The document discusses India's growing economy and workforce, and the need to provide vocational skills training to more of the population. It notes that currently only 2% of the workforce receives such training. IL&FS proposes a demand-driven, multi-stakeholder approach to skills development that establishes partnerships between government, industry, communities and training providers. Their methodology focuses on quality, practical skills aligned with industry needs, short courses to improve accessibility, and guaranteed jobs upon completion.
Market Research Report : Vocational Training Market in India 2012Netscribes, Inc.
For the complete report, get in touch with us at : info@netscribes.com
Vocational training market in India was valued at INR 90 bn in 2011 and is slated to grow at a CAGR of 23%. Government has set a target of preparing 500 mn skilled workers by 2022, as around 75-80 mn jobs will be created over the next 5 years and 75% of them will require vocational training. The market is poised for strong growth over the next few years owing to favourable government support.
The report begins with an introduction to the education market in India and its various sub-segments. Indian education system largely consists of formal and informal sectors, with the formal sector accounting for the major share. A macro overview of the Indian education system is also included, which throws light on some of the key indicators such as literacy rate in India, demographic split in education, budget allocation for education and five year plan outlay for education. This section also includes the vocational training policy framework present in India.
The market overview section gives an insight into the overall education market in India along with the vocational training market, their market size and growth. This is followed by the key segments and applications of vocational training. In India, it is present in both formal and informal sectors and has wide applications in areas such as IT, BFSI, retail, aviation and others. The education and vocational training structure in India is also provided. Additionally, an analysis of Porter’s Five Forces provides an insight into the competitive intensity and attractiveness of the market.
An analysis of the drivers and challenges explains the factors leading to the growth of the market including huge demand for skilled workers, low vocational training penetration, increasing government expenditure, growth in service sector and inefficiency in formal education system. The key challenges identified are low quality of inputs and lack of finance.
The government participation in this sector has also been highlighted in the report, and includes government bodies, government initiatives and associated bodies. Ministry of Human Resource Development and Directorate General of Employment & Training are the two key government bodies in this sector. Government initiatives largely comprise of National Policy on Skill Development, Skill Development Initiative Scheme, Craftsmen Training Scheme, National Vocational Qualification Framework and National Vocational Educational Qualification Framework. Industry associations impacting vocational training segment constitutes of FICCI, CII and ASSOCHAM. Foreign collaborations in this sector include countries like UK, Canada, Germany, Switzerland and Australia. International bodies like International Labour Organization, World Bank and European Union, also contribute to the vocational education and training segment in India.
Market Research Report : Vocational Training Market in India 2012Netscribes, Inc.
For the complete report, get in touch with us at : info@netscribes.com
Vocational training market in India was valued at INR 90 bn in 2011 and is slated to grow at a CAGR of 23%. Government has set a target of preparing 500 mn skilled workers by 2022, as around 75-80 mn jobs will be created over the next 5 years and 75% of them will require vocational training. The market is poised for strong growth over the next few years owing to favourable government support.
The report begins with an introduction to the education market in India and its various sub-segments. Indian education system largely consists of formal and informal sectors, with the formal sector accounting for the major share. A macro overview of the Indian education system is also included, which throws light on some of the key indicators such as literacy rate in India, demographic split in education, budget allocation for education and five year plan outlay for education. This section also includes the vocational training policy framework present in India.
The market overview section gives an insight into the overall education market in India along with the vocational training market, their market size and growth. This is followed by the key segments and applications of vocational training. In India, it is present in both formal and informal sectors and has wide applications in areas such as IT, BFSI, retail, aviation and others. The education and vocational training structure in India is also provided. Additionally, an analysis of Porter’s Five Forces provides an insight into the competitive intensity and attractiveness of the market.
An analysis of the drivers and challenges explains the factors leading to the growth of the market including huge demand for skilled workers, low vocational training penetration, increasing government expenditure, growth in service sector and inefficiency in formal education system. The key challenges identified are low quality of inputs and lack of finance.
The government participation in this sector has also been highlighted in the report, and includes government bodies, government initiatives and associated bodies. Ministry of Human Resource Development and Directorate General of Employment & Training are the two key government bodies in this sector. Government initiatives largely comprise of National Policy on Skill Development, Skill Development Initiative Scheme, Craftsmen Training Scheme, National Vocational Qualification Framework and National Vocational Educational Qualification Framework. Industry associations impacting vocational training segment constitutes of FICCI, CII and ASSOCHAM. Foreign collaborations in this sector include countries like UK, Canada, Germany, Switzerland and Australia. International bodies like International Labour Organization, World Bank and European Union, also contribute to the vocational education and training segment in India.
Excerpts of the "Manufacturing In America" report by the U.S. Department of Commerce.
"... Strengthening Education, Retraining, and Economic Diversification Manufacturing"
karROX Technologies - A Global IT Training Organization - Corporate Overviewkarrox
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Excerpts of the "Manufacturing In America" report by the U.S. Department of Commerce.
"... Strengthening Education, Retraining, and Economic Diversification Manufacturing"
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It has been expanding its services for different industries like IT, BPO and Mobile Telephony.
It has successfully incorporated the franchising model and is now expanding globally by looking for budding entrepreneurs interested in the educational sector.
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3. Macroeconomic Context
Growth Rate (NNP at Factor Cost)
12
10 9.7
9.6 9.4
8.7
8
7.2
6 5.8
4
3.6
2
0
Services and Manufacturing sector to
expand – increasing share of the
-India on Growth Path economy
- Even in downturn the growth Agriculture to grow at negative rate
projected at 7%
HOWEVER, POVERTY STILL PREVAILS – As per World Bank statistics, India’s
poor are at 400 million
26-Sep-11 3
4. By 2026, majority of Indian population will be in younger
age bracket, but at present only 2% of them are
vocationally trained
However, they cannot be
classified as Employable
because:
- School Drop out ratio is very high
- Only 2% of the labour force aged
15-35 have received any
vocational training
- 67% of the labour force are either
illiterate or primary school level
educated
- 69% of unemployed are educated
but without professional training
or skills
- 36 % of the population in 2011 would be
people in age group of 15-34 years - Challenge is to ensure that this
Demographic Dividend does not
- These represent YOUTH entering workforce become Demographic Liability
26-Sep-11 4
5. Lower vocational trained population is primarily due
to supply driven approach
• Supply driven
• Mismatch between skills requirement of the industry and training in the
institutions
• Caters mainly to traditional manufacturing sector (only 10% of the total
workforce)
• Not catering to sunrise industries and services sectors
• Poor infrastructure / Lack of sufficient raw material, consumables
• Lack of motivated & well qualified trainers.
• Entry barriers for school drop-outs
• Long-duration courses increases opportunity cost of training for the beneficiary
• India has 5,000 industrial training institutes and 7,000 vocational schools, while
PRC has about 500,000 vocational schools.
26-Sep-11 5
6. Market-relevant skill development programs -the
keys to break the poverty cycle
Improved, st
able
Organized standard of
sector living
employment
and social
Market- relevant security
Skill
No Development
education Courses designed to meet the specific needs of the
/school industry, across sectors
drop out
Poverty Employment linkages with organized sector
Short-duration courses to improve accessibility to
trainees
No artificial educational requirement barriers
Formal certification
Employment in organised sector forms the basis for
financial inclusion and access to social security
26-Sep-11 6
8. 26-Sep-11
OPTIMUM UTILIZATION OF EXISTING
TRAINING INFRASTRUCTURE
UNRELENTING FOCUS ON QUALITY
(IN DESIGN, CONTENT, DELIVERY &
STANDARDS)
(Govt., Industry, Experts)
Strategic Framework
INNOVATIVE USE OF TECHNOLOGY
DEMAND LED TRAINING APPROACH
MULTI-STAKEHOLDER PARTNERSHIPS
8
9. Components of Approach
How………..
• Establish Multi-Stakeholder Partnerships
– Linkage with business development services and network with market players
– Integrate with employment generation /livelihood strategies of GoI
– Creating and operationalising platforms for linkages (informal-formal, industry, civil
society, local government)
• Blend with the Institutional structure – Dovetail with schemes / policies
(DIPP, MORD, MoLE)
• Create institutional Capacities (Trained Trainers)
• Scalability
• Quality (Design, content, delivery, standards)
• Accountability & Transparency
• Transformational Impact
26-Sep-11 9
10. Multi-stakeholder partnership to pool in core
strengths and ensure “buy-in”
Community Industry /Employer
Training
Government Technical Partners
& Certifying Agency
IMPLEMENT MANAGEMENT AND SUPPORT AGENCY
26-Sep-11 10
11. Variety of Clients /Mandates
Central govt. Mandates
State mandates
Training & Livelihoods for PAP
Skill Schools
CSR
Livelihood projects
(Tripura, Narsapur, Mewar, Bihar handlooms
26-Sep-11 11
12. Central Government Mandates
Program Industry / Trades
Skills for Employment in Apparel •Apparel Manufacturing
Manufacturing (SEAM ) •Spinning
•Handloom
Skills for Employment in Leather Shoes
Fabrication (SELF) Goods & gloves
Garments
Skills for Employment in Services Retail/BPO
Sector (SESS) Facility Management
Security Services
ITES
Skills Training in Engineering & Engineering & Construction
Production Systems (STEPS) (Welding, Fitting, CNC Machine
operation, Masonry)
26-Sep-11 12
15. Understanding industry demand and skill
requirements
Understanding industry
requirement Employment Inputs on
Market research Support by Required Skill set
Business interface. guaranteeing Validation of
Understanding skill needs of Employment content based on
Industry and each training upfront required skill sets
partner.
Assured placement for trainees. Industry
Participation of industry Partnerships
Selection of trainees
Providing experienced
trainers, Contributing to the
Development of course
Establishing the training process
content and, proficiency bench - Infrastructure
marks
Infrastructure . - Training Personnel
26-Sep-11 15
16. Training Curriculum
• Blend of Technical and soft skill Other features:
training
Vetted by Industry experts
• 80% practical oriented
Available for various trades
• Course duration of 270 hours to 810
SEAM: Spinning, Weaving,
Hours
SMO, Garment checkers,
• Delivered through multi-media Garment Finishers etc.
• Soft Skills include SELF: Fabrication
– Health & Hygiene SESS:
– Social Security Retail,BPO,ITES,FM
– Self Management STEPS:
– Workplace Etiquette Welding,Construction
– Group / Team Behaviour Translated in regional
– Basics of Finance languages ( 9 for SEAM..)
In line with NCVT MES
26-Sep-11 16
17. Sample Industry Partners
Partnership with over 400 companies across various
26-Sep-11 industries 17
18. Trainer selection and ToT
• Trainers selected from Industry
• Trainers undergo 15-20 days workshop
– To understand our training
curriculum
– To assess their teaching ability and
handle adults.
– To familiarize with our multimedia
delivery mechanism.
• Training of Trainers ( ToT) is conducted
by our technical partners.
• Each trainer is provided with a Manual-
Day wise course curriculum
26-Sep-11 18
20. Community Mobilization
• All existing programmes targets Rural
BPL Youth
• Rural BPL youth is located in interior
villages of India and is not aware of
factory environment
• Local CDIL employee partners to
reach to Rural BPL
– DRDA & Local Panchayat
– NGO’s
– Local Government bodies
• Awareness of our programme
created through distribution of
Pamphlets in local languages and
Road shows.
• Industry participation is also
encouraged.
26-Sep-11 20
21. Trainee Profile Verification
• All existing programmes for Rural BPL
Youth
• BPL status , Age and Address of each
trainee is verified
– BPL Card/Certification from
DRDA
– Educational qualification
– Father/Mother’s name
– SC/ST status
• Details of all selected trainees
uploaded on Website and files are
maintained for each trainee.
26-Sep-11 21
22. Entry Gate Assessment
• Each eligible trainee goes through Colour blindness Test
compulsory “Entry Gate Assessment”
test.
• All tests based on Time & Motion
study.
• Tests designed to test:
– Color Blindness
– Hand-Eye Co-ordination
– Finger dexterity
– Threading skills
• Tests vetted by Industry experts
Dexterity test
26-Sep-11 22
23. Factory Simulated Classroom
• Existing infrastructure of Govt/Industry
used for training
• Each training centre is equipped with
one machine/trainee.
• High end Stitching machines as used in
Industry are used.
• Other equipments to give a look and
feel of a factory.
• Consumables ( like Cloth, threads) are
provided by Training Partners.
• Multi-media device ( K-Yan) for course
curriculum.
• All trainees are trained to:
– Wear Aprons
– Follow time-schedule of working 8
hours/day.
– Follow other factory discipline
– Trainee kit containing stationary
trainee handbooks.
26-Sep-11 23
30. Accountability and Transparency
• Trainee Details maintained on
Website:
– Personal details including SC/ST
status( as required by MoRD)
– State wise/District wise
– Grading details
– Placement details
• Training programme is subject to :
– Audit by Ministry
– Statutory Audit
– Internal risk & Management
compliances
– Other Corporate Governance
• (Click for MIS:
http://.seam.skillschools.com/)
26-Sep-11 30
31. Placement and Follow up
• Achieved overall 86% placement;
Balance offered jobs but did not
accept
• Tied up with over 500 companies for
placements.
• Counseling done by CDIL employees:
– Pre-placement about factory/
Company environment
– Handholding during placement ( Esp.
for migrants)
– Post placement feedback to
understand career path.
26-Sep-11 31
33. Impact on Trainee
PARAMETER PRE - TRAINING POST – TRAINING
Core Employable Skills None Gets employed as a
skilled worker
Monthly Income Rs. 300-350 Prescribed Minimum
wages plus productivity
linked bonuses
Social Security (PF, None Covered as per the
Insurance) company policy
Nutrition Under nourished Improved nutrition due
to meals provided by
Company
Life management No organized inputs Greater awareness
skills/soft skills
26-Sep-11 33
34. IMPACT ON INDUSTRY
BEFORE TRAINING AFTER TRAINING
Trainees undergo
Industry recruits
training for 30
raw untrained
working days –
persons (0%
Achieve 55%
efficiency)
efficiency
Industry recruits
Industry trains new trained youth and
recruits for 4 trains them further
weeks on shop floor for
adaptation
New Recruit placed New Recruit placed
in production line in production line
(55% efficiency) (85% efficiency)
26-Sep-11 34
35. Performance so far….
Total Candidates Trained 140396
Total Candidates Placed 118765
Undergoing Training 3855
% of Candidates Placed 86%
26-Sep-11 35
37. Transportation and Settling down
Process
• Special compartment is arranged for the trainees
from Bhubaneswar/Berhampur/Jharsuguda to
Chennai/Bangalore/Cochin every month, with the
support of Railways
• A counselor from IL&FS accompanies the trainees
and settles them with the companies
• One dedicated counselor is positioned in
Chennai/Bangalore on a permanent basis to ensure
smooth transition/settling down
• State government official (District
Administration/Labour Department) visits the
companies once in 3 months
Challenges/Learnings District Collector and officials visit to
• Handholding support for transportation and settling Texport Garments
down is the key ensure continuation of the trainees
in the companies
• Additional costs on account of transportation and
counseling etc.
26-Sep-11 37
38. Impact
• More than 90% of the trainees
earn above Rs.5000 per month
after 3 months, in addition to
free boarding and lodging
• On average they send
Rs.2000/- pm to their homes
• Significant improvement of the
health status of the trainees
• Remittances to parents have
improved the families
Family received Rs.20000 from their daughter in 5
economic status months time
26-Sep-11 38
39. Impact District: Kandhamal
(One of the worst affected blocks
prone to communal riots and naxal
affected)
Name: Kalyani Behera
BPL Number: 289/498/89
Block: Tumudibandh
Employing Company: Roverco, Chennai
Money sent home: Rs.9000 (in 3 months)
Present Status: A poverty stricken family of
5 with the younger brother and sister being
affected with sickle cell anaemia. Mother
proudly narrated that money sent home by
her, helps in blood transfusion for two
affected siblings thus keeping them alive.
The smile on her face told the rest of the
story as to the pride that she carries for her Both the children
daughter being the backbone of the family. shown in the picture
have sickle cell
anaemia standing
along with their
mother
40. Impact District: Sundargarh
Trainee Name: Rashmita Sethi
BPL Number: 21
Village: Jaraikela Block: Bisra
Company employed with: K. Mohan, Cochin
Amount sent home monthly: Rs. 2000
Present Status: Jaraikela, the name itself sends
shudders down the spine being the passage for
the naxalities. Travelling to the villages during
rains is impossible as there are no roads. Father
proudly narrates “While the boys of the village
are unemployed, my daughter is working in a
big Karakhana (company)”. Money sent home
helps the family educate the younger daughter
as well as supports them in buying seeds and
tools for farming.
Parents of the trainee were in their best dress before our
team took the photograph
41. A trainee who joins an organized sector unit sends, on an average
INR 2000 per month to his/her home
Total of 130,000 candidates trained and placed so far send home
INR 260 Million per month.
That means the annual flow back home is
INR 3120 million.
This money goes in improved health, housing and overall well being.
26-Sep-11 41