Budget must push skill development: Industry

The training industry is seeking a stronger focus on skill development with better incentives from the Union Budget 2014. In the 2013 Budget, Rs 1,000 crore was set aside for students passing skill tests conducted by recognised institutes, but industry players feel more needs to be done.

Rohin Kapoor, senior manager of Deloitte, said incentives for skill development and entrepreneurship could be viewed as game-changers. "Education and skill imparting firms view the scheme of rewards to students passing skill tests as an attractive business opportunity," he said.

The United Progressive Alliance government had launched the Standard Training Assessment and Reward (STAR) programme to encourage skill development. In the first year, the target was to train a million people in line with the National Skilling Mission.

The scheme has more than 110,000 candidates enrolled. Over 175 training organisations are affiliated, providing over 2,600 training centres across the country. Eleven independent assessment agencies work with the National Council on Skill Development’s sectoral bodies.

Reports have pointed to a skill gap in the Indian workforce emerging out of institutes every year. Companies either have to give them additional training or they are asked to re-skill themselves over time. Education institutes, on the other hand, face a shortage of qualified teachers and they either hire part-time faculty or get visiting faculty.

“A renewed focus on skill is critical and central coordination is needed in this area,” said Narayanan Ramaswamy, head of the education and skilling advisory practice at consultancy firm KPMG. He said schemes like the Sarva Shiksha Abhiyaan should be monitored better.

The National Policy on Skill Development has a target for skilling 500 million people by 2022. The National Council on Skill Development has been asked to set the curriculum and standards for training in different skills. Any institution or body may offer courses. At the end of training, candidates will be tested by certification bodies. On passing the test, a candidate will be given a certificate and a monetary reward of an average of Rs 10,000.

Kapoor said to encourage private participation, the government should consider fiscal incentives for developers offering premises to educational institutions on lease and a weighted deduction in corporate social responsibility (CSR) contributions.

The chief executive of a skilling institute who did not wish to be named said apart from basic computer courses that students were interested in, other courses in construction and engineering would need a push from the government.

Siddharth Chaturvedi, director of the All India Society for Electronics and Computer Technology, an education and training network,  said expectations were high from the Narendra Modi government on skill development. "A national faculty development mission should be launched for expanding capacity of training," he added.

Industry data has shown that there is a rise in enrollments in online learning, especially in the Massive Open Online Courses that are free of cost. Chaturvedi said that online learning and Massive Open Online Courses should be promoted in a big manner, to cater to our Gross Enrolment Ratio requirements and reach out to remote corners of the country.

The Ministry of Human Resource Development (MHRD) (under PM Manmohan Singh) had a target to skill 500 million people in India by 2022, through its various initiatives.

National Policy on Skill Development (NPSD) approved by the former government had set a target for skilling 500 million persons by the year 2022. Here, National Council on Skill Development (NSDC) has a target of skilling 150 million people by the year 2022. Further, skill development is being enabled by NSDC through the 22 Sector Skill Councils.