Skill development mission in vocational areas: Mapping government initiatives

Tabassum Jamal & Kasturi Mandal

Globalization has created a great demand for a skilled workforce which is responsive to emerging market needs and is equipped with knowledge. Although the Indian economy has experience rapid growth over the recent period, the low level of education and formal training of the workforce are the matters of concern. In India, informal sector employs nearly 90% of the workforce, most of which is either non-skilled or inadequately skilled and there is very little investment or opportunity for formal skilling. To get productive employment, especially in the informal sector, it is crucial to acquire skill sets with strong labour market linkages. This section highlights various government initiatives towards skill development by reviewing and analyzing the prevailing programmes/schemes under various institutional arrangements, to promote a meaningful and employable skill development system.

Vocational Education and Training in India Vocational education and training basically consists of practical courses through which one gains skills and experience directly linked to a career. Vocational education generally gets offered at school or to drop-outs, at post-schooling level, and sometime on-the-job. Vocational training is directly related with specific skills that many employers look for. Thus Vocational Education and Training (VET) have both been known to increase productivity of individuals, profitability of employers and aid national development. According to a National Sample Survey Organization (NSSO) report (No. 517, 61/10/03) two types of vocational trainings are available in India: a) Formal and; b) Non-formal. According to a NSSO report vocational training is received by only 10% of persons aged between 15-29 years. Out of this T1 - 116

only 2% receive formal training, while non-formal training constitutes the remaining 8%. Out of the formal training received by that particular age group only 3% are employed. Vocational training in India is being undertaken by the Directorate General of Employment and Training (DGET), under Ministry of Labor and Employment. The DGET is the apex organization of development and coordination at national level for all the programmes relating to vocational training through following schemes: Craftsman Training Scheme (CTS)-- ITI/ITC Training, Apprenticeship Training Scheme(ATS), Craftsmen Instructor Training Scheme, Advance Vocational Training Scheme, Women Training Scheme, Research and Staff Training, Instructional Material Development programme and Hi-Tech Training scheme.

Vocational Training is primarily imparted through public Industrial Training Institutes (ITI) and privately owned Industrial Training Centres (ITC) from grade 8th onwards. The present capacity of both ITIs and ITCs ( region-wise) is shown in Table 1.

Table 1: Total capacity of ITIs and ITCs in India Total Seating Capacity of ITI and ITC 284163 376378 186439 247784 1094764

Region

No. of Govt. ITI

Seating Capacity of ITI 115122 86732 47450 178862 428166

No. of Private ITC 1554 2660 810 740 5764

Seating Capacity of ITC 169041 289646 138989 68922 666598

Total No. of ITI and ITC 2324 3021 1004 1537 7886

Northern Region Southern Region Eastern Region Western Region Total

770 361 194 797 2122

Source: Annual Report 2008-2009, Ministry of Labor and Employment as of 31.12.2009

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Fig 1. Region wise distribution of ITIs and ITCs

Some premier organization providing Vocational Training (Govt. and Non-Govt.) are: Khadi and Village Industries Commission (KVIC), which provides EDP and Khadi Village Industries training Tool Room &Training Centres (DC,MSME) Provisions through the National Manufacturing Competitive Council (NMCC) CAPART (Council for Advancement of Peoples Action and Rural Technology) SRI, Ranchi (Society for Rural Industrialization) NGO centres like Ramakrishna Math and Ramakrishna Mission

Vocationalisation of Secondary Education Vocational Education in a much broader sense covers education and skill development at all levels from post-primary to tertiary education through both formal and non-formal programmes. Vocational Education at the higher secondary stage develops competencies required by a specific occupation or a group of occupations, through diversified vocational courses. It especially prepares students for self employment. A Centrally Sponsored Scheme on vocationalisation of secondary education by Ministry of Human Resource Development provides for diversification of educational opportunities so as to enhance individual employability, reduce the mismatch between demand and supply of skilled manpower and serve as an alternative for those pursuing higher education. The scheme provides for financial T1 - 118

assistance to the states to set up administrative structures, conduct area vocational surveys, preparation of curriculum, text books, work book curriculum guides, training manuals, teacher training programme, strengthen technical support system for research and development, training and evaluation etc. Under the Scheme: Vocational education is provided in 9,619 schools covering about 1 million students. It is proposed to expand vocational education to 20,000 schools and the intake capacity to 2.5 million by 2011-12. About 150 job oriented courses at higher secondary level are being provided in the areas of Agriculture, Business & Commerce, Engineering and Technology, Home Science, Health and Paramedical, Social sciences, humanities etc.

To cope up with the proliferation of work in vocational education, Pandit Sunder Sharma Central Institute of Vocational Education (PSSCIVE) was set up as a constituent unit of NCERT, to provide intensive technical and academic support to the formal and non-formal vocational education programmes in the country. If compared to China, we find that out there vocational education is imparted at various stages; i.e. junior secondary schools, senior secondary schools, adults specialized secondary schools; they are run by multiple agencies at various levels. Figure 2 and Table 2 give an idea of the capacity of vocational education in China, which is much higher compared to India.

Fig 2. Capacity of vocational education in China at secondary level T1 - 119

Table 2: Basic Statistics on Vocational/Technical Training Institutions (2005) Item (A) Vocational/Technical Training Schools (1) Run by Education Departments and Collectives (2) Run by Other Departments (3) Run By Private (B) Technical Training Schools for Adult Farmers (1) Run by Education Departments and Collectives (a) Run by Countries (b) Run by Townships (c) Run by Villages (2) Run by Other Departments (3) Run By Private (C) Others (1) Run by Education Departments and Collectives (2) Run by Other Departments (3) Run By Private Schools (Unit) 4230 1321 1014 1895 166601 160924 1071 23799 136054 3756 1921 27735 959 1544 25232 Registered Students 1723388 950537 502024 270827 37293423 35968830 966532 15383126 19619172 747538 577055 9810336 1028734 734478 8047124 Graduates 1933667 1053748 612280 267639 47931805 46870460 1246986 20053644 25569830 726818 334527 9476408 999029 880572 7596807 Teachers and Staff 50589 28377 9644 12568 250694 232963 10699 76068 146196 6397 11334 224957 14910 11518 198529

Source: China year book

Contrarily, we in India do not have such an elaborate arrangement as seen in case of China. The system in India is centralized with the Ministry of Human Resource Development (MHRD) and Ministry of Labor and Employment (MoLE) primarily taking care of education and training respectively, an overview of which is provided in Figure 3. Besides, some other ministries are also involved in conducting various training programs.

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Fig 3. Academic, Technical and Vocational parallel training structure/system in India

There are around 15 more ministries/departments (other than MHRD and MOLE) which provide and finance vocational education and training programs in India. Their total annual training capacity is around three million students, with a wide variation between programs offered by different ministries in term of scope, target groups, curriculum, duration, and testing and certification but there is no coordination among them. In many cases, a number of courses are offered in an ad-hoc manner and are need based still more industry participation and demand driven training programmes are required. Moreover there are certain sectors where skill requirement is very high but there is no institutional mechanism involved in promoting skills in areas such as construction sector, IT enabled services, consumer and retail sector, financial sector etc. Beside this there is a set of emerging occupations for greener economies which also require attention.

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Skill Deficiency in India According to the estimates of National Skill Development Policy document, presently, skills base of the Indian economy is quite low as compared to other developed economies of the world. The present vocational training capacity is estimated to be around 3.1 million while 12.8 million persons, as per 61st round of National Sample Survey Organization(2004-05), enter the labor force every year. The unorganized sector in the country constitutes nearly 90% of the work force. Skills in the unorganized sector are acquired through informal apprentice system and the prevailing formal training system does not take care of the required skills. This eventually has led a huge gap in skill demand and supply. A study conducted by Confederation of Indian Industry and Boston Consulting Group (CII & BCG) estimates that India is likely to increase deficit of 5.25 million employable graduates and vocationally trained workforce by 2012. Contrarily, another study by Boston Consulting Group has estimated that by 2020 the world will have shortage of 47 million working people but India will have a surplus of 56 million people. However, in order to reap the benefits of demographic dividend, India will have to equip this manpower to meet the requirement of skill talent across geographies. In this context the Confederation of Indian Industries (CII) has conducted a study in selected sectors of economy in the following States: Punjab Textiles, Auto/Auto Components, Light Engineering, Food Processing, Real Estate and Construction, Retail and Location based entertainment. Tamil Nadu Textiles, Construction, Auto/Auto Components, Light Engineering, IT/ITES, Leather. Andhra Pradesh Construction, Textiles, Tourism, Healthcare, Engineering, IT/ITES, Pharma, Biotech, Paper, Minerals. J&K Handicrafts, Hospitality, Agro-processing, Construction, ITES, Repair Servicing.

On the basis of this study CII has projected the following requirement of skilled workers at different levels by 2015:

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Table 3: Estimated requirement of skilled workers at different levels by 2015 S. No. 1. Sector Demand (in Mn) 2 - 2.5 Skill Level Break-up Specialized skills 5% Skill category level II 25% Skill category level I 30% Minimal education skillable 40% Specialized skills 2% Skill category level II 11% Skill category level I 12% Minimal education skillable 75% Specialized skills 6-8% Skill category level II 32-43% Skill category level I 45-50% Minimal education skillable 10-15% Specialized skills 10% Skill category level II 40% Skill category level I 16% Minimal education skillable 43% Specialized skills 5% Skill category level II 15% Skill category level I 65% Minimal education skillable 15% Specialized skills 5% Skill category level II 20% Skill category level I 65% Minimal education skillable 10%

Auto

2.

Construction

15

3.

Retail

4-5

4.

Healthcare

4 - 4.5

5.

Banking & Financial services

4.5 - 5

6.

Creative Industry

0.5 0.8

7. Total

Logistics

Drivers: 51 Mn Warehouse Managers: 8000 81 83.8 Mn

Source: National Skill Development Policy, March 2009

VET is often considered to be essential for catering to the needs of the industrial sector as evident from the CII report. Agricultural sector, which has remained weak in terms of human resource base also remains neglected as far as VET is considered. PSSCIVE has been the backbone in terms of providing academic support to VET programmes in this sector. Although 32

competency based curricula for vocational courses in the discipline of agriculture are available across diverse areas, yet enrolment in such courses falls behind the set targets. Several modules have also been developed by the institute across a wide range of disciplines in the agricultural sector covering hundreds of occupations but they fail to be delivered due to
non-availability of ITIs and polytechnics; the apprenticeship scheme is also not taking care of

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this sector. VET in agriculture takes place under the aegis of various Departments/ Ministries who have established the training centres, e.g. Krishi Vigyan Kendras, Khadi and Village Industry Centres, state institutes of rural development, extension training centres etc. There exist several associated schemes under which training programmes are conducted. 119 skills/ modules in six areas, i.e. agriculture, poultry, sericulture, fisheries, animal husbandry and food processing & preservation are available under the Modular Employable Skill (MES) programme of the Ministry of Labour and Employment which aims to equip people with marketable skills. However, the non-formal system often suffers from limitations, e.g. problem of standardization, crisis of recognition etc. With the new emerging areas of skill development like green food production, hi-tech floriculture, precision farming, protected cultivation, post harvest management & value addition, development of vocational & entrepreneurial skills among the farmers and rural youth is extremely essential. National level interventions like Rashtriya Krishi Vikas Yojana (RKVY) and National Food Security Mission (NFSM) aiming at holistic development of agriculture have been initiated. Such initiatives recognize skills of people employed in farm and non-farm sector (this sector alone provides employment to 41.89 million rural people and would necessarily

require induction of new skills) in rural areas to be one of the important components to be
addressed. But all such initiatives require synergy with the NSDM (discussed earlier) in effective implementation of programmes and MGNREGA which could ensure job opportunities for pass outs.

National Policy on Skill Development To respond to the existing skill gaps and to identify skill needs, the Eleventh Plan has taken the initiative to launch a National Skill Development Mission. Under this mission a National Policy on Skill Development has been formulated by the Ministry of Labor & Employment. The objective of this policy is to create a workforce empowered with improved skills, knowledge and internationally recognized qualifications to gain access to decent employment and ensure Indias competitiveness in the dynamic global labor market. It aims at an increase in the productivity of the workforce both in the organized and the unorganized sectors, seeking increased participation of youth, women, disabled and other disadvantaged sections and to synergize efforts of various sectors and reform the present system. At present the capacity of skill development in India is around 3.1 million persons per year. The XI Five Year Plan envisions an increase in that capacity to 15 million annually. Thus, T1 - 124

there is a need for increasing capacity and capability of skill development programs. Under the mission several measures have been initiated by the Government at various levels catering to different sectors of the economy. Following is a brief discussion of these important initiatives:

A.

Institutional arrangement

A three tier institutional structure has been set up to take forward the skill development agenda.

Fig 4.

Institutional structure for skill development

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NSDC aims to undertake the following functions: a) Identification of skill development needs including preparing a catalogue of types of skills, range and depth of skills to facilitate individuals to choose from them; b) Development of a sector skill development plan and maintain skill inventory; c) Determining skills/competency standards and qualifications; d) Standardization of affiliation and accreditation process; e) Participation in affiliation, accreditation, examination and certification; f) Plan and execute Training of Trainers; g) Promotion of academies of excellence; and h) Establishment of a well structured sector specific Labor Market Information System (LMIS) to assist planning and delivery of training. Till date, the NSDC has funded 15 projects, including one targeted at tribal youth in the ultraleft wing extremist-affected areas of Orissa. The NSDC board has also approved further 14 proposals where funding is to start soon. Combined, these 29 ventures would train over 40 million youth in diverse trades over 10 years.

B. Skill Development Initiative Scheme

The scheme was started in 2007-08 with an objective to train one million persons in short term modular courses in five years at a cost of Rs. 550 crore and then one million every year thereafter. Under the scheme, 1158 short term modular courses have already been developed. These courses cover 49 sectors and range from 60 hours to 960 hours. The entry level for these training programmes is 5th grade. Training is being imparted through 6398 Vocational Training Providers and competencies of trainees assessed by 22 independent assessing bodies. On the basis of their assessment, National Council for Vocational Training Certificate is awarded to the trainees, which is recognized nationally and internationally. This scheme has been developed in close consultancy with industry, state government and experts in pursuance of excellence in vocational training. Modular Employable Skill (MES) is the Minimum Skill Set which is sufficient to get an employment in the world of work. MES allows skill up-gradation/formation, multi entry and exit, vertical and horizontal mobility and lifelong learning opportunities of prior learning. Considering it essential for early school leavers and existing workers, especially in the unorganized sector, ministry of labor and employment has developed this scheme with a new strategic framework. Till date, under this scheme (which is based on modular employable skills), 6398 Vocational Training Providers (VTP ) have been registered under the six Regional Directorate(s) of Apprenticeship Training (RDAT) located in Mumbai, Kolkata, Kanpur, Hyderabad,

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Faridabad and Chennai . Already 1,079,968 candidates are training under the scheme and 946,304 have been issued certificates, as per information provided by DGET. Placement for persons trained under the scheme is reported to be around 466,923.

C. Up-gradation of 2122 Government Industrial Training Institutes (ITIs) 1) It has been decided to modernize/upgrade all 2122 government ITIs. 100 ITIs were taken up for up-gradation in 2005-06 at a cost of Rs. 160 crore into Centres of Excellence. 21 new courses in production & manufacturing, hospitality, automobile, electrical, electronics, construction, information technology, industrial automation, refrigeration and air conditioning have been introduced in order to meet the requirement of these sectors. Upgradation of 400 ITIs through World Bank assisted Vocational Training Improvement Project was undertaken in 2006-07 at a cost of Rs. 1581 crore. Remaining government ITIs are being upgraded at a cost of Rs. 3550 crore. Under the scheme, an interest free loan of Rs. 2.5 crore is granted to each ITI. In the last three years, 900 ITIs have been taken up which are at different stages of modernization. 2) A special Prime Ministers Package for North-East and Jammu & Kashmir has also been given in which 35 existing ITIs in North East have been upgraded and 25 new ITIs have been set up at a cost of Rs. 113.7 crore. Under the same scheme, one new women ITI at Jammu has been set up and 37 existing ITIs have been upgraded at a cost of Rs. 37 crore.

D.

Skill Development through Open and Distance Learning (ODL)--IGNOU Initiatives

Indira Gandhi National Open University (IGNOU), the national Open University in India has also undertaken skill development initiatives by establishing the School of Vocational Education and Training. The School offers demand driven and value added courses/programmes, focusing on both formal and informal sectors. IGNOU School of Engineering and Technology has initiated pioneer effort by launching Vertically Integrated Engineering Programme known as IGNOU-VIEP to encourage vertical mobility in this field. Besides engineering, IGNOU offers training programmes, certificate and diploma programmes

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over the past five years for skill development in the in the field of agriculture, animal husbandry, food processing etc.

IGNOU has also developed different skill certification programmes for unskilled/semi skilled workers mainly in two areas namely footwear and construction industry. Under this certification scheme the workers are trained at industrial sites and competency based trade certificates are given to workers and supervisors after their necessary training and evaluation wherein a candidate is judged by his/her performance evidence, supplementary knowledge and prior achievement evidence.

Key Issues Different institutes impart vocational training but they do not have coordination among themselves. There is a significant need to review the activities on skill development under various institutes/ministries and enhance their coordination. A network mapping of various stakeholders should be done to bring synergy to the demand and supply of skilled manpower. The structure of the job market is changing, therefore the structuring of courses should be demand driven specially for emerging occupations. Financing of vocational institutes occurs in an unstructured manner. This should be based on the performance of institutions to motivate the drive for innovation and excellence. Tracer studies should be conducted to provide feedback on the capability and capacity building of the present VET infrastructure.

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