partnerships with MSMEs is crucial to achieve broader economic growth.

The Stigma of Skills

The perception of skill-based careers as a secondary option compared to traditional academic pursuits discourages young people from pursuing them. This social stigma limits the talent pool and hinders the overall success of skilling initiatives. Promoting the economic independence and diverse career opportunities associated with skilled professions is essential to address this challenge.

Unequal Access and Opportunity

Limited access to skill development programs, particularly in rural and marginalized areas, exacerbates economic disparities. Language barriers, lack of training facilities, and cultural norms can hinder access for these communities. This perpetuates inequalities and hinders inclusive growth. Additionally, low participation of women in these programs restricts India's economic potential and reinforces gender inequality.

Quality, Relevance, and Recognition of Skills

The quality and relevance of training programs vary significantly. This inconsistency can lead graduates to possess outdated or irrelevant skills, resulting in underemployment and frustration. Furthermore, the limited recognition of skill-based qualifications for higher education and a lack of global recognition of Indian certifications restrict career mobility and growth potential.

The Industry-Academia Disconnect

The absence of robust collaboration between industries and training providers results in a disconnect between the skills taught and the actual needs of the job market. Industries need to be actively involved in shaping curriculum and training methodologies to ensure graduates possess the in-demand skills for immediate employment.

Operational Inefficiencies

Several operational issues hinder the effectiveness of skilling initiatives. Weak monitoring and evaluation mechanisms allow ineffective programs to persist, leading to resource wastage. A lack of coordination between different skilling agencies creates redundancies and hinders a synergistic approach. Additionally, the overreliance on temporary training providers and the shortage of qualified trainers and assessors compromise the overall quality of skilling programs.

What's next?

The incoming government in 2024 inherits a complex skill development landscape. By effectively addressing these challenges – through a collaborative approach, fostering industry partnerships, and prioritizing regional needs – India can empower its workforce, bridge the skills gap, and propel economic growth in a dynamic global environment. The future of work is here, and equipping India's youth with the right tools is key to unlocking a future of prosperity and innovation.