Skills Development for MSMEs:

Mapping of Key Initiatives in

IndiaIndia

Anup Kumar Das

Jawaharlal Nehru University, India

ASIP2013

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.

• 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.

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

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

National Skill Development Corporation (NSDC)

• Filling gaps of National Vocational Training System

• Identified high growth sectors and incremental skill gaps incremental 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)

National Skill Development Corporation (NSDC)

Aajeevika Skill Development Programme

(ASDP)

Target: Rural youth age group of 17-35 years from below poverty line (BPL) families.

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.

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

• Thank You

anupdas2072@gmail.com