In this document you can see the problem in Skill Ecosystem in India

1. 1. Insufficient Training Capacity: The training was not sufficient to ensure a job for those
who got the training, as the candidate who get certified in Short Term Courses under
Skill Development schemes, is not considered in any Company or Public sector for job-
and this is why the employability rate remains very low.
2. Lack of entrepreneurship skills: While the Government expected that some of the
PMKVY/KPKVN- trainees would create their own enterprise, only 5-10% of the trainees
started their business and out of them, only 1-2% candidates applied for MUDRA loans.
3. Low industry interface and high living Cost: Most of the institutes have low industry
interface, as in HP industry areas is in 2-3 districts only-as a result of which the
performance of the skill development sector is poor in terms of placement records and
salaries offered. Generally, the industries paid the salaries between the range 8-10K for
ITI holder, and the candidates are not afford to stay away from home in this salary.
4. Low student mobilization: The enrolment in skill institutes like ITOs, and Polytechnics,
remain low as compared to their enrolment capacity. This is due to low awareness level
among youths about the skill development programmes.
5. Employers’ unwillingness: HP’s joblessness issue is not only a skills problem, it is
representative of the lack of appetite of industrialists and SMEs for recruiting. Due to
limited access to credit because of Bank’s NPAs, investment rate has declined and thus a
negative impact on Job creation.