26-July-2024-Special-Article

BRIDGING THE UNEMPLOYMENT-EMPLOYABILITY GAP IN INDIA

India, as the world’s fifth-largest economy, is at a crucial stage in its economic journey. The vision for a ‘Viksit Bharat’ by 2047 depends significantly on closing the unemployment-employability gap.

The Union Budget 2024-25 highlights this priority with substantial allocations for education, employment, and skill development. However, the challenge remains daunting, with nearly 73% of workers aged 15-59 lacking any formal or informal vocational training.

Emerging Sectors for Skilling Efforts

Renewable Energy and Green Technologies:

• Ambition: Achieve a renewable energy capacity of 500 GW by 2030.
• Job Creation: Over 3.5 million jobs in the sector.
• Skills Needed: Expertise in solar and wind energy, energy storage technologies, and related fields.
• Context: As part of India’s sustainable development agenda, this sector is crucial for reducing carbon footprints and promoting green energy solutions.

Artificial Intelligence and Machine Learning:

• Market Projection: AI market in India is expected to reach USD 7.8 billion by 2025.
• Skills Needed: Data analytics, algorithm development, machine learning.
• Initiative: The IndiaAI Mission is a step forward, but continuous upskilling is required to keep pace with rapid advancements.

Internet of Things (IoT) and Smart Cities:

• Market Projection: IoT market anticipated to reach USD 9.28 billion by 2025.
• Skills Needed: IoT programming, data security, integrated urban planning.
• Initiative: The Smart Cities Mission aims to develop 100 smart cities, driving the demand for a skilled workforce in this sector.

Electric Vehicles and Sustainable Mobility:

• Target: 30% electric vehicles on the roads by 2030.
• Job Creation: Potentially 10 million direct jobs.
• Skills Needed: Battery technology, charging infrastructure, autonomous systems.
• Context: This transition is vital for reducing reliance on fossil fuels and cutting down urban pollution.

Biotechnology and Pharmaceutical Sciences:

• Market Projection: Industry expected to reach USD 150 billion by 2025.
• Skills Needed: Genomics, bioinformatics, vaccine development.
• Initiative: The COVID-19 pandemic highlighted the importance of a skilled workforce in this sector.

Space Technology and Satellite Communications:

• Market Projection: Space economy projected to touch USD 13 billion by 2025.
• Skills Needed: Satellite design, space debris management, reusable space assets.
• Context: Opening the sector to private players is creating new opportunities for growth and innovation.

Cybersecurity:

• Incident Rate: Over 18 million cyber-attacks in Q1 2022 alone.
• Skills Needed: Ethical hacking, network security, cyber forensics.
• Context: As digital transformation accelerates, the importance of cybersecurity cannot be overstated.

3D Printing and Additive Manufacturing:

• Market Growth: Anticipated CAGR of 20.3% from 2023 to 2030.
• Skills Needed: CAD modeling, material science, quality control.
• Context: This technology is revolutionizing manufacturing processes across various industries.

Quantum Computing:

• Initiative: ₹8,000 crore allocation to the National Mission on Quantum Technologies and Applications.
• Skills Needed: Quantum algorithms, cryptography, error correction.
• Context: This field represents the cutting edge of technological advancement with vast potential applications.

Recent Government Initiatives for Skill Development

• Skill India Mission: A comprehensive program aiming to train millions of people in different skills.
• Pradhan Mantri Kaushal Vikas Yojana (PMKVY): Provides short-term training and recognition of prior learning.
• SANKALP Scheme: Aims to improve the quality and market relevance of skill development programs.
• TEJAS Skilling Project: Focuses on skilling, re-skilling, and upskilling initiatives.
• Model Skill Loan Scheme (Revised): Facilitates loans up to ₹7.5 lakh with government-backed guarantees to benefit 25,000 students annually.

Challenges in India’s Skilling Efforts

Structural Economic Constraints:

• Informal Sector: Predominance of informal employment (85-90%) and MSMEs.
• Training Resources: Many MSMEs lack the resources for formal training.
• Workforce Statistics: Only 4.4% of the young workforce is formally skilled.

Demographic and Geographic Disparities:

• Skill Variability: Significant differences in employability across states.
• Urban vs. Rural: Urban centers need high-end tech skills, while rural areas require basic and traditional skills.
• Migration: Internal migration complicates skill mapping and delivery.

Technological Disruption and Skill Obsolescence:

• Rapid Change: Fast-paced technological advancements render traditional skills obsolete.
• Continuous Learning: Need for a mindset of continuous learning and adaptability.

Misalignment with Higher Education System:

• Disconnect: Lack of integration between academic degrees and vocational training.
• Training Statistics: Only 4.4% of youth aged 15-29 receive formal vocational/technical training.

Inadequate Focus on Emerging Gig Economy:

• New Skills: The rise of the gig economy requires self-management, digital literacy, and entrepreneurship skills.
• Program Orientation: Current skilling programs are still oriented towards traditional employment models.

Evaluation Model Limitations:

• Funding Models: Prioritize short-term outputs (number of people trained) over long-term outcomes (employment and career progression).
• Placement Statistics: PMKVY 2.0 trained 1.1 crore people, but only 21.4 lakh were placed.

Challenges in Recognition of Prior Learning (RPL):

• Assessment Issues: Inadequate assessment processes for informal skills.
• Skill Valuation: Undervaluation of existing skill sets.

Measures to Revamp India’s Skilling Efforts

Demand-Driven Skill Mapping and Forecasting:

• Labor Market System: Implement a real-time system using big data analytics.
• Collaboration: Work with industry associations for sector-specific data.
• Forecasts: Provide quarterly skill demand forecasts at national, state, and district levels.

Modular and Stackable Skill Certifications:

• Certification System: Introduce modular certifications allowing incremental skill acquisition.
• Credits: Allow learners to accumulate credits over time, leading to higher qualifications.

Integration of Vocational Education in Mainstream Schooling:

• Curriculum: Introduce vocational subjects from 8th grade.
• Credit Transfer: Develop a system for credit transfer between vocational and academic streams.
• Teacher Training: Ensure vocational teachers have industry experience.

Industry-Led Skill Centers of Excellence:

• Partnerships: Establish centers in partnership with leading companies.
• Focus: High-end, future-ready skills in emerging sectors.

Gig Economy Preparedness Initiative:

• Courses: Develop courses on digital platforms, self-management, financial literacy.
• Registry: Create a gig work registry to formalize and promote gig worker’s social security.

Revamped Apprenticeship Model:

• Incentives: Offer tax incentives for quality apprenticeships.

Green Skills Integration Program:

• Modules: Develop ‘green skills’ modules for all sectors.
• Courses: Create specialized courses for green jobs.

Rural Entrepreneurship through Skill Enhancement (RESE):

• Skill Hubs: Transform Common Service Centers into Digital Seva Skill Hubs.
• Support: Provide training, mentorship, microfinancing, and market linkage support.

Train the Trainer Excellence Program:

• Industry Internships: Mandatory industry internships for trainers.
• Refresher Courses: Regular refresher courses to update trainers on industry trends.
• Incentives: Performance-based incentives for trainers.

Integrating Skill Development with MGNREGA:

• Training Component: Offer skill training as part of the guaranteed employment days.
• Incentives: Provide additional incentives for acquiring new skills through the program.

Conclusion:

To bridge the unemployment-employability gap and harness its demographic dividend, India must focus on emerging sectors, leverage government initiatives, and address challenges through targeted measures. Effective skill development will play a pivotal role in shaping India’s economic future and realizing its potential as a global economic powerhouse.