Professional Documents
Culture Documents
Government of Rajasthan
Executive summary
Table of Contents
Table of Contents.........................................................................................................................................2
Background of the Study.............................................................................................................................4
Approach to the Study.................................................................................................................................4
Overview of Rajasthan’s Economy..............................................................................................................6
The Changing Structure of Economy...........................................................................................................6
Current Employment in Rajasthan...............................................................................................................7
Industry Scenario in Rajasthan....................................................................................................................8
Identification of Growth Engines.................................................................................................................9
Educational Infrastructure in Rajasthan.....................................................................................................10
Human Resources Requirement.................................................................................................................12
Recommendations.....................................................................................................................................14
Large Scale Skill Development Initiative..................................................................................................16
Rajasthan Mission on Employability (RMoEm)........................................................................................16
Rajasthan Mission on Employability - Initiatives to Address Matching Issues..........................................16
Employment Exchange Related Initiative..................................................................................................16
Expansion of Scope of RMoL Activities ..................................................................................................17
Rajasthan Mission on Employability - Initiatives to Address Mismatch Issues.........................................17
Sectoral skill development initiative..........................................................................................................17
Institute Level Skill Development Initiative .............................................................................................18
Strengthening Employment Market Linkage Initiative..............................................................................18
Improving Course Curriculum...................................................................................................................19
Focus on shared education service ............................................................................................................20
Encourage Private Training Providers.......................................................................................................20
Initiative aimed at improving the quality of training the trainer ................................................................20
Improving ITI’s ........................................................................................................................................20
Skill Development Centre..........................................................................................................................20
Rajasthan Mission on Excellence (RMoEx)..............................................................................................21
Capability building of clusters...................................................................................................................21
Creating market awareness........................................................................................................................21
Skill Assessment, Monitoring and Support................................................................................................21
Funds required to support the skill development initiatives.......................................................................22
Implementation Structure..........................................................................................................................22
Conclusion.................................................................................................................................................22
Table of Figures
Rajasthan is the largest State in the country, and presents a unique combination of geographical and
cultural diversity. It is predominantly an agrarian economy with agriculture and related activities
accounting for about one-third the State's income. However, the recent wave of industrialisation has
brought about a change in Rajasthan’s economic landscape and new industries are coming up in the State.
Rajasthan currently has a marked presence in the Tourism and Hospitality, Handicrafts, Textiles,
Engineering, Gems & Jewellery, Minerals, Marble, Oil & Gas . However, to be able to support its
growth plans, attract investments and thereby fully realise its economic potential, the State, among other
things, needs to bridge the wide gap in the local availability of skilled human resources, a key growth
enabling factor.
1. Identification of high growth and emerging sectors (both formal and informal) in the State
Industries were scanned and analysed in terms of several parameters, including factor
endowments, structural composition of the economy, contribution of the sector to the State’s
Gross Domestic Product , employment opportunities (direct and indirect) , growth potential, and
resident skill inventory.
2. Mapping of current employment pattern
In this phase, the historical employment trend was analysed, the proportion of direct and indirect
employment was studied, the way in which the direct and indirect employment requirements are
currently met in terms of Inter-State movement was studied, and employment related migration in
the identified sectors was analysed.
3. Identification of human resources requirement to support the growth potential
1
Industrial Training Institutes
2
Centre of Excellence
3
Confederation of Indian Industry (CII), Rural Non Farm Development Agency (RUDA), Federation of Rajasthan
Handicraft Exporters (FORHEX), Rajasthan Association of Tour Operators (RATO)
4
Non-Government Organisation
5
Policy documents, Economic Survey of the State, National Technical Manpower Information System (NTMIS)
Annual Technical Manpower Review 2007 (ATMR), etc.
In this phase, human resources requirements to support the growth of the identified sectors till
2015 were identified, and the skills required to operate these sectors were also studied.
4. Mapping of current and future skill requirements of identified sectors in the State
In this phase, the status of and the constraints in the current educational system of Rajasthan were
identified, along with the gaps in the availability and skills of human resources from the
perspective of the growth plans of the sectors concerned.
5. Recommendations
Based on the above phases, recommendations to bridge the human resource and skill gaps
envisaged were formulated.
6
Net State Domestic Product
The industrial landscape then consisted of small scale industries. Post-2003 however a vast change was
seen. The high growth phase started after the announcement of the New Industrial Policy, which led to
increased investments in large and medium scale industries. The secondary sector showed rapid growth,
followed by the tertiary sector, while sectors like IT/ITES7, and Retail also emerged.
Figure 3: The changing structure of Rajasthan's economy
Within the secondary sector, manufacturing and construction have an 87% contribution; manufacturing
has witnessed the highest growth during the last few years. In the tertiary sector, trade, hotels, restaurants
and transport have the highest contribution.
7
Information Technology / Information Technology Enabled Services
Over 70 per cent of Rajasthan’s industrial output comes from four regions dominated by small scale
industries: Jaipur, Bhilwara, Udaipur and Ganganagar account for 39%, 18%, 9% and 4% of the State’s
industrial output, respectively. The key districts driving industrial growth are Ajmer, Alwar, Barmer,
Bharatpur, Bhilwara, Bikaner, Bundi, Chittorgarh, Jaipur, Jodhpur, Kota and Udaipur.
The informal sector contributes significantly to employment in Rajasthan; there are an estimated 1.84
million enterprises in the informal sector in the State, generating employment for 2.9 million workers.
Also, over 70% of the enterprises in the informal sector are currently involved in activities related to
manufacturing, trade, and repair activities.
Also, a three-tier Single Window Clearance mechanism exists to expedite implementation of industrial
projects: the Board of Infrastructure Development and Investment (BIDI) under the Chairmanship of the
Chief Minister of Rajasthan, followed by the State Level Empowered Committee (SLEC) under the
Chairmanship of the Chief Secretary, followed by the District Level Empowered Committee under the
Chairmanship of the Deputy Commissioner.
The Resurgent Rajasthan initiative has additionally brought significant investments into Rajasthan, and
going forward, is expected to drive the secondary and tertiary sectors as well. A sector-wise break-up of
the investment proposed to be made through the Resurgent Rajasthan initiative is presented below:
Thus while Rajasthan has factor advantages in a number of sectors backed by favourable policies and
support, the State faces challenges from various dimensions such as unemployment rate, difficult working
conditions, early stage of industrial culture, need for entrepreneurship and skewed economic
development.
The framework followed for identifying growth engines for the State is depicted in the following figure:
The parameters focused on while studying the industries were market linkage, historical presence of the
industry in the State, supplier linkage, infrastructure adequacy, availability of trained manpower,
availability and quality of training centre, time taken to train, and the employment opportunities.
The industries identified on the basis of the above parameters are: Auto & Engineering, Healthcare,
Textiles, Repair servicing, Mines & Minerals, Oil & Gas, Food processing, Tourism and Hospitality,
Handloom and Handicraft, Construction, and IT/ITES.
**Enrollment
Additionally, the high school dropout rate in Rajasthan is high; it has a 50% dropout rate from the
Primary to the Upper Primary Stage. Also, the pass percentage is low (50% in SSC 8 examination and 68%
in HSC9 examination). The level of unemployment is also an area of concern – currently there are over
7.5 lakh unemployed persons in the State, and around 24% of Engineering Degree Holders and 26% of
Diploma Holders in the State are unemployable. It is also observed that graduates from Arts and Science
Colleges are not geared for jobs in the industry, and also that the courses are not employment oriented.
The primary reasons cited for the “unemployability” of students graduating from the State’s formal
education system are:
• Disconnect between academic curricula and industry requirements, resulting in deficiencies in
specific functional skills, besides lack of practical training, market orientation, and “soft” skills of
students graduating from the State’s educational institutions
• Shortfall in appropriately trained faculty; this is a concern assuming increasing proportions.
Shortfall in trained faculty results in inappropriately trained students, thereby increasing
‘unemployability’.
These issues, unless appropriately addressed, would widen the skill gaps that Rajasthan would then have
to close while seeking to realise its economic growth objectives.
8
Senior Secondary Certificate
9
Higher Secondary Certificate
Construction
3,188 2,688
500
Textiles
1,689 829
860
Healthcare
473 331
142
Tourism and Hospitality
440 270
170
Food Processing
254 232
22
Auto Mechanics
280 205
75
Gems and Jewellery
188 138
50
Handicrafts
837 137
700
Auto and Engineering
129 92
37
Banking and Financial Services
151 75
76
IT and ITeS
48 42
6
Mines and Minerals
499 39
460
Retail
173 33
140
Total Incremental
Demand 5 to 5.2 million
The maximum incremental requirement will be in the construction industry, followed by textiles,
healthcare, tourism and hospitality, food processing, auto mechanics, gems and jewellery, handicrafts,
auto and engineering, banking and financial services, IT/ITES, mines and minerals, and retail. The break-
up for such job opportunities will emanate from various skill levels as illustrate below:
As part of the overall workforce requirements, the demand for skilled workforce is estimated at 1.4
million persons till 2015. The new employment opportunities would not only call for enhanced functional
skills, and to an extent sector-specific, competencies across levels, but also several “soft” skills. The skill
mapping was done at various levels, depending on the nature of the industry concerned. However, the
skill gaps are predominantly exist in entry level positions.
Considering the importance of skills development, the Government of Rajasthan has initiated the
Rajasthan Mission on Livelihoods (RMoL). The RMoL looks at natural resource based livelihoods (land,
water, forests, livestock, and minerals), rural non-farm based livelihoods, urban informal sector (UIS)
based livelihoods, out-of-state migration (OSM) based livelihoods, and skill trainings. It conducts several
workshops and studies across the State, and also conducts need based short-term skill trainings for youths
– almost 11000 youths have been trained through the RMoL in the last three years. Its objective is to
generate more than 1 lakh livelihoods every year, and it is well on that path.
Recommendations
Our suggestions for narrowing human resources-availability gaps in Rajasthan over the period till 2015,
accordingly address the following questions:
• What is the additional physical infrastructure—that is, the number of higher educational
institutions—required to meet the enhanced skilled-human resources requirements of Rajasthan?
• What can be done by the various stakeholders, viz. State Government, industry and educational
institutions, to improve the employability of the State’s unskilled labour?
• What can be done by the various stakeholders to bridge the current and expected gaps in the skills
of the State’s “skilled” human resources?
The broad contours of our human resources development plan are as follows:-
1. Skill building initiatives to address Matching issues, Mismatch issues and Prepare issues
2. Implementation structure, Funding requirement and mechanism
The type of skill development initiatives will differ based on the nature of issues and nature of target
segment:
1. Prepare related issues focus on long term capability building;
2. Mismatch related issues focus on repairing supply based on demand; and,
3. Matching related Issues focus on matching the supply with the demand.
Focus on prepare
Specialised
Prepare and long term
related issues capability
building issues Skill Level 2
Focus on
Mis-match related
repairing supply Skill Level 1
issues
with demand
Semi-Skilled
Focus on
Matching related Issues matching supply
with demand Minimal
Based on the above mapping, we propose various skill development initiatives to address matching,
mismatch and prepare issues:
1. Large Scale Skill Development Initiative to focus on addressing matching issues in minimal
skilled human resources.
2. Rajasthan Mission on Employability (RMoEm) to focus on Matching issues (Connecting supply
to demand) and Mismatch issues (Repairing supply for Demand).
3. Rajasthan Mission on Excellence (RMoEx) to focus on long term capability building to address
pipeline issues.
g. Issuing approval for 1 lakh apprentices across the State under the Apprenticeship Act
1961
Textiles
The recommendations for the textiles industry are structured around three dimensions - Industry related,
Infrastructure related, and Human Resource related. Recommendations include the setting up of textile
machinery service centres, textile labs/textile research centres and textile chemical hubs within the State,
increasing the number of seats for textile related education, increasing the textile industry’s awareness of
textile institutes in the state, training of existing employees, etc.
Auto and Engineering
The recommendations for this industry are also structured around three dimensions - Industry related,
Infrastructure related, and Human Resource related. Recommendations include the formulation of
measures to address the availability of specific skills / knowledge required for the auto and engineering
sector (eg. Metallurgy, PPAP, FMEA, ISO standards, etc.), improvement of infrastructure in the Alwar-
Bhiwadi area (schools and colleges, access to good healthcare facilities, availability of public travel
facilities etc.), increase in the number of diploma engineering seats, increase in the number of seats for
automobile engineering etc.
Repair Servicing
The State of Rajasthan offers huge potential for the repair servicing business given the vehicle pool in the
State. Based on this, it is proposed that a Tractor Mechanic School be set up in Kota and a Motor
Mechanic School be set up in Jaipur as a PPP initiative with select OEM’s.
Service Industry (IT/ITeS, Retail and BFS)
Like in the rest of the country, the service industry is booming in Rajasthan. The skills required in the
service sector are quite different from those required in other sectors. It is recommended that service
training institutes (STC) be set up to address this requirement. Basic STC’s with a focus on entry-level
service sector skills, and Advanced STC’s with a focus on mid-level and high-end service sector skills are
proposed. It is recommended that STC’s ‘dual use’ existing classroom facilities at ITIs, or even schools
and colleges, if required. STC’s will require participation from all three major stakeholders, namely, the
Government, the industry and educational institutes.
Handicrafts
The Handicraft skill development framework considers the market potential and the skills required for the
various handicraft clusters. Since the handicrafts sector needs undivided attention and calls for a separate
set-up for efficient functioning, it is suggested that a Handicraft Federation of Rajasthan Limited
(HaFOR) be set up – the HaFOR should perform the functions of Skill Development, Market Interface,
and Production Facilitation. It is also suggested that the Government create a separate technology
upgradation fund for handicrafts.
The State Government will provide necessary financial assistance for evaluating the current pool of
human resources and carrying out orientation programmes. For training skilled human resources, the
Government will provide interest-free training loans with the help of financial institutions. Upon
completion of the training and securing employment, the trainees will reimburse the training expenses to
the financial institutions.
Improving ITI’s
The recommendations related to improvement of ITI’s include experience sharing, focus on new trades,
introduction of short term courses and institutionalisation of performance management system.
Tourism and Construction. The Skill Development Centre will be managed by a council of members
representing key stakeholders. It will focus on bridging skill gaps through the creation of a faculty and
industry manager’s forum to facilitate sharing of knowledge and upgrade of faculty skills, undertaking
focused industrial visits, developing internship opportunities, imparting guest lectures, and participating
in live projects.
process and provision of feedback at regular intervals. It will also include undertaking a specific skill
development programme to address skill gaps.
Implementation Structure
To ensure effective implementation of skill development initiatives, we propose organising the above
skill development initiatives under the Rajasthan Mission on Livelihood (RMoL) with a separate working
group focussing on RMoL, RMoEm and RMoEx.
Figure 13: Key Constituents of Implementation Structure
Conclusion
In summary, focus is needed in all the above mentioned areas to ensure the emergence of a ‘skilled
workforce’, which is in the interest of all stakeholders – the Government, Industry, Institutes, other
agencies, and the society. The Govt of Rajasthan would continue to play an active role in these initiatives
and coordinate with all stakeholders in the process. Thus it is by transforming the ‘skill landscape’ of the
state we would be preparing the state human resources to face the challenges and opportunities thrown by
the demands of economic growth in the coming years.