overview of skills market in india dipankar chakraborty trade & investment adviser ukti - india
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Overview of Skills Market in India
Dipankar ChakrabortyTrade & Investment Adviser
UKTI - India
10/04/23 Overview of Skills Market in India 2
Indian Economy Overview
Skills Market Framework &
Overview
Opportunities
Successes
Challenges
How can UKTI assist?
What will I cover today?
Indian Economy Overview
India is among the largest economies in the world and is expected to grow faster than its peers in the coming decades
India has a population of more than 1.2 billion, and is among the world’s largest consumer markets. India’s GDP (USD 1.9 Trillion) is currently the 10th largest in the world, and is expected to become the 3rd largest economy by 2030, according to the IMF.
10/04/23 3Overview of Skills Market in India
Indian Economy Overview
10/04/23 4Overview of Skills Market in India
Indian Economy Overview
In recent years, India has emerged as a preferred destination for global FDI.
UNCTAD’s World Investment Report 2012 ranks India as the third most favoured destination for major global companies. A large market and a gradually improving business environment both play a role.
FDI inflows have risen from $ 6 billion in 2001-02 to around $ 33 billion in 2011-12.
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Market Overview
The Government has an ambitious target of skilling 500 mn by 2022
Currently the system has the capacity to train only 3 million youth against 12 million entering the labour force annually.
Currently, 90% of the jobs in India are skill-based, a sharp contradiction to the current figure of only 6% trained workforce in India.
Skills sector is expected to become an over $20bn market opportunity yearly (stated in Kotak Securities report 2011).
The Government aims to increase this training capacity to 15 mn/year by setting up new 1,500 ITI/ITCs and 50,000 skills development centres to be promoted in the PPP mode.
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Stakeholders
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Office of Adviser to PM on NCSD
National Skill Development Coordination Board
Government Initiatives•18 Central Ministries•State Ministries
Mandate to skill 350 million people by 2022
National Skill Development Corporation
Target of skilling/upskilling 150 million people by 2022by fostering private sector initiatives
Prime Minister’s National Council on Skill Development
NSDC is a PPP created by Ministry of Finance•51% stake by Private•49% stake by GOI
Initial funding of INR 1000 crore received from the GOI and parked with NSDF for use of NSDC; Current total funding of Rs 2500 crore
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National Council on Skills Development
The Prime Minister chairs this council which sets the policy direction of skills
development.
The main objective of the Council is to develop a strategy for skills development at
the National level.
Other members include Ministers for HRD, Labour, Finance, Industries, Rural
Development and Micro, Small and Medium Enterprises; Deputy Chairman
Planning Commission, Chairperson of National Manufacturing Competitiveness
Council, Chairperson of National Skill Development Corporation and 6 experts in
the area of skill development.
Mr Ramadorai (Tata Consultancy Services) is the Advisor to the PM in this Council.
Overview of Skills Market in India
NSDC
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Proactively catalyze creation of
large, quality vocational training
institutions
Proactively catalyze creation of
large, quality vocational training
institutions
CreateCreate
Reduce risk by providing patient
capital
Reduce risk by providing patient
capital
FundFund
Support systems required for skill
development•Sector skill councils•Quality Assurance•Information system•Train-the-trainer•Set Standards
Support systems required for skill
development•Sector skill councils•Quality Assurance•Information system•Train-the-trainer•Set Standards
EnableEnable
Create the vision and help define
the path
Create the vision and help define
the path
Demonstrate commitment to
the purpose
Demonstrate commitment to
the purpose
Create a viable ecosystem
Create a viable ecosystem
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Sector Skills Councils
National Skill Development Policy 2009 has mandated NSDC to constitute Sector
Skills Councils (SSCs) in India. The objective is to establish 28 Sector Skills
Councils.
SSCs are national partnership organisations that bring together all the stake
holders – industry, labour and the academia for the purpose of workforce
development for particular industry sectors.
SSCs will be autonomous bodies registered either as Section 25 companies or
public limited companies. The Government will provide the initial funding.
Subsequently SSCs will become self sustaining organisations.
NSDC has incorporated SSCs for Automotive, Security and Energy sectors. SSCs for
Retail, Media & Entertainment and IT/ITES have been approved by NSDC Board
and Healthcare, Foundry, BFSI and Electronics & Hardware are under
consideration. Overview of Skills Market in India
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Market Overview
Overview of Skills Market in India
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Opportunities
Capacity Building – For the government, to reach its
target of skilling 500 mn by 2022 it requires a rapid
growth in its skills delivery capacity from current 3
million to 50 million per annum.
Upgradation of ITIs – Ministry of Labour & Employment
is seeking private participation to upgrade 1,396 ITIs.
Sectoral Skills Council partnerships
Curriculum, assessment & certification
English Language Training
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Vocational Education framework is in
evolving stage
Lack of career path for school drop-outs &
Blue-collared workers. The current system
makes it almost impossible for a dropout to
have a career progression into a white collar
job, however skilled he may be.
Pricing
Involvement of various ministries leads to
lack of synergy and duplication of effort at
times.
Challenges
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Some UK Successes in India
Bournville College – Set up their South Asia hub in Kolkata. Working with private players
to upgrade ITIs and recently won a project form the Govt. of West Bengal to train 2000
underprivileged youth.
A4e and MoRD – Pilot to deliver sector specific, employment-oriented skills training to
9000 people
IndiaSkills – JV between City & Guilds and Manipal group to deliver skills training to 1
million learners
I-CAN – JV between Educomp and Pearson to deliver logistic skills training to 2000 people
IL&FS, India and Dudley College and Reid Kerr College, UK – Partnership to develop
an ‘excellence model’ for colleges in India focusing on curriculum and soft skill
development, staff development through ‘train the trainer’ programmes
Lingua phone and Birla Edutech – Master franchisee for English programmes in India
New College Nottingham and Batra Group – JV signed for setting up skills academy in
retail, hospitality, fashion and media for 500 students also delivering advanced English and
Teacher training qualifications.
AoC, UK has established a presence in India to identify opportunities for its member
Colleges
Indian SSC in discussion with their UK counterparts for sharing best practice (this includes
food processing, security and healthcare)
Overview of Skills Market in India
How can UKTI India Education team assist?
Overseas Market Introduction Scheme (OMIS) Service
Providing market information on
– Market size– Competition– Potential dealers & agents
Arranging meeting program with
potential customers, dealers, agents
Arranging events like launch reception, networking sessions, seminars, participation in trade shows, etc.
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For further information/queries, please
contact:
Mr. Dipankar Chakraborty
T: +91 9674447487Overview of Skills Market in India