National Seminar on Academic Institutes-Industries Interaction

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    National Seminar on Academicinstitutes-industries interaction

    Setting up production houses is notenough, stop brain drain

    Industrialization should be backed up with in house skilled manpower generation and retention.

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    Number ofdistricts 24

    Number of towns 152

    Number of villages 32616

    Population 3.29 croresUrban Population 23%

    Literacy Rate 68%

    Per capita GDP USD 700(2001

    census)Population BPL 40%(2001 census)

    Jharkhand Overview

    Approximately 1.2 crore people are BPL and around 1 crore are illiterate in Jharkhand

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    Some awakening factsA state which contributes to approximately 1.7% of the national GDP

    creates almost 10% of IITians every year! A state which has an IIM

    and will have an IIT and is home to the most hard working brains in

    the country and perhaps the world, is having a per capita GDP

    which is 37.5% lower than the national average and is just 25% of

    the Delhi territory. It is only a disheartening and surprising fact that

    40% of our population is BPL compared to 27.5% nationwide! A

    state which has 40% of the nations mineral base ranks 16th in the

    national GDP percentage contribution list???

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    The wake up call

    There is a problem, a problem which is larger than the political issues in the state,

    larger than the issues of investment and resource planning, a problem more intrinsic

    in nature which needs to be addressed if our Jharkhand aims to become the

    Manhattan of India!

    We firmly believe that sustained growth in industrialization backed up with in

    house skilled man power generation and retention holds the key to the

    development of Jharkhand.

    This paper throws points in favor of the argument put forward by us and also

    recommends a holistic plan to take Jharkhand on the road to a long term progress.

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    Where should the focus be?

    Three strongest resources of Jharkhand, due to

    geography and landscape are:

    Minerals

    Forest reserve

    Tourism spots.

    Let us classify them into two major sectorsMining and manufacturing

    Services

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    There are three lines of action which are the most obviousroutes to transforming Jharkhand in the years to come.

    Mining and Manufacturing:-

    Minerals

    Forest Reserve

    Services:-

    Tourism and hotel industry

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    But, let us see the trends which have transformed other states and

    draw in some other sectors which need to be focused on irrespective

    of geography.

    Mining and manufacturing: - Small Scale Industries

    Services: - IT services

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    Small scale industries: India is country of entrepreneurs which makes

    it different from country like China whose growth is driven by

    government initiatives only. Small and medium scale industries drive

    the economy fast and big since they generate employment and are

    often value creators for the society. For instance, a state like Gujarat

    is marked by many small scale industries located around its major

    cities. These industries add to production and hence create value for

    the state and leads to a growth in GDP.

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    IT Services: A must have for a state which wants to see itself flourish. IT

    services attracts talent from all over the country and most importantly

    helps retain the talent in the state. IT services industry has been the lead

    runner of improving life styles and promoting young blood in the work

    arena.

    Promotion of direct and indirect employment: Considering the case of

    Tamil Nadu: 8 lakh people are directly employed by IT while 22 lakh

    have got indirect employment.

    Hence, the government should focus on both the geography specific and

    generic sectors in writing the script ofJharkhands development.

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    What is the current status? In Jharkhand, most towns are based

    around some industrial establishment. For instance, Dhanbad is

    based around coal and Bokaro around steel. Two kinds of people live

    in such towns- government officials and industry workmen. The city

    has some SMEs working in the supply chain of the bigger industry

    and also has some local entrepreneurs working as retailers,

    educational consultants etc.

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    What is the consequence? The situation with Jharkhand is that most young

    sharp minds do not join government jobs, primarily because a. the packages

    are not competitive and b. the work location is not comparative to the big

    metros. Hence, the only good brain that stays in the state post higher studies

    is perhaps the mining engineers and the mechanical guys who move into the

    TATA conglomerate. Apart from that 90% of the intelligent brains get

    educated here and then move out for job avenues. Hence the industry alone

    is not sufficient to absorb the young talent produced in the state.

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    Why should we look at retaining good talent?

    If young graduates stay back in Jharkhand in any sector whatsoever, they

    shall earn and in turn spend higher than what the current trend is. This would

    lead to an increased supporting employment and will boost consumerism in

    the longer run.

    A growth in consumerism will lead to a change in life style with younger

    earning crowd pouring into the city. The cities will become livelier places to live

    and in turn not solely dependent on the industry that used to drive it before.

    Young talent in the city can be then redirected to industrial and service verticals

    by industry players or by their entrepreneurial visions.

    Retaining bright brains will help the state identify big opportunities, turn

    them into possibilities and eventually lead the state to a bright and prosperous

    future.

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    Young entrepreneurs can benefit the state fourfold:-

    They can add value to the society by setting up industrial ventures in or around cities which leads

    to export income and higher employment. Such has been the trend in more advanced states like

    Gujarat

    They can help in rural development by opening up alternate sources of income for the rural

    masses. This can be done by providing them alternative channels of growth and not by

    philanthropic charity. Focus should not be on opening NGOs or not for profit voluntary

    organizations, but on opening sustainable, scalable and profitable organizations which can boost

    the rural economy and create employment. SELCO solar, SEWA and Fab-India are some such

    examples. If young talented people stay back in Jharkhand, there wont be any need of flushing

    crores of rupees into NGOs.

    They can help creating a second line of skilled workers in the industrial arena and otherwise too.

    Skilled man power can be built only if skillful training is imparted.

    They shall over a period of time create big ventures originating from the soil of Jharkhand. Giving

    big lands to external players for creating industries will boost GDP, but this cannot be the only way

    to drive growth. In house production set ups need to come up so that every existing gap in the

    market is served and the economy flourishes.

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    Role of academic institutions: - Generating talent

    The role of academic institutions is to ensure that the students passing out from

    the colleges are inclined towards core sectors and want to become value adders to

    the society. Hence the role is two-fold:-

    Encourage students to take active interest in core branches like electrical,

    mechanical etc.

    Make the students realize that by attaining higher education, they are acting as

    wheels on which the economy runs. This can be done by providing additional

    courses like social entrepreneurship, public policy, human resource management,

    micro -economics and macro economics even to technical graduates. We need to

    join them to the society. There is no harm in even including projects department

    wise on how each department can contribute to this geography.

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    Role of industry Absorbing and retaining talent

    Industry acts as the talent absorber in this context. Hence industry

    needs to make its value proposition attractive and interesting

    enough for the young talent to join and sustain. This can be done at

    two levels:-

    Having work culture, compensation and incentives competitive

    By recruiting students from regional campuses

    By involving students into the industrial development by giving

    them higher entrepreneurial culture and developmental projects at

    work

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    How can the two collaborate in talent generation and retention?

    Academic institutions collaborate with industries and send studentsfor professional internships in different industries in the state

    across functions.

    Industry attracts these students by offering Pre Placement Offers

    to deserving candidates.

    Industries send their experts to conduct project seminars and

    technical workshops on campuses which involve students from

    different streams.

    Academic institutions set up a Forum for Industrial Interaction

    which invites industries to give projects to students who then

    deliver final project reports to the industry.

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    Industries can allow students to visit their premises on a regular basis so as to

    attract students towards the regional industry base.

    Cross departments industry-academics magazines can be released with

    students and professional being present on the editorial board. For instance, a

    mechanical engineering monthly magazine involving engineering students,

    industry engineers and professors from technical engineering institutes can

    form an interest building connectivity between the industry and the academic

    world.

    Institutes should offer courses which are more real- time /live than

    theoretical, so that students develop interest in core streams.

    Institutes should assist industries by creating second line skilled workers

    through workshops and certified programs.

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    To sum up, role of the State: -

    To encourage academic-industry interaction through seminars/

    workshops/ magazines etc

    To ensure growth of industrialization along with service sectors like

    tourism, IT etc.

    To create vacancies in state services through regular channels as

    well as entrepreneurial state funded projects brought on campuses.

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    Hence the message is:

    Dos: Grow more sectors, create entrepreneurs through talent

    retention and state promotion of SMEs, improve skilled laborcondition through involvement of technical institutes and increase

    technical student involvement in industries through formalized

    industry interfaces.

    Do Nots: Stop focusing on NGOs as the major means to drive rural

    development and external investors as the major source to drive

    industrial growth.

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    Thanking You,

    Mr. Rahul Anand and Mr. Kamlesh Chauhan

    PGP 2009-2011, IIM Ahmedabad

    Co-Founders,B-Factorya higher educationpreparation hub in Jharkhand