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FICCI - Ernst & Young Report

FICCI - Ernst & Young Report

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Published by: Global_Skills_Summit on Nov 09, 2011
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Knowledge paper on
Strategic and implementation frameworkfor skill development in India
September 2011
2Knowledge paper on strategic and implementation framework for skill development in India
Abhaya Krishna Agarwal
Executive Director and National Leader — PPP
India is currently poised on a huge opportunity to meetthe future demands of the world. When developedcountries are struggling with shrinking domestic demandsand capacity challenges in meeting them, India, with itshuge young demographic dividend, is well positionedto become the sourcing hub of the world. This is notonly limited to an exponential growth in demand in itsmanufacturing and service sectors, but is also applicableto its capacity to meet global manpower demands as well.Talent acquisition is one of the largest challenges fororganizations across positions and levels worldwide,
specically in the case of blue collar jobs. Governments
across the world, in developed and developing countries,have been focusing intensely on developing skills andevolved delivery frameworks to meet the skill demand andeffectively utilize and divert the positive energies of itsworking age people.According to a global study, India is one of the largestlabor-surplus countries worldwide in terms of its workingage population. Furthermore, of the country’s workforcecomprises only one million people per annum against the
current domestic demand for 50 million. This decit is
estimated to grow to 57 million by 2013. Therefore, it isimperative for India to develop a robust mechanism forvocational education and training, and invite the privatesector and other social agencies to participate and deliverwithin the shortest possible time.
Rising to the occasion, the Government of India has
launched the National Policy on Skill Developmentand developed a three-tier structure for strategy, co-
ordination and nance or delivery of imparting the
requisite skills to a workforce of 500 million by 2022.
The 4th Global Skills Summit 2011, organized by FICCI,
is an important initiative at the most opportune time to
discuss, debate and ne-tune the implementation and
delivery of this framework in India.This paper focuses on existing skill gaps in India and theworld, an overview of skill development in the country,private sector initiatives in vocational training, effectivepractices followed in other countries and learning forIndia from these practices, and recommendations for thefuture.
I am privileged to present Ernst & Young-FICCI’s
Knowledge paper on strategic and implementationframework for skill development in India, which especiallyfocuses on implementable ideas for the Twelfth Five Year
Plan on the eve of the 4th Global Skills Summit.
Abhaya Krishna Agarwal
 Executive Director and National Leader —Public Private Partnerships
Government & Transaction Advisory Services
3Knowledge paper on strategic and implementation framework for skill development in India
Dr. Rajiv Kumar
Secretary General - FICCI
It is now universally recognized that a nation’s economicstrength and growth squarely rests on the skills andknowledge base of its human resources. In today’s highly
competitive world, trained, certied and skilled manpower
is critical for addressing the challenges of growth andconverting them to opportunities. As India moves towardsachieving its ambitious economic and social inclusiontargets, engaging human resources to empower themwith the requisite skills becomes imperative for driving
the economy into a new trajectory.For a country like India, the challenges get magnied
because of the dire need to reach out to its teeminingmillions; the inevitable shift of labour from agricultureto manufacturing and services sectors and the manifoldchallenges in implementation of programmes at the grassroots level.The 11th Five Year Plan was instrumental in bringingskills development to the forefront of the national
agenda. The Government of India through various Central
and state initiatives has launched a number schemes andprogrammes to empower the workforce, particularly theyouth. The task is onerous as it is imperative. The accentin the 12th Plan must therefore be on implementing thenation’s skill development strategies.The world today is looking at India with an interest
never seen before. Countries across the world areenthused at the journey India has embarked upon in
skilling 500 million people by 2022. Engaging with theworld in partnerships is the way forward to make the
skills development mission a success. Countries suchas the UK, Germany, Switzerland, Australia, Singapore
and South Africa have put the spotlight on quality andcompetiveness in Skills and Education space. India can
certainly prot from the lessons available from these
countries.This report attempts to address the various issues anddrivers of Skills Development. It is a unique presentationof existing strategic and implementation models
both nationally and globally. I am condent that the
information presented in the report would serve asvaluable material for all stakeholders, including industryand academia for developing the required skills for a
modern, condent India of the 21st century.
Dr. Rajiv Kumar
Secretary General - FICCI

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