Re-en­gi­neer skill ecosys­tem to train 21st cen­tury-ready work­force: FICCI-KPMG White Pa­per

FICCI Business Digest - - Special Feature -

A bright spot in to­day's oth­er­wise sub­dued global econ­omy, In­dia sym­bol­ises a re­mark­able growth story for the world. 'Skill In­dia' is one of Prime Min­is­ter Naren­dra Modi's flag­ship ini­tia­tives aimed at sus­tain­ing this growth story and make In­dia the world eco­nomic leader.

A FICCI-KPMG white pa­per ti­tled 'Re-en­gi­neer­ing the skill ecosys­tem' traces the In­dian growth story by track­ing the In­dian Gross Do­mes­tic Prod­uct (GDP) and Gross State Do­mes­tic Prod­uct (GSDP) of the states along with the evo­lu­tion of In­dian work­force over the years.

Mo­han­das Pai, Chair­man, FICCI Skill Devel­op­ment Com­mit­tee and Chair­man Ma­ni­pal Global Ed­u­ca­tion, elab­o­rates, “This pa­per ex­plores com­plex­ity and di­ver­sity of our coun­try in terms of eco­nomic devel­op­ment, de­mog­ra­phy, ge­og­ra­phy, in­ter­nal & in­ter­na­tional mi­gra­tion, un­avail­abil­ity of rel­e­vant data etc. There is an ur­gent need to eval­u­ate our cur­rent sce­nario, look at fu­ture pro­jec­tions and reengi­neer the skill ecosys­tem ac­cord­ingly.”

As per the cur­rent fore­cast by the Min­istry of Skill Devel­op­ment and En­trepreneur­ship (MSDE), there would be an in­cre­men­tal re­quire­ment of skilling 110 mil­lion ad­di­tional work­ers by 2022 and to achieve this and reskill the ex­ist­ing work­force the min­istry has em­barked on a her­culean task of skilling 400 mil­lion work­force by 2022. Pai adds, “The pa­per says that in the com­ing years, ser­vices and man­u­fac­tur­ing are likely to cre­ate em­ploy­ment op­por­tu­ni­ties. How­ever, to reach full po­ten­tial, In­dia needs to grav­i­tate to­wards a for­mal sys­tem. Cur­rently, only 4.69% of the In­dian pop­u­la­tion has un­der­gone for­mal skill train­ing. There are two im­por­tant trends vis-à-vis the In­dian work­force that re­quires at­ten­tion and ac­tion. First, the scope of job cre­ation in for­mal em­ploy­ment op­por­tu­ni­ties and se­condly, the im­pli­ca­tions of In­dus­try 4.0 on fu­ture jobs.”

The big­gest prob­lem be­fore Skill In­dia is the ac­cu­racy and re­li­a­bil­ity of data. The mul­ti­plic­ity of sources must be brought to­gether if a co­her­ent and com­pre­hen­sive la­bor mar­ket in­for­ma­tion sys­tem is to be es­tab­lished, and this calls for a com­mon in­for­ma­tion sys­tem as an

es­sen­tial com­po­nent of the LMIS. EPFO, ESIC and other of­fi­cial sta­tis­tics on govern­ment em­ploy­ees pro­vide crit­i­cal data on for­mal em­ploy­ment to iden­tify in­dus­tries to be pri­ori­tised for skill devel­op­ment. Skill gap stud­ies for these grow­ing sec­tors can pro­vide ad­di­tional in­for­ma­tion re­gard­ing skilling needs at an aggregate level.

The pa­per also high­lights the phe­nom­e­non of em­ploy­ment clus­ters. States such as Ma­ha­rash­tra, Tamil Nadu, Kar­nataka, Andhra Pradesh and Delhi to­gether pro­vided em­ploy­ment to 57 per cent of the na­tion's for­mal work­force in 201415. This fact clearly in­di­cates the high con­cen­tra­tion of for­mal em­ploy­ment in some states. Skill devel­op­ment in these states should be based on the in­dus­tries

The bright side to the chal­lenge of skill devel­op­ment is that the govern­ment rec­og­nizes In­dia's favourable demographic div­i­dend and is shoul­der­ing the re­spon­si­bil­ity of pro­vid­ing em­ploy­ment to mil­lions of youth in a big way.

clus­ter present in­dus­tries should be in­cen­tivised to set es­tab­lish­ments in labour in­cen­tive states to ar­rest in­ter­nal mi­gra­tion and skill devel­op­ment in these states be planned ac­cord­ingly.

Narayanan Ra­maswamy, Part­ner and Head, Ed­u­ca­tion and Skill Devel­op­ment, KPMG in In­dia, says, “The bright side to the chal­lenge of skill devel­op­ment is that the govern­ment rec­og­nizes In­dia's favourable demographic div­i­dend and is shoul­der­ing the re­spon­si­bil­ity of pro­vid­ing em­ploy­ment to the mil­lions of youth in a big way. How­ever, noth­ing short of a rev­o­lu­tion is re­quired in skilling and vocational ed­u­ca­tion space, which in my view has as­sumed crit­i­cal propo­si­tion and might well de­ter­mine the fu­ture growth of this coun­try.”

The white pa­per touches upon strate­gic changes to re-en­gi­neer the ecosys­tem that can fa­cil­i­tate the trans­for­ma­tion: 1. Pol­icy-level ac­tions: De­vel­op­ing skill devel­op­ment plans based on state level anal­y­sis of the ma­jor in­dus­tries driv­ing eco­nomic growth and ris­ing for­mal em­ploy­ment op­por­tu­ni­ties by state and cen­tral gov­ern­ments is es­sen­tial. With fu­ture growth com­ing from for­mal em­ploy­ment, an in­ten­sive Recog­ni­tion of Prior learn­ing ex­er­cise to cer­tify avail­able skills as per the Na­tional Skills Qual­i­fi­ca­tion Frame­work level also be­comes vi­tal. 2. Qual­ity en­hance­ment ac­tions: An ac­tive role of in­dus­try is key to im­prove as­pi­ra­tional value of skill train­ing pro­grammes in In­dia. Up­grad­ing ex­ist­ing skillsets of teach­ers also needs to be for­mally un­der­taken. Spe­cial in­cen­tive can be pro­vided to the in­dus­try by the Govern­ment in or­der to in­vest their 2% CSR funds to­wards skilling ini­tia­tive in or­der to en­sure ad­e­quate cap­i­tal­iza­tion.

Other sys­tem­atic im­prove­ments: Im­prov­ing the Work­ing Pop­u­la­tion Ratio of fe­males through wom­en­cen­tric com­po­nent in Skill State Plans and an­nu­ally mon­i­tor­ing and recog­nis­ing high per­form­ing states could be a pos­i­tive step in this di­rec­tion. Estab­lish­ing and grow­ing more skill uni­ver­si­ties is also one of the key sug­ges­tions.

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