How to Train Your Population: Decoding Modi Govt's Skill Development Mission

When you call an electrician or a plumber to fix your home wirings or repair an overflowing tap, half the time you may find them being clueless about the job. Finding a good car mechanic is an equally tiring task. Many of us come across such problem in our daily lives and might think these as personal/local issues. However, when we look at the larger picture, this scenario gives a peep into a sorry state of affairs of India's workforce. Today, India faces a severe lack of skilled workers.

In a speech in July last year, Prime Minister Narendra Modi had said that skilling the workforce would be a core issue for the country in future. His comments spoke volumes about the challenge India faces in training its workforce.

The unskilled

India's has a vast young working population. To capture the potential of this population fully, training them is a must. Data from the 68th Round of National Sample Survey Organisation (NSSO) estimate that only 4.69 per cent of India's total workforce has undergone formal skill trainings, compared with 52 per cent in the US, 68 per cent in the UK, 75 per cent in Germany, 80 per cent in Japan and 96 per cent in South Korea.

Based on the Census 2011 and NSSO (68th Round) data, it is estimated that 104 million fresh entrants to the workforce will require skill training by 2022, and 298 million of the existing workforce will require additional skill training over the same period.

The body

To bridge the gap between a growing demand and a shortage of skilled manpower, the government launched National Skill Development Mission in July this year. The programme is expected to provide an institutional framework to the Centre and states for implementation of skilling activities in the country.

The Mission will have a three-tier decision making structure. At its apex, the Mission's Governing Council, chaired by the prime minister, will provide overall guidance and policy direction. The Steering Committee, chaired by the minister in charge of skill development, will review the Mission's activities, and the Directorate will ensure implementation, coordination and convergence of skilling activities across Central Ministries/Departments and state governments.
The Mission will also run select sub-missions in high- priority areas. Further, the National Skill Development Agency (NSDA), the National Skill Development Corporation (NSDC) and the Directorate of Training will function under the overall guidance of the Mission.

The playing field

The construction sector is the second-largest employer in the country and creates more than 45 million jobs. The sector's requirement for skilled manpower in the coming days, especially for the real estate sector, would be gigantic.

Capital investments in the construction sector are anticipated to rise from $651 billion in 2012-13 to $1,181 billion in 2019-20, and its market value in India is projected to expand up to Rs 11.95 lakh crore by 2017. While real estate is estimated to form 60 per cent of this amount, infrastructure will constitute the remaining 40 per cent of the market value. However, despite the huge potential, skill deficit of the workforce may hinder future growth of the sector.

On its part, the industry is trying to skill the workers. A recent The Times of India report showed skills training to workers provided by Pune-based Kushal-Credai has cut down wastage in the construction industry from eight per cent to four per cent.

A skilled worker would benefit the construction industry through speedy completion of projects, sticking to quality because of good workmanship and reduce wastage of raw materials.

In an interview with The Times of India, Dilip Chenoy, former managing director and chief executive officer, NSDC, had said that the on-site training model developed and executed by Kushal Credai had trained more than 20,000 construction workers till date. Developers have also recognised the benefits of this model, as it helped them in improving quality, control wastage and increased productivity substantially. NSDC was working with Kushal Credai to replicate this model across the country, he added.

While the government's skill programme will help the real estate sector, how far will it satisfy the needs of the sector is a difficult question.