Transcript of "India’s Skilling Industry - In need of Synchrony "
IN NEED OF SYNCHRONY What started as an academic theory in 2007 – that India will need to skill 500 million (50 crores) people by 2022 – is today a reasonable target accepted by Government, policy makers and industry. Giving birth to one of the larger entrepreneurial opportunities of today – a (projected) USD 100 billion ‘Skilling Industry’ that is attempting to bridge a humungous skills gap. INDIA’S SKILLING INDUSTRY
Highlights <ul><li>India targets to skill 500 million people by 2022 </li></ul><ul><li>India’s existing skill development capacity is about 3.4 million, 70% of which falls in rural and tribal areas. </li></ul><ul><li>About 40 million children reach class 9th to 12th every year including the existing 56% dropout rate. </li></ul><ul><li>At present, only 15% of children aged 18-24 years get enrolled in college. </li></ul>
“ 36 projects have been approved by NSDC to skill 55 million people in the next 10 years.The total estimated turnover of the 30 projects (plus 6 are sector skill councils), is estimated to be Rs. 78,000 crores.” Dilip Chenoy, CEO and MD, NSDC Projections made by NSDC As projected by the Human Resources and Skill Requirement in Education & Skills Development Sectors in 2022 Report by NSDC, “the existing skill gaps in 20 high-growth sectors & the unorganized sector is slated to increase the demand for skilled people anywhere between 25% and 85% depending on the nature of the industry”.
Challenges to India’s skilling industry Education in India is viewed as a passport for class –upgradation “ Firstly, the present education system is only creating educated unemployment, & secondly, the problem lies in the acceptability of vocational courses.” - Sharad Talwar, CEO, IndiCan Education This scale and size has never been done before “ There are two issues: firstly, how do we mobilize this vast disparate segment and secondly, how do we monetize this opportunity by cracking an unique revenue model.” - Sanjeev Duggal, CEO and Executive Director, Centum Learning
Quality, cost and scale- the impossible trinity “ If you raise quality then you raise cost, but you need scale; if you raise scale, you have the danger of lowering quality while you lower cost. It is a type of linear programming between cost, quality and scale.” Manish Sabharwal , Chairman, TeamLease Services <ul><li>Attainment of quality, cost and scale equilibrium : </li></ul><ul><li>Raising equity </li></ul><ul><li>Adopting the franchise model </li></ul><ul><li>Specializing in a given area </li></ul><ul><li>Embedding solutions in the existing formal education system </li></ul>
Solving the impossible trinity of Quality, Cost and Scale
“ Success in skilling industry is impossible unless there is integration of skill development and the formal education system. Moreover, it demands a collective effort by varied government initiatives like MES (Modular Employable Skills), PPP (Public Private Partnership), National Vocational Qualification Framework and large and small scale private players.” Kapil Sibal, Union HRD Minister Expert comments
Expert comments “ The regulator should be the private industry” India will require 12-13 million job additions every year but this has not been possible because the industry does not recognize certification. The industry must mandate certification. Hari Menon , CEO, IndiaSkills The innovation of Human capital will play a central role in what I call “country competitiveness” , which will be the single defining factor for us to succeed as a global country or to fail. Vineet Nayar, Vice Chairman & CEO, HCL Technologies
Expert comments Until players in the skilling field look at the urban-non-poor as one sector and the rural-tribal-poor as another sector , they will not capitalize on the whole opportunity. Meera Shenoy, Executive Director, Centre for PWD Livelihoods and Wadhwani Foundation “ Value creation, empathy and a future outlook” The three critical success factors applicable in the industry are: ability to bring a unique value proposition; ability to empathize with the students; and the ability to look into the future as all industries live in the present . Uma Ganesh, CEO, Global Talent Track
Expert comments “ The industry is still fragmented & unstructured” There are three drivers determining how the industry will evolve: first is the quality of students. Secondly, a clear over-capacity in engineering and management institutes. Thirdly, there is some kind of legislative pressure. Amit Bhatia, Founder & CEO, Aspire India “ Getting a job is not enough” The biggest problem is that we do not have a sustainable model running the employability program. Only when the candidate succeeds can they create a pipeline for others to come in. T. Muralidharan, Chairman, TMI Group
Expert comments “ There is a need to address the technical skill gap” When talking about skill development, India requires to focus on both engineering skills and soft skills. There are not sufficient companies which have taken charge of addressing the technical skill gap. Mukesh Sharma, CEO, CRISP “ Huge growth and challenges ahead” As identified by NSDC, the extent of informal employment is estimated to be about 92% between 2008 & 2012. This indicates the importance of the informal sector and the need for skill building therein. Santosh Choubey, Chairman & Managing Director, AISECT
Expert comments “ Industry should take charge of talent as part of their own supply chain.” If you look at the demographics of the world, one finds that the countries that are richest in terms of GDP per capita actually have a shortage of human capital. Arun Maira, Member, Planning Commission, Govt. of India “ Industry should recognize skill development & certification.” The growth and future of the skilling industry actually depends on how the industry takes to ensure it and recognize certification. There are many players in the industry doing a lot of innovative things, and I think it should be left like that. Sougata Roy Choudhury, Director - Skills & Affirmative Action, CII
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