Mains Marathon 2024

Approach Briefly discuss India’s current economic status and its aspirations. Mention the importance of skilled manpower. Highlight challenges in the Skilling Ecosystem in India. Suggest Strategies for Tapping Skilled Manpower Potential Conclude Suitably.

Introduction

India, home to over 600 million individuals aged between 18 and 35, has a demographic structure where 65% of the population is under 35. This demographic dividend is expected to last until at least 2055–56, peaking around 2041 when the working-age population (20–59 years) will account for 59% of the total. This presents a significant opportunity to leverage the country's demographic dividend, provided that the right conditions are established or fostered. Nevertheless, India's journey toward becoming a global economic powerhouse hinges on effectively tapping into the potential of its skilled workforce.

Body

Importance of Skilled Manpower :

• Economic Growth: A well-trained workforce enhances productivity, innovation, and competitiveness, contributing to the overall growth of various sectors.
  • The Indian economy is poised to hit $7.3 trillion by 2030 and $10 trillion mark by 2035 (according to the Centre for Economics and Business Research)
• Employment Generation: A skilled workforce is essential for creating job opportunities. Skill development initiatives can bridge the gap between job seekers and employers, reducing unemployment rates and fostering economic stability.
  • The India Skill Report 2023 indicates an improvement in overall employability among young people, increasing from 46.2% to 50.3%
• Technological Advancement: As India transitions towards a knowledge-based economy, skilled manpower becomes vital for adopting and implementing advanced technologies, such as artificial intelligence, machine learning, and automation, which are crucial for innovation and growth.
  • The India’s Graduate Skill Index, 2023 report reveals a promising employability rate of 48 percent among Indian graduates in AI and ML roles. This finding underscores the presence of a robust talent pool capable of meeting the increasing demand in the cutting-edge technology sector.
• Global Competitiveness: With globalization, India needs a skilled workforce to compete effectively in the international market. A well-trained workforce can enhance India's position in global supply chains and attract foreign investments.
  • Total FDI inflows in the country in the FY 2023-24 is $70.95 Bn.Top 5 sectors receiving highest FDI Equity Inflow during FY 2023-24 are Services Sector (Finance, Banking, Insurance, Non Fin/ Business, Outsourcing, R&D, Courier, Tech. Testing and Analysis, Other) (16%), Computer Software & Hardware (15%), Trading (6%), Telecommunications (6%) and Automobile Industry (5%).
• Social Empowerment: Skill development plays a significant role in empowering marginalized communities, particularly women and underprivileged groups. By providing them with skills, India can promote inclusivity and reduce socio-economic disparities.
  • The female labor force participation rate increased to 37% in 2022-23.
• Innovation and Entrepreneurship: India, with 111 unicorns valued at a total of $349.67 billion, highlights the crucial role of skilled manpower in fostering innovation and entrepreneurship.
• Sustainable Development: Skilled manpower is integral to achieving sustainable development goals (SDGs).
  • According to the National Skill Development Corporation, investments in renewable energy could create millions of jobs and require skilled workers for implementation and maintenance, aligning with India’s commitment to achieving net-zero emissions by 2070.

Challenges in the Skilling Ecosystem in India :

• Quality of Training Programs:
  • Many skill development programs in India were criticised for their lack of alignment with industry requirements.
  • Outdated curriculum and inadequate practical training often led to a gap between the skills acquired and the skills demanded by employers.
    • India’s talent competitiveness ranking fell from 83rd place out of 103 countries in 2013 to 103rd place out of 134 countries in 2023, as per The Global Talent Competitiveness Index by business school INSEAD.
• Infrastructure Access:
  • Uneven distribution of training infrastructure across regions posed a challenge, with rural areas often having limited access to skill development opportunities.
  • Lack of proper facilities and technology in training institutes impacted the overall quality of skilling programs.
• Technology Integration:
  • The integration of technology in skill development programs is not uniform. Lack of access to digital resources and inadequate technological infrastructure hindered the adoption of online learning and e-skilling initiatives.
• Policy and Regulatory Challenges:
  • The regulatory framework for skill development needed refinement to adapt to changing industry needs and technological advancements.
  • Streamlining and simplifying the accreditation and certification processes were areas that required attention.
• Monitoring and Evaluation:
  • Effective monitoring and evaluation mechanisms were often lacking, making it challenging to assess the impact of skilling programs and identify areas for improvement.

Strategies for Tapping Skilled Manpower Potential :

• Quality Assurance and Standardisation:
  • Implement quality assurance mechanisms to ensure that skill development programs adhere to industry standards. Establish accreditation bodies to certify the quality of training institutes.
• Industry-Academia Collaboration:
  • Strengthen collaboration between educational institutions and industries to ensure that curriculum align with current industry needs. Establish industry advisory boards to guide the development of skill programs.
• Flexible and Modular Programs:
  • Develop flexible and modular skill programs that allow learners to acquire skills in a phased manner. This approach can cater to the needs of individuals with different educational backgrounds and career aspirations.
• Financial Inclusion:
  • Ensure that financial constraints do not hinder access to skill development. Explore models for financial assistance, scholarships, or low-interest loans to support individuals in pursuing skilling programs.
• Private Sector Participation:
  • Private companies should actively support and invest in startup ecosystems, fostering innovation by providing funding, mentorship, and resources to emerging entrepreneurs in India.

Conclusion

Skilled manpower is crucial for India’s journey towards becoming a global economic powerhouse. By improving education quality, fostering industry-academia collaborations, promoting vocational training, and providing policy support, India can effectively tap into its skilled manpower potential, driving economic growth and global competitiveness.