The Ministry of Skill Development and Entrepreneurship has mandated all government departments to certify the skills of workers executing government contracts. In the fiscal year 2021-22, up to 10% of the workforce would be certified, with a target to increase this figure to 100% by 2026-27.
Need for the Initiative
As per the Periodic Labour Force Survey of 2018-19, only 2.4% of India’s workforce is officially trained. Hence, there’s an urgent need to formally skill the workforce. Moreover, the government contractors prefer hiring informal workers with low wages, creating a situation where skilled manpower is not being utilised efficiently. The National Council for Vocational Education and Training aims to change this labor market structure by standardizing skill certification systems for more than 4000 job roles.
Benefits of the Move
This initiative will encourage workforce skilling, increase the demand for skilled labour from industry, and provide better wages for skilled workers. It will also promote the culture of certified skilling among young people and enhance productivity and quality in government contract works.
Challenges Encountered
Despite the positive outlook, the plan faces several challenges such as insufficient job-linked training, low industry interface in training institutes resulting in poor placements and salaries, and low student enrollment due to lack of awareness about skill development programs. Another significant issue is the reluctance of employers to hire due to limited credit access and high Non-Performing Assets (NPAs) of banks.
Schemes for Skill Development
Several schemes have been introduced to boost skill development. The Industrial Training Centres (ITIs) were conceptualized in 1950 to expand and modernize long-term training. Similarly, the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) was launched to offer free skill training to Indian youths. Other schemes like Recognition of Prior Learning, National Career Service Project, and Skill Management and Accreditation of Training Centres (SMART) also contribute to skill development.
The more recent initiatives include Pradhan Mantri Kaushal Vikas Yojana 3.0, Skills Acquisition and Knowledge Awareness for Livelihood (SANKALP), Skills Strengthening for Industrial Value Enhancement (STRIVE) and Atma Nirbhar Skilled Employee Employer Mapping (ASEEM). These initiatives aim at empowering India’s youth with employable skills and aiding in their placement.
Conclusion
While strides have been made in promoting skill development in India, there are still many challenges to overcome. Nonetheless, through continuous efforts and progressive government initiatives, the goal of a skilled workforce can be realised, leading to an overall improvement in productivity, quality of work, and wage levels. This shift towards a predominantly skilled workforce is vital in advancing India’s economic growth and development.
