Skills and knowledge are the driving forces of economic growth and social development for any country.
- India currently faces a severe shortage of well-trained, skilled workers. It is estimated that only 2.3 % of the workforce in India has undergone formal skill training as compared to 68% in the UK, 75% in Germany, 52% in USA, 80% in Japan and 96% in South Korea.
- Large sections of the educated workforce have little or no job skills, making them largely unemployable. Therefore, India must focus on scaling up skill training efforts to meet the demands of employers and drive economic growth.
Opportunity: — demographic dividend
India is one of the youngest nations in the world, with more than 54% of the total population below 25 years of age and over 62% of the population in the working age group (15-59 years)
- This demographic advantage is predicted to last only until 2040. India therefore has a very narrow time frame to harness its demographic dividend and to overcome its skill shortages.
The enormity of India’s skilling challenge is further aggravated by the fact that skill training efforts cut across multiple sectors and require the involvement of diverse stakeholders such as: multiple government departments at the centre and state levels, private training providers, educational and training institutions, employers, industry associations, assessment and certification bodies and trainees.
Submissions of NSDM: à National Skill Development Mission
(i) Institutional Training, (ii) Infrastructure, (iii) Convergence, (iv) Trainers, (v) Overseas Employment, (vi) Sustainable Livelihoods, (vii) Leveraging Public Infrastructure.