Skill development coming of age in India, Dilip Chenoy, CEO & Managing Director of the National Skill Development Corporation
As 2012 draws to a close, it is a good time to introspect on how far India has progressed on the skills issue.
Admittedly, a number of positive developments have taken place since the start of the year, the most significant of which is a greater realization among many key stakeholders about the key role that skills-related training could play in India being able to leverage its favorable demographics.
The leadership of the Prime Minister’s National Council for Skill Development is enabling coordination and cooperation efforts among stake holders. A national target of skilling 80 million has been set for the next five years.
A lot of effort has gone in to ensure that skilling initiatives – irrespective of whether the delivery was through the government or private mechanisms – became more outcome-focused, with the emphasis on jobs and employability. For example, partner institutions of the National Skill Development Corporation (NSDC), for instance, placed over 70 per cent of their students in decent, well-paying jobs following the completion of the training.
Capacity augmentation received a fillip with skilling centers opened across the length and breadth of the country, including in many remote and far-flung areas that had been largely left untouched in the past. Several Partners of NSDC embarked on the process of setting up large vocational training centers capable of skilling a million-plus people over a 10-year span. Special training programmes were introduced in Jammu & Kashmir and the North-East to ensure that the people living in these parts could obtain the skill sets that would empower them to participate in and contribute to India’s growth.
The Indian Banks’ Association – the nodal association for banks operating in the country – based on discussion with the Office of the Advisor to the Prime Minister’s Council, came up with a model vocational loan scheme to serve as the basis for member banks to introduce vocational loan products in order to ease financial access to skills training centers, particularly for those at the bottom of the pyramid. Many private organizations, including NSDC Partners, also came up with innovative financing schemes with employers, in some cases, promising to reimburse the training costs after the trainees completed a certain minimum period of service.
A pilot project of the National Vocational Education Qualifications Framework (NVEQF) – that would ensure a seamless migration from a vocational to a formal education framework – was formally launched in 40 schools in Haryana, with plans to replicate it in other states of India. Four Sector Skill Councils (SSCs) formed by the NSDC are involved with the NVEQF pilot.
For all these positives, though, many of the underlying challenges to the creation of a skills culture in India continue to remain unresolved. Skills still don’t command a premium in India. Deep-rooted misconceptions that skills-related training is only intended for those who could not make it in the formal system have affected enrolments at vocational education facilities with admissions in these centers continuing to be seen by many as a last resort.
Leadership to transform this now lies with the employers to promote the skills cause in their own set-up. Enterprises need to accelerate the practice of hiring skilled and certified employees at all levels and then create an attractive salary differential between skilled, semi-skilled and unskilled labor. Leadership is also needed to increase in-service skilling in the manufacturing sector which continues to be low.
The Government has introduced attractive fiscal benefits such as permitting a weighted deduction of 150% of expenses (not being expenditure in the nature of cost of any land or building) on expenditure incurred on skill development projects, and also exempting training partners of NSDC as well as some designated private sector skills training providers from service tax.
The Government has provided space for leadership and action by Industry. Industry has the unique opportunity to being the voice that would determine how trainings should be conducted, and the standards that should prevail, besides deciding how the assessments and certifications should happen. As part of the National Policy on Skill Development, 2009, industry can do all these things through setting up Sector Skill Councils.
Industry has to collaborate and lead the formation and operationalization of SSCs and moving fast on this. The SSCs approved by the NSDC need to accelerate the buy-in from among their own membership for the concept of devising National Occupational Standards (NOS) for the top job roles in their respective domains.
Stakeholders are looking to Industry leaders to start taking ownership of driving the Sector Skill Councils and the NOS exercise in their respective domains through greater involvement with the SSCs, as without the occupational standards, the accrediting system, and certification in place, skill development would be reduced to just another futile exercise. The more actively we can lead, collaborate and execute, the more chances there would be of India being able to realize its vision of skilling and up skilling 500 million people by 2022.
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