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8/4/2019 National Seminar on Academic Institutes-Industries Interaction
1/20
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.
8/4/2019 National Seminar on Academic Institutes-Industries Interaction
2/20
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
8/4/2019 National Seminar on Academic Institutes-Industries Interaction
3/20
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???
8/4/2019 National Seminar on Academic Institutes-Industries Interaction
4/20
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.
8/4/2019 National Seminar on Academic Institutes-Industries Interaction
5/20
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
8/4/2019 National Seminar on Academic Institutes-Industries Interaction
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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
8/4/2019 National Seminar on Academic Institutes-Industries Interaction
7/20
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
8/4/2019 National Seminar on Academic Institutes-Industries Interaction
8/20
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.
8/4/2019 National Seminar on Academic Institutes-Industries Interaction
9/20
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.
8/4/2019 National Seminar on Academic Institutes-Industries Interaction
10/20
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.
8/4/2019 National Seminar on Academic Institutes-Industries Interaction
11/20
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.
8/4/2019 National Seminar on Academic Institutes-Industries Interaction
12/20
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.
8/4/2019 National Seminar on Academic Institutes-Industries Interaction
13/20
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.
8/4/2019 National Seminar on Academic Institutes-Industries Interaction
14/20
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.
8/4/2019 National Seminar on Academic Institutes-Industries Interaction
15/20
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
8/4/2019 National Seminar on Academic Institutes-Industries Interaction
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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.
8/4/2019 National Seminar on Academic Institutes-Industries Interaction
17/20
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.
8/4/2019 National Seminar on Academic Institutes-Industries Interaction
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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.
8/4/2019 National Seminar on Academic Institutes-Industries Interaction
19/20
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.
8/4/2019 National Seminar on Academic Institutes-Industries Interaction
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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