At 12 million new entrants each year, India boasts of one of the world’s largest young workforce. Unfortunately, only 2 per cent of that workforce is skilled. Even though India produces close to 5 million graduates every year, almost half of this talent pool is not directly employable. The irony is that several positions in growing industries in India remain vacant, while a million engineering graduates are struggling to find employment.
Therefore, it is important to acknowledge the fact that the real challenge is employability, or in other words, the lack of a qualified workforce, rather than unemployment. Unless this issue is addressed quickly and decisively, there is a risk of our demographic dividend becoming a demographic liability.
While the problem is daunting, the solution is quite simple — targeted focus on skills development. An example worth citing here is that of the Singapore government, whose agencies have established the Singapore Workforce Skills Qualifications, a nationwide system that trains and develops as well as assesses individuals in various competencies that are in demand.
The previous Indian government signaled its intent when in June last year, it established the National Skill Development Agency to coordinate and align both government and private sector-led skill development initiatives to achieve the 50 million skilling target laid down for the 12th Plan period alone, and beyond. It is also heartening to see the strong resolve of the new government, which in this year’s budget announced the formation of a nationwide program called Skill India to promote skill development and employment among the youth.
The national-level multi-skill program, with emphasis on employability and entrepreneurial skills, will train our youth in professions like welding, carpentry and weaving. Young Leaders Program, with a financial backing of Rs100 crore, has also been announced. However, while the government needs to provide the necessary policy direction, it clearly cannot be expected to resolve the nation’s skill shortage as a single stakeholder. A multi-stakeholder approach is needed where the government, industry and academia will work together to find common solutions. A scalable approach to equipping our educational institutions and its faculty with the required skills need to address the challenge is crucial.
