The document discusses the large skills gap in India and challenges in developing skills. It notes that while India has a large young population, only 5% receive formal skills training, and only 10-25% of graduates are employable. There is a mismatch between the skills taught and industry needs. It proposes integrating skills development into the education system, making industry internships mandatory, and using innovative models like online learning to help skill millions in India. The Wadhwani Foundation aims to place millions in jobs through entrepreneurship support and skills training programs that leverage technology.

1. Skill to Employment
Sep 27, 2014

2. Wadhwani Foundation Vision and Mission
Accelerating economic development in emerging economies
Creating Jobs for Millions
Pakistan, Indonesia,
Malaysia
India
USA
We achieve high quality, large scale impact
by creating opportunity networks and leveraging technology as
lynchpins of all our Initiatives

3. ABOUT ROMESH WADHWANI
Romesh Wadhwani
• Successful Silicon Valley Entrepreneur
• Forbes list of US richest 400
• Pledged to give away majority of his wealth
• Driven to catalyze strategic, large scale, high-impact
social change

4. WF Initiatives and 5 Year Goals:
Enable large scale job creation through entrepreneurship
We inspire, educate, and support first generation entrepreneurs to create
millions of jobs
Create half a million high-value jobs
Accelerate employability through skill development
We revolutionize skill development through use of technology to create
millions of highly-skilled knowledge workers, globally
Skill and place 5MM in sustainable high-quality jobs
Empower the educated disabled
We mainstream the educated disabled into corporate jobs
Place 100,000 into mainstream corporate jobs
Promote world class research and innovation
We propel India towards leadership in innovation by enabling world-class
research and industry creation
Facilitate and enable world class research at several prestigious
Institutes in high-impact areas
Impact policies to accelerate India’s & India/US economic activity
We impact India’s economic growth and strengthen the India-US
relationship through a shared vision and a policy framework for economic
acceleration
Facilitate policy frameworks and actionable high impact policies in
India and across India/US to further economic cooperation.

5. Looming Skills Challenge
 60% of India’s population within
working age of 15-59 years
 Nearly 95% of youth (15-25 years)
formally learn a trade in most developed
economies vs. only 5% in India
 ~5M drop outs from higher secondary
to higher education
 ~12M youths join the workforce
annually
 10-25% graduates employable
 Govt. has identified the need to skill
500M people in 10 years
 48% of employers claim they have
difficulty filling open positions
• 53% of these employers see lack of skills at
entry level
Source: NSDC, Census 2011, McKinsey Education to employment report

6. What is the real picture?
The Skills Paradox….
• Large parts of industry unwilling to differentiate salaries for skills
• Temptation to keep costs low, given supply…. and not investing in
training
• Productivity from skills training not proven or too patchy
• Lack of respect and understanding of skills as a career builder
• Lack of trust in Pvt. Sector jobs… Remain unfulfilled, with limited
people to train while crowds line-up for Bank/Railways/Police jobs
• Mis-match of youth aspirations and employer needs
Value of skills not recognized… not realised

7. Potential Vs. Aspirations
H
i
g
h
TN, Haryana,
Maharashtra,
WB, UP
Gujarat,
Karnataka
L
o
w
IT / ITES
Low High
Youth Aspiration
P
o
t
e
n
t
i
a
l
H
i
g
h
TN, Haryana
WB
L
o
w
Automobile
UP
Gujarat,
Maharashtra
Low High
Youth Aspiration
P
o
t
e
n
t
i
a
l
H
i
g
h
BFSI
UP, Haryana,
Maharashtra
TN, Gujarat
WB
L
o
w
Low High
Youth Aspiration
P
o
t
e
n
t
i
a
l
H
i
g
h
TN, Haryana,
Gujarat, WB,
Maharashtra, UP
Karnataka
L
o
w
Construction
Low High
Youth Aspiration
P
o
t
e
n
t
i
a
l
Source: Skill Gap Studies of NSDC 2013-14

8. Potential Vs. Aspirations
H
i
g
h
Haryana,
Gujarat, WB
Food Processing
UP
L
o
w
Maharashtra,
Karnataka
Low High
P
o
t
e
n
t
i
a
l
Youth Aspiration
H
i
g
h
Healthcare
Haryana, UP WB
TN,
Maharashtra,
Karnataka
L
o
w
Gujarat
Low High
P
o
t
e
n
t
i
a
l
Youth Aspiration
H
i
g
h
WB
Haryana,
Gujarat
TN,
Maharashtra
UP, Karnataka
L
o
w
Low High
Youth Aspiration
P
o
t
e
n
t
i
a
l
Retail
H
i
g
h
Haryana, Gujarat,
WB, Karnataka
Maharashtra, UP
L
o
w
TN
Agriculture
Low High
P
o
t
e
n
t
i
a
l
Youth Aspiration
Mismatch in Youth aspirations… and industry requirements

9. Constraints in Delivery
…. And on-ground challenges
• Many fragmented trainers of uneven quality
• Risks of migration – cultural barriers, food/accommodation, health
(C) Wadhwani Foundation 2014
support, social basket
• Model highly dependent on trainers ….. absence of high quality
trainers
• Very informal job market, driven by local knowledge – Insufficient
connect with jobs/placements in colleges and rural/semi-urban
areas
• Formal education system largely disconnected from industry and
skills…
Demographic trends will exacerbate the issues…

10. Educators, employers, youth in parallel
universe
Educators believe 80% students are adequately prepared… while
employers and students claim <50% are prepared
• Outdated curriculum and content
Carbureotrs Vs. Mechatronix in Auto
• Too much training for simple jobs
US GAAP for Payables procesing
• Lack of knowledge and awareness on jobs and careers
Youth looking for “Office Jobs”
• Educators success based on marks vs. placements
No tracking of data on alumni, jobs
• College education (Tier 2-3) woefully inadequate (6% - 10%
(C) Wadhwani Foundation 2014
employable)
Lack of mentors, work experience
Need for Intensive, frequent collaborations between stakeholders

11. Skilling a continuum… not a one-time activity
Integrate, adapt best practices and successful models from with
formal and industry programs
• Youth awareness built early during education
Credits in schools for vocation streams, NSQF model
• Skill development integrated in higher education system
Community college, B.Voc., KUSHAL, Integrated in BA/BSc/Bcom
• Industry internships/apprenticeships mandatory
German Dual education system and learning model
• Industry endorsed assessments and certifications mapped to career
(C) Wadhwani Foundation 2014
paths and growth
• Establishment of dynamic Labour Market Information System
Vocational integrated with formal education critical

12. Innovative, scalable models for impact
Khan academy reaches 10mn students per month and 300mn
lessons delivered
• Incentivize Industry to invest in Skills Development
Skilling subsidies for Small, Medium and Large Enterprises
• Move beyond Trainer dependent pedagogies
Facilitator-led, Khan-Academy / Wadhwani Foundation “Flipped-classroom”
• Technology driven learning delivery
Synchronous learning, hybrid online/offline content, simulations
• Strong and vibrant local connects between Institutions and
Employers
Critical to incentivise new models… doing more of the same will
not yield (C) Wadhwani different Foundation 2014
results!

13. Thank You
ajay.goel@Wadhwani-foundation.org