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Knowledge paper on

Strategic and implementation framework for skill development in India

September 2011

Knowledge paper on Strategic and implementation framework for skill development in India September 2011
Knowledge paper on Strategic and implementation framework for skill development in India September 2011

Foreword

Foreword Abhaya Krishna Agarwal Executive Director and National Leader — PPP India is currently poised on

Abhaya Krishna Agarwal

Executive Director and National Leader — PPP

India is currently poised on a huge opportunity to meet the future demands of the world. When developed countries are struggling with shrinking domestic demands and capacity challenges in meeting them, India, with its huge young demographic dividend, is well positioned to become the sourcing hub of the world. This is not only limited to an exponential growth in demand in its manufacturing and service sectors, but is also applicable to its capacity to meet global manpower demands as well.

Talent acquisition is one of the largest challenges for organizations across positions and levels worldwide, across the world, in developed and developing countries, have been focusing intensely on developing skills and evolved delivery frameworks to meet the skill demand and effectively utilize and divert the positive energies of its working age people.

According to a global study, India is one of the largest labor-surplus countries worldwide in terms of its working age population. Furthermore, of the country’s workforce comprises only one million people per annum against the estimated to grow to 57 million by 2013. Therefore, it is imperative for India to develop a robust mechanism for vocational education and training, and invite the private sector and other social agencies to participate and deliver within the shortest possible time.

launched the National Policy on Skill Development and developed a three-tier structure for strategy, co- requisite skills to a workforce of 500 million by 2022. is an important initiative at the most opportune time to delivery of this framework in India.

This paper focuses on existing skill gaps in India and the world, an overview of skill development in the country, private sector initiatives in vocational training, effective practices followed in other countries and learning for India from these practices, and recommendations for the future.

Knowledge paper on strategic and implementation framework for skill development in India, which especially focuses on implementable ideas for the Twelfth Five Year

Regards

Abhaya Krishna Agarwal Executive Director and National Leader — Public Private Partnerships

Foreword

Foreword Dr. Rajiv Kumar Secretary General - FICCI It is now universally recognized that a nation’s

Dr. Rajiv Kumar

Secretary General - FICCI

It is now universally recognized that a nation’s economic strength and growth squarely rests on the skills and knowledge base of its human resources. In today’s highly is critical for addressing the challenges of growth and converting them to opportunities. As India moves towards achieving its ambitious economic and social inclusion targets, engaging human resources to empower them with the requisite skills becomes imperative for driving

because of the dire need to reach out to its teemining millions; the inevitable shift of labour from agriculture to manufacturing and services sectors and the manifold challenges in implementation of programmes at the grass roots level.

The 11th Five Year Plan was instrumental in bringing skills development to the forefront of the national and state initiatives has launched a number schemes and programmes to empower the workforce, particularly the youth. The task is onerous as it is imperative. The accent in the 12th Plan must therefore be on implementing the nation’s skill development strategies.

The world today is looking at India with an interest skilling 500 million people by 2022. Engaging with the world in partnerships is the way forward to make the and South Africa have put the spotlight on quality and competiveness in Skills and Education space. India can countries.

This report attempts to address the various issues and drivers of Skills Development. It is a unique presentation of existing strategic and implementation models information presented in the report would serve as valuable material for all stakeholders, including industry and academia for developing the required skills for a

Regards,

Dr. Rajiv Kumar

Table of contents

1. Global skill mismatch

6

Increasing battle for brainpower worldwide

6

Global supply of skilled manpower

8

Increasing trend toward demand for skilled manpower

9

India’s capacity to overcome shortage of skilled labor

10

Skill gap in India

10

2. Skill framework in India

12

Skill development in India: an overview

12

Vocational education and training in the current Indian education framework

13

Initiatives of key ministries/organizations in India

18

Private sector initiatives for vocational training

29

Initiatives of companies

29

Initiatives of industry associations

30

3. Learning from other countries

Best practices of other countries

32

32

UK’s vocational education and training system

32

34

Australia’s vocational education and training system

35

South Africa’s vocational education and training system

35

Korea’s vocational education and training system

36

Singapore’s vocational education and training system

37

Learning for India from the global experience

38

39

4. The road ahead

Recommendations for the future

40

40

Implementation strategies

40

Operational strategies

41

Focus on delivery

42

Executive summary

In the wake of the rapidly increasing demand-supply gap and global competition, it has become imperative for organizations to ensure an adequate supply of skills and optimize their use.

However, the world’s population is ageing fast. By 2040, the global population, aged 65 and above, is expected to reach 1.3 billion — more than double of 530 million in 2010. This trend

is expected to result in severe labor shortage across the world.

Shortage of skilled workers is expected to be acute in some of

the world’s largest economies, including the US, France and

On other hand, India has the distinct advantage of having one of the youngest populations in the world. The country has

a very large pool of young English-speaking people and has

the potential to meet the skill needs of other countries and also cater to its own demand for skilled manpower. Ironically, most industries in India are currently struggling with scarcity of skilled labor. Although more than 40 million people are This is because the current education system does not train young people in employable skills that will open up immediate employment opportunities for them. Today, a large section of India’s labor force has outdated skills. With current and expected economic growth, this challenge is going to only are expected to be “skill-based.”

upgrading people’s skills by providing vocational education and training to them. It has formulated the National Policy on Skill Development and set a target for providing skills to 500 million people by 2022. Various stakeholders are involved in this process.

In the current framework, the Ministry of Labor & Employment

is running various schemes and has set up industrial training

institutions across the country. Other ministries such as the Ministry of Human Resource Development, the Ministry of

Rural Development and the Ministry of Urban Development

& Poverty Alleviation have also launched their skill upgrading

programs and self-employment schemes. In addition, as part Public Private Partnership mode to facilitate setting up of large, set up 1,500 new ITIs and 5,000 skill development centers vocational, educational and training systems.

private sector entities are taking several initiatives to contribute sectors, companies and industry associations are not only boosting their in-house training facilities, but are also taking organizations.

However, to make this exercise a success, India has many lessons to learn and implement from international practices skilled workforce, India can only account for 2%. Therefore, far-reaching and deep rooted reforms are urgently needed if it wants to emulate countries, whose vocational education and training systems has been successful.

Focused initiatives need to be taken in key areas to improve quality, enhance accessibility and increase affordability of vocational education and training. It is also important to spread awareness about the system so that vocational education and training is given equal importance as formal education.

Therefore, it is clear that India requires a strong implementation and operational framework, to set up and implement which

a cohesive manner to achieve their common goal of rapid skill development.

1. Global skill mismatch Increasing battle for brainpower worldwide 1 Knowledge is the engine that

1.

Global skill mismatch

Increasing battle for brainpower worldwide 1

Knowledge is the engine that drives the growth of an economy. In order to remain competitive, all countries and organizations have to attract human resources with new and innovative skills. However, availability of skilled manpower is becoming a challenge. The world is entering a phase, which is expected to witness an unparalleled shortage of skills. In developed countries, the ageing population and retirement of capability to manage workforce quantity, quality and costs.

Despite high unemployment rate, employers are facing positions.

Existing skill development framework in India

40%

41%

Existing skill development framework in India 40% 4 1 % 31% 30% 31% 3 4 %
31% 30%
31%
30%

31%

34%

framework in India 40% 4 1 % 31% 30% 31% 3 4 % 2006 2007 2008

2006

2007

2008

2009

2010

2011

Source: Manpower Group research

1 en/multimedia/2011-Talent-Shortage-Survey.pdf, accessed 19 July, 2011.

Germany 40 % France 20 % US UK China Japan 57 % 15 % 24

Germany 40 % France 20 % US UK China Japan 57 % 15 % 24
Germany
40 %
France
20 %
US
UK
China
Japan
57 %
15 %
24
%
80 %
India
67 %
Brazil
57 %
Australia
54 %
Source: Manpower Group research

in 2011 from only 16% in 2010.

requirement for skilled labor but also cater to the labor shortage in other countries

illiteracy and a large number of people in the developing world not being able to
illiteracy and a large number of people in the developing world not being able to contribute in the growth of their countries. The
availability of such manpower is depicted in the map below.
82
11.2%
Germany
99%
7.1%
France
1,341
127
63
16.8%
10%
US
UK
12.4 %
China
Japan
92%
99%
310
62
99%
4.3%
5%
14%
13.1%
9.3%
99%
99%
India
9.6%
7.8%
1,225
Brazil
19.2%
Australia
195
22
74%
17.2%
14.1%
10.8%
89%
99%
6.7%
5.2%
Total population (in million)
Young population (15 -24 yrs) as % of total population
Literacy rate (%)
Unemployment rate (%)

Source: United Nation Population Division, CIA World Factbook

Among developing countries, India has the highest potential to meet the skill gap with its huge population, the largest number of young people worldwide, a low literacy rate and the highest global unemployment rate.

Increasing trend toward demand for skilled manpower 2

Organizations across the world have recognized the importance of skilled manpower and the value it can provide despite being a little costlier. Skilled workers provide high value for money and initiate a ripple effect in the growth of a country’s economy.

The demand for unskilled labor has begun to decline in the overseas employment market and the future belongs to skilled workers, preferably those who have multiple skills. This has resulted in large-scale migration of skilled labor in the recent past.

The case of the United States Skill set of working-age immigrants in the US 23%
The case of the United States
Skill set of working-age immigrants in the US
23%
30%
Over the last 20 years, the share of low skilled
working age immigrants in the US has reduced
from approximately 37% to 28%, while the share of
high- and middle-skilled workers has increased.
41%
43%
37%
Highly skilled immigrants primarily come from
countries such as India, China and the Philippines.
28%
1990
2010
Low skilled
Middle skilled
High skilled
Source: Brookings research

New destinations such as Australia, Singapore and New Zealand have also become popular for skilled Indian immigration is steadily becoming more important than that of unskilled workers.

“Australia has opened its doors to skilled workers from India to handle the shortage of skilled workers. We have made some changes to our Skilled Migration Policy to get more skilled talent from India…India providing manpower to us”

— David Holly, Australian Consul-General for South India (June 2011)

2 “India has set a target of training 500 million skilled workers by 2022,” SkilledWorkers.pdf, 15 June, 2011.

news/australia-welcomes-indian-workers/160160-60-119.html, 18 June, 2011.

However, migration can have several repercussions, e.g., high unemployment rates, brain drain and political pressure due to as critical issues, and have begun taking measures to pre- empt the negative impact of these. They are formulating new policies, wherein vocational training will be introduced along with school education, thereby aligning education programs with the anticipated labor force requirements of different industries. Skill-sets are becoming obsolete more quickly, due to which skill development centers are being set up to address ever-changing dynamics in employment markets. Innovative gaining increasing importance to impart and disseminate skills worldwide.

With a projected skilled manpower shortage of approximately 56.5 million by 2020, countries across the world are focusing on meeting this demand through innovative measures.

India’s capacity to overcome shortage of skilled labor 3

the global demand for skilled manpower and its demographic dividend can be leveraged to meet the skill needs in other countries, apart from its own demand, primarily due the

Low median age: India has one of the youngest populations in the world, with a median age of 25 in 2010, as compared to 34

Largest population in the working age group: Over the next 20–30 years, India is expected to have one of the largest populations worldwide in the working age group (15–64 years). While most countries, particularly developed ones, are likely to witness a decline in their working age population, India will see an increase, with its approximately one billion working age population by 2050.

Large English-speaking population: India has a large pool of educated English-speaking people. This is an asset can be

Working age (15-64 years) population (% of total population) 80 72 70 67 68 66
Working age (15-64 years) population (% of total population)
80
72
70
67
68
66
65
61
60
64
60
59
51
50
2010
2020
2030
2040
2050
India
China
US
UK
Japan

Source: United Nation Population Division

human resources to other countries. It is estimated that India will have two billion English-speaking people by the end of

2020.

High demand for mobile Indian labor force: The mobility of human resources is the long-term solution for sustaining the growth rates of countries and enabling them to surmount issues including demographic asymmetry and globalization of economies. India’s strength as a source of a large young and mobile workforce is widely acknowledged.

Skill gap in India 4

Despite the advantages mentioned above, India suffers due to a huge skill gap in various sectors.

to be created in India will be “skill-based.” However, the country has a low employment rate. While its overall supply of highly skilled labor marginally exceeds demand, there is a shortage of

Heterogeneous nature of universities or training institutions, with varying infrastructure, capabilities and facilities, as well as the quality of education and training provided by them

Lack of focus on development of skills pertaining to the

Non-recognition of the value of skilled workers by employers, particularly in the informal and small enterprise sectors

Approximately 80% of the workforce in rural and urban India does not possess any

3 15 June, 2011.

4 accessed 24 August 2011

Human resource requirements across key sectors till 2022 (in million)

Textile and clothing

Building and construction

Auto and auto components

Real estate

Organised retail

Banking, nancial services and insurance

IT -ITeS

Electronics and IT hardware

2022 Source: NSDC
2022
Source: NSDC

2008

61.6 35.4 58.0 25.0 48.0 13.0 25.0 11.0 17.6 0.3 8.5 4.3 7.5 2.2 4.2
61.6
35.4
58.0
25.0
48.0
13.0
25.0
11.0
17.6
0.3
8.5
4.3
7.5
2.2
4.2
0.9

If this skill gap is plugged, India can become the hub for skilled manpower, with it being capable of building a skilled manpower surplus of approximately 47 million by 2020.

India, with its huge population, the largest number of young people worldwide, a relatively higher unemployment rate as English-speaking labor pool can mould its people to become more productive by acquiring enhanced skills and capabilities to help economies grow at a much faster rate as compared evolve as the world’s skill center and also meet its domestic demand, which is continuously increasing.

It is therefore essential that a comprehensive regulatory and delivery framework for skill development in India is formulated and implemented at this stage to divert the positive energies of

its people toward innovative and integrated skill development with the aid of outcome-based orientation. The time is ripe for India’s political and administrative authorities to initiate actions that will enable achievement of these goals.

“Developing countries, not affected by ageing populations (the workforces of India and Brazil will grow by more than 200 million people over the next two decades), categories due to low employability.”

Global Talent Risk report 2011, World Economic Forum

3. Skill framework in India an overview 5 As India progressively moves toward becoming a

3.

Skill framework in India

an overview 5

As India progressively moves toward becoming a “knowledge economy,” it has become imperative for its work force to acquire and upgrade skills that are relevant in the emerging economic environment. This transition will require the country to develop its large labor pool into a skilled one, which will be

The Indian workforce abroad faces several challenges such as regulatory issues relating to visa clearance as well as other health and safety issues. However, the key challenge faced by Indians aspiring to work abroad is recognition of their credentials. In terms of higher education, what India primarily lacks is not engineering or medicine talent, but skill and design.

It is therefore imperative for India to upgrade the skills of its large number of young workers by imparting vocational education and training to them. This will train them for a education and training is to develop skills by providing applied Such exposure makes people employable and also creates opportunities for them to take up entrepreneurship roles.

5

“Last year (2010), we concentrated on formal higher education. While universities are important, we must not forget that a huge number of high school graduates do not enter formal higher education. India, therefore, needs a strong vocational education network such as that in the US.”

strong vocational education network such as that in the US.” Kapil Sibal, Union Minister of Human

Kapil Sibal, Union Minister of Human Resource Development

Due to the varying quality of Indian education systems, only 25% of the country’s professionals are considered employable by multinationals.

“There are 3,600 blocks in the country where there are no government institutes, funding or

“There are 3,600 blocks in the country where there are no government institutes, funding or a mechanism to provide industrial training to the youth…. We need to look into this to achieve the target of providing industrial training to over 50 crore people by 2022.”

achieve the target of providing industrial training to over 50 crore people by 2022.” Sudha Pillai,

Sudha Pillai, Member Secretary,

Vocational education and training in the current Indian education framework 6

the largest education systems in the world. This constitutes multiple levels, starting from elementary education, which does which vocational education is provided at every stage.

India’s education system is also characterized by a high “school dropout rate,” which is as high as 56.8% by the time students reach the qualifying examination at the 10th standard. There section of society to become employable.

6 “Skill development in India- The vocational education and training system,” World Bank, January 2007, p.35

“We have the highest young population and the “Skill Development,” as it is critically important to address the twin issues of enhancing the competitive strength of industry and employment generation.”

of enhancing the competitive strength of industry and employment generation.” Union Minister of Labour and Employment

Union Minister of Labour and Employment

“60% of India’s 1.2 billion people are in the working age group. However, only 10% of the 300 million children in India between the age of 6 and 16 will pass school and go beyond. Only 5% of India’s labor force in the age group 19-24 years is estimated to have acquired formal training. Despite this, our economy is clocking an 8.5% growth. Imagine what could be if we could leverage our demographic dividend fully.”

be if we could leverage our demographic dividend fully.” S Ramadorai, Advisor to the Prime Minister

S Ramadorai, Advisor to the Prime Minister in National Skill

S Ramadorai, Advisor to the Prime Minister in National Skill 14 Knowledge paper on strategic and

Current education and skill development structure in India

Age M.Phil Doctorate Select Courses 22-23 Post Graduate Degree - Master ’s Program (2 year)
Age
M.Phil
Doctorate
Select Courses
22-23
Post Graduate Degree - Master ’s Program (2 year)
Management/Professional/Medical/Engineering
Select Course
Polytechnic Diploma
2/3 Years
Diploma in Engineering and other Vocations
(Regular or Lateral)
19-22
Bachelor’s Degree -University Education (3-4 years)
Technical/Medical/Professional/Degree Courses
(Regular and Lateral Only)
After passing class
10 & 12
Select Courses
17-18
Higher Secondary (Class 11 to 12)
(Science/Commerce/Humanities/Vocational)
Craftsmen DGET
Certi cate
Industrial Training
Institute/Centres
(6 months- 3 years)
Craftsmen
Apprentices
2-4 Years Certi cate
(Duration will be
reduced by amount of
Craftsmen Training)
Select Course
Class 8 passed and above
15-16
Secondary School (Class 9 to 10)
11-14
Upper Primary (Class 6-8)
Compulsory
Education
6-10
Primary Education (Class 1-5)
3-5
Nursery (Pre -school) 2 years but not recognized

primarily responsible for the development of vocational education and training schemes at the national level, e.g., state governments undertake the implementation of training schemes along with their own training programs. The governments to carry out the same functions at state levels.

Development, which envisages the exponential expansion of the current capacity for skill development in the country to facilitate its target of imparting requisite skills to 500 million people by 2022. It also envisions the establishment of a National Skill

“The National Skill Development Initiative will empower all individuals through improved skills, knowledge, nationally to decent employment, and ensure India’s competitiveness in the global market.”

The salient features of the policy include setting up a system

Is driven by demand from the labor market

Focuses on new and emerging occupations and promotes excellence

Inculcates competencies that are in line with nationally and internationally recognized standards

Lays emphasis on research and planning

Provides adequate participation opportunities to women, disabled persons and economically backward sections of society

A

three-layer structure is proposed to develop the skill scenario

in

India.

1.

Prime Minister’s National Council on Skill Development

been set up as an apex institution for policy direction and review. The ministers for Human Resource Development, Finance, Industries, Rural Development, Housing and Urban Poverty Alleviation, Labour and Employment and Micro Small & Medium Enterprises are members of the council. The Principal Secretary to the Prime Minister is its Member Secretary.

2.

National Skill Development Co-ordination Board (NSDCB)

has been set up under the chairmanship of the Deputy the Ministries of Human Resource Development, Labour

and Employment, Rural Development, Housing and Urban Poverty Alleviation and Finance are members of the four states (by rotation) for period of two years, and three is the member secretary of the board.

The functions of the NSDCB:

(i) Formulating strategies to implement the decisions of the

(ii) Developing appropriate and practical solutions and strategies to address regional and social Imbalances, the quality of vocational education and training, the evolution of a robust regulatory structure, private participation strategies and putting in place sectoral action plans

(iii)

Encouraging state governments to structure their initiatives in a way that can be modeled on similar lines (or in any other way), as deemed suitable by them

(iv)

Monitoring, evaluating and analyzing the outcome of the various schemes and programs and apprising the about this

3. National Skill Development Corporation

of its kind PPP initiative in India, which facilitates skill development. A large part of its skill development efforts are directed at the country’s unorganized sectors.

providing viability gap funding to organizations that provide skill training. It also develops appropriate PPP models to enhance, support and coordinate private sector initiatives.

The differentiated focus on the 21 sectors under the is aimed at making every sector attractive to private investment.

Existing skill delivery framework of India

Central State Industry Private Ministries Governments Bodies Sector Labour & Employment education and
Central
State
Industry
Private
Ministries
Governments
Bodies
Sector
Labour &
Employment
education and
vocational training
Human
Polytechnics
Resources
Technical training
Advanced training
Training of trainers
Regional vocational
training institutes
Technical
Distance
Vocational
Urban
Modular
HUDCO
Education
Development
employable skills
Rural
Content design and
af liations
Development
Textile
Region and social
schemes
Finance
NSDC
Commerce
Agriculture
Sector speci c
Range of
schemes
Food
Processing
Health &
Family
Welfare
Sector Skill
Councils
Information
Technology
Heavy
Industries
SIDO
MSME
Tourism
KVIC
Women &
Child
Development
Tribal Affairs
National Vocational
Others
National Vocational
Education
Quali cation Framework
Quali cation
Framework
Proposed
Standards & Assessments
Curriculum & instructions
Professional development
Learning Environments
Standards & Assessments
Curriculum & instructions
Professional development
Learning Environments

Initiatives of key ministries/organizations in India

Ministry of Labour and Employment 7

The ministry has in place various schemes that are linked to the quality of training, employment linkages and upgrading of infrastructure for skill development.

Key schemes

Upgradation of 1396 ITIs through PPP

Apprenticeship Scheme

Modular Employable Skills Scheme

Indicators

Industrial

On the job training

 

Coverage

interaction

of

 

5th to 8th class

8th to 10th class

11th to

Graduates

Employed

12th

workers

   

Training Scheme

X

Apprenticeship

     

scheme

     

excellence scheme

X

Modular

     

employment

X

scheme

End result

      employment X scheme End result Semi-skilled labor Skilled labor Multi-skilled labor Minimum

Semi-skilled labor      employment X scheme End result Skilled labor Multi-skilled labor Minimum skill-set

employment X scheme End result Semi-skilled labor Skilled labor Multi-skilled labor Minimum skill-set

Skilled laboremployment X scheme End result Semi-skilled labor Multi-skilled labor Minimum skill-set development 7

X scheme End result Semi-skilled labor Skilled labor Multi-skilled labor Minimum skill-set development 7

Multi-skilled laborX scheme End result Semi-skilled labor Skilled labor Minimum skill-set development 7 Ministry of Labour &

Minimum skill-set

developmentlabor Skilled labor Multi-skilled labor Minimum skill-set 7 Ministry of Labour & Employment 2010-11 annual

7 Ministry of Labour & Employment 2010-11 annual report

Craftsmen Training Scheme Objective: To ensure a supply of semi-skilled labor and reduce unemployment among educated youth

Pedagogy: Includes 70% of practical training and 30% of theoretical training

theory, workshop calculations and science, engineering drawing and social studies. Industry associations are involved at every stage of the formulation of policies, norms, standards and procedures.

The course curricula are developed by trade expert committees and constituted by a representative from each trade, comprising experts drawn from the relevant industry and technical institutes involved in imparting skills.

Coverage: Under this scheme, vocational training is Training is provided on 116 trades and the training period varies from six months to three years.

Craftsmen training scheme expansion ( in '000)

1,400 10 8.6 1,200 8 1,000 5.1 6 800 4.3 600 1,206 4 400 742
1,400
10
8.6
1,200
8
1,000
5.1
6
800
4.3
600
1,206
4
400
742
652
2
200
0
0
2000
2005
2010
Seating capacity
ITIs/ITCs
Seating Capacity
Number of ITIs

Source: Ministry of Labour & Employment 2010-11 annual report

Course content and duration: courses (in a one- or two-year format). However, there has been an increasing demand for short-term courses in the country, which can be catered to through this scheme. The current scheme can be complemented by incorporating

procedures should be more standardized and reliable.

Human resource: Fewer instructors than needed for training and the quality of such trainers has led to limited attention being paid to ITIs. This brings to the surface the need to recruit suitably trained instructors and train existing ones in a time-bound manner.

Physical infrastructure: laboratories have obsolete equipment. Thus, the issue of poorly maintained infrastructure facilities at ITIs should be addressed on a priority basis.

Job opportunities: Only a limited number of training completion of the course. Therefore, monitoring the effectiveness of these placement bodies is a challenging task. A proper mechanism to rectify this situation should be put in place.

Upgradation of 1396 ITIs through PPP

Objective: The scheme aims to upgrade 1396 ITIs with private sector participation at an estimated outlay of INR35.5 billion.

Methodology: Under the scheme, an industry partner collaborates with an ITI to upgrade it.

is granted an interest-free loan of up to INR25 million. The partner is also given the authority to determine up to 20% of the admission in the ITI. The state government retains the ownership of the ITI and regulates its admission and fees.

Achievement: Industry partners have been assigned the task of to upgrading 924 ITIs.

Year

ITIs upgraded

2007-08

300

2008-09

300

2009-10

300

2010-11

24

Authority: terms of their authority to hire teachers and principals. This are government-owned institutions. It is imperative that they are given more authority.

Apprenticeship scheme

Objective: The Apprentice Act, enacted in 1961, regulates the program of training apprentices in the industry. It is obligatory for employers in public and private sector establishments to have in place the requisite training infrastructure, as laid down in the Act, to engage apprentices.

Pedagogy: Under this scheme, training is imparted at the actual work place to supplement training imparted at and gives awards including National Apprenticeship

Coverage: There are around 254 group industries covered under the Act and around 24,815 establishments, which engage trade apprentices. The scheme has imparted training to 2, 11,218 apprentices in 235 trades till now.

Industry participation: As of now, the apprenticeship training scheme has not been highly successful on account of its rigid norms, limited private sector participation and low stipends. Hiring of apprentices by the private sector needs to be changed from being employer-enforced to voluntary hiring. The rules, in the form of cumbersome can also be made less stringent. This is likely to enable the private sector to voluntarily hire apprentices. It is therefore imperative that the scheme is made development-oriented rather than regulation-oriented.

Center of Excellence Scheme

Objective: These centers provide multi-skilling courses in 21 industry sectors.

Pedagogy: The courses are imparted in three parts, i.e., training in basic skills (broad-based basic training) for a period of one year, training in advanced modules for six months and training in specialized modules, mainly in the industry.

Coverage: Under this scheme, 500 existing ITIs are

so far trained 1.1 million people with the help of 6,381 registered voluntary training providers.

billion and the World Bank has extended total credit of US$280 million so far.

The newly launched acceptance and awareness. This is also on account of limited acceptance of students under the scheme by public sector entities, since they do not have the requisite result, these institutes are unable to organize specialized under this scheme.

Modular Employable Skills Scheme

Objective: The Ministry of Labour And Employment has introduced Modular Employable Skills (MES) under the Skills Development Initiative Scheme (SDIS), which targets school leavers, existing workers and ITI graduates.

Pedagogy: The MES scheme focuses on the delivery of operational support on an INR15 per hour per student basis to Vocational Training Providers (VTPs) offering such courses.

Modular Employable Skills (MES) Scheme Achievements

3,000 600,000 520,000 2,500 500,000 2,000 400,000 300,000 1,500 300,000 2,670 1,000 200,000 120,000 1,570
3,000
600,000
520,000
2,500
500,000
2,000
400,000
300,000
1,500
300,000
2,670
1,000
200,000
120,000
1,570
10,000 50,000
500
100,000
160
710
390
0
0
Trainees
Expenditure (INR million)

2007-08 2008 -09 2009-10 2010-11 2011-12

(INR million) 2007-08 2008 -09 2009-10 2010-11 2011-12 Expenditure (in INR million) Trainees Source: Ministry of

Expenditure (in INR million)

Trainees

Source: Ministry of Labour & Employment 2010-11 annual report

Private sector participation: The MES scheme fails to partnership on establishment of infrastructure. It can be made much more attractive.

Monitoring framework: The MES scheme requires the implementation of a robust monitoring framework that ensures trickling down of operational support (provided by have the right skills.

Other schemes

Some of the other skill development schemes include the

set up 1,500 new ITIs and 5000 skill development centers large unskilled workforce in these areas can acquire skills.

Skill development for 34 districts affected by Left Wing 34 Left Wing Extremism (LWE)-affected districts across the country.

instructors in vocational training institutes.

Women (NVTI) and 12 Regional Vocational Training Institutes for Women (RVTIs). They are offered in 27

trades.

compared to the gross capacity of instructor training & Apprenticeship scheme) is more than 70,000, and the present instructor training capacity of 1600 per annum is grossly inadequate.

It is proposed that new institutes, known as Institutes for Training of Trainers (ITOTs), are set up to meet the

public limited companies, registered societies and trusts, and promoters of SEZs. The institutes would need to be

A standing committee will need to be put in place to supervise the setting up of an ITOT, and would require a predetermined standard of infrastructure, building (workshop, class-room), electricity, machinery, equipment, tools and implements, human resources to extend its help and guidance to the organizations including state governments that want to establish ITOTs. In the event there is a need for them, mentors will also be provided to render assistance in setting up of such institutes.

a special initiative of the Ministry of Labour and Employment

The National Skill Development Policy proposes setting up

to accumulate skills and convert them into advanced

It will provide opportunities for horizontal and vertical mobility between general and vocational education.

It will also provide learning paths with standards that are comparable with those of any international learning and continuous upgrading of skills.

All institutions, boards and councils involved in skill development will be encouraged to follow the NVQF.

Through its various schemes and the proposed NVQF, the Ministry of Labour and Employment is playing a crucial role in building an infrastructure that will help it achieve its target of training 100 million young people in the country by 2022.

training 100 million young people in the country by 2022. 22 Knowledge paper on strategic and

Technical education and vocational training (TVET) leads to human resource development through creation of skilled manpower, enhancement of industrial productivity and improvement in the general quality of life. The Ministry of Human Resource Development

Department of School Education and Literacy — to enable TVET programs in senior secondary schools

Department of Higher Education — to impart higher and technical education

Schemes/Programs

Duration

Target group

Details

Vocationalisation of Secondary Education (6800 schools covered)

2

years

Students who have passed 10th class

Vocational education is provided in 9,619 schools with 21,000 sections covering around 1 million students.

 

The scheme proposes to expand vocational education to 20,000 schools and the intake capacity to 2.5 million by 2011-12.

Polytechnics (1244) + Institutions for diploma in pharmacy (415), hotel management (63), architecture (25)

3

year- diploma

Students who have passed 10th class

These offer diploma courses in civil, electrical, mechanical engineering, electronics, computer science, medical lab technology, hospital engineering, architectural assistantship, etc.

3

to 6 months

Poor sections of society in rural and urban areas

science and technology to the rural sector.

Jan Shikshan Sansthan (JSS) (157 courses)

Need based (1- 4 weeks)

Disadvantaged groups of adults — priority being given to adult and ST, women/girls, oppressed people, migrants, slum/ pavement dwellers and working children

These act as district level resources to organize vocational training and skill development programs.

National Program on Technology Enhanced Learning (NPTEL) — Support for Distance Education & Web-based Learning

Designing

Engineering and physical science under-graduate/ post-graduate and all teachers/ faculty members

Launched in 2003, it is meant to enhance the quality engineering education in the country by developing curriculum-based video courses (at least 100) and web-based e-courses (at least 115) that will be prepared at the seven IITs (Delhi, Roorkee and IISc).

course material

— time-bound

National Institute of Open Schooling (NIOS) — Distance Vocational Education Programmes

6

months to

5th, 7th and 8th and 10th pass

These constitute a network of 11 regional centers and around 2,067 study centers .There are around 1,063 accredited vocational institutes in the the country.

2

years

 

The cumulative enrolment in VET during the last

Apprenticeship Training for students of +2 Vocational stream

One year

Students graduating from a 10+2 vocational stream

Vocational courses are covered in different areas of the Apprentices Act 1961.

National Programme on Earthquake Engineering Education (NPEEE)

Faculty

Recognized engineering colleges/ polytechnics and schools of architecture with related academic degree of diploma program

teachers in engineering colleges, polytechnics and schools of architecture, and to develop suitable curricula.

development

through short-

 

term crash

programs

 

8

(NVeQF): an initiative of the Ministry of Human Resource Development

In order to emphasize the importance of integrating vocational education and training with general education at all levels, the Ministry of Human Resource Development aims to set up a National Vocational Education

The NVeQF will lay down common principles for a schools, vocational education institutes and institutes of the secondary to the doctorate level, thereby leading to international recognition of the system.

The framework will adopt a competency-based modular approach and allow for accumulation and transfer of credit.

Linkage between education institutions and the industry will be a pre-requisite. Sector skill councils and Industry would collaborate on developing quality standards, model curricula, assessment standards and testing procedures.

The Ministry of Human Resource Development has thus been playing a pivotal role in vocational education the formulation and implementation of its Technical Education and Vocational Training (TVET) policy through the schemes mentioned above.

Ministry of Rural Development 9

The Ministry of Rural Development (MoRD) is laying emphasis on ensuring inclusive growth and is working toward a mandate vulnerable sections of society by imparting skills and providing gainful employment to them. The key schemes launched in this

Rural Development and Self-Employment Training Institutes (RUDSETIs)

Special Projects for Placement Linked Skill Development of Rural BPL Youth under Swarnjayanti Gram Swarozgar Yojana (SGSY- SP)

Objective: To ensure time-bound training aimed at bringing a placement, thereby ensuring regular wage employment for them

Target: To enable two million rural BPL families to cross the poverty line during the Eleventh Five Year Plan

In order to achieve this target, the Ministry of Rural Development provides grant-in-aid to various state these programs. Some key players engaged in this program include IL&FS, District Rural Development Agencies (DRDAs)

Skills Program for Inclusive Growth — an IL&FS initiative

IL&FS, in partnership with the MoRD, runs the Skills aims to provide vocational training to 500,000 rural youth from BPL families and ensure their employment.

Under this initiative, IL&FS has successfully trained more than 9,000 young people and placed more than 8,500 of them so far.

9

Rural Development and Self-Employment Training Institutes

Objective: This initiative aims to set up dedicated infrastructure for skill development in each district in the country. The programs are geared toward entrepreneurship development. Rural Development and Self-Employment Training Institutes (RUDSETI) offers more than 60 types of short duration (one to six week) entrepreneurship development programs.

Target: To set up RUDSETIs in all 600 plus districts in the country by 2012

Achievement:

Indicator

Progress (August 2011)

Rural youth trained

211,707

Employment-generated

83,202

Number of operational RUDSETIs

242

Amount disbursed (INR billion)

1.1

Through these initiatives, the MoRD is playing a key role in building the country’s skill development infrastructure and uplifting young people from weaker sections of society by upgrading their skills and providing them employment.

Ministry of Urban Development & Poverty Alleviation 10

In order to cater to the skill requirements of the urban poor, the Ministry of Urban Employment & Poverty Alleviation launched

Address urban poverty by providing gainful employment to the urban unemployed

10

Support skill development and training of the urban poor and improve access to employment opportunities or promote self-employment for them

Empower the community to tackle urban poverty through self-managed community structures and capacity-building programs

Employment Programme, an Urban Women Self-help Programme, Skill Training for Employment Promotion Among the Urban Poor, an Urban Wage Employment Programme and

Achievement: Funding for the scheme is shared in the ratio worth around INR5.8 billion were released for the scheme in 2010–11 and assistance was provided to more than 3,50,000

STEP-UP: a key component of the Swarna Jayanti Shahari Rozgar Yojana

Aim: Skill Training for Employment Promotion Amongst the Urban Poor (STEP-UP) aims to alleviate poverty in urban areas by facilitating skill development through well-structured market-oriented programs that can make poor and unskilled employable workers wage-earning ones or successful micro- entrepreneurs. It also aims to promote economic growth and by ensuring a supply of appropriate skilled workers at the lower end, thereby enabling inclusive growth in this section.

Methodology: STEP-UP will provide training to the urban poor in a variety of service, business and manufacturing activities as well as in local skills and local crafts, so that they can set up self-employment ventures or secure salaried employment with enhanced remuneration. Training will also be imparted in vital components of the service sector such as in construction trade and allied services including carpentry, plumbing, electrical and manufacturing low-cost building materials, based on improved or cost-effective technology, using local materials.

Target: of 500 million skilled workers by 2022, the annual target under STEP-UP is estimated at 200,000 workers —150,000 for skills training to secure wage/salaried employment and 50,000 for self-employment.

Initiatives of other ministries 11

Ministry/Department

Vocational education and training programs

Agriculture

Training in agricultural extension (21 training centres)

Training in use of agricultural implements and machinery

Soil conservation training center

 

One central agricultural university

31 state agricultural universities (SAUs)

Food processing

Established of more than 300 food processing and training centers

 

 

Entrepreneurship Development Programme for development of human resources

Health and family welfare

Promotional training of female health assistants in 42 training centers

 

478 Multipurpose Health Worker Training Schools (MPW) for women

Heavy industries and public enterprises

Information Technology

 

instrumentation

MSME (Small Industries Development Organization (SIDO))

Entrepreneurship Development Programme

Skill Development Programme (SDP)

 

Management Development Programme

under Ministry of MSME

51 training centers run 35 types of programs

National Institute of Mentally Handicapped

National Institute for the Orthopaedically Handicapped

Institute for Physically Handicapped

National Institute for the Hearing Handicapped

 

National Scheme of Liberation and Rehabilitation of Scavengers and their Dependents

Textiles

 

 

Decentralized training program with 24 weavers service centers,13 power loom centers and many other boards and councils

Tourism

Tribal affairs

Urban development and poverty alleviation

under Ministry of Urban Development &

Women and child development

Support to Training and Employment Programme for Women (STEP)

11

National Skill Development Corporation 12

growing and existing need for skilled manpower and harness the huge demographic dividend. It aims to promote skill development by creating a skilled workforce in India.

Approach

Develop ultra low cost, high-quality, innovative business models

Attract investment from the private sector

Ensure that its funds are largely “re-circulating”, i.e., loan or equity rather than grant

Build a strong corpus

Funding and

Viability gap funding either as loans or equity,

incentivizing

Enabling

Setup standards and accreditation systems

support services

Shaping/

Identify critical skill groups

creating

Attract potential private players

 

23 of the 26 projects awarded in PPP mode under the aegis of NSDC

Partner’s name

Project cost

No. of trainees in 10 years

Sectors targeted

(INR

million)

245.4

1.7 million

BFSI, BPO, unorganized sectors

Everonn Skill Development Limited

1,537.6

11.7 million

Tourism, hospitality, health care services, organized retail, media and entertainment, IT and ITeS, textile, construction and automotive

Talent Sprint Education Services Private Limited

150.0

0.5 million

IT, ITeS & BFSI

BASIX Academy for Building Lifelong Employability Limited (B-ABLE)

 

331.8

1.0 million

 

processing

162.7

11.6 million

Automobile, organized retail, telecom, healthcare, and building and construction

Edubridge Learning Pvt. Ltd. (ELPL)

54

0.7 million

retail, sales and marketing in rural areas

800

1.3 million

Organized retail, health care services, building and construction, automobile/ auto component, tourism hospitality and travel trade, electronics, IT, banking and insurance, spoken English

Training Services Private

145

21,000

Production-related (50%) and construction, tailoring, plumbing, textiles, security guards, retail, computer-related (remaining 50%)

111.4

18,000

Red Hat Investments Private Limited (RHIPL)

220

0.74 million

Agriculture (para-agri experts), animal husbandry (para-vet experts), food processing, transportation and rural service provider

2168.2

1.95 million

Textile, construction, leather and leather products, automotive and auto components and logistics, general engineering and service sector

iSTAR Skill Development Private Limited (ISDPL)

13.2

0.13 million

Retail and BFSI

Pratham Education Foundation, a

230

1.69 million

Education /skill development services, hospitality, construction, organized retail, electronics/hardware, automotive work, agriculture

12

 

23 of the 26 projects awarded in PPP mode under the aegis of NSDC

Partner’s name

Project cost

No. of trainees in 10 years

Sectors targeted

(INR

million)

International Association for Human

5.1

128

Self-development training and technical training in garment industry, driving, computer operation, mobile repair, electrician-training, plumbing, domestic BPO, etc.

Managerial Excellence Resource

30

96,665

TMI Input & Service Pvt. Ltd.

292.1

0.53 million

e-learning & Education

Empower Pragati Vocational &

259.7

2.1 million

ITES/BPO, tourism, hospitality and travel, organized retail, informal sector

Developers Association of India

185.3

97,920 over 12 years

Indian Institute of Skill Development Pvt. Ltd. (IISD)

163.5

0.24 million

Automotive (light Engg.), building construction, real estate and retail

125.1

0.35 million

ITES, electronics and IT hardware, and organized retail

Laqsh Job Skills Academy Private Limited

101

1.054 million

IT, ITES/BPO, retail, hospitality, banking and education

Laurus Edutech Private Limited

536

1.11 million, 42,000 trainers

Automotive, construction, textile, electronics and IT hardware and education and skill development sector (TOT

Limited ( a subsidiary of TeamLease)

836.1

1.80 million (Yr 1 – 11,836; Yr 5 – 1,44,173)

IT, retail, BFSI, health care, hospitality, manufacturing and construction

TOTAL

8703.2

40.428 million

Sector Skill Councils (SSCs): NSDC’s key initiative

the stakeholders — labor, industry and the academia. They identify skill gaps in their sectors and establish a sector- performance and skill development requirements. They also forecast changes in the labor market and facilitate standardization of accreditation processes.

and the energy sectors, while seven (retail, media and entertainment, IT/ITeS, health care, foundry, BFSI, electronics and hardware) are at various stages of implementation.

on course to create a skilled workforce of 150 million two years ahead of 2022 (the stipulated target year).

Private sector initiatives for vocational training

Although the primary responsibility for fostering vocational education and training in the education system rests with the sectors have also realized the need to actively participate in providing training to their current and potential employees.

Initiatives of companies

Organizations have realized the need to establish in-house training facilities to bridge the industry-academia disconnect and meet the shortage of higher education infrastructure in the country. Through these facilities, they can not only organizations, but also provide them with the right skill-sets molded on the basis of practical industry requirements.

Such training practices are prevalent across the manufacturing

 

Manufacturing sector 13

Sector

Company name

Training initiative

Larsen & Toubro

Ahmadabad, Bengaluru, Hyderabad, Delhi and Kolkata to impart construction vocational training.

Textile

Ludhiana to enhance employee skills across all functions.

Electronic goods

in vocational training in eastern India) to launch specialized courses in refrigeration, air-conditioning and washing machine technology. On completing the course, deserving

Automotive

Maruti Suzuki India Ltd. (MSIL)

MSIL has tied up with 17 ITIs (in November 2010) and has placed nearly 400 students in its service network. It plans to ramp up its network to 53 ITIs and absorb 500–600 more ITI students in coming months.

 

 

 

of employees working in the manufacturing domain and train them on the latest technologies.

domain and train them on the latest technologies. 1 3 Knowledge paper on strategic and implementation

13

 

Services sector 14

Sector

Company name

Training initiative

Retail

 

Hospitality

 

 

It also has three more schools of learning — the School of Leadership, the School of

Information

Infosys

Infosys’ global training center in Mysore is one of the largest corporate training establishments in the world and can accommodate 15,000 people.

technology

Financial services

has an intake of 550–600 students every three months.

Aviation

Pawan Hans Helicopters Limited (PHHL)

PHHL’s training institute provides Aircraft Maintenance Engineering (AME) courses and imparts knowledge on helicopters and their systems to students.

Initiatives of industry associations

Several industry associations conduct research to identify the skill gap in their sectors and have also established training schools to

Sector

Association name

Training initiative

Retail

School, to educate small traders on how to increase their business.

 

It will help kirana stores transform their business from traditional retail to the modern format of retailing.

Automotive

Society of Indian Automobile Manufacturers (SIAM) Manufactures Association Federation of Automobile Dealers’ Associations (FADA)

Auto industry bodies have come together to form the Automotive Skills Development

This is an independent society that will create the curriculum and engage agencies for the delivery of the curriculum.

It will also conduct research on skill gaps, benchmarking standards for the industry and improvement in productivity and technology.

IT/ITeS

resource partners.

 

It operates through 285 centers in 90 districts across 13 states and has trained more than 8,600 people in IT skills and more than 3,200 in other livelihood skills and adult literacy programs. The network has positively affected more than 65,000 community members.

14 accessed 18 July 2011. accessed 19 July 2011.

Sector

Association name

Training initiative

Energy

University Petroleum & Energy Studies, Indian Wind Energy Society and World Energy Forum

Indian Energy Skill Development (IESD) is formed to carry out sustained research to assess training facilities, demand/supply needs and skill gaps among semi-skilled/skilled manpower in the energy industry, including in the unorganized sector.

Its task also includes developing industry-driven competencies and maintaining industry- academia linkages to develop its curriculum and training material.

It is also expected to develop a feedback mechanism and processes for quality assurance as well as undertake accreditation of training institutes.

Union Finance Minister, India

Union Finance Minister, India

4. Learning from other countries Best practices of other countries Specialized skill training or vocational

4.

Learning from other countries

Best practices of other countries

Specialized skill training or vocational education continues to be a critical area of concern in the Indian context. Only 2% of the Indian workforce is formally skilled. While there are 12.8 million new entrants in the workforce every year, the existing training capacity can only address a small proportion of that. India has marginally improved its performance in basic education and vocational training, while its competitors have made much higher gains in this area over the previous decade. In South Korea, 96% of the workers receive formal skills training; in followed by the UK with 68%. As far as enrolment in vocational education and training courses is concerned, India has net enrolment of 3.5 million per year, as compared to 90 million in

UK’s vocational education and training system 15

Overview

In the UK education begins with six years of compulsory Thereafter, students may take a higher level of secondary school examinations known as AS-Levels after an additional year of study or they can choose to continue their education at vocational or technical colleges.

15

Features In the UK, the labor market is not highly regulated; thus, there is easy

Features

In the UK, the labor market is not highly regulated; thus, there is easy movement of people from

one occupation to another as compared with other countries.

rigorous and nationally recognized.

The Department for Education and Skills is the national government department responsible for education and training.

Accreditation of Prior Experiential Learning (APEL) aims to provide formal recognition to learning acquired from personal experience and learning gained in employment or voluntary work situations.

whereby employers and unions identify skills and productivity needs in their sectors and the actions required to be taken to address these needs.

Strengths

The UK’s system is largely outcome-based. Training based on the needs of the learner.

The country’s apprenticeship schemes at every level create a vocational ladder, beginning at the age of 14 and ending

It is aimed at the high work readiness of dropouts aged 16 to 24 years, with 66% of the dropouts from school (aged around 16 years) and 84% of the higher education dropouts being willing to work.

Employers invest in the learning and development of their employees. This amounted to £39.2 billion in 2009.

imparting vocational education and training. Its “Lifelong Learning” program aims to promote learning after the end of formal education and training.

Germany’s vocational education and training system 16

Overview

After the completion of compulsory full-time education, young people who are no longer pursue full-time education must attend part-time vocational school for a period of three years.

— full-time vocational schools and the dual system of vocational training. Under the full- time vocational schools at the secondary stage, full- time vocational schools prepare young people for work or conduct vocational training — usually within the dual system in many occupational areas.

The country’s dual system of vocational training is regarded as one of the most important factors that has contributed to the proven promotes close cooperation between vocational schools supported by

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Features

Under the dual system (which forms the core of vocational training), which is spread over three years, every young person who has completed full-time compulsory education has access to vocational training along with the former.

Training takes place in companies and at part-time vocational schools.

Successful completion of this training provides skilled employee. Thereafter, companies enter contracts under private law and then train such employees according to their vocational training directives, which guarantees a national standard of competence.

Around two-thirds of the instruction provided is vocation-oriented and one-third provides general education or knowledge applicable to a broad range of occupations.

The cost of vocational training is primarily borne by public funds.

Business associations play a key role in monitoring the quality of training provided by companies under the dual system.

Strengths of the dual system

Assured availability of the next generation of skilled

workers for employers

Students trained on updated industry infrastructure

Trainees paid by the industry and vocational training

16

Australia’s vocational education and training system 17

Overview

Australia’s Vocational Education Training (VET) System is a subset of formal learning (structured teaching program that (structured teaching program that does not lead to a recognized which relates to work, family, community or leisure).

The VET system is driven by a combination of personal development and economic needs. It constitutes public and private training providers in a national training framework comprising the Australian Quality Training Framework, the accredited or unrecognized/unaccredited.

Features

Australia’s VET system is mainly post-secondary and is offered through Registered Training Organizations.

The country’s states and territories are responsible for most public delivery systems and all regulation pertaining to providers. The central concept of the system is “national recognition,” whereby the assessments and awards of any person registered in a training organization must be recognized in all other states and territories.

apprenticeships in established trades and traineeships in other more service-oriented occupations. The apprenticeships and traineeships entail a legal contract entered by the employer and the apprentice and provision of a combination of school-based and workplace training. Apprenticeships are typically for a period of three to four years, while traineeships are only for one to two years in duration. Apprentices and trainees receive a wage that increases as they progress in their training.

The VET system includes credit transfer and articulation arrangements between a vocational educational system and higher education institutions. This enables the students effectively. It also allows them to move between education systems, from secondary school to VET and from VET to higher education.

Strengths

Strong linkages between VET and the labor market enabling employers and employees to meet their training and skill needs

competency — credit transfer and articulation

Flexibility, with the system offering a fair amount of local autonomy and innovation to adapt learning to local circumstances

Easily available data and research on VET issues

South Africa’s vocational education and training system 18

Development Act in 1998. The Act led to the initiation of a Sector Training and Education Authority (SETA) system. Each SETA represents an industry sector in South Africa and is

Formulating a sector skills plan for the sector

identifying, designing and registering “learnerships” for the sector

Acting as an education and training quality authority for

Disbursing skill-development levies

The stakeholders of a SETA include learners, employers, trade unions, government departments and bargaining councils for the sector.

A new SETA landscape and a draft framework for a new National Skill Development Strategy were proposed in April

2010.

17 html, accessed 29 July 2011.

18

Features

Institutions imparting training on skill development as well as higher education institutes have come under the ambit of the Department of Higher Education and Training. This department governs the work of SETAs.

Skill development activities under the new framework can complement those conducted by public institutions, colleges and universities. Workplace learning can supplement institutional learning under it.

Each SETA is required to prepare a Sector Skill Plan, which skills gaps and skills supply) and constraints in the effective development of these.

Instead of mainly conducting short-term courses, the new system will encompass a wide spectrum of programs for employed and unemployed people.

Funding

apply to companies. The levy is paid to the South African Revenue Services, which allocates it to the National Skills Fund and the SETAs.

workplace and a pay skill development levy can nominate a Skill Development Facilitator and submit a Workplace Skill Plan (describing the skill needs of their employees) and Annual Training Report to the relevant SETAs. These companies are then entitled to receive a Workplace Skill Plan grant.

Strength

Promotes collaboration between companies and learning organizations by giving special incentives such as grants, which are not limited to the levy paid by the companies

Facilitates enhanced course structure and curricula aligned to industry practices

Promotes innovation by providing Innovation grants

Korea’s vocational education and training system 19

Overview

The Korean education system consists of six years of compulsory primary education, three years of middle school, three years of high school, followed by two or four more years academic, vocational and other (foreign language, art, athletic and science high schools).

Features

The government-led training system entails direct intervention in training through expanding public training centers or by imposing the obligation of training their employees to large companies.

VET programs are focused on the mass supply of semi- skilled workers for economic development.

The initial training (pre-employment training) is offered at the senior secondary level (vocational high schools) and

Vocational training programs are mainly administered by the Ministry of Labor and constitute a system of industrial manpower training programs.

These training programs are further categorized into target the unemployed and focus on maintaining a skilled workforce for industry.

Strengths 20

Education is highly valued in all strata of Korean society. A high level of educational attainment is the norm in Korea, with 97% of 25 to 34 year olds completing their upper secondary education and 53% with a tertiary education

The country has a well-developed tertiary education system, with around 32% of the tertiary students being enrolled in

19 SP-Discussion-papers/Labor-Market-DP/0931.pdf, accessed 29 July 2011.

20

involvement in, and development and implementation of its VET policy.

various initiatives, including its employment stabilization

Singapore’s vocational education and training system

Overview

Singapore’s vocational education training system has evolved important being upgrading of vocational training to a post- Education (ITE) in 1992. The ITE system is a government- funded, post-secondary initiative that is focused on providing vocational technical education, taking over the functions of the former Vocational & Industrial Training Board.

Features 21

The VET system provides streaming in schools and opportunities for progression, depending on individual interests, aptitude and potential.

ITE functions as the principal provider of career-focused technical education in Singapore at the technician or semi- professional level and the principal authority for national

It offers pre-employment training to all the school-leavers in ITE institute and apprenticeship training in partnership with companies.

The country’s apprenticeship training system has been

Other post-secondary and tertiary institutions in Singapore

According to national targets, 25% of the students, after 40% to polytechnics and 25% to ITE’s technical institutes. These students receive training through a wide range of communications technology, applied and health sciences, and business and services.

“One ITE System. Three colleges” Governance and Education model ITE models “Hands-on, Minds-on, Hearts-on”
“One ITE System. Three colleges”
Governance and Education model
ITE
models
“Hands-on, Minds-on, Hearts-on”
college education

The Model builds on the ITE brand name and identity under a "One ITE System" to deliver consistent standards, quality programmes and successful graduates.

ITE Headquarters oversees system and policy changes and ensures standards under "One ITE System“ while the institution's three Colleges are empowered to develop niche areas of excellence to enhance the attractiveness of ITE Education, and responsiveness to industry and student needs.

Hands-on training to provide the required skill sets for employment.

practioners.

Hearts-on learning to develop passion and self belief in everything they do.

Framework for accrediting ITE courses which are pegged to National Skills Nite and Diploma

Strengths

ITEs are unique in that they uniqueness cater to lower 25%—30% segment of secondary school students and have been responding effectively to the dynamic changes and challenges impacting VET.

21 accessed 30 July 2011

Learning for India from the global experience

Parameters

UK

Germany

Australia

South Africa*

Korea

Singapore

India

 

Private-driven

 

 

Linkage with schools

 

 

Linkage with industry

 

 

 

Design of curriculum — industry

 

   

Focus on technical training

 

 

Focus on non-technical training

 

 

Apprenticeship

 

     

Transfer of credit

 

     

*This framework has been proposed, but has not been implemented as yet.

India can learn from the strengths of the vocational education

Vocational education can be provided in schools, either by school and college levels.

Australia’s vocational education and training system comprises both public and private training providers in a national training framework. India can emulate this system, with PPPs mobilizing much needed funds and expertise for vocational education and training.

India can also create a nationally recognized that places general and vocational education at the same level.

in a particular skill limits workers’ employability due to their lack of multiple skills. Therefore, the system adopted by India should emphasize and focus on basic courses. In addition, advanced courses can be developed for re- employment or further specialization.

Apprenticeship is an important

method for training people in most countries. India needs to follow this method and expand its capacity to effectively train its large young population.

to transition from a supply-driven to a demand-driven model in india. Furthermore, the participation of the industry in content design and curriculum is essential for keeping the VET framework updated and creating market-linked employability opportunities.

It is apparent that there is a need

Australia Partcipation of private sector South Africa Korea Collaboration High education between industry
Australia
Partcipation of
private sector
South Africa
Korea
Collaboration
High education
between industry
penetration
and academia
India's
learning
avenues
Singapore
Germany
Strong ITE
Dual education
models
system
UK
National
framework

vocational and formal education

Development of a comprehensive program for trainer development across sectors and skills

Enhancement of the reach of skill centers across geographies and genders as well as their affordability for weaker sections of society

Improved reach through the PPP mode for implementation and delivery

Increased industry participation in identifying trades, content and apprenticeship models, as well as in monitoring and ensuring employment opportunities

5. The road ahead Recommendations for the future There is low penetration of vocational education

5.

The road ahead

Recommendations for the future

There is low penetration of vocational education and training in India due to several issues prevalent in the system. Although graduates from ITIs are expected to perform relatively better former’s work is still below benchmarked standards. There is inadequate involvement of industry and faculties are also not up to the mark. Therefore, focused initiatives need to be taken in key areas to initiate, implement and operate vocational education and training centers in India.

Implementation strategies

Initiating and successfully running skill centers in India poses social and geographical diversity. A suggested framework for the establishment and operation of such institutions is depicted

Pre-condition authentic need appropriate and relevant enabling environment Reaching across geographies
Pre-condition
authentic need
appropriate and
relevant
enabling
environment
Reaching across
geographies
economic levels
social levels
Quality
infrastructure
equipments
process
manpower
VET
Implementation
Strategies
Partnerships
quality and
willing players
outcome driven
monitoring
Standards
outcome driven
monitored
Flexibility
adopt global
standards
meet ever-evolving
demand
to adopt

Accessibility

Accessibility Operational strategies Replicability Scalability Strengthening existing centres Employment linkages

Operational strategies

Replicability

Scalability Strengthening
Scalability Strengthening

Scalability

Strengthening

existing centres

Employment linkages

Strengthening existing centres Employment linkages Affordability across economic levels Inclusivity – include
Strengthening existing centres Employment linkages Affordability across economic levels Inclusivity – include
Strengthening existing centres Employment linkages Affordability across economic levels Inclusivity – include

Affordability across economic levels

Inclusivity – include all social strata

Technology and innovation

– include all social strata Technology and innovation training of trainers Flexibility –content and process

training of trainers

Flexibility –content and process design and induct students

–content and process design and induct students Standards acceptable–and adoptable Team – quality of

Standards acceptable–and adoptable

and induct students Standards acceptable–and adoptable Team – quality of trainers, Impact Knowledge paper on

Team – quality of trainers,

Impact

adoptable Team – quality of trainers, Impact Knowledge paper on strategic and implementation framework

Focus on delivery

of a much more robust approach is essential for putting in place a quality vocational education and training framework in the country.

Improve quality Build a brand and spread awareness Focus areas Enhance accessibility Increase affordability
Improve quality
Build a brand and spread awareness
Focus areas
Enhance accessibility
Increase affordability
Focus areas Enhance accessibility Increase affordability Improving quality Quality training of faculty with industry

Improving quality

Quality training of faculty with industry participation:

movement of faculty to industry and industry personnel to institutions

Designing fellowship programs for faculty

Upgrading faculty with current and upcoming trades and technologies

Development of curriculum with focus on IT:

Increasing usage of computer-aided programs in curricula

training through computers

Linking curricula to practical industry experience using IT platforms

Promoting prototype equipment and delivery structures (using IT)

Promotion of PPP model for infrastructure development:

to attract investments

Easing regulatory hurdles and providing single-window clearance to private players

Outsourcing short-term courses to organizations

setting mechanism:

that skills are portable and recognized across sectors, industries, enterprises and educational institutions

Building a brand and spreading awareness

Mass awareness and promotional campaigns of vocational education and training systems:

Establishing information centers in which comprehensive information on vocational education and training is provided

Launching advertising and publicity campaigns to build brands and change people’s attitude to vocational education and training

Skill development centers set up in universities:

Setting up skill development centers in universities to revive brands and increase their visibility

Enhancing accessibility

Providing option to move from vocational training to higher education, and vice versa

Allowing credit for the number of years spent by an ITI student in training while seeking admission to a university

Integration of vocational education at the school level:

Imparting basic technical skills at the school level

outs through professional career counseling

Disadvantaged groups and backward regions:

Designing special courses for people in remote areas and economically backward classes of society

Increasing affordability

Short duration courses with affordable fee structure:

Providing short-term informal training at nominal fees

Incentives to private training providers:

keep the cost of training low

Availability of easy loans:

Making available easy banks loans at low interest rates for self-employment

Providing loans with income-contingent repayment clause

“A young population is an asset only if it is educated, to grow at 10% or more per annum for a substantial period of time can become a reality.”

at 10% or more per annum for a substantial period of time can become a reality.”

Manmohan Singh, Prime Minister, India

Notes

FICCI contacts

Pooja Gianchandani Director and Head Skills Development Federation House, Tansen Marg, New Delhi - 110001

FICCI Andhra Pradesh State Council 8-2-601, Plot # 13 4th Floor, NNR Arcade Above South Indian Bank Hyderabad – 500 034

FICCI Chhattisgarh State Council Raipur - 492 001

FICCI Gujarat State Council A-311, Safal Pegasus, 100 ft Road, Prahladnagar, Ahmedabad - 380 015

FICCI Karnataka State Council Bangalore - 560 001

FICCI Western Regional Council Pochkhanwala Road, Worli Mumbai - 400 025

FICCI Rajasthan State Council A-27-B, Shanti Path, Tilak Nagar Jaipur - 302 004

FICCI Tamil Nadu State Council 5, Vivekananda Road Off Spur Tank Road,

FICCI Eastern Regional Council 2nd Floor, Wing ‘B’ Kolkata 700 016

About FICCI skill development forum

imperative for achieving India’s ambitious growth targets. It is committed to working with the stakeholders, especially the industry, government and academia to create sustainable of the country from all sections of society. With this in mind,

FICCI vision on skills development:

million people by 2022.

Policy Advocacy, Industry Intervention and International meaningfully participate in and contribute to the economy

in 2008 to supplement the government initiatives with industry interventions. The forum has since start discussed and critically examined the skill development policies in the country.

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