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1- Shailee Kumar, MBA student at VIM, Pune (9579835079)
(shaileekumar2015@vim.ac.in)
2- Sagar Chavan, MBA student at VIM, Pune (9561083441)(sagarchavan2015@vim.ac.in)
3- Prof. Ajay Parulekar, Professor at VIM, Pune (8983525998)(ajayparulekar@vim.ac.in)
INDIA’S DEMOGRAPHIC DIVIDEND – HOW TO EXPLOIT?
Shailee Kumar1, Sagar Chavan2, Prof. Ajay Parulekar3
Abstract:
Agriculture is being India’s primary business since long time. Even today most of Indians do
farming. But the situation is changing. Unlike most other countries, India has switched directly to
the service sector from agricultural sector. In doing this, industry sector especially manufacturing
sector is totally forgotten. There are diverse views on this leapfrogging of bypassing the industrial
sector and shifting directly to service sector. Some views says that as India has bypassed the
industry sector India was perfect in it and this is an economic achievement. Other group says that
large service sector in developing economies like India indicates inability of government and
private sectors to keep up with the increasing rural-urban migration. So, question arises that
whether India can become developed nation without having strong industrial base? And the answer
is “No”.
Economic development of any country requires job creation, improvement of human capital,
poverty reduction and increase in the consumption of resources. For this, service sector alone is
not sufficient. This will require Re-industrialization in India. The idea is not just to increase the
industry sector but to empower all individuals through improved skills, knowledge, nationally and
internationally recognized qualifications to gain access to decent employment and ensure India’s
competitiveness in the global market.
Today, a large section of India’s labor force has outdated skills. With current and expected
economic growth, this challenge is going to only increase further, since more than 75% of new job
opportunities are expected to be “skill-based.” This Paper speaks about the learning from the
models of other countries addressing the issues and challenges of imparting vocational education
analyzed to reveal lessons for existing and upcoming participants of this field. Private sector along
with government has started contributing in skill development. Such Public Private Partnership
Mode (PPP) has started vocational training and education with collaboration of government
institutes. Various recommendations for the skill development policy for India are given in the
paper.
Keywords: leapfrogging, re-industrialization, Public Private Partnership (PPP)
Introduction
India has gradually evolved as a knowledge-based economy due to the abundance of capable,
flexible and qualified human capital. With the constantly rising influence of globalization, India
has immense opportunities to establish its distinctive position in the world. However, there is a
need to further develop and empower the human capital to ensure the nation’s global
competiveness. Despite the emphatic stress laid on education and training in this country, there is
still a shortage of skilled manpower to address the mounting needs and demands of the economy.
As an immediate necessity that has urgently arisen from the current scenario, the government is
dedicatedly striving to initiate and achieve formal/informal skill development of the working
population via education/vocational education/skill training and other upcoming learning methods.
The skill development of the working population is a priority for the government. This is evident
by the exceptional progress India has witnessed under the National Policy on Skills (2009) over
the years. The objective of the policy is to expand on outreach, equity and access of education and
training, which it has aimed to fulfil by establishing several industrial training institutes (ITIs),
vocational schools, technical schools, polytechnics and professional colleges to facilitate adult
leaning, apprenticeships, sector-specific skill development, e-learning, training for self-
employment and other forms of training. The government therefore provides holistic sustenance
through all its initiatives in the form of necessary financial support, infrastructure support and
policy support. In addition, the private sector has also recognized the importance of skill
development and has begun facilitating the same via three key dimensions — non-profit initiatives,
for profit enterprises, and as a consumer. Currently, there are many skilling opportunities fashioned
by the government, the private sector and collaboration between the two (PPP mode).
The current focus of skill development has shifted to the learner and his/her needs and expectations
from vocational education and training (VET). To empower the working population, is it essential
to start from the source, i.e., the learner. India has the advantage of the “demographic dividend”
which can be cultivated to build a skilled workforce in the near future.
Need of Skill
Skills and knowledge are the driving forces of economic growth and social development for any
country. Countries with higher and better levels of skills adjust more effectively to the challenges
and opportunities of world of work. As India moves progressively towards becoming a ‘knowledge
economy’ it becomes increasingly important that the country should focus on advancement of
skills and these skills have to be relevant to the emerging economic environment. In order to
achieve the twin targets of economic growth and inclusive development, India’s Gross Domestic
Product (GDP) has to grow consistently at 8% to 9% per annum. This requires significant progress
in several areas, including infrastructure development, agricultural growth coupled with
productivity improvements, financial sector growth, a healthy business environment, ably
supported by a skilled workforce.
Demographic Dividend
As compared to western economies where there is a burden of an ageing population, India has a
unique 20–25 years window of opportunity called the “demographic dividend.” This
“demographic dividend” means that as compared to other large developing and developed
countries, India has a higher proportion of working age population vis-à-vis its entire population.”
The result is low dependency ratio, which can provide a comparative cost advantage and
competitiveness to the economy. The following table provide a glimpse of the demographic
dividend that India would be able to achieve by 2022.
Sr.
No
Country Total population in
the age group 15-59
years
Proportion of the
age group to total
population of the
country
(%)
1 China 904,481,837 18.9
2 India 861,235,123 18.0
3 USA 195,489,469 4.1
4 Brazil 139,520,976 2.9
5 Japan 64,950,362 1.4
6 Germany 44,408,764 0.9
7 France 37,332,831 0.8
8 UK 38,133,894 0.8
9 Australia 14,420,441 0.3
(Source: Ernst and Young Research, 2012)
India has the world’s youngest work force with a median age way below that of China and OECD
countries. Half the population of India was younger than 25 in 2010. It will change to half the
population being under 28 in 2030, making India a very young country for the next 20 years.
Why corporate involvement is important?
Private sector over the years, the private sector has increased its presence in the field of vocational
education in India. Unemployment and underemployment are two of the most serious development
problems currently being faced by the country. The solution to which is a skilled workforce,
developed through quality vocational education and training courses for the learner. The private
sector comes into play here with its ability to match better the demand for workforce by the
industry with a supply of superior skilled manpower. The private sector can contribute to
supplement infrastructure, facilities, technology and pedagogy. There are several roles that the
private sector plays in this domain, namely, as a consumer of skilled manpower, as a non-profit
facilitator of quality knowledge or as a for-profit enterprise providing education.
In the first role, the private sector would deeply benefit by training the available manpower with
appropriate skills and then ultimately employ them. Corporate houses can train learners by diverse
methods and in varied fields such as research and development, academic internships, on-job
training, programs in line with the market demand and several collaborative programs. As a
consumer, the private sector can educate learners with the right balance of academic skills,
analytical skills, attitude and exposure. This approach ensures only industry demanded
skills/expertise being imparted to develop a suitable talent pool.
Today, the private sector plays an important role in proving vocational education and training.
Being a consumer of skilled manpower, the sector is aware of the exact skill set required in
potential employees. This insight and availability of other vital resources enables the private sector
to train learners both effectively and efficiently. Customized courses/programs are formulated with
a curriculum crafted by industry experts to better train and prepare the learner for the changing
requirements of jobs and the entire working environment.
Challenges in Skill India
The arguments that problems exist with the supply of skills available in the labor market take
various forms. The most extreme complaint is the idea that widespread shortfalls have been found
in the basic skills of future employees. The cause is usually attributed to the failure of the education
system to provide students with these basic skills. We refer to that position as a skills gap,
following its use in policy discussions. A second complaint focuses more on job-related skills of
the kind associated with particular occupations. We refer to this assertion as a skills shortage. The
final concern, which is much more commonly articulated is the general idea that at any given time
the supply of skills and the demand for skills could be out of synch in either direction: oversupply
or undersupply. We refer to it as a skills mismatch. A skill shortage is obviously a particular type
of skill mismatch, and a skills gap could be a general form of mismatch. All these complaints
collectively can be referred to as skill problems.
The first challenge in assessing the assertions about skills problems is to have a conceptual
framework for understanding the relationship between workers and their skills against employer
needs. One approach, traditionally associated with the topic of internal labor markets and the
academic field of human resources (and, before that, personnel), suggests that matching skills to
job requirements is an employer problem. Over time, employers have internalized the supply of
labor, selecting for general abilities at entry level positions and then training and developing
employees over a working lifetime to meet their specific skill needs. That approach appears to
have eroded substantially in recent years, an issue we return to later in the article. The other
approach focuses on the labor market as the mechanism for meeting employers’ skill requirements.
The idea of job matching between employers and job seekers implies a job search, which typically
assumes that employers have job requirements that are generally determined exogenously and that
employers then go searching for job applicants who have those skills. The search process is
realistically described as two-sided if both employers and employees are looking for a match, and
a good match is one in which the skills of the applicants and the requirements of the job fit closely,
neither a shortfall nor an oversupply of skills relative to those requirements. In typical economics
models of job search, the process is reasonably passive. Employers make offers to job applicants,
who accept the job when the offer matches or beats their reservation price. Employers raise wages
to attract better applicants whose attributes are closer fits for those job requirements, and they
lower wages if an excess supply of such applicants exists. The notion of a shortage is foreign to
this model and to most all economics-based models. Indeed, shortages in general are typically seen
as occurring only in the context of market failure, such as wartime wage freezes or restrictions on
mobility, and to be temporary until candidates and employer adjust. In practice, of course,
employers can search more extensively through recruiting activities and more careful selection,
and applicants can search actively by securing better information about vacancies. We also know
that job requirements are not exogenous from the supply of applicants; a shortfall of applicants
that leads to higher wages causes employers, in turn, to substitute capital for labor to create new
jobs with lower skill requirements. Empirical evidence indicates that employers also lower the
skill requirements for given jobs when labor is relatively scarce and raise them when higher-quality
applicants are plentiful.
What is less clear in the typical models is how the supply of skills affects employer decisions on
production systems and, ultimately, productivity. Certainly, “better” workers, who are absent less,
who avoid less, and who work harder, will improve organizational productivity and performance,
even if nothing changes about their jobs. But whether more skilled applicants per se cause
employers to innovate, to adopt more effective practices, or to change the way that jobs are
performed is an open question that is often part of the skill gap arguments. The closest analogy is
with supply chain models where suppliers are trying to produce just the right amount of output to
meet the needs of their clients at the previously agreed price. Skills are seen as coming with the
applicant to the job, and job requirements are absolute, such that candidates either have the
necessary skills to do a job or not and, if not, they cannot do the job. Finally, an important goal for
public education in these arguments, including public colleges and universities, is seen as
providing graduates that employers would like to hire.
Successful Models:
1) Germany Vocational Training (1980s)
German Model of dual training was started with three-fold objective of promoting (1) economic
productivity, (2) social integration and (3) individual development. Developing a skilled labor
force will help promote innovation in business should be main purpose of promoting this model in
other developing countries.
Three-fold Objective of German model
Economic Aspect: The Economic aspect of German model refers to the role of vocational
training in ensuring a high level of economic, business and individual productivity.
Economic goal involves development of human resources by ensuring that there are
enough workers with adequate skills, and subsequently increasing their number and level
of qualification. The business goal is to make sure that companies have an adequate supply
of qualified skilled workers. At the individual level, the goal is to ensure that individuals
are employable and able to earn a living. Also important from an economic perspective is
the efficiency of the vocational training system itself.
Social Aspect: The Social aspect of German model refers to vocational training as a means
of promoting the social integration of the younger generation, both in the workplace and in
society at large. A vocational training system should be designed to prevent social
marginalization and integrate young people smoothly into training and employment.
Individual Aspect: The Individual aspect of German model refers to the role of vocational
training in developing the skills individuals need to meet challenges on the job as well as
in other aspects of their life. Vocational training should provide an opportunity for
individuals to shape their own life, develop to their full potential, and increase their self-
efficacy and motivation to learn.
Another purpose of training skilled workers is to promote innovations in the business world. It is
generally agreed that basic innovations are generated by researchers and scientists at universities.
In addition, there are so-called “incremental innovations” – the small, everyday process
improvements that are not produced by great inventors, but are rather the result of thoughtful
problem-solving by the people who implement and test new processes and products on a daily
basis. Such incremental innovations are achieved when well-trained, skilled workers not only
perform their assigned tasks, but also identify, describe and solve problems in innovative ways, in
a process that leads to steady improvement.
Approach of implementing this model:
This model should not directly implemented in all the areas. Rather it is proposed to
introduce first in business sectors or industries where conditions are favorable. First focus should
be on the priority areas and not entire range of objectives.
Strength:
The system offers qualifications in a broad spectrum of professions and flexibly adapts to the
changing needs of the labor market. The dual system is especially well-developed in Germany,
integrating work-based and school-based learning to prepare apprentices for a successful transition
to full-time employment. A major strength of the dual system is the high degree of engagement
and ownership on the part of employers and other social partners. The VET system as a whole is
well-resourced, combining public and private funding. Germany has maintained strong financial
support and maintained the apprenticeship offer for the VET system even during the crisis.
Germany has a well-developed and institutionalized VET research capacity, including the Federal
Institute for VET, and a national network of research centers that study different aspects of the
system to support continuous innovation and improvement in the VET system.
Challenges:
The transition system, now serving nearly as many young people as the dual system, suffers from
undue fragmentation and an absence of transparency. Despite the very substantial resources
devoted to the system, too few program participants make a successful transition into the regular
VET system. Career guidance seems highly variable across the Länder, with no single agency
responsible for assuring delivery of quality information and guidance services to all students.
Some students leave compulsory school with weak core academic skills. The VET system is not
currently organized to ascertain whether this is in fact a problem or, if so, to address it. The
evaluation of dual system students at the end of their apprenticeship is dominated by the Chamber
exam. Because their school performance does not count in the Chamber exam, students may not
take their schooling seriously, thereby limiting their ability to participate successfully in some form
of tertiary education. Although Germany has recently opened more pathways from upper-
secondary VET to tertiary education, to date very few VET graduates have made use of those
pathways. Shrinking cohort numbers due to demographic decline is providing an important
contextual challenge.
2) Singapore Model
Singapore is best known example for successful and continuous upskilling of its workforce
since last 40 years. The Singapore model, which run in PPP mode, appears to change the typical
statements that governments are poor at organizing and administering skills development,
particularly on a national scale. In fact it has provided rare but great examples of collaboration of
private and public sector in upskilling.
Success of Singapore model was influenced by following factors.
1. Linkage between Economic development and Skill Development:
Phase 1: Import Substitution Industrialization: 1959-1965
This phase marked the start of reforming of the educational institution, restructuring of vocational,
technical and managerial education. This phase involved establishment of supremacy of the EDB
as the prime mover of the Singapore model.
Thus, this phase marked the beginnings of education reform, extension of vocational, technical
and managerial education, and established the supremacy of the EDB as the prime mover of
Singapore’s industrialization strategy, and therefore also as the principal institution responsible for
the coordination and supply of manpower to meet Singapore’s manpower needs. However, during
this phase, the EDB focused only on the national level, and not on the industry or firm levels.
Phase 2: Export Oriented Industrialization: 1966-1973
The EOI strategy was predicated on attraction of foreign investment through a variety of
incentives, and Singapore offered incentives, reasonably good infrastructure, and cheap labor and
stable industrial relations climate as inducements to foreign companies. The primary focus of skills
development efforts was the urgent need for increases in technically trained manpower, both
generally for the success of the of the EOI strategy, but also specifically to meet the needs of the
emerging export industries, particularly in view of limited success of the previous five year plan
regarding technical education. Under this system, the EDB provided foreign companies like Tata
(India), Rollei (Germany) and Phillips (Netherlands) the finance and infrastructure to set up
training centres to which the companies would contribute instructors and software.
These schemes served three important goals: the provision of training that was not available in
Singapore, the establishment of regular contacts with foreign firms, and through these contacts, to
induce foreign firms to invest in Singapore. This was the beginnings of the integration of skills
and foreign investment and technology transfer. Within three years of the establishment of
vocational training schools under the Industrial Training system, technical education enrolment
had increased by a 1000%.
Phase 3: Evolution towards Technology Intensive Export Oriented Industrialization: 1973-
1984
The success of the export oriented industrialization strategy resulted in both a tighter labor market
and rising wages. And increased competition from lower cost Asian neighbors such as Malaysia
forced the EDB to re-conceptualize its economic development strategy. A critical aspect was the
need to continue to attract foreign investment, but to make sure that the foreign investment would
be higher quality, i.e. more technologically intensive investment that would be able to use the
higher cost Singapore labor. Thus, the shift contemplated was from labor intensive manufacturing
for export to a higher value added technology intensive industrialization for export.
The critical need during this phase was for the continued expansion of general skills (vocational
and technical training for industry in trades such as machining, fitters, electricians, welders) as
well as the need for more specialized skills germane to the industries that were growing as a result
of foreign investment. The primary initiatives during this phase were: the reorganization of the
structure for technical and commercial skill formation, establishing foreign company and country
sponsored training centers, reforming the educational system, and setting in place incentives to get
corporations to invest in skills upgradation. A final initiative during this phase was the effort of
the EDB to shift some of the responsibility for upskilling onto the private sector. At the corporate
level, the EDB tried to encourage companies to invest in training, through the (ITGS) Industrial
Training Grant Scheme (the forerunner of the Skills Development Fund.
Phase 4: Economic Diversification: 1985 - 1996:- Consolidation and Restructuring of
Skills Development
By the mid1980s, Singapore was already a leading high-technology, and high wage goods
producer in Southeast Asia. And much of the preparatory work in terms of establishing continuous
skills development had already been put in place during the last phase. The economic development
goal of the EDB for the 1990s was to make Singapore a regional business and financial hub.
Consistent with this longer term vision, the EDB reconsidered its approach to skills generation.
One key finding was that the depth and breadth of technical skills necessary for the
accomplishment of this vision could not be achieved through the existing model of single country
dominated institutions or a single company dominated institution. In other words, the manpower
needs of the new and emerging knowledge and technology intensive industries would require
resources and expertise in excess of what a single partner could provide.
What emerged from these is a series of initiatives to organize technology centers that were centered
around the needs of one industry, through joint cooperation with various multinational companies
who had invested in Singapore.
Phase V: Towards a Knowledge based Economy
In the 1990s, the focus has been on the shift from factor driven growth to innovation driven growth
i.e. from capital based industries to knowledge based industries. In this phase, the EDB pushed the
corporate to increase the expenditure on training of the employees and retraining of the older
workforce. The way in which these goals are to be realized are still evolving, but already there is
a massive promotion of On-Job-Training (OJT) in companies through the Productivity and
Services Board which has created a system of model OJT companies that are to be emulated by
the rest.
Above discussion shows that there is an evidence of strong correlation between the economic
development needs and the skills development efforts by a country. It needs to be coupled with a
constant striving to meet industrial needs through quick short term solutions as well as some degree
of long term planning. We feel that this congruence is an essential prerequisite for the success of
any skills development policy, although not sufficient.
2. Skill development Funds:
No discussion of the Singapore system will be complete without a discussion of the Skills
development fund, largely because it is this institution that has been touted as model for other
countries. The essential element of the SDF system is that it represents the Government’s efforts
to pass on responsibility for skills upgradation to the private sector. The government-private sector
partnerships established by the EDB implicitly in its model of technology transfer was limited to
MNCs but the SDF was targeted towards all Singapore businesses.
3. Long Term Skills Development: Education Policy
Successful skills development requires long term investments in education as well, given the
considerable research on the impact of education in economic growth. In Singapore there have
been two major reforms of education policy. The first was during the beginnings of import
substitution industrialization soon after independence (discussed earlier) and the second was
during the transition from low cost EOI to advanced EOI. The move towards a more technology
intensive export orientation coupled with the initiatives for training forced the government to
rethink its education system, to recheck whether the education policy planned earlier was still
relevant to the recent developments.
Hence the New Education System (NES) was established. This NES have underlying rationale,
for one, it introduced much flexibility in Education System and finally, this education system
channelized the student, who showed less interest in further education, into the vocational
education. The NES was designed to accommodate students at different paces of learning, as well
as providing them with different options of learning. The System also ensured, like German
System, that those who take up vocational course would then directly will directly enter into
vocational or apprenticeship training in the organization.
4. Institutional Involvement:
A crucial ingredient in the success of the system is the way in which these institutions work in
practice. The system operates at several different levels, including education systems, training for
managers, training for high-level technical skills, training for lower level technician skills, training
for blue collar workers and older workers, and training for productivity improvement.
The government has continually reshaped institutions to maximize effectiveness.
In the next section, we try to understand the current initiatives taken up by Public / Private parties
in India under the Skill India drive.
Initiatives under ‘Skill India’:
In addition to the corporate houses and education institutes, several other entities have come
together to create a framework for vocational education and training in India. The figure below
expands on the current Indian VET space.
Organization Types Organization Names Scope
Industrial Associations  International Labour
Organization
 World Bank
 European Union
 Voice the needs of the
market
 Voice opinions on
relevant policies
International Bodies  International Labour
Organization
 World Bank
 European Union
 Advisory role to
government bodies.
 Provide essential funds
Private Players  IL&FS Education
 India Can
 India Skills
 Bharti and many More
 Provide funding Develop
 Vocational education
training institutes
(Source: FICCI, Sept 2012)
PPP Model:
The private sector, in association with the government, will work to identify and quantify skill
deficiencies in their respective sectors and constitute a sector plan to address these deficiencies.
The National Skill Development Corporation or National Skill Development Trust is entrusted
with the job to identify areas where support and implementation will be required from the
government. NSDC has identified 21 high-growth sectors (including the unorganized sector) to
provide expanded employment. It has 10 high-growths sectors on the manufacturing side and an
equal number on the services side. Of these, manufacturing, textile, construction, automotive, retail
and health care are the key focus sectors.
Attributes Urban Rural
Availability  The skill training
provided by
institutions is not job
oriented.
 The training courses
are selected by the
learners based on the
availability of seats
rather than their
competencies.
 There is a lack of
awareness about
certain trades, with
only a few trades
attracting the majority
of the learners.
 It is difficult for
private institutions
that impart the latest
skill development
training to set up on
account of various
constraints and
regulations.
 Low quality of
education standards
and high dropout rates
in rural schools create
learners with low
educational
qualifications.
 There exists a major
gender bias toward
women in obtaining
vocational training.
 Even though a
significant majority of
the employment exists
is in the informal
sector, training and
other related
interventions are not
geared to the needs of
this sector.
Accessibility
 Poor urban learners
are unable to join
courses at private
training institutes as
they charge high
training costs.
 Rural youth miss out
on the opportunity on
industrial training
sponsored by various
local and government
agencies of urban
areas.
 There are a less
number of training
institutes in rural
areas.
 The rural learner
incurs a higher
expense in obtaining
training from urban
centres.
 The cost of acquiring
job information is high
for the rural youth.
 There is limited access
to job-related
information or skills
that are currently in
demand.
 There is a lack of
proper guidance and
counselling for skill
development.
Adaptability  There is a lack of a
common national
qualification
framework that sets a
competency
framework for
affiliation and for
accreditation.
 There is a lack of a
common national
qualification
framework that sets
competency
framework for
affiliation and for
accreditation.
Acceptability  There is a lack of
quality training
infrastructure in
poorer areas of large
cities and small urban
centres.
 Rural areas lack
qualified trainers.
 The ICT Infrastructure
is poor in rural areas.
There is a need for
rural broadband
network, which can
assist in skill training
for rural learners.
(Source: FICCI, Sept 2012)
Recommendation:
Based on German Model
Ensure that skilled students will enter into the enterprise only after completing education. Make
partnership with the companies to provide apprenticeship training to the student after the
completion of education.
Create an infrastructure at national, state, company and individual level that will regularly check
and balance short term plans.
Based on Singapore Model
Initiate Thinking Skill Program to encourage better thinking at school level and above. The
objectives of the thinking skills program should be to improve creativity and lateral thinking.
Skill Development Fund: Government should promote private parties to increase the expenditure
on skill development. Introduce a scheme of national training awards to the institutes that spends
more on workforce training.
Reform current educational system to provide options of learning and education as per interest of
the student.
Reform current education board or establish Skill Development Board (SDB) which will provide
skill education and will promote private institutions to impart skill programs.
Conclusion:
This paper focuses on approaches that can be adapted for skilling India’s Demographic dividend.
The paper includes study of successful models of Germany and Singapore. While doing
background research for this paper, we came across various models as proposed and adopted by
other countries and many of which have been successful. We decided to concentrate on two
countries viz. Germany and Singapore. One represents the most developed European nation
whereas the second represents the most advanced Asian economy. We felt that a combination of
these two models be of significance to a developing country like India. Further, these models are
recognized worldwide and are extensively used. However an in-depth study of few more countries
and their skilling models can definitely help us decipher few more dimensions which might have
been missed out. Still on our part, we believe that the recommendations made in this paper will be
of use to other researchers as well as practitioners.
Reference
1) http://www.nsdcindia.org
2) http://www.skillindia.gov.in
3) Knowledge paper on “Skill development in India” – Learners First Sept, 2015 by Ernst and
Young
4) “Skill Gaps, Skill Shortages and Skill Mismatches: Evidence and Arguments for the United
States” by Peter H Cappelli, March 2015
5) “How Do Nations Develop Skills? Lessons from the Skill Development Experiences of
Singapore” by Sarosh Kuruvilla and Rodney Chua, January 2000
6) A report on “Vocational Education and Training in Germany Strengths, Challenges and
Recommendations” by OECD, Sept 2010
7) A report on “Germany’s dual vocational training system: a model for other countries” by
FICCI and IMaCS, August 2010
8) “The India Skill Report 2014” by CII, Wheebox and Peoplestrong

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India's Demographic Dividend - How to Exploit

  • 1. 1- Shailee Kumar, MBA student at VIM, Pune (9579835079) (shaileekumar2015@vim.ac.in) 2- Sagar Chavan, MBA student at VIM, Pune (9561083441)(sagarchavan2015@vim.ac.in) 3- Prof. Ajay Parulekar, Professor at VIM, Pune (8983525998)(ajayparulekar@vim.ac.in) INDIA’S DEMOGRAPHIC DIVIDEND – HOW TO EXPLOIT? Shailee Kumar1, Sagar Chavan2, Prof. Ajay Parulekar3 Abstract: Agriculture is being India’s primary business since long time. Even today most of Indians do farming. But the situation is changing. Unlike most other countries, India has switched directly to the service sector from agricultural sector. In doing this, industry sector especially manufacturing sector is totally forgotten. There are diverse views on this leapfrogging of bypassing the industrial sector and shifting directly to service sector. Some views says that as India has bypassed the industry sector India was perfect in it and this is an economic achievement. Other group says that large service sector in developing economies like India indicates inability of government and private sectors to keep up with the increasing rural-urban migration. So, question arises that whether India can become developed nation without having strong industrial base? And the answer is “No”. Economic development of any country requires job creation, improvement of human capital, poverty reduction and increase in the consumption of resources. For this, service sector alone is not sufficient. This will require Re-industrialization in India. The idea is not just to increase the industry sector but to empower all individuals through improved skills, knowledge, nationally and internationally recognized qualifications to gain access to decent employment and ensure India’s competitiveness in the global market. Today, a large section of India’s labor force has outdated skills. With current and expected economic growth, this challenge is going to only increase further, since more than 75% of new job opportunities are expected to be “skill-based.” This Paper speaks about the learning from the models of other countries addressing the issues and challenges of imparting vocational education analyzed to reveal lessons for existing and upcoming participants of this field. Private sector along with government has started contributing in skill development. Such Public Private Partnership Mode (PPP) has started vocational training and education with collaboration of government institutes. Various recommendations for the skill development policy for India are given in the paper. Keywords: leapfrogging, re-industrialization, Public Private Partnership (PPP)
  • 2. Introduction India has gradually evolved as a knowledge-based economy due to the abundance of capable, flexible and qualified human capital. With the constantly rising influence of globalization, India has immense opportunities to establish its distinctive position in the world. However, there is a need to further develop and empower the human capital to ensure the nation’s global competiveness. Despite the emphatic stress laid on education and training in this country, there is still a shortage of skilled manpower to address the mounting needs and demands of the economy. As an immediate necessity that has urgently arisen from the current scenario, the government is dedicatedly striving to initiate and achieve formal/informal skill development of the working population via education/vocational education/skill training and other upcoming learning methods. The skill development of the working population is a priority for the government. This is evident by the exceptional progress India has witnessed under the National Policy on Skills (2009) over the years. The objective of the policy is to expand on outreach, equity and access of education and training, which it has aimed to fulfil by establishing several industrial training institutes (ITIs), vocational schools, technical schools, polytechnics and professional colleges to facilitate adult leaning, apprenticeships, sector-specific skill development, e-learning, training for self- employment and other forms of training. The government therefore provides holistic sustenance through all its initiatives in the form of necessary financial support, infrastructure support and policy support. In addition, the private sector has also recognized the importance of skill development and has begun facilitating the same via three key dimensions — non-profit initiatives, for profit enterprises, and as a consumer. Currently, there are many skilling opportunities fashioned by the government, the private sector and collaboration between the two (PPP mode). The current focus of skill development has shifted to the learner and his/her needs and expectations from vocational education and training (VET). To empower the working population, is it essential to start from the source, i.e., the learner. India has the advantage of the “demographic dividend” which can be cultivated to build a skilled workforce in the near future. Need of Skill Skills and knowledge are the driving forces of economic growth and social development for any country. Countries with higher and better levels of skills adjust more effectively to the challenges and opportunities of world of work. As India moves progressively towards becoming a ‘knowledge
  • 3. economy’ it becomes increasingly important that the country should focus on advancement of skills and these skills have to be relevant to the emerging economic environment. In order to achieve the twin targets of economic growth and inclusive development, India’s Gross Domestic Product (GDP) has to grow consistently at 8% to 9% per annum. This requires significant progress in several areas, including infrastructure development, agricultural growth coupled with productivity improvements, financial sector growth, a healthy business environment, ably supported by a skilled workforce. Demographic Dividend As compared to western economies where there is a burden of an ageing population, India has a unique 20–25 years window of opportunity called the “demographic dividend.” This “demographic dividend” means that as compared to other large developing and developed countries, India has a higher proportion of working age population vis-à-vis its entire population.” The result is low dependency ratio, which can provide a comparative cost advantage and competitiveness to the economy. The following table provide a glimpse of the demographic dividend that India would be able to achieve by 2022. Sr. No Country Total population in the age group 15-59 years Proportion of the age group to total population of the country (%) 1 China 904,481,837 18.9 2 India 861,235,123 18.0 3 USA 195,489,469 4.1 4 Brazil 139,520,976 2.9 5 Japan 64,950,362 1.4 6 Germany 44,408,764 0.9 7 France 37,332,831 0.8 8 UK 38,133,894 0.8 9 Australia 14,420,441 0.3 (Source: Ernst and Young Research, 2012)
  • 4. India has the world’s youngest work force with a median age way below that of China and OECD countries. Half the population of India was younger than 25 in 2010. It will change to half the population being under 28 in 2030, making India a very young country for the next 20 years. Why corporate involvement is important? Private sector over the years, the private sector has increased its presence in the field of vocational education in India. Unemployment and underemployment are two of the most serious development problems currently being faced by the country. The solution to which is a skilled workforce, developed through quality vocational education and training courses for the learner. The private sector comes into play here with its ability to match better the demand for workforce by the industry with a supply of superior skilled manpower. The private sector can contribute to supplement infrastructure, facilities, technology and pedagogy. There are several roles that the private sector plays in this domain, namely, as a consumer of skilled manpower, as a non-profit facilitator of quality knowledge or as a for-profit enterprise providing education. In the first role, the private sector would deeply benefit by training the available manpower with appropriate skills and then ultimately employ them. Corporate houses can train learners by diverse methods and in varied fields such as research and development, academic internships, on-job training, programs in line with the market demand and several collaborative programs. As a consumer, the private sector can educate learners with the right balance of academic skills, analytical skills, attitude and exposure. This approach ensures only industry demanded skills/expertise being imparted to develop a suitable talent pool. Today, the private sector plays an important role in proving vocational education and training. Being a consumer of skilled manpower, the sector is aware of the exact skill set required in potential employees. This insight and availability of other vital resources enables the private sector to train learners both effectively and efficiently. Customized courses/programs are formulated with a curriculum crafted by industry experts to better train and prepare the learner for the changing requirements of jobs and the entire working environment.
  • 5. Challenges in Skill India The arguments that problems exist with the supply of skills available in the labor market take various forms. The most extreme complaint is the idea that widespread shortfalls have been found in the basic skills of future employees. The cause is usually attributed to the failure of the education system to provide students with these basic skills. We refer to that position as a skills gap, following its use in policy discussions. A second complaint focuses more on job-related skills of the kind associated with particular occupations. We refer to this assertion as a skills shortage. The final concern, which is much more commonly articulated is the general idea that at any given time the supply of skills and the demand for skills could be out of synch in either direction: oversupply or undersupply. We refer to it as a skills mismatch. A skill shortage is obviously a particular type of skill mismatch, and a skills gap could be a general form of mismatch. All these complaints collectively can be referred to as skill problems. The first challenge in assessing the assertions about skills problems is to have a conceptual framework for understanding the relationship between workers and their skills against employer needs. One approach, traditionally associated with the topic of internal labor markets and the academic field of human resources (and, before that, personnel), suggests that matching skills to job requirements is an employer problem. Over time, employers have internalized the supply of labor, selecting for general abilities at entry level positions and then training and developing employees over a working lifetime to meet their specific skill needs. That approach appears to have eroded substantially in recent years, an issue we return to later in the article. The other approach focuses on the labor market as the mechanism for meeting employers’ skill requirements. The idea of job matching between employers and job seekers implies a job search, which typically assumes that employers have job requirements that are generally determined exogenously and that employers then go searching for job applicants who have those skills. The search process is realistically described as two-sided if both employers and employees are looking for a match, and a good match is one in which the skills of the applicants and the requirements of the job fit closely, neither a shortfall nor an oversupply of skills relative to those requirements. In typical economics models of job search, the process is reasonably passive. Employers make offers to job applicants, who accept the job when the offer matches or beats their reservation price. Employers raise wages to attract better applicants whose attributes are closer fits for those job requirements, and they
  • 6. lower wages if an excess supply of such applicants exists. The notion of a shortage is foreign to this model and to most all economics-based models. Indeed, shortages in general are typically seen as occurring only in the context of market failure, such as wartime wage freezes or restrictions on mobility, and to be temporary until candidates and employer adjust. In practice, of course, employers can search more extensively through recruiting activities and more careful selection, and applicants can search actively by securing better information about vacancies. We also know that job requirements are not exogenous from the supply of applicants; a shortfall of applicants that leads to higher wages causes employers, in turn, to substitute capital for labor to create new jobs with lower skill requirements. Empirical evidence indicates that employers also lower the skill requirements for given jobs when labor is relatively scarce and raise them when higher-quality applicants are plentiful. What is less clear in the typical models is how the supply of skills affects employer decisions on production systems and, ultimately, productivity. Certainly, “better” workers, who are absent less, who avoid less, and who work harder, will improve organizational productivity and performance, even if nothing changes about their jobs. But whether more skilled applicants per se cause employers to innovate, to adopt more effective practices, or to change the way that jobs are performed is an open question that is often part of the skill gap arguments. The closest analogy is with supply chain models where suppliers are trying to produce just the right amount of output to meet the needs of their clients at the previously agreed price. Skills are seen as coming with the applicant to the job, and job requirements are absolute, such that candidates either have the necessary skills to do a job or not and, if not, they cannot do the job. Finally, an important goal for public education in these arguments, including public colleges and universities, is seen as providing graduates that employers would like to hire. Successful Models: 1) Germany Vocational Training (1980s) German Model of dual training was started with three-fold objective of promoting (1) economic productivity, (2) social integration and (3) individual development. Developing a skilled labor force will help promote innovation in business should be main purpose of promoting this model in other developing countries.
  • 7. Three-fold Objective of German model Economic Aspect: The Economic aspect of German model refers to the role of vocational training in ensuring a high level of economic, business and individual productivity. Economic goal involves development of human resources by ensuring that there are enough workers with adequate skills, and subsequently increasing their number and level of qualification. The business goal is to make sure that companies have an adequate supply of qualified skilled workers. At the individual level, the goal is to ensure that individuals are employable and able to earn a living. Also important from an economic perspective is the efficiency of the vocational training system itself. Social Aspect: The Social aspect of German model refers to vocational training as a means of promoting the social integration of the younger generation, both in the workplace and in society at large. A vocational training system should be designed to prevent social marginalization and integrate young people smoothly into training and employment. Individual Aspect: The Individual aspect of German model refers to the role of vocational training in developing the skills individuals need to meet challenges on the job as well as in other aspects of their life. Vocational training should provide an opportunity for individuals to shape their own life, develop to their full potential, and increase their self- efficacy and motivation to learn. Another purpose of training skilled workers is to promote innovations in the business world. It is generally agreed that basic innovations are generated by researchers and scientists at universities. In addition, there are so-called “incremental innovations” – the small, everyday process improvements that are not produced by great inventors, but are rather the result of thoughtful problem-solving by the people who implement and test new processes and products on a daily basis. Such incremental innovations are achieved when well-trained, skilled workers not only perform their assigned tasks, but also identify, describe and solve problems in innovative ways, in a process that leads to steady improvement.
  • 8. Approach of implementing this model: This model should not directly implemented in all the areas. Rather it is proposed to introduce first in business sectors or industries where conditions are favorable. First focus should be on the priority areas and not entire range of objectives. Strength: The system offers qualifications in a broad spectrum of professions and flexibly adapts to the changing needs of the labor market. The dual system is especially well-developed in Germany, integrating work-based and school-based learning to prepare apprentices for a successful transition to full-time employment. A major strength of the dual system is the high degree of engagement and ownership on the part of employers and other social partners. The VET system as a whole is well-resourced, combining public and private funding. Germany has maintained strong financial support and maintained the apprenticeship offer for the VET system even during the crisis. Germany has a well-developed and institutionalized VET research capacity, including the Federal Institute for VET, and a national network of research centers that study different aspects of the system to support continuous innovation and improvement in the VET system. Challenges: The transition system, now serving nearly as many young people as the dual system, suffers from undue fragmentation and an absence of transparency. Despite the very substantial resources devoted to the system, too few program participants make a successful transition into the regular VET system. Career guidance seems highly variable across the Länder, with no single agency responsible for assuring delivery of quality information and guidance services to all students. Some students leave compulsory school with weak core academic skills. The VET system is not currently organized to ascertain whether this is in fact a problem or, if so, to address it. The evaluation of dual system students at the end of their apprenticeship is dominated by the Chamber exam. Because their school performance does not count in the Chamber exam, students may not take their schooling seriously, thereby limiting their ability to participate successfully in some form of tertiary education. Although Germany has recently opened more pathways from upper- secondary VET to tertiary education, to date very few VET graduates have made use of those
  • 9. pathways. Shrinking cohort numbers due to demographic decline is providing an important contextual challenge. 2) Singapore Model Singapore is best known example for successful and continuous upskilling of its workforce since last 40 years. The Singapore model, which run in PPP mode, appears to change the typical statements that governments are poor at organizing and administering skills development, particularly on a national scale. In fact it has provided rare but great examples of collaboration of private and public sector in upskilling. Success of Singapore model was influenced by following factors. 1. Linkage between Economic development and Skill Development: Phase 1: Import Substitution Industrialization: 1959-1965 This phase marked the start of reforming of the educational institution, restructuring of vocational, technical and managerial education. This phase involved establishment of supremacy of the EDB as the prime mover of the Singapore model. Thus, this phase marked the beginnings of education reform, extension of vocational, technical and managerial education, and established the supremacy of the EDB as the prime mover of Singapore’s industrialization strategy, and therefore also as the principal institution responsible for the coordination and supply of manpower to meet Singapore’s manpower needs. However, during this phase, the EDB focused only on the national level, and not on the industry or firm levels. Phase 2: Export Oriented Industrialization: 1966-1973 The EOI strategy was predicated on attraction of foreign investment through a variety of incentives, and Singapore offered incentives, reasonably good infrastructure, and cheap labor and stable industrial relations climate as inducements to foreign companies. The primary focus of skills development efforts was the urgent need for increases in technically trained manpower, both generally for the success of the of the EOI strategy, but also specifically to meet the needs of the emerging export industries, particularly in view of limited success of the previous five year plan regarding technical education. Under this system, the EDB provided foreign companies like Tata
  • 10. (India), Rollei (Germany) and Phillips (Netherlands) the finance and infrastructure to set up training centres to which the companies would contribute instructors and software. These schemes served three important goals: the provision of training that was not available in Singapore, the establishment of regular contacts with foreign firms, and through these contacts, to induce foreign firms to invest in Singapore. This was the beginnings of the integration of skills and foreign investment and technology transfer. Within three years of the establishment of vocational training schools under the Industrial Training system, technical education enrolment had increased by a 1000%. Phase 3: Evolution towards Technology Intensive Export Oriented Industrialization: 1973- 1984 The success of the export oriented industrialization strategy resulted in both a tighter labor market and rising wages. And increased competition from lower cost Asian neighbors such as Malaysia forced the EDB to re-conceptualize its economic development strategy. A critical aspect was the need to continue to attract foreign investment, but to make sure that the foreign investment would be higher quality, i.e. more technologically intensive investment that would be able to use the higher cost Singapore labor. Thus, the shift contemplated was from labor intensive manufacturing for export to a higher value added technology intensive industrialization for export. The critical need during this phase was for the continued expansion of general skills (vocational and technical training for industry in trades such as machining, fitters, electricians, welders) as well as the need for more specialized skills germane to the industries that were growing as a result of foreign investment. The primary initiatives during this phase were: the reorganization of the structure for technical and commercial skill formation, establishing foreign company and country sponsored training centers, reforming the educational system, and setting in place incentives to get corporations to invest in skills upgradation. A final initiative during this phase was the effort of the EDB to shift some of the responsibility for upskilling onto the private sector. At the corporate level, the EDB tried to encourage companies to invest in training, through the (ITGS) Industrial Training Grant Scheme (the forerunner of the Skills Development Fund. Phase 4: Economic Diversification: 1985 - 1996:- Consolidation and Restructuring of Skills Development
  • 11. By the mid1980s, Singapore was already a leading high-technology, and high wage goods producer in Southeast Asia. And much of the preparatory work in terms of establishing continuous skills development had already been put in place during the last phase. The economic development goal of the EDB for the 1990s was to make Singapore a regional business and financial hub. Consistent with this longer term vision, the EDB reconsidered its approach to skills generation. One key finding was that the depth and breadth of technical skills necessary for the accomplishment of this vision could not be achieved through the existing model of single country dominated institutions or a single company dominated institution. In other words, the manpower needs of the new and emerging knowledge and technology intensive industries would require resources and expertise in excess of what a single partner could provide. What emerged from these is a series of initiatives to organize technology centers that were centered around the needs of one industry, through joint cooperation with various multinational companies who had invested in Singapore. Phase V: Towards a Knowledge based Economy In the 1990s, the focus has been on the shift from factor driven growth to innovation driven growth i.e. from capital based industries to knowledge based industries. In this phase, the EDB pushed the corporate to increase the expenditure on training of the employees and retraining of the older workforce. The way in which these goals are to be realized are still evolving, but already there is a massive promotion of On-Job-Training (OJT) in companies through the Productivity and Services Board which has created a system of model OJT companies that are to be emulated by the rest. Above discussion shows that there is an evidence of strong correlation between the economic development needs and the skills development efforts by a country. It needs to be coupled with a constant striving to meet industrial needs through quick short term solutions as well as some degree of long term planning. We feel that this congruence is an essential prerequisite for the success of any skills development policy, although not sufficient. 2. Skill development Funds: No discussion of the Singapore system will be complete without a discussion of the Skills development fund, largely because it is this institution that has been touted as model for other
  • 12. countries. The essential element of the SDF system is that it represents the Government’s efforts to pass on responsibility for skills upgradation to the private sector. The government-private sector partnerships established by the EDB implicitly in its model of technology transfer was limited to MNCs but the SDF was targeted towards all Singapore businesses. 3. Long Term Skills Development: Education Policy Successful skills development requires long term investments in education as well, given the considerable research on the impact of education in economic growth. In Singapore there have been two major reforms of education policy. The first was during the beginnings of import substitution industrialization soon after independence (discussed earlier) and the second was during the transition from low cost EOI to advanced EOI. The move towards a more technology intensive export orientation coupled with the initiatives for training forced the government to rethink its education system, to recheck whether the education policy planned earlier was still relevant to the recent developments. Hence the New Education System (NES) was established. This NES have underlying rationale, for one, it introduced much flexibility in Education System and finally, this education system channelized the student, who showed less interest in further education, into the vocational education. The NES was designed to accommodate students at different paces of learning, as well as providing them with different options of learning. The System also ensured, like German System, that those who take up vocational course would then directly will directly enter into vocational or apprenticeship training in the organization. 4. Institutional Involvement: A crucial ingredient in the success of the system is the way in which these institutions work in practice. The system operates at several different levels, including education systems, training for managers, training for high-level technical skills, training for lower level technician skills, training for blue collar workers and older workers, and training for productivity improvement. The government has continually reshaped institutions to maximize effectiveness.
  • 13. In the next section, we try to understand the current initiatives taken up by Public / Private parties in India under the Skill India drive. Initiatives under ‘Skill India’: In addition to the corporate houses and education institutes, several other entities have come together to create a framework for vocational education and training in India. The figure below expands on the current Indian VET space. Organization Types Organization Names Scope Industrial Associations  International Labour Organization  World Bank  European Union  Voice the needs of the market  Voice opinions on relevant policies International Bodies  International Labour Organization  World Bank  European Union  Advisory role to government bodies.  Provide essential funds Private Players  IL&FS Education  India Can  India Skills  Bharti and many More  Provide funding Develop  Vocational education training institutes (Source: FICCI, Sept 2012) PPP Model: The private sector, in association with the government, will work to identify and quantify skill deficiencies in their respective sectors and constitute a sector plan to address these deficiencies. The National Skill Development Corporation or National Skill Development Trust is entrusted with the job to identify areas where support and implementation will be required from the government. NSDC has identified 21 high-growth sectors (including the unorganized sector) to provide expanded employment. It has 10 high-growths sectors on the manufacturing side and an equal number on the services side. Of these, manufacturing, textile, construction, automotive, retail and health care are the key focus sectors.
  • 14. Attributes Urban Rural Availability  The skill training provided by institutions is not job oriented.  The training courses are selected by the learners based on the availability of seats rather than their competencies.  There is a lack of awareness about certain trades, with only a few trades attracting the majority of the learners.  It is difficult for private institutions that impart the latest skill development training to set up on account of various constraints and regulations.  Low quality of education standards and high dropout rates in rural schools create learners with low educational qualifications.  There exists a major gender bias toward women in obtaining vocational training.  Even though a significant majority of the employment exists is in the informal sector, training and other related interventions are not geared to the needs of this sector. Accessibility  Poor urban learners are unable to join courses at private training institutes as they charge high training costs.  Rural youth miss out on the opportunity on industrial training sponsored by various local and government agencies of urban areas.  There are a less number of training institutes in rural areas.  The rural learner incurs a higher expense in obtaining
  • 15. training from urban centres.  The cost of acquiring job information is high for the rural youth.  There is limited access to job-related information or skills that are currently in demand.  There is a lack of proper guidance and counselling for skill development. Adaptability  There is a lack of a common national qualification framework that sets a competency framework for affiliation and for accreditation.  There is a lack of a common national qualification framework that sets competency framework for affiliation and for accreditation. Acceptability  There is a lack of quality training infrastructure in poorer areas of large cities and small urban centres.  Rural areas lack qualified trainers.  The ICT Infrastructure is poor in rural areas. There is a need for rural broadband network, which can assist in skill training for rural learners. (Source: FICCI, Sept 2012)
  • 16. Recommendation: Based on German Model Ensure that skilled students will enter into the enterprise only after completing education. Make partnership with the companies to provide apprenticeship training to the student after the completion of education. Create an infrastructure at national, state, company and individual level that will regularly check and balance short term plans. Based on Singapore Model Initiate Thinking Skill Program to encourage better thinking at school level and above. The objectives of the thinking skills program should be to improve creativity and lateral thinking. Skill Development Fund: Government should promote private parties to increase the expenditure on skill development. Introduce a scheme of national training awards to the institutes that spends more on workforce training. Reform current educational system to provide options of learning and education as per interest of the student. Reform current education board or establish Skill Development Board (SDB) which will provide skill education and will promote private institutions to impart skill programs. Conclusion: This paper focuses on approaches that can be adapted for skilling India’s Demographic dividend. The paper includes study of successful models of Germany and Singapore. While doing background research for this paper, we came across various models as proposed and adopted by other countries and many of which have been successful. We decided to concentrate on two countries viz. Germany and Singapore. One represents the most developed European nation whereas the second represents the most advanced Asian economy. We felt that a combination of these two models be of significance to a developing country like India. Further, these models are recognized worldwide and are extensively used. However an in-depth study of few more countries and their skilling models can definitely help us decipher few more dimensions which might have been missed out. Still on our part, we believe that the recommendations made in this paper will be of use to other researchers as well as practitioners.
  • 17. Reference 1) http://www.nsdcindia.org 2) http://www.skillindia.gov.in 3) Knowledge paper on “Skill development in India” – Learners First Sept, 2015 by Ernst and Young 4) “Skill Gaps, Skill Shortages and Skill Mismatches: Evidence and Arguments for the United States” by Peter H Cappelli, March 2015 5) “How Do Nations Develop Skills? Lessons from the Skill Development Experiences of Singapore” by Sarosh Kuruvilla and Rodney Chua, January 2000 6) A report on “Vocational Education and Training in Germany Strengths, Challenges and Recommendations” by OECD, Sept 2010 7) A report on “Germany’s dual vocational training system: a model for other countries” by FICCI and IMaCS, August 2010 8) “The India Skill Report 2014” by CII, Wheebox and Peoplestrong