Skills Development for MSMEs: Mapping of Key Initiatives in India


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Skills Development for MSMEs: Mapping of Key Initiatives in India. Presented in the 2013 Asian Conference on Innovation and Policy, New Delhi, India, August 2013.

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Skills Development for MSMEs: Mapping of Key Initiatives in India

  1. 1. Skills Development for MSMEs: Mapping of Key Initiatives in IndiaIndia Anup Kumar Das Jawaharlal Nehru University, India ASIP2013
  2. 2. Driving Forces • India is enjoying a demographic dividend vis-à-vis ageing countries. • India will have one-fourth of global workforce by 2022. • Emerging economies in global south – enjoy globalization effect of job creation in export-oriented industries. • Government’s efforts in inclusive growth• Government’s efforts in inclusive growth • Current capacity for skill development in the country is 3.1 million (2007 estimate). • Target of skilling 500 million people by 2022 to meet the challenges of India @ 75 after independence. • Micro, Small and Medium Enterprises (MSMEs) lead in livelihoods development through jobs creation and access to skills-based employment.
  3. 3. • Jobs need skills, pull skills, and build skills • Privilege in access to jobs distorts the signals; it hurts and discourages, rather than encourages, the building of skills.
  4. 4. OECD-ILO Strategies for local job creation, skills development and social protection (a set of 10 principles and policy suggestions for governments and socio-economic actors) • Shaping the path to job-rich growth • Facilitating adjustments to greater trade integration and openness • Strengthening local institutions through policy coherence between national and local governments • Equipping public employment services with right tools to generate labour market intelligence • Maximizing skills development and training • Developing systems of social protection • Anticipating the impact of demographic changes in local development • Harnessing infrastructure development with local economic and employment strategies • Enabling a sustainable business environment focusing on micro, small and medium enterprises • Accelerating the transition to low-carbon economy and sustainable local development
  5. 5. Critical Assessment OECD, Skills Development Pathways in Asia, 2012, highlights • Measures to strengthen vocational training at the upper secondary level in India • Reducing Indian youths leaving school without adequate vocational qualifications • Smoothing the school-to-work transition.• Smoothing the school-to-work transition. • China has undertaken promising initiatives to combine rigorous academic course work with workplace training • Mexico is using mobile training units for reaching out youths those living in rural areas with limited opportunities for learning. Reducing drop out. • No comprehensive strategy for promoting skills for a green economy in India
  6. 6. National Skill Development Corporation (NSDC) • Filling gaps of National Vocational Training System • Identified high growth sectors and incremental skill gapsincremental skill gaps • Setting up of Sectoral Skill Councils, with industry bodies and associations • Skill development centres in PPP model • Creation of Labour Market Information Systems (LMIS)
  7. 7. National Skill Development Corporation (NSDC)
  8. 8. Aajeevika Skill Development Programme (ASDP) Target: Rural youth age group of 17-35 years from below poverty line (BPL) families.
  9. 9. International Linkages for Skills Development in India • World Bank-funded Vocational Training Improvement Project (VTIP), 2007-2014; PD objective: To improve the employment outcomes of graduates from the VTS, design and delivery of training more demand responsive. • GTZ (German Technical Cooperation)-funded Project “Advisory Services towards Restructuring and Expanding National Vocational Training System (NVTS) with Emphasis on Informal Sector”, 2004- 20072007 • European Commission-funded India-EU Skills Development Project, 2011-2016; the Project aims at supporting the implementation of India’s National Policy on Skills Development, National Qualifications Framework (NQF), and set-up of a Labour Market Information System (LMIS). – DGE&T, NCVT, NSDC >> << Cambridge Education, Aarhus Tech (DK), Scottish Qualifications Authority, City and Guilds (UK) • Bilateral MoUs signed with foreign governments – Indo-German, Indo-British, Indo-Swedish, Indo-Danish, Indo- Singapore etc.
  10. 10. Concluding remarks • Increasing capacity and quality of skills development and vocational education will improve productivity in micro enterprises, and SMEs • Skills certification and benchmarking through NSQF and NOS will help in participation of MSMEs in globalized jobs created in India • ASDP and its sub-schemes ensure skill building of rural youth,• ASDP and its sub-schemes ensure skill building of rural youth, their job-diversification, and help them in coming out of poverty through skills-based jobs • NSDC’s Sector Skill Councils and ASDP both will improve capability to reaching out skills required for informal and unorganized sectors and/or people in informal sectors • Who is more efficient in school-to-work smooth transition>> ASDP or NSDC or vocational stream at high school level
  11. 11. • Thank You