Subject: EMPLOYABILITY AND SKILLS
DEVELOPMENT
(COURSE CODE: BTHM605)
(As per the Third Year [Link]. Curriculum of
Dr. Babasaheb Ambedkar Technological University,
Lonere)
Academic Year: 2024-25
Course Project
ON
Skills Development in the Indian Context:
Analyze the Indian government's initiatives for
skills development and employability.
SUBMITTED TO- Prof. Jadhav Vishakha Vilas
SUBMITTED BY-
1. Name- Kurne Rohan Navnath
2. Branch- [Link] (E&TC)
3. Roll No. - 22412060
Department of Electronics & Telecommunication Engineering
Academic Year: 2023-24
Certificate
This is to certify that, Ms/Mr Kurne Rohan Navnath Roll No. 22412060 of IV
Semester of Second Year Degree in Electronics & Telecommunication Engineering has
completed the Continuous Assessment (CA) satisfactorily in Credit Course Basic Human
Rights (BTHM403) for the Academic Year 2023 To 2024 as prescribed in the curriculum.
Ms. Jadhav V.V. Dr. Mulla S.S. Dr. Jadhav A.D.
(Guide) (HOD of Electronics & (Principal of DIET, Satara)
Telecommunication Engineering)
2
TABLE OF CONTENT
Sr no. Title Pg. no.
1 Abstract 4
2 Introduction of the concept 5
3 Case Evaluation 6
4 Skill Development in Arunachal Pradesh 8
5 Present Status of Skills in India 11
6 National Skill Development Corporation 12
7 Conclusion 14
8 References 15
3
ABSTRACT
Skill India is an initiative of the Government of India which has been launched to empower
the youth of the country with skill sets which make them more employable and more
productive in their work environment. Our National Skill Mission is chaired by the Hon’ble
Prime Minister, Shri Narendra Modi himself. India is a country today with 65% of its youth
in the working age group. If ever there is a way to reap this demographic advantage, it has to
be through skill development of the youth so that they add not only to their personal growth,
but to the country’s economic growth as well. India is a young nation and a skilled workforce
will be able to certainly cater to not only the market demand within the country but also the
global market demands. The success of a nation always depends on the success of its youth
and Skill India is certain to bring a lot of advantages and opportunities for these young
Indians. The time is not far when India will evolve into a skilled society where there is
prosperity and dignity for all. This paper mainly aims to analyze the various skill
development initiative schemes in India.
4
INTRODUCTION:-
The Ministry is responsible for coordination of all skill development efforts across the
country, removal of disconnect between demand and supply of skilled manpower, building
the vocational and technical training framework, skill up-gradation, building of new skills,
and innovative thinking not only for existing jobs but also jobs that are to be created. The
Ministry aims to Skill on a large Scale with Speed and high Standards in order to achieve its
vision of a 'Skilled India’. It is aided in these initiatives by its functional arms – National
Skill Development Agency (NSDA), National Skill Development Corporation (NSDC),
National Skill Development Fund (NSDF) and 33 Sector Skill Councils (SSCs) as well as
187 training partners registered with NSDC. The Ministry also intends to work with the
existing network of skill development centers, universities and other alliances in the field.
Further, collaborations with relevant Central Ministries, State governments, international
organizations, industry and NGOs have been initiated for multi-level engagement and more
impactful implementation of skill development efforts. The Indian economy grew at an
advanced rate of 7.6 percent year in the quarter January – March 2016, thereby making it the
fastest economy to grow. India’s demographic profile is helping the country to aim for an
accelerated economic growth. India is expecting a huge growth in the labour market by
having 64.8 percent of the population as the working population. It gives a lot of benefit to
the country in the labour market. Most of the economies in the world are ageing fast, their
contributions adding to the global workforce will be reduced to a great extent While, India
will be an exception to it, with a major dominance in the global workforce in the years to
come. India will be enjoying dominance in the global workforce by being the biggest
provider of skilled labour to the world. Boston Consulting Group, in its study discussed the
workforce demand and supply challenges faced in the world. It stated that by 2020 the world
may expect a shortage of 47 million people.
India, on the other hand, will have a surplus of 56 million working people. India will be
able to gain advantage of the increased working population if they are able to equip its
workforce with the appropriate skills. In this respect, skills development emerges as one of
the most critical aspects of India’s economic policies.
5
CASE EVALUATION
Fundamentally, skill development is the time one invests in to improve their proficiency and
to stay future-ready, any abilities that one follows as a passion, and the ability to complete a
task with higher rates of success at the right time. It is essential because one’s skills
determine their ability to execute their plans with success.
In today’s world, lack of proper education and training restricts people from the opportunities
for self-advancement by limiting their access to well-paid employment. Eventually, this
prevents such individuals from making an influential contribution to economic growth. Thus,
adequate education quality and training are recognised as fundamental ways of breaking
down the ecosystem of poverty. One individual, Sweta Mishra, has rightly said that “Skill
development is no longer a matter of choice. It is imperative to adapt, survive and succeed.”
Skill development in India
India has a literacy rate of around 70%, which is less than some of the least developed
countries, and when it comes to employability, only 20% of them are employable. Literacy is
not just restricted to education but even broadens to the concept of skills, which comprises
technical expertise, vocational skills, transferable skills, digital skills, and other such
knowledge and abilities required for employment and livelihood. According to a survey, only
25% of the Indian workforce has undergone a skill development program, and India needs a
higher number of skilled workforce.
In this era, many organisations prefer skilled employees over less skilled ones as they have
outstanding career growth, and they help boost the organisation in the same way with
proficient working. Skills intensify the productivity and quality of work for more significant
results. According to the World Trade Organization, the GDP level can increase up to 3%-5%
in 2035, if India focuses on skill development and training. There is a great need for India to
train and skill the youth for the overall development of the country.
6
The Ministry of Skill Development and Entrepreneurship (MSDE) is accountable for
coordinating skill development activities in India. It has supported various organisations like
National Skill Development Corporation (NSDC), which aims to promote skill
development in the country by establishing institutes across the country and National Skill
Development Agency (NSDA), which seeks to coordinate the efforts of the government and
the private sector and aid in skill development.
Hon’ble Prime Minister Shri Narendra Modi launched the Skill India Mission, under the
Ministry of Skill Development and Entrepreneurship on 15 July 2015, which aims to train
over 40 crore people in India in different skills by 2022. The mission seeks vocational
training and certification of Indian youth for a better livelihood and respect in the society.
Various initiatives under this campaign are National Skill Development Mission, National
Policy for Skill Development and Entrepreneurship, 2015, Pradhan Mantri Kaushal
Vikas Yojana (PMKVY), Skill Loan scheme, Rural India Skill etc.
Private organisations, such as CLR Skill training foundation works under the provision of
NEEM Scheme of the government to serve skill development, technical skills training and
employment, earn and learn, non-technical skills and soft skills to the youth.
We must support programmes that enhance access and improve educational opportunities
from early-stage to education and skill development of the people of the country.
7
Skill Development in Arunachal Pradesh
We must acknowledge the ability of our youth and extend our support by furnishing them
with the proper guidance, infrastructure, opportunities and encouragement to go after their
ambitions. With the right direction, their passion, skills, sharp critical awareness of the
contemporary world and the enthusiasm to play a decisive role can significantly benefit in
transforming the world into a better place.
To boost employment and uplift the people of the state, the Department of Skill
Development and Entrepreneurship under the Government of Arunachal Pradesh has
initiated an Employment Generation Programme to provide skill development and
employment benefits to the youth. The main objective of the programme is to:
● Provide Industry-specific training to unemployed and underemployed youth.
● Enhance an individual’s employability to adapt to changing technologies and labour market
demands.
● Improve productivity and living standards of the people.
● Create one Lakh job opportunities for all (youth, women and disadvantaged groups) by 2022.
● Developing formal and informal apprenticeships.
Various CM flagship programmes have been proposed, and some have been implemented in
the state to empower the people and boost the skill development sector. Here are few of the
schemes and Yojanas initiated by the Government of Arunachal Pradesh.
8
Chief Minister Yuva Kaushal Yojana
– It targets to provide high-end training to 1000 students in one year.
– Youths will be sent to acquire high-end job oriented skills under this scheme.
– An Entrepreneurship development centre to be established at NIT Yupia to provide
handholding support to budding entrepreneurs for preparing viable bankable project
proposals.
– It covers the running of Skill Development Courses in a PPP mode in the state.
– It seeks to provide linkages between prospective employers outside the state and job
seekers within the state.
– It aims to improve the quality and aesthetics of traditional tribal craft; 200 master craftsmen
will be selected for this purpose.
-It seeks to showcase the produce of Arunachal and market indigenous produce.
-Establishment of a computer-aided textile design centre at Dirang with a solar power
operated power loom to provide employment to women.
Deen Dayal Upadhyay Swavalamban Yojana
-It aims to provide 30 per cent capital subsidy to youth in select areas of the economy:
eco-tourism, value addition in agriculture and allied sectors.
-Under the Yojana, special orientation training programs for the youths in collaboration with
NIT Yupia to be conducted.
-To expand the scope of activities to include construction related investment, information
technology, back end infrastructure for Horticulture and tour operator and adventure tour
operators.
9
Pradhan Mantri MUDRA Yojana
-It aims to provide loans to the needy and poor youths of the state to empower their skills and
in the employment sector.
-Under the scheme, students will be trained through six months and one-year employment
linked programs in partnership with TeamLease University.
10
PRESENT STATUS OF SKILLS IN INDIA
Reaping the benefits of the demographic profile looks more of a fantasy than reality due to
quantity and the quality gap in terms of the skilled workforce in India. It is estimated that
India will face a demand of 500 million skilled workers by [Link] India is still struggling
with the supply of skilled workforce as presently only 2% of the total workforce in India has
undergone skills training. According to the Government of India estimates, 93% of workers
and laborers' employment is in the unorganized or informal [Link] is not supported by a
structured skill development system. No training on employable skills is being given to
young people who can provide them with employment opportunities as per the current
education system. Employees in the unorganized sector are often skilled on-the-job. The
information channels and skill development processes are not understood or not clear. India's
labor force constitutes the high number of labor forces with outdated skills. The pace at
which the economy is growing and the rate of growth that is expected, the challenge will only
increase further as more than 3/4th of new job opportunities are expected to be skill-based.
The loss of employment and wages during the skill training program also acts as a
disincentive to skill acquisition. The skill development environment in India is quite
complex. The vocational training in India has been dominated by unrestricted. However, the
private sector’s participation and prominence in the skill development space have started to
grow, particularly in services sector training. KEY SKILL DEVELOPMENT INITIATIVES
OF THE GOVERNMENT Other key Skill Development Initiatives of the Government are as
follows:
● Establishment of 1,500 new ITIs through the DGET.
● Establishment of 50,000 Skill Development Centres through the DGET
● Setting up of PM National Council on Skill Development (already operational).
● Setting up of the National Skill Development Coordination Board.
11
❖ NATIONAL SKILL DEVELOPMENT CORPORATION:
The National Skill Development Corporation (NSDC) is a one of its kind, Public Private
Partnership in India. It aims to promote skill development by catalyzing creation of large,
quality, for-profit vocational institutions. It provides viability gap funding to build scalable,
for-profit vocational training initiatives. Its mandate is also to enable support systems such as
quality assurance, information systems and train the trainer academies either directly or
through partnerships. Its objective is to contribute significantly (about 30%) to the overall
target of skilling/up-skilling 500 million people in India by 2022, mainly by fostering private
sector initiatives in skill development programs and providing viability gap funding. NSDC is
a not-for-profit company set up by the Ministry of Finance, under Section-25 of the
Companies Act. It has an equity base of Rs. 10 crores, of which the Government of India
accounts for 49%, while the private sector has the balance 51%.
❖ SKILL DEVELOPMENT INITIATIVES BY OTHER DEPARTMENTS:
Apart from the initiatives mentioned earlier and initiatives of the Ministry of Labour and
Employment and DGET, about 17 Ministries of the Government of India are also engaged in
skill development activities. These include the following ministries/department:
1. Ministry of Textiles Ministry of Rural Development.
2. Ministry of Human Resource Development. (for Higher and Technical Education)
including the setting up and up gradation of polytechnics .
3. Ministry of Urban Development and Poverty Alleviation Ministry of MSME.
4. Ministry of Food Processing Industries.
12
❖ EDUCATION, SKILLS AND JOB CREATION:
1. There will be 62 new Navodaya Vidyalayas.
2. Sarva Shiksha Abhiyan to increase the spotlight on the worth of schooling.
3. Regulatory building to be provided to new ten private and public institutions to
emerge as world-class Teaching skills and Research Education Institutions.
4. New Higher Education Financing Agency to be set-up with the primary investment
base of 1000 Crores .
5. Digital Depository for School Leaving Certificates, Education Degrees, Academic
Awards and Mark sheets to be associated.
❖ CHALLENGES WITH RESPECT TO SKILL DEVELOPMENT INITIATIVES AND
JOB CREATION:
1. Allocation for skill development – 1804 crore.
2. 1500 Multi Skill Training Institutes to be set-up.
3. National Board for Skill Development Certification to be set up in affiliation with
diligence and academic education.
4. Entrepreneurship Education and Training through Massive Open Online Courses
(MOOC) Government of India will pay the involvement of 8.33% for all new
workers enrolling in EPFO for the first three years of their employment. Financial
plan provision of 1000 crore for this scheme.
5. Conclusion under Section 80JJAA of the Income Tax Act will be available to all
assesses who are subject matter to statutory audit under the Act.
6. Model Shops and Establishments Bill to be distributed to States.
13
❖ BOOST EMPLOYMENT AND GROWTH:
Increase the proceeds limit under the Presumptive taxation scheme under section 44AD of
the Income Tax Act to 2 crores to bring big assistance to a large number of assesses in the
MSME category. Extend the presumptive taxation system with profit deemed to be 50%, to
professionals with gross total admittance money up to 50 lakhs. Phasing out deduction under
Income Tax:
● Accelerated depreciation wherever provided in IT Act will be limited to maximum
40% from 1.4.2017
● The benefit of deductions for Research would be limited to 150% from 1.4.2017 and
100% from 1.4.2020
● The benefit of section 10AA to new SEZ units will be available to those units which
commence activity before 31.3.2020
● The weighted deduction under section 35CCD for skill development will continue up
to 1.4.2020
❖ MAKE IN INDIA GENERATE EMPLOYMENT OPPORTUNITIES:
In the last decade, India had an impressive economic growth rate but still, it is not able to
generate employment opportunities to meet the growing employable population. Make in
India focuses on creating 100 million new employment opportunities in the manufacturing
industry lowering down the growing problems of unemployment in India. In India, only
about 14 percent of the labor force is employed in Formal jobs (Green, December 15, 2014).
Other than initiatives like Smart City development, Skill India, Digital India, Startup India,
FDI enhancement, National Investment & Manufacturing zone, creation of Industrial
Corridor will not only make India a global manufacturing hub but it will also generate a huge
number of employment opportunities with growing Industrial demand. (Sharma, Kaul, Goel,
&Narang, 2015)
❖ CURRENT STATUS OF EMPLOYMENT SKILL:
On a long-term basis, up to 2022, it is expected that India’s GDP will grow at a CAGR of
about 8%. With these growth rates, we expect that the employment in the economy will be
about 500 million by 2022. For an economy to sustain this growth rate it is essential that the
workforce is exposed to some form of skilling or the other (could be through higher/technical
education or vocation skills or a combination of both). Thus it is predictable that India will
have to be a habitat to a skilled labor force of 500 million persons by 2022.
14
Table 1: Projected Employment in Agriculture, Industry, and Services
15
CONCLUSION:-
Presently 80% of the workforce in India (rural and urban) doesn’t possess any identifiable
and marketable skills. Therefore, bridging this gap through various skill development
initiatives could make India the global hub for skilled manpower, and also result in a surplus
of skilled manpower of approximately 47 million 2020 (FICCI). Despite various efforts and
investments in shaping the skills of a huge labor force there are grave drawbacks in the
system. Even after the government investing a lot in training costs and infrastructure, creation
of a robust workforce for the industry is still a fantasy. As a fast growing developing
economy, besides white and blue collar, India also needs Grey collar- knowledge workers
which include ICT skills, problem solving, analytical ad effective communication skills and
rust collar-skilled workers at the grass root level in currently unorganized sector and
un-benchmarked sectors like construction, agriculture and related trade. Government,
industry leaders are constantly from time to time launching new skill development initiatives
but somehow it is not reaching the casual workers who dominate the Indian work-force.
Stakeholders (Industry leaders, Government etc) have realized that none of them can work in
isolation. They will need to collaborate as the stake involved is huge. Mandatory Monitoring
and Quality Certifications should be in place which will ensure high standards training
programs with prime focus on enhancing the employability. Sector specificLabor Market
Information System (LMIS) at national and state level is to be established for reducing the
skill mismatch which can help in the reliable and realistic assessment of economic trends and
labor market. Labour market analysis to be undertaken by Area specific LMIS at local levels
with the help of Sector Skill Councils (under National Skill Development Corporation).
Supply and demand of skilled manpower can be mapped with the help of Human Resource
Planning (HRP) which is also one of the important components. These exercises can help to
anticipate skill gap over a period of time at different levels, sectors and geographical areas.A
designated agency should work on generating information from the LMIS and HRP
exercises. Government employers, national, state and local level training providers, trainees
and prospective trainees should be disseminated with information so collated so that they can
use it in their skill development plans. The information at National level can be disseminated
by NCVT by receiving inputs from state and local levels. Counseling, placement and
guidance can be provided by strengthening and upgrading the Employment Exchanges. In a
male dominated society, there has always been a limited scope to develop their skills from
women and girls in rural areas due to social, economic and cultural constraints. The payment
of wages is also on the lower side. Socio-economic empowerment of rural women can be
attained by investing in their skill development. They can be provided with basic education,
technical training and other women extension services. Support by self help groups andNGOs
can help in improving their conditions by making them understand the importance of basic
education and also by making the change in attitude of society towards women.A designated
agency should design the courses and introduce them at various levels on the basis of
emerging opportunities for skill development and employment generation. The change should
be brought from the education system which needs to be renovated and restructured. The
young population even after having a degree is not able to fit in the industry due to a lack of
expertise to compete. The vocational training should start from High School. Students should
16
be made industry ready by making the curriculum for professional courses such as
Engineering and MBA in a way that provides complete on the job training. The standard and
quality of training needs to be upgraded. Soft skills training along with technical skills will
bring desired [Link] players find a great opportunity in the Indian skill sector to
enter a growing market whilst ensuring service to society. Also considering the demand of
500 million skilled laborers by 2022 these issues need to be addressed. Moreover, with the
passage of the Companies Act 2013, the mandate for Corporate Social Responsibility has
been formally introduced and it is likely that the total CSR spends will increase for
employability linked programs to promote skill development. The Prime Minister in his
maiden speech said, “Skill development should be accompanied by a spirit of ‘Shram-evJay
ate’ – giving dignity to labor." Skill development and entrepreneurship is one of the topmost
priorities of the new government due to which the first time an independent ministry has been
created to take the mandate forward. Finally, it is important that the intended beneficiaries of
the skill development program join training programs with an inspiration to learn and make
them self-reliant to live a better life.
17
REFERENCES:-
1) Skill Development: Bridging Skills Deficit and Promoting Employability,[Link] of
Commerce and Industry, ApeejayStya Education Research Foundation
2) [Link] [Link]
3) Skill development Initiatives India rief overview [Link]
4)Skill_Development_Initiatives_India_rief_overview_of_SkillDevelopment_Sector_Initiativ
es_i n_India_By_TABLE_OF_CONTENTS
5) Yash Pal Sharma,"SKILL DEVELOPMENT PROGRAMMES IN INDIA" r
6) [Link]
7) [Link]
8) [Link]
9) [Link]
10)[Link]
18