STATUS OF EDUCATION AND

VOCATIONAL EDUCATION IN INDIA

ASERF
Apeejay Stya Education Research Foundation

www.aserf.org.in
1

Status of Education and Vocational Education in India

Indian education system largest in Common wealth countries and 2nd
largest in the world next to USA.
Tremendous Growth since Independence, but still:
The gross enrolment ratio
Classes (I-V) (6-11 years)
Classes (VI-VIII) (11-14 years)
Classes (I-VIII) (6-14 years)
Classes (IX-X) (14-16 years)
Classes (XI-XII) (16-18 years)
Higher Education (18-24 yrs)

109.4%
71.15%
94.92%
52.26%
28.54%
11.61 %

The drop out rate

Classes (I-V) (6-11 years)
Classes (I-VIII) (6-14 years)
Classes (I-X) (6-16 years)

25.47 %
48.71 %
61.59 %

These high drop out rates from both primary and secondary school, combined with
low enrolment rates at the higher levels deprive tens of millions of children of their
full rights as citizens.
Source: Selected Educational statistics (Abstract) 2005-06, MHRD, Govt. of India

2
Contd

 Out of approx. 211 million children in the (6-14 yrs) age

group - 84.91 % are enrolled in schools.

More than 35 million children in the (6-14) age group are out
of school

Net primary school enrolment/attendance is only 77%

By year 2016 there will be approx. 500 million people with
less than five yrs of schooling
Another 300 million that will not have completed high school.
Two third of the population will lack minimum level of
education
Contd.
3

 More than 50 % of the girls in the country do not enroll in

schools
Only 45.8 % girls complete education in rural areas as
compared to 66.3 % boys. In urban areas, 66.3 % girls
complete education as opposed to 80.3 % boys
Children put in an average of 21 hours of labour per week,
at the cost of education
60 million children are thought to be child labourers
35% of our population are still illiterate
Source: (Data compiled from figures provided by CRY, NGO Global March Against Child
Labour, and UNICEF), (UNICEF-India-Statistics (2004), (Report of the Committee on
India Vision 2020, Planning Commission, 2002)
4

Vocational training and self-employment avenues

Every year 5.5 million students pass out of Class
3.3 million go to Class XI, leaving 2.2 million
education stream.

X, of which
out of the

Those who drop out after Class VIII are approx. 20-21 million.
Urgent attention needed for this 21 million-target group.
Available formal training capacity of the country - only 2.3
million students.
This leaves a gap of 18.7 million. The ITI system needs to be
revamped to fill up this gap.
Contd
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 Among persons of age 15 years and above:

Only 2 % had any type of technical degrees/ diplomas/
certificates.
The proportion was only 1% in the rural areas and 5 % in the
urban.
Only 40 % of the 55,000 instructors have undergone a full
instructor-training course (Urgent need to look into training of
trainers) (Planning Commission).
About 95% of the world youth (15 - 35 yrs) age learn any type of
vocation / skill / trade, with a choice of 3000 vocational streams .
In India we have identified only about 170 trades and only 2-3% of
the youth (15-29 yrs) goes in for formal vocational training .
Contd.
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 The proportion of persons (15-29 yrs) who received formal

vocational training was the highest among the unemployed.

3 % for the employed

11% for the unemployed, and
2% for persons not in the labour force

China has nearly 500,000 senior higher secondary vocational

schools, whereas we have about 5100 ITIs and 6000 VET
schools in all.
To boost Vocational Education and Skill Development Prime
Minister in his Independence Day address stated to open
1600 new ITIs and Polytechnics
50,000 new Skill Development Centers,

It would enable 1 core students to get Vocational training .

Contd.
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 Compared to many developed countries India is far behind in

introducing new and innovative trades in VET to attract young
childrens.
About 5% to 7% of our population (50 to 70 million) every year
should be involved in vocational programmes.
Of all new employment generated
1% is government jobs,
2% are in the Organised sector and
97% in the unorganized sector
Countries labour force in (20-24 yrs) age undergone formal
vocational training
India - 5 %
Mexico - 28 %
Most industrialised nations - 60 to 80 %
Korea - 96 %.
8

Contd.

 Germany, Indonesia, Japan, Korea, Israel and China have

supported vocational education at the school level on a
large scale since the decade of 1970s.

A strategy to achieve full employment must include as an

important component, a strategy to ensure that all new
entrants to the workforce are equipped with the knowledge
and skill needed for high productivity and high quality.
Source: Data compiled from Planning Commission Reports, NSSO, Times of India, The
Economic Times
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Educated Unemployed (Disadvantage education)

Unemployed in Rural Areas: 57%
Unemployed in Urban Areas: 65%
TOTAL SKILLED labour force:
RURAL - only 8.3 %
URBAN - 15.6 %
Only 45 millions have actually registered with employment
exchange
Of all new employment generated
Govt. 1%
Orgnised Sector 2%
Unorganised Sector 97%
The unemployment rate of India's graduates are still 17.
2% than the overall unemployment rate of 10.1%. (2.5
million graduate every year)
Source: (Employment & Unemployment situation in India, Jan-June 2004, NSS, Govt. of India,
2005); www.wakeupcall.org (i Watch); (Times of India, 22nd june 2005)
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Future of Labour Ecosystem in India (based on TLSL report 2006)

The potential working (20-59 yrs ) age population estimated in 2020 over 761 million - Currently this is 567 million.
The govt. is talking about creating 10 million jobs every year, however,
the requirement is more than 15 million in a year.
Even if we find 100 million new jobs; 170 million will be out of
employment in 2020, this is nearly 30%.
Unemployment will be higher among SC / ST
Only around 1.5 % of persons aged 15 years or more in rural areas and
less than 5 % in urban areas had technical qualifications of even the
most rudimentary kind
The biggest challenge will be to provide formal education and
employment to the huge work force in 2020
Source: Team Lease Services Labour Report 2006 (The report mainly predicts the future of labour
ecosystem in India, state wise. )
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Shortage of skill in Various Sectors

The projected growth rates in industry and services sectors are

expected to generate 60 millions job opportunities during 2006-12
and 156 million during 2006-16
Semi-skilled and skilled labour: The shortage of factory workers and
construction labourers is already being felt across industries .
Engineering industry is growing at a fast pace will be major
requirement of skilled/talented manpower in this sector
Food industry is fast-expanding, need professional food scientists
and technicians in great number.
Media and Entertainment: The demand for animation production
services from India is growing. This has opened up innumerable
opportunities for students of Design, Fine Arts and Mass
Communication.
Biotechnology sector: 80 % shortfall of doctorate and post doctorate
scientists.
Food processing sector: 65 % shortfall of refrigeration mechanics,
electricians etc. 70 % shortfall of food safety personnel
Condt..

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 Additional 21 million new jobs in merchandise trade by 2009-10

IT and BPO sector could employ 9 million persons directly and
indirectly by 2010
Raising the rate of growth of manufacturing to 12 % could create
1.6 to 2.9 million direct jobs annually, and another 2-3 times that
number indirectly
Retail Sector - demand of 3-5 lakh trained people in the northern
region alone by 2010. This sector would throw up 2 million
employment by 2010.
Leather - Based on increased targets for export and domestic
demand, it would generate 3 million additional jobs by 2022
Civil Aviation - Needs 5400 pilots by the end of the 11th plan.
Thereafter, there would be requirement of at least 150 pilots per
year as replacements for retirements and normal attrition.
Construction sector with a current employment of over 30 million
is to witness boom by an annual growth rate of 30% in
infrastructure. It would translate large no. of jobs far short of the
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employable skill available Contd.

 Health sector: Shortage of 5 lakh doctors and 10 lakh Nurses.

IT sector : Shortage of 5 lakhs (half a million) engineers.
Education sector: Faculty shortage of 25-40 percent.
Automobiles: employment expected to increase to 25million by 2015-16
from current 10.5 million, majority in the shop floor of auto manufacturing
Logistics: will grow in tandem with growth in trade, aviation and tourism
Banking and Finance sector: 50-80 percent personnel shortage.
Aviation sector: Severe shortage of pilots and ground duty officials.
Textile sector: employ 35 million directly, besides 55 million in its allied
sector. Expected to generate additional 14million jobs by 2012
Pharma sector: Severe shortage of top pharma scientists as research
expenditure by pharma companies has quadrupled in the last 5 years.
Thus there is a shortage of middle-level and junior scientists too. This has
made salaries of top pharma scientists rise to US levels.
Project Management Services-this
labour intensive sector will grow with
Servicesgrowth in corporate structure, infrastructure & retail industry
Source: Data compiled from (FICCI report, New Delhi); (NASSCOM); (NASSCOM McKinsey
Report 2006); (Press Release, Ministry of Com. & Ind. April 7, 2006); (Presentation made
by
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NMCC to National Advisory Council, February 18, 2006) (IL&FS, 2008)

Indias tremendous potential-Demographic Dividend

Working age population to comprise over 63 % of the aggregate by

2016.

India only large economy with declining age dependency ratios till 2030.

Indias total population in year 2004: 1,080 million, (672 million people in
the age-group 15 to 64 years "working age population).

A third of Indias population below 15 years of age and 20 % of the

population in the 15-24 age groups.

Projections indicate the emergence of a young Indian will 800 million in

the productive age group by 2015; the comparable no. of China is 600m

In 2020, the average Indian will be only 29 years old, compared with the
average age of 37 years in China and the US, 45 in west Europe and 48
in Japan.

Source: (National Population Policy 2000 ); (BRICS report of Goldman Sachs ), NSSO report
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 The challenges are immense and in order to

achieve the goals there has to be substantial
expansion of quality technical/ vocational
education
and
training
for
raising
employability and productivity.
The skills provided have to be attuned to:
New business requirements;
Improving quality of education and trainings at
all levels; and
Make technical/ vocational education system
more flexible and inclusive for sustainable
growth.
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Appropriate strategies to be adopted

Expand and upgrade vocational education and

training

Expand and upgrade higher technical education

Promote research in educational institutions;

and

Redesign the educational pattern at the school

level to facilitate skill development.
17

 Government have to redefine its role in:

reforming and strengthening vocational

and training

education

clear policy for facilitating capacity expansion through

private sector participation.
make investment in vocational training institutes
bankable
promote industry and academia interaction to narrow
the existing gap between the demand and supply of
the skilled manpower
It is very important at this stage to have different
problem specific policy because one policy is not
going to fit in.
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Challenges to be addressed
Disconnect between skills provided and skills required by the
industry
Revision of course curricula lags behind the need of the industry
Out-dated machinery/ tools and technology
Skill demand of Services/ Unorganized Sector are largely unmet
Unsatisfactory employability of trainees because of poor quality
of training
Shortage of trained instructors and low instructor training
capacity in the country
Low prestige attached to vocational training

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Recommendations
Need for creation of large scale skill development
opportunities and infrastructure
to meet the demand of skilled work force by the
industry and service sector
to keep the economy growing,
to facilitate employability of the rapidly growing work
force
Integration of vocational education at the school
level
to impart the basic technical skills to a large number
of new entrants to the labour force
Special reorientation for the school drop-outs
through professional career counseling
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widespread use of ICT in skill training

Skill Mapping

To identify precise skill requirement for the growth of

industry-ready manpower

Flexibility

Academics should be more flexible and interdisciplinary.

Vertical as well as horizontal mobility between

different stream of education, and

while VE and VT are being dealt with separately, it is

essential that both form part of a continuum and a
common framework.

Build Specific
programmes

enterprise

skills

into

all

VET
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Private Sector Participation (PPP model)

Participation of private sector to be encouraged at the

ITI level of skill development & vocational education
and training.

Develop quality ITIs and Polytechnics with skill

development courses in association with industry to
run these

Institutionalize and establish coordination between

the private sector and the government to run
institutions for skill development.

Polytechnics should also be given ' Management

quota'.

Participation of industry in operating ITIs and

technical institutes be encouraged and a scheme of
incentives in terms of IT tax rebate, etc. be
considered.
22

Single window approach for private players,

create an enabling environment for private sector to

come forward and invest in ITIs and Polytechnics.

Corporate model be allowed in education sector to

attract investment.

Rules & regulations can be appropriately framed by the

Government for regulation.

Independent Autonomous Regulating Agency.

Informal training for short duration at affordable fees

structure

expansion of non-formal programmes, based on

demand, can bridge the gap between demand and
supply of skilled manpower.
23

Funding and Bank Loans

Bank Loan for self employment to students taking

informal training including ITI courses.

Liberal loans for setting up Industrial Training Centers

and Vocational Training Institutes.

Well-designed loans (A genuine loan) with Incomecontingent repayments, for efficiency reasons to reduce
uncertainty and for equity reasons to promote access,
since loans will have built-in insurance against inability
to repay.

Loans enough to cover all fees including, living costs;

The interest rate to be at governments cost of long

term borrowing.
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Special Strategy to be planned for remote areas

Course and Curriculum development:

Curricula to be revised periodically.

flexible approach in developing courses and curriculum.

Curriculum be developed based of the learning outcome

rather than on prescribed rigid format

Add On' specialized vocational courses to be offered at

University & Higher Institution level.

Add-on and industry oriented courses be provided for

meeting the demand in industry.

Modular system of VET be facilitated at different level

giving due weightage to experience in industry and
professions.
25

Contd.

 Hands on experience be duly rewarded through this

process.
A central agency be created for refining courses.
For value addition, 3-6 months courses in banking,
insurance, IT, finance, etc. can be offered which can
then be outsourced to companies and banks.
Modification of the apprenticeship Training system with
focus on imparting incremental skills through short
duration courses such as carpentry, plumbing,
masonry, tile makers, painters, electricians etc.

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 More and more market oriented popular Trades

Increase in the number of trades in ITIs.
Drop unpopular trades and introduce those with new
areas of concern keeping in view the demand of the
Industry
Optimum utilization of available resources
Infrastructure available in Polytechnics and engineering
colleges be utilized optimally by following an integrated
model of skill building programmes in these colleges.
Collaborative effort to utilize the existing infrastructure
will maximize the resources available
Increase the capacity by running two / three shifts
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Certification and Standard:

An appropriate certificate system should be instituted

by the Central and state governments along with
industry for certifying the skills of trainees

Certification to be linked with training

Encourage Testing of the skills of trainees by

independent assessing bodies

Proficiency test in various trades by independent body.

Skills to be quantified in terms of grades or credits

Separate agency for certification i.e.

National
Vocational Qualification (NVQ) as in Australia where
workers on the job floor can be tested and certified.
Independent Certification: Certification jointly with the
Government institution and certified bodies or Industry
certification would carry maximum weightage.
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 Autonomous Independent Accreditation agencies

The body should include representation of the major
stakeholders.
They could have regional offices as well.
Accreditation agencies should be accountable
for providing timely accreditation
for ensuring quality training, adequate faculty, updated
curriculum
availability of desired training infrastructure, and
resources in the accredited institutes.
For the desirability of select trade specific independent
accreditation bodies could also be examined.
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 Faculty Training with Industry Participation

Training of teachers in upcoming trades and technologies
Faculty training through various fellowship programmes
Industry exposure to Faculty to match the emerging needs
of the economy.
Flexible teaching and Cross movement of Faculty to
industry and industry personnel to institution to enhance
quality of teaching learning process.
Active participation of industry in training programmes
conducted in ITIs and technical institutions.
Encourage employment of retired trained manpower from
the defense forces, employ skilled workers from the industry
and also retired instructors
A number of autonomous bodies can set up faculty training
institutions to provide up to date training.
30
At least 15 days training every year should be mandatory.

 Development of Training materials

Develop proper teaching learning material for VET
keeping in view the requirements of different trades
Re-organize practical sessions in different trades for
which latest equipment to the trainees be given priority.
Practical training (hands-on training) on the shop floor
Project work to be mandatory in industry before the
award of ITI certificate, diploma or degree
Vocational education to be more computer aided
computerized programmes should be part of
curriculum.

and
the
31

 Creating Awareness
There is lack of awareness about type of courses,
trades, institutions and opportunities in case of VET.
create awareness and provide all possible information in
various fields through various means.
Create certain key location/centers where all such type
of informations are provided.
Such center should act
as repository of information
a testing center
where some of the courses may even be conducted
provide all information regarding courses, location
and certification
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 Re-branding Vocational Education and Training:

Changing the name of ITIs / ITCs to Skill Development

Colleges
Sensitization and Publicity campaign to change the mind
set
Realization that Skill Development College could provide
much better career prospects than going to a general
education stream.
Provide option for Higher Education:
provide mobility from VET to higher education and
vice versa,
Eligibility for entry into polytechnics and plus two level
of engineering courses.
Credit for the number of years an ITI student
underwent training for admission to a college or a
university.
Universities to set up skill development centres with a
good degree of autonomy to revive the brand of
Vocational education and training
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 Autonomy
Autonomous
Corporation

State

Promote Independent
agencies of repute

level

Skill

Autonomous

Development
accreditation

Autonomy be given to institutions for deciding

syllabus, course content etc. as the current system of
approval from various regulatory bodies is extremely
time consuming.

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