India is actively engaging with international organisations to address skill gaps in the workforce. The Ministry of Labour and Employment recently held discussions with the International Labour Organisation (ILO), the Organisation for Economic Co-operation and Development (OECD), and Germany. This meeting took place during the first employment working group of G20 nations in South Africa.
Context of Skill Gap Mapping
The discussions centred on a feasibility study for mapping skill gaps across G20 nations. This initiative is particularly for India, given its large and youthful population. The aim is to enhance the employability of Indian workers in various sectors, including IT, green jobs, and care-related roles.
Financial Commitment and Timeline
India has committed to funding the feasibility study, which will cost approximately 810,000 Euros or Rs 7.24 crore. The draft report is expected to be submitted to G20 countries by June 2026. This timeline indicates a structured approach to addressing the urgent need for skill alignment.
International Collaboration
The initiative aligns with previous agreements made during the G20 meeting in India in 2023. These agreements seek to create an international framework for the mutual recognition of skills and qualifications. Secretary Sumita Dawra brought into light the importance of collaboration with international stakeholders for the success of this initiative.
Focus on Living Wages
In addition to skill mapping, India has also engaged with the Netherlands to discuss the Multidimensional Poverty Index (MPI) and its relationship with global poverty alleviation efforts. The discussions included the concept of ‘Living Wages’ aimed at improving living standards for workers.
Partnership with Germany
India’s bilateral discussions with Germany focused on enhancing cooperation in various sectors. This includes global supply chains, human-centric artificial intelligence, and the gig economy. The joint declaration of intent (JDI) signed in October 2024 serves as a foundation for these discussions.
Significance of the Initiative
The skill gap mapping initiative is crucial for India as it aims to meet the increasing global workforce demands over the next decade. It is expected to facilitate the international mobility of qualified Indian professionals. The initiative puts stress on India’s commitment to decent work and sustainable wage systems for its workforce.
Future Prospects
The outcome of these discussions may lead to innovative projects that promote an inclusive and equitable future of work. India’s proactive approach in collaborating with international partners signifies a strategic move towards enhancing its workforce capabilities.
Questions for UPSC:
- Examine the role of international organisations in addressing global skill gaps.
- Discuss the significance of the Multidimensional Poverty Index in global poverty alleviation efforts.
- Critically discuss the impact of artificial intelligence on job markets in the context of global supply chains.
- With suitable examples, discuss the importance of mutual recognition of skills and qualifications in international employment.
Answer Hints:
1. Examine the role of international organisations in addressing global skill gaps.
- International organisations like ILO and OECD facilitate collaboration among nations to identify and bridge skill gaps.
- They provide frameworks and guidelines for skill development tailored to the needs of various economies.
- These organisations conduct feasibility studies to assess skill requirements and gaps in different sectors.
- They promote knowledge sharing and best practices among member countries to enhance workforce capabilities.
- Funding and resources from these organisations support initiatives aimed at improving employability and skill alignment.
2. Discuss the significance of the Multidimensional Poverty Index in global poverty alleviation efforts.
- The Multidimensional Poverty Index (MPI) assesses poverty beyond income, considering education, health, and living standards.
- It provides a comprehensive understanding of poverty, enabling targeted interventions based on specific needs.
- MPI helps in tracking progress and measuring the effectiveness of poverty alleviation programs globally.
- Collaboration using MPI encourages shared responsibility among nations to address poverty collectively.
- By denoting various dimensions of poverty, MPI encourages sustainable development and better resource allocation.
3. Critically discuss the impact of artificial intelligence on job markets in the context of global supply chains.
- AI automates routine tasks, potentially displacing low-skilled jobs while creating demand for high-skilled roles.
- In global supply chains, AI enhances efficiency and productivity, leading to faster decision-making processes.
- The integration of AI can result in job transformation, requiring workers to adapt and upskill.
- AI’s impact varies by sector; industries like manufacturing may see changes compared to service sectors.
- Ethical considerations and workforce displacement issues necessitate policies to manage the transition effectively.
4. With suitable examples, discuss the importance of mutual recognition of skills and qualifications in international employment.
- Mutual recognition facilitates the mobility of skilled workers across borders, addressing labor shortages in various countries.
- For instance, the EU’s recognition of professional qualifications allows healthcare professionals to work in different member states.
- It simplifies the hiring process for employers, reducing barriers to entry for foreign professionals.
- Countries can benefit from diverse skill sets, enhancing innovation and competitiveness in the global market.
- Mutual recognition agreements also promote trust and collaboration between nations, encouraging economic growth.
