Rethinking India’s skilling outcomes | Explained

India, with its vast and youthful population, stands at a crucial juncture where harnessing its demographic dividend through effective skill development is paramount. However, as the article rightly points out, the nation's skilling outcomes are far from optimal, preventing vocational training from becoming a first-choice pathway for a majority of youth. This detailed analysis delves into the underlying issues, historical context, key stakeholders, and future implications of India's skilling landscape.

The journey of skill development in independent India has seen various phases. Initially, the focus was largely on higher education and white-collar jobs, with vocational training often perceived as a last resort for those unable to pursue academic streams. Industrial Training Institutes (ITIs) were established post-independence to provide basic technical skills, but their capacity and quality remained limited. The economic liberalization of 1991 highlighted the growing skill gap, as industries demanded a more competent workforce. Realizing the urgency, the government intensified efforts, leading to the establishment of the National Skill Development Corporation (NSDC) in 2008 as a Public Private Partnership (PPP) model to catalyze skill development. A more dedicated approach emerged with the creation of the Ministry of Skill Development and Entrepreneurship (MSDE) in 2014, signaling a concentrated policy push. This was followed by the launch of the National Skill Development Mission and the National Skill Development Policy in 2015, aiming to skill 400 million people by 2022.

Despite these policy initiatives and flagship schemes like the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), several critical challenges persist. Firstly, skilling is still not a preferred career path due to societal biases, lack of clear career progression pathways, and often lower remuneration compared to traditional degrees. This perception issue discourages many talented youth. Secondly, formal vocational training has a limited reach; a large segment of India's workforce acquires skills through informal channels, which often lack standardized quality and certification. Data from the National Sample Survey Office (NSSO) typically shows a low percentage of the workforce having formal vocational training. Thirdly, industry participation in public skilling programmes remains limited. This is a critical gap, as industry is the ultimate consumer of skilled labor. Reasons include a mismatch between the skills imparted by training providers and actual industry demands, outdated curriculum, and a lack of incentives for companies to invest in training or hire formally skilled individuals. Finally, the credibility of Sector Skill Councils (SSCs), established to define skill standards, develop curriculum, and certify trainees in specific sectors, has been questioned by employers. Issues such as inconsistent quality of assessment, lack of industry-relevant content, and sometimes a disconnect from ground realities erode employer trust in SSC-certified individuals.

Key stakeholders in this ecosystem include the Government (MSDE, NITI Aayog, Ministry of Education, state governments), which formulates policies and provides funding; the Industry (employers, industry associations like CII, FICCI), which dictates demand for skills and provides employment; Training Providers (ITIs, private vocational training centers), which impart skills; Sector Skill Councils (SSCs), which set standards; and the Youth/Trainees, who are the ultimate beneficiaries. Each plays a crucial role, and a breakdown in coordination or effectiveness of any stakeholder impacts the entire system.

For India, the effective resolution of these skilling challenges is profoundly significant. Economically, a skilled workforce is essential for enhancing productivity, attracting foreign investment, and realizing the 'Make in India' and 'Atmanirbhar Bharat' visions. It directly contributes to GDP growth and global competitiveness. Socially, skilling empowers youth, reduces unemployment, and fosters inclusive growth by providing opportunities to marginalized sections and women. Politically, it addresses youth aspirations and can mitigate social unrest stemming from joblessness. The failure to skill its vast youth population could transform India's demographic dividend into a demographic disaster, leading to widespread unemployment and social instability.

Constitutionally, while there isn't a single article solely dedicated to skill development, the spirit is captured in the Directive Principles of State Policy. Article 41 states that the State shall, within the limits of its economic capacity and development, make effective provision for securing the right to work, to education, and to public assistance in cases of unemployment. Article 43 mandates the State to endeavor to secure for all workers a living wage and conditions of work ensuring a decent standard of life. The subject of vocational and technical training for labour falls under Entry 20 of the Concurrent List in the Seventh Schedule, indicating shared responsibility between the Union and State governments. The Apprentices Act, 1961 (amended in 2014) is another crucial legislative framework promoting industry engagement in training.

Looking ahead, India needs a comprehensive rethinking of its skilling strategy. This includes making skilling demand-driven, with greater industry involvement in curriculum design and delivery. Strengthening apprenticeships, as envisioned under the Apprentices Act, is vital. Reforming SSCs to enhance their credibility, ensuring robust quality assurance, and linking skill training directly to employment opportunities are crucial. There is also a need to change societal perceptions through awareness campaigns and by demonstrating clear career progression paths and better earnings for skilled professionals. Focusing on future skills like Artificial Intelligence, data analytics, green jobs, and digital literacy will be imperative to prepare the workforce for the evolving global economy. Ultimately, integrating skilling with entrepreneurship development can create job creators rather than just job seekers.

In conclusion, India's skilling ecosystem faces deep-rooted structural and perceptual challenges. Addressing these requires a concerted, multi-stakeholder effort, policy reforms, and a fundamental shift in how vocational training is perceived and delivered. Success in this domain is not merely an economic imperative but a social and political necessity for India to realize its true potential on the global stage.