India has the potential to be the ‘skill capital of the world’ – Vice President
“India has the potential to emerge as the skill capital of the world, provided we succeed in equipping our working age population with marketable skills. “ Vice President M Hamid Ansari said this, while delivering the Convocation address at the North Maharashtra University in Jalgaon today.
Elaborating on his statement, the Vice President said “India is one of the few countries where the working age population will be far in excess of those dependent on them. According to the World Bank, this will continue for at least three decades till 2040. This would be a potential source of strength for our economy, if we take the right steps to harness this ‘demographic dividend.”
“If our GDP grows at an average rate of about 8% till 2022, it is expected that we will need a skilled workforce of 500 million people by 2022, with around 12 million people expected to join the workforce every year. For an economy to sustain this growth rate, it would be essential for the workforce to be exposed to acquiring newer skills either through higher/technical education or vocation skills or a combination of both” the Vice President added.
Quoting the 12th Plan document, Mr.Ansari, however lamented that our higher education institutions suffer from problems of quality’ and that ‘too many of our universities are producing graduates in subjects that are not required by the changing job market.’
Vice President informed that while there are 227 million children studying in schools, only, 15.3 million students enroll for higher education and vocational training. Out of this, the technically qualified and skilled workforce, combining the BEs, Diploma holders and ITI trained, make up a skilled talent pool of only 34. “This compares poorly with countries like China and USA, and the challenge before us is to enhance skill acquisition and technical education capacity from the present 3.4 million to at least 15 million per year.
Mr. Hamid Ansari also observed that out of the current workforce of about 45 crores in India, only about 8-9% are engaged in the organized sector, of whom only about 5% possess marketable skills, as compared to 50-60% in some of the developed countries. He said the the informal sector suffers from rampant under-employment, low productivity and even lower wages.
Vice President Ansari said skill development is a stupendous challenge, but at the same time offers great opportunity too. “For this to happen, the skill demand will have to be matched by adequate and quality supply through mainstreaming skill formation in the formal education system and at the same time introducing innovative approaches for the skill creation outside the formal education system” he added.
Quoting the Yashpal Committee Report on the Renovation and Rejuvenation of Higher Education, the Vice President called for mainstreaming of vocational education sector into the University curriculum “Alienation of this sector can be overcome by bringing it under the purview of universities and by providing necessary accreditation to the courses available in polytechnics, industrial training institutions, and so on. Additionally the barriers to entry into universities for students going through vocational training should be lowered to enable them to upgrade their knowledge base at any stage of their careers” he added.
Mr. Ansari said the Government is aware of the skill development challenge and has set out to address it in a holistic manner. He informed that the government has put in place a governance structure for implementation of skill development initiatives, as per the National Policy of Skill Development , formulated in 2009.
Vice President said, while the road map is ready, much more needs to be done, before we can declare success and added “Governments, corporate sector, civil society and NGOs will have to combine their efforts in a mission mode towards the attainment of this goal by 2022.”. Ends
PIB Mum/MD
How India can become the Skill capital of the World !
In the coming decades, the global stature of a country would depend not so much on military prowess as on the strength of its economy, its contribution to existing and emerging branches of science and technology, and its ability to respond to the imperatives of a globalizing world. Knowledge and skills would increasingly become the primary determinants of economic growth and social development.
In this context, skill development assumes great significance in determining the economic strength of a nation. According to ILO, “skill development is of key importance in stimulating a sustainable development process and can make a contribution in facilitating the transition from an informal economy to formal economy. It is also essential to address the opportunities and challenges to meet new demands of changing economies and new technologies in the context of globalization.”
The objective of skill development is to create a workforce empowered with the required and constantly upgraded skills, knowledge and internationally recognized certifications to gain access to quality employment within and outside the country.
India’s Demographic Dividend
India has the second largest working population in the world after China. It is one of the few countries where the working age population will be far in excess of those dependent on them. According to the World Bank, this will continue for at least three decades till 2040. This would be a potential source of strength for our economy, provided, we are able to equip and continuously upgrade the skills of our population in the working age group.
We have the potential to emerge as the skill capital of the world, as we have the world’s youngest work force with a median age way below that of China, North America and Western Europe. Thus, our ‘demographic dividend’ can be utilised not only to expand the production possibility frontiers but also to meet the skilled manpower requirements in India and the rest of the world.
As India moves progressively towards becoming a ‘knowledge economy’ it would be increasingly important to focus on advancement of skills. These skills have to be relevant to the emerging economic environment in order to achieve the twin targets of economic growth and inclusive development.
The skill development challenge
There is however, a disturbing side of the picture. Of the current workforce of about 450 million in India, only about 8 to 9 percent are engaged in the organised/formal sector and only about 5% of the workforce has marketable skills, as compared to 50% to 60% in other countries. The informal sector suffers from rampant under-employment, low productivity and even lower wages.
As the Indian economy continues to transform and mature, large scale sectoral shifts in the working population are inevitable, particularly from agriculture to manufacturing and services sectors. These sectors, however, require significantly different and often specialist skill sets, which require training and skill development. It is this skill gap that needs to be addressed through comprehensive efforts, at various levels and catering to different needs of the society and industry.
While there are 227 million children studying in schools, only, 15.3 million students enroll for higher education and vocational training. Out of this, the technically qualified and skilled workforce, combining the BEs, Diploma holders and ITI trained, make up a skilled talent pool of only 34. This compares poorly with countries like China and USA, and the challenge before us is to enhance skill acquisition and technical education capacity from the present 3.4 million to at least 15 million per year.
The Government is aware of the skill development challenge and has set out to address it in a holistic manner. It has put in place a governance structure for implementation of skill development initiatives, as per the National Policy of Skill Development , formulated in 2009.
The Prime Minister’s National Council on Skill Development has spelt out policy advice and direction in the form of “Core Principles” and has given a vision to create 500 million skilled people by 2022 .
Mainstreaming vocational education
However, much more need to be done before we can declare success. In this context, the education sector in the country has a special responsibility. The 12th Plan has noted that ‘our higher education institutions suffer from problems of quality’ and that ‘too many of our universities are producing graduates in subjects that are not required by the changing job market.’
There is a need to mainstream vocational education sector into the University curriculum, as suggested by the Yashpal Committee Report on the Renovation and Rejuvenation of Higher Education. Alienation of this sector can be overcome by bringing it under the purview of universities and by providing necessary accreditation to the courses available in polytechnics, industrial training institutions, and so on. Additionally the barriers to entry into universities for students going through vocational training should be lowered to enable them to upgrade their knowledge base at any stage of their careers.
Educational Institutions thus face a formidable challenge. They would need to address it purposefully by tailoring their offered courses to have a renewed focus on skill development, along with the regular curriculum. A university or an institute builds its reputation on good and innovative courses, quality teaching and research and a faculty that motivates. Its students need to understand the problems of society in their immediate environment and help in resolving them through their knowledge and expertise. After all, that is the hallmark of purposeful education.
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PIB Mum/MD
(PIB Mumbai Feature based on Convocation address by the Vice President of India, Mr.M Hamid Ansari, at the North Maharashtra University in Jalgaon, on Apirl 9, 2013. Courtesy : Vice President Sectt. New Delhi )
