The document discusses India's need to focus on skill development to address unemployment and shortage of skilled workers. Some key points: - 54% of India's population is under 25 but there is widespread unemployment even among educated youth. Only 5% of the workforce has vocational training, one of the lowest rates in the world. - 12.8 million new workers enter the labor market each year but vocational training infrastructure can only accommodate 2.5 million. Productivity is also among the lowest in the world. - Proper skill development could help India benefit from its demographic dividend but failure could result in a demographic nightmare. The document advocates for reforms to address these issues.

1. Team Name: Mystic spirits
Institute Name: Institute of Management Technology, Raj Nagar ,Ghaziabad
Team Representative: Aditya Vashisth
Team Member:
1. Arnab Banerjee
2. Peeyush Negi
3. Varun Jain
4. Sameer Bhatia

2. IMPORTANCE OF THRUST ON SKILL DEVELOPMENT
•As per 2001 census, about 54% of our population is under the age of 25 years. There is
wide spread unemployment even among the educated, while the economy faces a
shortage of skilled personnel.
•The size of working age population in India, aged 15 to 64 years is expected to increase
from about 77.5 crore in 2008 to approximately 95 crore (68.4%) in 2026. The Eleventh
Plan document has suggested that if we get our skill development act right, we will be
harnessing a demographic dividend. However, if we fail to create skills, we could be
facing a demographic nightmare.
•12.8 million persons enter the labour market every year. However, our vocational training
infrastructure currently can cater to the training needs of only 2.5 million persons.
•Only 5% of our work force is vocationally trained, which is one of the lowest in the world.
152 million persons who enter the informal sector for their livelihood have no access to
vocational training.
•Productivity of the Indian worker is estimated to be one of the lowest US$ 3.05 per
person per hour.
“Skill is defined as learnt capacity or talent to carry out predetermined results often with
the minimum outlay of time, energy or both. ”

3. Mr. Ram Singh, earns livelihood for his family by plying his trade as a bus driver.
Ram Singh is by education a double masters in economics and political science and
at this point in time pursuing his doctoral in economics. So, the big questions
which comes first to our mind is:
•How a double masters young man is not able to find a suitable employment for
himself?
•Which are the factors that make him still pursue his all important education?
•Which are the skills that shall make him employable with respect to his current
education and interests?
These are all short term questions that crop up !!! As we further analyze Ram
Singh’s long term situation, we find some deep lying questions as:
•What are the motivations of pursuing education?
•What Is the long term sustainability of our current education system and how
does it model India’s future growth to suit dynamic demands of skill set of
generations to come?
Lets find the answers to each question one by one…..

4. 0 20 40 60 80
Furniture and Furnishings
BFSI
Leather and Leather goods
Gems and Jewellery
IT and ITES
Real estate services
Organised Retail
Textile and Clothing
Building and Construction
Industry
Automobile
Employment in 2008
Incremental HR in 2022
•There are about 1.5 million schools in India
with a total enrolment of ~250 million students
starting from pre-primary to standard XII.
Schools at the primary/junior level constitute
the majority where maximum enrolments occur.
•Further, it is expected that the ageing economy
phenomenon will globally create a skilled
manpower shortage of about 56.7 million by
20204. With the rising trend of outsourcing
work globally, India has the opportunity to
become a global reservoir of skilled manpower,
accounting for 28% of the graduate talent
pool among 28 of the world’s lowest-cost
economies.
•India is expected to grow at a rate of 8%, on an
average, in the next 10 years. More than 700
million Indians are estimated to be of working
age by 2022. Out of these, more than 500
million require some kind of vocational or skill
development training

5. Ministry of HRD, Govt. of India
National council for skill
development
(chaired by Prime Minister)-
Focus on policy directions
and review.
National Skill Development
Coordination
Board(coordinated by
Planning commission) –Aims
to ensure that government
agencies intensify actions in
diversified areas .
National Skill Development
Corporation- A non profit
company catalyzed by
Ministry of Finance to
promote skill development
in private sector.
•Under National Council for Vocational Training (NCVT) Vocational training in India is primarily
imparted through the government and private industrial training institutes (ITIs). As of February
2012, there are in total 9,447 ITIs, with a total seating capacity of 1.3 million. The total numbers
of government ITIs are2,244 with a total seating capacity of 472,738.
•The total number of ITIs has increased at a CAGR (2007–2012) of 11.5%, while the total number
of seats has increased at a CAGR(2007–2012) of 12.2%.

6. National council for skill Development which form the
policy framework for deployment -Propose Macro level
skills (Acc. To Industry requirements)
Statewide coordinated layout to solve key distribution
issues (statewide councils)
District and sub-District distribution according to skills
advisable to geography(Incorporated consultancies)
Identification of skills according to Interests and past
skills as aligned with Macro level policies by panchayats
and local MCD’S(Granular level execution)
Feedback to each level supported by consulting
organizations to set right the key motivations to skill
development
Judicial
accounta
bility is
key to
the
feedback
to the
system

7. Feedback
Charter for
Execution
Accountability
As a strategic initiative to policy structure of skill development, we would like to introduce three
key initiatives to plug in loopholes:
•Feedback – We propose to frame a structure of autonomous consulting organizations under the
PPP model to enhance quality of training imparted to decrease the gap between employment
and education.
•Accountability- This feedback shall become a base for our proposed framework as the reporting
system shall be made available to decision makers in order to make the framework dynamic and
accommodating to changes
•Charter for execution- Judicial framework shall collaborate with the other 2 stakeholders i.e.
Government and Private players as consultants to effectively Institutionalize the development of
Human resources.

8. •Enterprise led System
This relies on industries to provide training to potential employees. The state provides only
compulsory general education. There is no formal qualification system for vocational training
and transfer of training is largely driven by actual work experience of employees.
•Government led System
It can take 2 forms: Demand Driven and Supply Driven
Demand Driven-The model focuses on encouraging firm level training through government
policy. This is usually called a “Human Resource Development” or “Workforce Development”
system. State supports the training by industries by giving partial financial support and
instituting the certification process for example in East Asia.
Supply Driven-The state through the system of training Institutes produces the trained
employees. This system works well in stable economy with predictable demand.
•German Dual Mix-Model system
Germany’s “dual system“ is another Model of public private engagement. This system
promotes the close cooperation between vocational schools supported by the government
and enterprises where training is provided. Industry plays large role in determining curriculum
requirements and certification processes. Here nature of training is more specific and the
model is considered to be most desirable one.

9. •The contribution of women to potential learners is consistent with their contribution toward
the population for age groups between 15–18 years and 19–23 years. However, they constitute
around 48% of the population in the age group of 24–59 years and around 78% of the learners
in this group. This can be attributed to the social and cultural norms, which lead a large number
of women toward household duties.
•The socially disadvantaged groups (SC and ST) have received a special focus over the years for
their social and economic advancement. The total number of SC and ST learners is 67 million
and 35 million, respectively. Notably, the share of SC and ST among the learners in their
respective age group is consistent with the share of SC and ST in the working age population.
•7.4% of the total enrolled students of class I–X dropout.The dropout-to-enrolment ratio is
slightly higher in each consecutive class — class I–V has the lowest ratio and class IX–X has the
highest ratio.
•The overall enrolment for SC and ST in school (class I–X) is ~43 million and ~22 million
respectively. The overall ratio from class I–X for SC and ST is 8.5% and 13%, respectively, more
than the overall average of 7.4%.

10. Process and Legal Empowerment
Make the right to skill development for employment as
a judicial decision making cornerstone , so as to
provide equal opportunity to each individual
The process shall empower our nation to be legally
progressive and shall demand the right skills as a part
of charter or process rather than a luxury.
Financial Goal seeking
Use the network developed to seek the transparent
distribution of financial resources to the needy and thus
create equaltiy
The early start shall motivate the developed Human
resources to become executioners or researchers->
Provide necessary support for such activities
Fill The Big Gap between Education and Employability
At granular level, network with NGO’S and private
players to create motivational awareness about skill
development
Start early and develop necessary skills according to
interest areas in particular age group of 12-14 years