Overview of Skills Market in India

Dipankar Chakraborty Trade & Investment Adviser UKTI - India

What will I cover today?

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Indian Economy Overview

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Skills Market Framework & Overview

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Opportunities

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Successes

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Challenges

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How can UKTI assist?

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Indian Economy Overview

 India is among the largest economies in the world and is expected to grow faster than its peers in the coming decades  India has a population of more than 1.2 billion, and is among the world’s largest consumer markets. India’s GDP (USD 1.9 Trillion) is currently the 10 th largest in the world, and is expected to become the 3 rd largest economy by 2030, according to the IMF. 30/04/2020 Overview of Skills Market in India 3

Indian Economy Overview

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Indian Economy Overview

 In recent years, India has emerged as a preferred destination for global FDI.  UNCTAD’s World Investment Report 2012 ranks India as the third most favoured destination for major global companies. A large market and a gradually improving business environment both play a role.

 FDI inflows have risen from $ 6 billion in 2001-02 to around $ 33 billion in 2011-12.

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Market Overview

 The Government has an ambitious target of skilling 500 mn by 2022  Currently the system has the capacity to train only 3 million youth against 12 million entering the labour force annually.

 Currently, 90% of the jobs in India are skill-based, a sharp contradiction to the current figure of only 6% trained workforce in India.  Skills sector is expected to become an over $20bn market opportunity yearly (stated in Kotak Securities report 2011).  The Government aims to increase this training capacity to 15 mn/year by setting up new 1,500 ITI/ITCs and 50,000 skills development centres to be promoted in the PPP mode.

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Stakeholders

Office of Adviser to PM on NCSD • •

Government Initiatives

18 Central Ministries State Ministries Mandate to skill 350 million people by 2022 30/04/2020 Prime Minister’s National Council on Skill Development National Skill Development Coordination Board

National Skill Development Corporation Target of skilling/upskilling 150 million people by 2022 by fostering private sector initiatives

Overview of Skills Market in India • • NSDC is a PPP created by Ministry of Finance 51% stake by Private 49% stake by GOI Initial funding of INR 1000 crore received from the GOI and parked with NSDF for use of NSDC; Current total funding of Rs 2500 crore 7

National Council on Skills Development

 The Prime Minister chairs this council which sets the policy direction of skills development.

 The main objective of the Council is to develop a strategy for skills development at the National level.

 Other members include Ministers for HRD, Labour, Finance, Industries, Rural Development and Micro, Small and Medium Enterprises; Deputy Chairman Planning Commission, Chairperson of National Manufacturing Competitiveness Council, Chairperson of National Skill Development Corporation and 6 experts in the area of skill development.  Mr Ramadorai (Tata Consultancy Services) is the Advisor to the PM in this Council.

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NSDC

Create

Proactively catalyze creation of large, quality vocational training institutions Create the vision and help define the path 30/04/2020

Fund

Reduce risk by providing patient capital Demonstrate commitment to the purpose Overview of Skills Market in India

Enable

• • • • • Support systems required for skill development Sector skill councils Quality Assurance Information system Train-the-trainer Set Standards Create a viable ecosystem 9

Sector Skills Councils

 National Skill Development Policy 2009 has mandated NSDC to constitute Sector Skills Councils (SSCs) in India. The objective is to establish 28 Sector Skills Councils.

 SSCs are national partnership organisations that bring together all the stake holders – industry, labour and the academia for the purpose of workforce development for particular industry sectors.

 SSCs will be autonomous bodies registered either as Section 25 companies or public limited companies. The Government will provide the initial funding. Subsequently SSCs will become self sustaining organisations.

 NSDC has incorporated SSCs for Automotive, Security and Energy sectors. SSCs for Retail, Media & Entertainment and IT/ITES have been approved by NSDC Board and Healthcare, Foundry, BFSI and Electronics & Hardware are under consideration.

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Market Overview

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Opportunities

 Capacity Building – For the government, to reach its target of skilling 500 mn by 2022 it requires a rapid growth in its skills delivery capacity from current 3 million to 50 million per annum.

 Upgradation of ITIs – Ministry of Labour & Employment is seeking private participation to upgrade 1,396 ITIs.

 Sectoral Skills Council partnerships  Curriculum, assessment & certification  English Language Training 30/04/2020 Overview of Skills Market in India 12

Challenges

 Vocational Education framework is in evolving stage  Lack of career path for school drop-outs & Blue collared workers. The current system makes it almost impossible for a dropout to have a career progression into a white collar job, however skilled he may be.

 Pricing  Involvement of various ministries leads to lack of synergy and duplication of effort at times.

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Some UK Successes in India

         Bournville College – Set up their South Asia hub in Kolkata. Working with private players to upgrade ITIs and recently won a project form the Govt. of West Bengal to train 2000 underprivileged youth.

A4e and MoRD – Pilot to deliver sector specific, employment-oriented skills training to 9000 people IndiaSkills – JV between City & Guilds and Manipal group to deliver skills training to 1 million learners I-CAN – JV between Educomp and Pearson to deliver logistic skills training to 2000 people IL&FS, India and Dudley College and Reid Kerr College, UK – Partnership to develop an ‘excellence model’ for colleges in India focusing on curriculum and soft skill development, staff development through ‘train the trainer’ programmes Lingua phone and Birla Edutech – Master franchisee for English programmes in India New College Nottingham and Batra Group – JV signed for setting up skills academy in retail, hospitality, fashion and media for 500 students also delivering advanced English and Teacher training qualifications.

AoC, UK has established a presence in India to identify opportunities for its member Colleges Indian SSC in discussion with their UK counterparts for sharing best practice (this includes food processing, security and healthcare) 30/04/2020 Overview of Skills Market in India 14

How can UKTI India Education team assist?

 Overseas Market Introduction Scheme (OMIS) Service  Providing market information on – Market size – Competition – Potential dealers & agents  Arranging meeting program with potential customers, dealers, agents  Arranging events like launch reception, networking sessions, seminars, participation in trade shows, etc.

30/04/2020 Overview of Skills Market in India For further information/queries, please contact: Mr. Dipankar Chakraborty E: [email protected]

T: +91 9674447487 15