The Aspiring youth : Opportunities & Challenges of

Transcription

1 For Private Circulation only The Aspiring youth : Opportunities & Challenges of Skill Development in India Beijing, China 26 October 2014 Dilip Chenoy CEO & MD

2 The Opportunity: India s Demographic Advantage India will be expanding its most productive cohorts (population between yrs) as most developed countries and some developing ones will start contracting theirs. Age An ageing world needs workers; A young country has workers 1

3 The Challenge - Demographic Dividend or Demographic Disaster 2

4 National Vision: The National Skills Policy 2009 Target to skill 500 million people through 4 pronged approach A framework for better coordination among various Ministries, States, Industry & other stakeholders Approach adequately communicated and implemented No discrimination between private or public delivery Importance on outcomes, users choice Competition among training providers Policy Coordination & Coherence Choice, Competition & Accountability India needs to create 500 Million skilled workers by 2022 High inclusivity Dynamic & Demand -based system planning Male / Female Rural / Urban Organized / Unorganized sectors Traditional / Contemporary work Meet the requirements of knowledge economy Promote excellence 3

5 Workforce Transition in 2022 Total Population ( 2022) India 1.35 Billion World 7.87 Billion Working Actual Working WPR Global WPR 750 Million 5 Billion WPR 55.5% WPR 63.6% 860 Million 5 Billion WPR 63.6% WPR 63.6% Approx. 15% to 17% of Global Working Population in 2022 would be Indian *Calculated at 2012 ILO Labor Force Participation Rates using Census 2011 data 4

6 India: Low Productivity, Low Skill training Productivity Comparison: Relative GDP per worker compared to an American worker Percentage of workforce receiving Skill Training Source: Planning Commission, Government of India (2008) 5

7 2022 Projections - Huge capacity creation required to address the gap Total supply by current capacity (2013) 61.5 Addition to 12.8 million per year Reskilling / upskilling of 90% of existing workforce (679 million) X 8x Reduction due to ageing/ retirement* 48 Total demand by Over $22 Billion Business opportunity** Eleven-fold increase in capacity is required to meet aspirations! *Assuming that the existing workforce in the age group of will not be re-skilled **Assuming training fee of Rs 2000 per student for the total demand estimated Source: McKinsey analysis; Census 2011; ILO World Development Indicators 2012, NSDA data 6

8 The 4 Big Challenges Confronting Skill Development 7

9 The Roadmap to address these Challenges (Skill, Scale and Speed) Create Institutionalized Framework Fill-in the missing Linkages Develop Technological Infrastructure & International Collaboration Skill Development Mainstream & Ministry Vocational Education PPP like N SDC Central Govt. Mi nistries State Skill Missions Sector Skill Councils Private Sector/SMEs Academia Youth with Training Providers/ Employers Centralized Repository & Information System for Labour Rural Broadband Simulation based learning International Participation Catalyze generation of jobs, increase the poo l of skilled workforce, against industry standards to fulfill the skill gap in the country and incentivize employers to provide differential wages 8

10 NSDC s 3 pronged approach to address market needs Create Fund Enable Proactively catalyze creation of large, quality vocational training institutions Commercially viable, scalable, sustainable businesses Nurture organizations through patient capital Support systems Sector skill councils Quality Assurance Occupational Standards Train -the-trainer Create the vision and help define the path Demonstrate commitment to the purpose Create a viable ecosystem PPP setup by Ministry of Finance. Equity base Rs 10 crore ($1.63 mn) (Govt of India 49%, Private Sector 51%) Private -sector shareholders include 10 business chambers & industry associations (5.1% shareholding each): 1. Federation of Indian Chambers of Commerce and Industry (FICCI ) 2. Associated Chambers of Commerce and Industry of India (ASSOCHAM) 3. Confederation of Indian Industry (CII) 4. National Association of Software & Services Companies (NASSCOM ) 5. Society of Indian Automobile Manufacturers (SIAM ) 6. Confederation of Real Estate Developers Associations of India (CREDAI) 7. Gems and Jewellery Export Promotion Council (GJEPC) 8. Confederation of Indian Textile Industry (CITI) 9. Council for Leather Exports (CLE) 10. Retailers Association of India (RAI) 9

11 New Focused National Skilling Ecosystem Ministry of Skill Development, Entrepreneurship, Youth Affairs and Sports National Skill Development Agency (NSDA) Coordinate & harmonize the approach to skill development Central Ministries State Skill Development Missions (SSDM) N S Q F Anchor & Operationalize NSQF National Occupational standards (NOS) Qualification packs (QPs) Standardized Curriculum Private Sector Initiatives by Corporates, NGOs, Associations etc. Sector Skill Councils Training Providers 10

12 Enabling Ecosystem: Sector Skill Councils TRAINING NEED ANALYSIS CURRICULUM DEVELOPMENT ROLLOUT OF TRAINING ASSESSMENT AND CERTIFICATION Creation of Occupational Standards Towards National Vocational Qualification Framework Labour Market Information System Skill Development Plan Accreditation of Training Institutes Academics of Excellence Training of Trainers Guidelines and Participate in Assessments and Certification of Trainers and Trainees 31 Sector Skill Councils (SSC) approved till date consist of representation from Industry, Government & Training Providers to ensure participation of all ecosystem members. 22 SSCs have developed 879 Qualification Packs (QP) covering 2,247 unique National Occupational Standards (NOS). 455 QPs declared as National standards. 28 SSCs will jointly achieve approx Standards covering by March 31, % of the entry level workforce International collaboration to build Transnational Standards 11

13 SSCs: Of the Industry, By the Industry, For the Industry 300+ Corporate Representatives in SSC Governing Councils Priority Sector Large Workforce Informal Sectors Auto Retail IT/ITeS Security Media and Entertainment Healthcare Gems & Jewelry Leather Electronics BFSI Rubber Logistics Construction Food Processing Life Sciences Hospitality Textiles & Handlooms Apparels Handicrafts Power Iron & Steel Construction Hydrocarbons* Management Chemical & Petrochemicals Strategic Manufacturing Allied Manufacturing Furniture & Furnishing Education Telecom Aerospace & Sports Capital Aviation Paints & Goods Mining Coatings Agriculture FMCG Instrumentation Plumbing Beauty & Culture Wellness Domestic Workers (Plan) 31 Sector Skill Councils approved, more in process 12

14 Create & Fund scalability & sustainability Fund Trainers/ Ecosystem Development 159 training partners, 31 SSCs committed a total of $387 million. These proposals are expected to train over 82 million youth in 10 years 108 training partners,23 SSCs, 8 Innovation projects funded $120 million Outcome: Over 23 million people trained since inception with million placed Fund Trainees (Special Schemes) STAR : Almost 1.4 million trainings completed in 297 job roles across 19 SSCs through 17,250 training centers at a pass rate of 67% Enabling Financial Inclusion: Banking relationship established with candidates along with accidental insurance coverage through UID Udaan : 68,648 candidates from J&K committed to be trained by 54 corporates over 5 years. Approx 5600 candidates have joined trainings through 37 corporates Training Capacity Over 82 Million (~55% of 2022 target capacity of 150 Million) training capacity already provisioned 88 partners o perating across 1408 train ing centres 27 states and 5 UTs, 356 districts covered 13

15 Key Elements of NSDC Funding Elements Description Who gets funded? Any organization with scalable, sustainable business model that ensures employability of the resources trained Including start ups Amount of funding ~Up to 75% of the project cost What is the form of funding? Debt at subsidized rates ; other features like moratorium built in depending upon nature of project Equity Grant funding (only in very select cases) Is there special focus? NSDC is looking to fund businesses that seek to create employable people across all sections of the society 14

16 Creating an Aspiration for skills Endorsement Campaign Advocacy campaign to encourage youth to take up skills - a series of TV, Radio, Print Ads, posters supported by call centre. A TV serial Hunnarbaaz supported (40 episodes) Hunar Yatra Mobile kiosks which will go around the country Collaborate with local TPs to drive on the spot enrollment 15

17 World Skills A forum to enhance aspirational value of skills Competition Year No. of skills represented No. of candidates participated Medallion for Excellence London,UK Leipzig, Germany (Graphic Design Technology, IT Software Solution for Business, Jewellery Designing) Sao Paulo, August Regional selection in process Brazil 2015 (planned) Indian contingent with Hon ble Finance Minister in 2013 Medallion Winners 16

18 Mapping Youth Aspirations to Manpower requirement 20 high growth Sector -level & State -level district -wise Skill gap studies commissioned in 2008 LowIncremental Incremental Manpower Manpower required required High High Building, & Construction, Transportation, Unorganised Agriculture & Allied Textile Other Manufacturing Leather & Leather Products Chemicals & Pharmaceuticals BFSI, Healthcare Services, Education and Skill Development Tourism, Travel, Hospitality & Trade Food processing Auto & Auto Components Electronics & IT Hardware IT / ITeS Organised Retail, Media & Entertainment Low Youth aspiration for sectoral employment High New Sunrise Industries Renewables and Energy Aeronautics Electronics Waste Water Management Proprietary and confidential. This information does not represent and should not be constructed as, legal or professional advice NSDC. All Rights Reserved 17

19 Youth Empowerment through Skill Development Advocacy Enablement Access Incentivize Educating the public Educating the public on Skilling opportunities, removing the negative VET perceptions National Media Campaign by NSDC (5 television commercials etc. ) Push through the Companies Act mandate of spending 2% of PBT towards CSR Upwards/ Lateral Mobility & Recognition Introducing Vocational Education in Schools (National Skill Qualification Framework) Standardization of quality of Education through National Occupational Standards Certification and Recognition of Prior Learning Infrastructure, Training, Funds Access to Funding for Education/ skill development Creation of Digital Market place, free online resources, LMIS NSDC creating capacity of training providers Infrastructure development to enable rural broadband Vocational Education Govt Schemes STAR, UDAAN, Special initiatives in North East India National Skill Awards, World Skills Competition 18

20 Transformation in Ecosystem Industry Sector Skill Councils Job Role Standards Course Alignment Employer / Industry Led International Engagement Training Institutions Mobilize Trainees Undergo Training/ Apprenticeship Assessment Certification (Transnational) Industry Recognized Certification Upgraded Skills Relevant Skills/ Credibility Educational System Workforce Outside Workforce Placement Career Progress/ Increased Wages/ Mobility Entrepreneurship 19

21 Overseas Support Swiss Vocational Education and Training in India (SVETI) Village Buddha Delhi-Mumbai International Corridor Association Of Canadian Community Colleges World Class Skill Center UK India Skills Forum Bureau for Vocational education and Training Collaboration Indo-German Working Group on Vocational Education 20

22 Creating an aspiration for skill : Communicating growth, respect 21

23 What we leave IN our next generation is more valuable than what we leave FOR them!!! Thank you Contact Information: