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Strategy for Skill Development : Government Perspective 4 th  Global Skills Summit  15 September 2011    New Delhi Dilip Chenoy, MD & CEO, NSDC
Agenda The Indian skills landscape and the journey so far The way forward
The National Skills Policy broadly defined 4 major areas for India to achieve its target for 2022 ,[object Object],Policy coordination and coherence ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Choice, competition  and accountability High inclusivity Dynamic and demand-based system planning India needs to create 500  million skilled workers by 2022  Enhanced Role of private sector critical to success
The current landscape needs drastic capacity addition to meet future demand Privately owned ITCs *Includes ministry of housing and urban poverty alleviation, textile, health and family welfare, food processing industries, and others **Assuming that the existing workforce in the age group of 45-59 will not be re-skilled ***Assuming training fee of Rs 2000 per student for the total demand estimated Source: 11 th  five year plan; NCEUS report; McKinsey analysis Current capacity in skill development under various schemes, 2008-09 Eight-fold increase in capacity is required to meet aspiration Total capacity in skill development 4.3+ Other private training providers XX Other ministries* 0.3 MSME 0.2 Ministry of rural  development 0.2 Ministry of agriculture 0.2 Ministry of women & child development 0.2 MHRD MLE 1.3 0.5 Total demand by 2022 526 Reduction due to ageing/ retirement** 80 Reskilling / upskilling of 90% of existing workforce (460 million) 414 Addition to workforce @ 12.8 million per year 192 Total supply by 2022  @ current capacity 65+ 8x
Skill development has received a major policy thrust ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],ILLUSTRATIVE SOURCE: McKinsey study, National Policy on Skill Development Strengthen existing infrastructure Capacity addiction Fund the unviable segments Skill Development Mission
NSDC created as a part of the government’s co-ordinated action in the skills space Prime Minister’s National Council for Skill Development National Skill Development  Co-ordination Board Government Initiatives 17 Central Ministries Private sector initiatives NSDC structure ,[object Object],[object Object],[object Object],[object Object],[object Object],Advisor to PM on skills
Estimated skill gap of 240Mn across 21 key sectors  Source: IMacs Study
NSDC in a PPP mode has funded a diverse portfolio of 33 companies; in addition 6 Sector Skills Councils   Training providers In the education business In unrelated businesses Start ups Large established corporates Technable GOLS
Funding proposals approved by NSDC Board  As of 25 August 2011 ,[object Object],[object Object],[object Object],[object Object],[object Object],39 33 6 Rs 1022 Cr 113 Lakhs 570 Lakhs
Current status of SSC proposals 30 SSCs at various  stages of  Formation
Snapshot of 10 year NSDC Targets : The Skill 500 * These are achieved after a lag of a year    FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Total Total Proposals per year to be Funded (nos.) 25 32 44 52 60 65 62 50 42 31 23 14 500 Small ticket proposal  6 11 16 21 24 25 22 18 15 11 9 6 184 Medium ticket proposal  16 18 24 27 32 35 34 28 24 18 12 7 275 Big ticket proposal  3 3 4 4 4 5 6 4 3 2 2 1 41 Total Trainee Output per year (nos. lakh)* 1.2 6.1 15.7 33.4 60.2 97.9 146.1 203.9 266.4 331.8 395.1 454.2 2011.9
In addition knowledge base being created ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Attempts to create an “enabling” environment  - skill loan being introduced with Central Bank of India
Current Status of SSCs by Industry Sectors 32 SSCs at various  stages of  Formation 6 7 11 8
Agenda The  way forward
The skills industry however facing challenges in the environment in which it operates Reward for trained manpower Compensation for trained resources Awareness Brand for vocational training – social stigma Quality and growth prospects Non availability of good quality trainers Salary structures Ability to pay Willingness to pay Conversion from push to pull model Industry interface Making vocational skills aspirational Quality and availability of trainers Student Mobilization KEY CHALLENGES POLICY POLICY
Challenge 1 : Policy Is there an overlap in roles? ,[object Object],[object Object],[object Object],[object Object],HRD Ministry Setting standards  Accreditation Running institutes Funding Employment utilities ,[object Object],Ministry of Labour  ,[object Object],[object Object],[object Object],[object Object],State governments ,[object Object],[object Object],Other central ministries ,[object Object],[object Object],[object Object],[object Object],NSDC / SSCs ,[object Object],[object Object],Govt./semi-govt. entities Various aspects of skill development
Challenge 1 : Policy Is there a common direction and approach on skill building? ,[object Object],[object Object],[object Object],[object Object]
Challenge 2 : Making VT aspirational / Student  Mobilization  Learnings from NSDC partners meet Key challenges Best Practice/ solution to deal with the challenges ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Making skills aspirational – integral to developing the eco system World Skills competition 1 National campaign to make skills aspirational  2 Business Plan competition focused on skill development 3
Challenge 3: Industry Interface Learnings from NSDC partners meet Key challenges Best Practice/ solution to deal with the challenges ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Challenge 4 : Availability of Trainers Learnings from NSDC partners meet Key challenges Best Practice/ solution to deal with the challenges ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Onus now on industry on multiple fronts Extract from National Skills Policy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Thank you [email_address]

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GSS Session I Mr. Dilip Chenoy Strategy for Skill Development: Government Perspective

  • 1. Strategy for Skill Development : Government Perspective 4 th Global Skills Summit 15 September 2011 New Delhi Dilip Chenoy, MD & CEO, NSDC
  • 2. Agenda The Indian skills landscape and the journey so far The way forward
  • 3.
  • 4. The current landscape needs drastic capacity addition to meet future demand Privately owned ITCs *Includes ministry of housing and urban poverty alleviation, textile, health and family welfare, food processing industries, and others **Assuming that the existing workforce in the age group of 45-59 will not be re-skilled ***Assuming training fee of Rs 2000 per student for the total demand estimated Source: 11 th five year plan; NCEUS report; McKinsey analysis Current capacity in skill development under various schemes, 2008-09 Eight-fold increase in capacity is required to meet aspiration Total capacity in skill development 4.3+ Other private training providers XX Other ministries* 0.3 MSME 0.2 Ministry of rural development 0.2 Ministry of agriculture 0.2 Ministry of women & child development 0.2 MHRD MLE 1.3 0.5 Total demand by 2022 526 Reduction due to ageing/ retirement** 80 Reskilling / upskilling of 90% of existing workforce (460 million) 414 Addition to workforce @ 12.8 million per year 192 Total supply by 2022 @ current capacity 65+ 8x
  • 5.
  • 6.
  • 7. Estimated skill gap of 240Mn across 21 key sectors Source: IMacs Study
  • 8. NSDC in a PPP mode has funded a diverse portfolio of 33 companies; in addition 6 Sector Skills Councils Training providers In the education business In unrelated businesses Start ups Large established corporates Technable GOLS
  • 9.
  • 10. Current status of SSC proposals 30 SSCs at various stages of Formation
  • 11. Snapshot of 10 year NSDC Targets : The Skill 500 * These are achieved after a lag of a year   FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Total Total Proposals per year to be Funded (nos.) 25 32 44 52 60 65 62 50 42 31 23 14 500 Small ticket proposal 6 11 16 21 24 25 22 18 15 11 9 6 184 Medium ticket proposal 16 18 24 27 32 35 34 28 24 18 12 7 275 Big ticket proposal 3 3 4 4 4 5 6 4 3 2 2 1 41 Total Trainee Output per year (nos. lakh)* 1.2 6.1 15.7 33.4 60.2 97.9 146.1 203.9 266.4 331.8 395.1 454.2 2011.9
  • 12.
  • 13. Attempts to create an “enabling” environment - skill loan being introduced with Central Bank of India
  • 14. Current Status of SSCs by Industry Sectors 32 SSCs at various stages of Formation 6 7 11 8
  • 15. Agenda The way forward
  • 16. The skills industry however facing challenges in the environment in which it operates Reward for trained manpower Compensation for trained resources Awareness Brand for vocational training – social stigma Quality and growth prospects Non availability of good quality trainers Salary structures Ability to pay Willingness to pay Conversion from push to pull model Industry interface Making vocational skills aspirational Quality and availability of trainers Student Mobilization KEY CHALLENGES POLICY POLICY
  • 17.
  • 18.
  • 19.
  • 20. Making skills aspirational – integral to developing the eco system World Skills competition 1 National campaign to make skills aspirational 2 Business Plan competition focused on skill development 3
  • 21.
  • 22.
  • 23.

Hinweis der Redaktion

  1. NSDC funding is across the spectrum - from start-ups to established ventures for scale up. However to convince large corporates in unrelated businesses to get into the skills businesses is a challenge we have undertaken. We are hoping to get at least 5 such companies into the fold this year, of which we have already partnered two.
  2. The 30 training organisations funded through NSDC would skill 565 lakh persons in the next ten years creating capacity of 112 Lakhs per annum at full scale which is ~3x the capacity that exists in India The total amount committed from the NSDF Corpus is Rs 1016 Crores.
  3. NSDC has a ten year business plan which clearly defines targets for the type of proposals that we need to reach the target of 1500Lakh people by 2022. We have met the targets on the number of proposals in 2010-11 and we hope to keep on delivering. Would like to thank the Government and the Ministry of Finance for support extended
  4. One of the biggest challenges that our partners face is to get students to fill the classroom. There is just not enough respect for Vocational training in the country today. To that end it is important to work towards a national campaign that would make skills aspirational In additional India’s participation in the World Skills competition should motivate many youngsters across trades NSDC in partnership with CII, E&Y and ISB is launching an enterprise plan competition across the leading graduate and post graduate schools in India to encourage young minds to think of entrepreneurship as a business.