Skilling Initiatives and Employment Generation: A Pathway to Viksit Bharat@2047

The Economic Survey 2023-24, presented by Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman, underscores the critical need for new skilling initiatives and the revamping of existing ones to ensure India’s economic growth and development. The survey emphasizes the alignment of education policies with skill development to achieve Viksit Bharat@2047, a vision for a developed India by the year 2047.

Key Highlights

Priority on Skilling Initiatives:

• The government prioritizes new skilling initiatives and the revamping of existing ones to meet the evolving demands of the workforce and industry.
• The New Education Policy (NEP) 2020 provides a framework to achieve this objective.

Industry’s Role in Skill Creation: 

• The survey calls upon the industry to take the lead in skill creation, working closely with academic institutions to develop a skilled workforce.

Linking Skill Development with Incentive Schemes: 

• Linking skill development with Production Linked Incentive (PLI) and employment-linked incentive schemes in high growth potential sectors can aid in upgrading skills.

Job Creation Needs: 

• India needs to generate nearly 78.51 lakh jobs annually in the non-farm sector to cater to the rising workforce.

Education and Skill Development: A Symbiotic Relationship

Foundations of Skilling: Skills are built on the foundation provided by the education system, particularly at the school level. The survey emphasizes that schooling should focus on foundational literacy and numeracy and achieving grade-appropriate learning outcomes. The NEP 2020 aims to enhance the quality of education, making it more relevant to the needs of the economy and society.

Industry’s Role in Skill Creation: The survey highlights the importance of the industry in taking the lead in skill creation. By collaborating with academic institutions, the industry can ensure that the workforce is equipped with the skills needed for various sectors. This collaboration is crucial for bridging the gap between education and employment and ensuring that the industry has access to a skilled workforce.

Government Initiatives for Skilling

National Policy on Skill Development & Entrepreneurship (NPSDE)

The NPSDE focuses on several key areas to enhance skill development in India:

• Bridging Skill Gaps: Identifying and addressing the gaps in the current skill ecosystem.
• Improving Industry Engagement: Encouraging industries to participate actively in skill development initiatives.
• Quality Assurance Framework: Establishing standards and frameworks to ensure the quality of skill training programs.
• Leveraging Technology: Using technology to enhance the reach and effectiveness of skill training programs.
• Expanding Apprenticeship Opportunities: Increasing the number of apprenticeship programs to provide hands-on training and experience.

Harnessing the Demographic Dividend

• Young Workforce: India’s young population, with a median age of 28, presents a significant opportunity to harness the demographic dividend. The survey highlights that 65% of India’s population is under 35, and 51.25% of the youth is deemed employable, an improvement from around 34% a decade ago. 
• Job Creation Needs: The Indian economy needs to generate nearly 78.51 lakh jobs annually in the non-farm sector to cater to the rising workforce. To achieve this, there is a need to create conditions for faster growth of productive jobs outside agriculture, particularly in organized manufacturing and services sectors, while also improving productivity in agriculture.

Maximizing Outcomes from Skilling Initiatives

• Convergence and Synergies: The survey calls for maximizing outcomes from various skilling initiatives through convergence and utilization of synergies with other employment-centric programs. This approach can create a more cohesive and effective skilling ecosystem, benefiting both the workforce and the economy.
• Linking Skill Development with Incentive Schemes: Linking skill development with PLI and employment-linked incentive schemes in high growth potential sectors such as toys, apparel, tourism, logistics, textiles & leather can aid in upgrading skills as production moves up the value chain. This approach ensures that the workforce is equipped with the skills needed for these sectors, enhancing their employability and productivity.
• Flexibility in Apprenticeship Promotion: The survey notes that there is considerable scope to add flexibility to the regulatory framework for apprenticeship promotion. This flexibility can encourage more industries to participate in apprenticeship programs, providing valuable hands-on training and experience to the workforce.

In conclusion, The Economic Survey 2023-24 emphasizes the importance of new skilling initiatives and the revamping of existing ones to ensure India’s economic growth and development. By aligning education policies with skill development and encouraging industry participation, India can create a skilled workforce ready to meet the demands of the economy. Linking skill development with incentive schemes and maximizing outcomes through convergence can further enhance the effectiveness of these initiatives. With a young and dynamic workforce, India is well-positioned to harness its demographic dividend and achieve the vision of Viksit Bharat@2047.