India stands at a critical juncture in its economic journey, with immense potential for growth but facing a significant challenge in bridging skill gap. As the world’s fifth-largest economy, India’s vision for ‘Viksit Bharat’ by 2047 hinges on effectively skilling its youth to meet the demands of a rapidly evolving job market. The recent Union Budget 2024–25 has highlighted this priority, allocating substantial funds for education, employment, and skilling initiatives. However, the task ahead is daunting, with nearly 73% of workers aged 15–59 lacking any formal or informal vocational training.
To harness India’s demographic dividend and fuel economic growth, a multi-pronged approach is essential. This includes bolstering institutional support, strengthening industry-academia connections, and leveraging innovative financing solutions like impact bonds. As India navigates this crucial phase, the success of its skill development efforts will play a pivotal role in shaping the nation’s future and realizing its economic potential.
This editorial is based on “How skilling initiatives will drive the economy, bridge gender gap” which was published in Livemint on July 23, 2024. The article highlights India’s critical need to bridge the unemployment-employability gap to achieve ‘Viksit Bharat’ by 2047, emphasizing substantial investments in education, employment, and skilling initiatives as outlined in the Union Budget 2024-25.
Understanding India’s skilling challenges and initiatives is crucial for UPSC aspirants. It aligns with topics in GS Paper 2 (Human Resource, Government Policies) and GS Paper 3 (Skill Development, Growth & Development). Knowledge of these issues aids in answering questions on economic development, employment policies, and government interventions.
The topic is in the news due to the Union Budget 2024-25’s substantial allocation for skilling initiatives aimed at bridging skill gap of India. This issue is crucial for UPSC aspirants as it connects with previous questions on government policies, human resource development, and economic growth, emphasizing the importance of skill development for realizing ‘Viksit Bharat’ by 2047.
Identifying and prioritizing emerging sectors for skilling efforts is crucial to meeting future job demands and economic growth goals. These sectors promise significant employment opportunities and are pivotal to India’s sustainable development.
The renewable energy sector stands at the forefront of India’s sustainable development agenda, driven by the ambitious target of 500 GW capacity by 2030. It promises to create over 3.5 million jobs, demanding a workforce skilled in solar, wind, and energy storage technologies. This sector is vital for achieving India’s green energy goals and ensuring sustainable development.
India’s AI market, projected to reach USD 7.8 billion by 2025, is reshaping industries and creating new paradigms of work. This digital transformation necessitates a workforce adept in data analytics, algorithm development, and machine learning. The IndiaAI Mission is a commendable start, but the dynamic nature of AI demands continuous upskilling and reskilling.
The convergence of IoT and smart city initiatives is driving India towards a more connected, efficient future. With the IoT market set to reach USD 9.28 billion by 2025 and plans for 100 smart cities, the demand for skills in IoT programming, data security, and integrated urban planning is soaring. The Smart Cities Mission has catalyzed this growth, but there’s a pressing need for multidisciplinary skill development programs.
India’s ambitious goal of 30% electric vehicles by 2030 is set to revolutionize the automotive sector, potentially creating 10 million direct jobs. This transition demands an expert workforce in battery technology, charging infrastructure, and autonomous systems, crucial for achieving sustainable mobility and reducing carbon emissions.
India’s biotech industry, projected to reach USD 150 billion by 2025, stands at the cusp of a major breakthrough. The COVID-19 pandemic has underscored the critical need for a skilled workforce in genomics, bioinformatics, and vaccine development. While the Department of Biotechnology has launched collaborative programs with industry partners, the sector demands a more robust skill development ecosystem.
India’s space economy, set to touch USD 13 billion by 2025, is entering a new era with the opening up of the sector to private players. This expansion creates a demand for skills in satellite design, space debris management, and reusable space assets. The private sector’s involvement is crucial for the growth and diversification of space technology.
With India facing over 18 million cyber-attacks in Q1 2022 alone, the importance of cybersecurity cannot be overstated. Therefore, India urgently needs professionals skilled in ethical hacking, network security, and cyber forensics. Enhancing cybersecurity measures is critical to protecting national infrastructure and data integrity.
The India 3D printing market is anticipated to grow at a high CAGR of 20.3% from 2023 to 2030. It is set to revolutionize manufacturing processes across industries. This emerging field demands expertise in Computer-aided design (CAD) modeling, material science, and quality control for additive manufacturing, crucial for modernizing production techniques.
India’s commitment to quantum technologies, evidenced by the ₹8,000 crore allocation to the National Mission on Quantum Technologies and Applications, signals a major push into this cutting-edge field. The sector demands highly specialized skills in quantum algorithms, cryptography, and error correction, essential for maintaining a competitive edge in global technology.
| Political: The Indian government’s commitment to skilling is evident from its substantial budget allocations and initiatives like Skill India and the Pradhan Mantri Kaushal Vikas Yojana. Policy support, including the National Mission on Quantum Technologies and loan schemes, underscores the political will to enhance employability. Economic: Economic constraints include a massive informal sector and insufficient resources in MSMEs for formal training. Despite a focus on high-growth sectors like renewable energy and AI, the challenge remains to translate this into widespread economic uplift, especially with only 4.4% of young workers being formally skilled. Social: There’s a significant divide in skill demands between urban and rural areas, further complicated by internal migration. The rise of the gig economy also necessitates a shift in training approaches to cater to non-traditional employment structures. Technological: Rapid technological advances demand continuous learning and adaptability. Skills in emerging fields like IoT, cybersecurity, and quantum computing are crucial but require constant updating to remain relevant. Environmental: The push towards renewable energy and green technologies reflects an environmental focus. Developing ‘green skills’ for sectors like solar energy and sustainable mobility is crucial for both ecological sustainability and job creation. Legal: Legal frameworks supporting initiatives like the Model Skill Loan Scheme and revamped apprenticeship models provide structural support. However, more sophisticated assessment and recognition processes for prior learning are needed to fully leverage existing skill sets. |
Key government initiatives aim to enhance skill development in India, ensuring a skilled workforce to meet future demands and bridge the unemployment-employability gap.
The Skill India Mission aims to train over 40 crore people in various skills by 2022. It focuses on providing vocational training, improving skill development infrastructure, and increasing employability. This mission is pivotal for transforming India’s workforce and boosting economic growth.
The Pradhan Mantri Kaushal Vikas Yojana (PMKVY) focuses on providing short-term training programs and certification to boost employability. It aims to align the competencies of the unregulated workforce with the National Skill Qualification Framework. This initiative is critical for equipping India’s youth with relevant skills for the job market.
The SANKALP Scheme aims to strengthen the institutional mechanisms for skill development and increase access to quality and market-relevant training. It focuses on creating a conducive ecosystem for skill development and employment. This scheme is essential for enhancing the effectiveness of skilling initiatives in India.
The TEJAS Skilling Project aims to provide comprehensive training in emerging technologies and job-oriented skills. It focuses on creating a future-ready workforce capable of meeting industry demands. This project is crucial for bridging skills gap and boosting employability.
The Model Skill Loan Scheme has been revised to facilitate loans up to ₹7.5 lakh with government-backed guarantees, benefiting 25,000 students annually. This scheme aims to provide financial support for skill development, making it accessible to a broader population. It is vital to ensure that financial constraints do not hinder skill acquisition.
India’s skilling initiatives face several challenges in translating into improved employment outcomes, necessitating strategic interventions to address these issues.
India’s economy is characterized by a large informal sector and a predominance of micro, small, and medium enterprises (MSMEs). Many MSMEs lack the resources or incentives to invest in formal skill training, resulting in a low percentage of formally skilled workers. This constraint hampers the effectiveness of skilling programs and limits economic growth.
The India Skills Report 2024 revealed significant employability variations across states. Urban centers demand high-end tech skills, while rural areas need more basic and traditional skill sets. This disparity is not adequately addressed in current skilling models, complicating skill mapping and delivery.
The rapid pace of technological change, particularly in areas like AI, machine learning, and automation, is rendering many traditional skills obsolete faster than the education system can adapt. This creates a perpetual catch-up game in skill development, necessitating continuous learning and adaptability.
There’s a significant disconnect between the higher education system and vocational training. The lack of integration between academic degrees and vocational qualifications creates a dichotomy that devalues skill-based learning. This misalignment hinders the effectiveness of skilling efforts.
The rise of the gig economy and platform-based work is changing the nature of employment, requiring a different set of skills. Current skilling programs are largely oriented towards traditional employment models and fail to adequately prepare workers for this new paradigm.
The current funding models for skill development often prioritize short-term outputs over long-term outcomes. This creates perverse incentives that compromise the quality and relevance of training, limiting the effectiveness of skilling initiatives.
While RPL aims to recognize informal skills, its implementation faces challenges. The assessment processes are often not sophisticated enough to accurately capture and certify skills acquired through informal channels, leading to the undervaluation of existing skill sets.
To improve the effectiveness of skilling initiatives, India must adopt strategic measures that address existing challenges and future demands.
Implement a robust, real-time labor market information system that uses big data analytics to forecast skill demands. This system should collaborate with industry associations, utilize AI algorithms, and produce quarterly skill demand forecasts. Singapore’s SkillsFuture initiative can serve as a model for India.
Introduce a system of modular, stackable certifications that allow learners to build skills incrementally. This approach can increase participation by making skill acquisition more flexible and accessible, ensuring each module has an immediate market value.
Embed vocational courses in the school curriculum from the secondary level. Introduce vocational subjects as electives from 8th grade onwards and develop a credit transfer system between vocational and academic streams. Germany’s dual education system could serve as a model.
Establish sector-specific Skill Centers of Excellence in partnership with leading companies. These centers should focus on high-end, future-ready skills in emerging sectors, ensuring a skilled workforce for industry demands.
Launch a dedicated program to prepare workers for the gig economy. Develop courses on digital platforms, self-management, and financial literacy, and create a gig work registry to formalize and promote gig worker’s social security.
Overhaul the apprenticeship system to make it more attractive for both employers and apprentices. Offer tax incentives to companies based on the number and quality of apprenticeships, ensuring a robust apprenticeship ecosystem.
Integrate green skills across all relevant skill development programs. Develop a ‘green skills’ add-on module for each sector-specific course and create specialized courses for emerging green jobs, partnering with environmental organizations for curriculum development.
Transform Common Service Centers (CSCs) into Digital Seva Skill Hubs. Provide training in both traditional and modern skills relevant to rural economies and offer mentorship, microfinancing, and market linkage support.
Establish a comprehensive program to develop high-quality skill trainers. Implement mandatory industry internships, regular refresher courses, and performance-based incentives for trainers, ensuring high-quality training delivery.
Enhance MGNREGA by incorporating skill development components. Offer skill training as part of the 100 days of guaranteed employment, focusing on skills relevant to rural development and local industries, and provide additional incentives for acquiring new skills through this program
India’s journey towards ‘Viksit Bharat’ by 2047 is a formidable yet achievable goal, contingent upon our robust skilling initiatives. As civil services aspirants, understanding and contributing to this transformation is crucial. A multi-faceted approach, combining education, industry collaboration, and continuous learning, will bridge the unemployment-employability gap, ultimately shaping a prosperous and inclusive future for all.
| UPSC Civil Services Examination, Previous Year Questions (PYQs) Mains Q. Success of ‘Make in India’ programme depends on the success of ‘Skill India’ programme and radical labour reforms.” Discuss with logical arguments. (GS Paper II, 2015). Q. Examine the challenges faced by the ‘SANKALP Scheme’ in improving skilling infrastructure across India. Suggest innovative solutions to overcome these challenges and ensure effective implementation. |
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