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For Private Circulation only NATIONAL MSME CONCLAVE Skilling Challenges in the Indian SME Sector Anup Gulati November 19, 2014 New Delhi
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For Private Circulation only NATIONAL MSME CONCLAVE Skilling Challenges in the Indian SME Sector Anup Gulati November 19, 2014 New Delhi.

Dec 21, 2015

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Page 1: For Private Circulation only NATIONAL MSME CONCLAVE Skilling Challenges in the Indian SME Sector Anup Gulati November 19, 2014 New Delhi.

For Private Circulation only

NATIONAL MSME CONCLAVE

Skilling Challenges in the Indian SME Sector

Anup Gulati

November 19, 2014New Delhi

Page 2: For Private Circulation only NATIONAL MSME CONCLAVE Skilling Challenges in the Indian SME Sector Anup Gulati November 19, 2014 New Delhi.

2Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2014 NSDC. All Rights Reserved.

SMEs constitute over 90% of total enterprises in most world economies.

In India SMEs account for more than 80% of the total number of industrial enterprises and employ over 6 crore people.

SME sector has consistently registered higher a growth rate compared to the overall industrial sector.

ROLE OF SMES

Page 3: For Private Circulation only NATIONAL MSME CONCLAVE Skilling Challenges in the Indian SME Sector Anup Gulati November 19, 2014 New Delhi.

3Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2014 NSDC. All Rights Reserved.

GROUND REALITIES

WORKERS:• Do not perceive manufacturing as an attractive sector for

employment.• Are usually class 8 and below, and come in without skills and

competencies.• Find the cost and availability of quality skilling prohibitive.

EMPLOYERS:• Reluctant to skill workers fearing poaching and wage

demands.• Difficulty in locating and assessing the right training

institution, especially in rural areas.• Poor alignment of skill development institutions with industry

requirements and expectations. Lack of competency and lack of standards.

Page 4: For Private Circulation only NATIONAL MSME CONCLAVE Skilling Challenges in the Indian SME Sector Anup Gulati November 19, 2014 New Delhi.

4Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2014 NSDC. All Rights Reserved.

SKILLING CHALLENGES

Page 5: For Private Circulation only NATIONAL MSME CONCLAVE Skilling Challenges in the Indian SME Sector Anup Gulati November 19, 2014 New Delhi.

5Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2014 NSDC. All Rights Reserved.

SKILL DEVELOPMENT LANDSCAPE

Ministry for Skill Development: The new Ministry of Skill Development, Entrepreneurship, Youth Affairs and Sports will work to harmonize skill development activities across the country.

National Skill Development Corporation (NSDC): This public private partnership (PPP) was created to catalyze the setting-up of large-scale, for-profit, sustainable vocational institutions, by providing low-cost funding for creation of training capacity.

National Skill Development Agency (NSDA): Created in June 2013 to coordinate and harmonize skill development efforts across Central Ministries, States and the private sector in the country.

Page 6: For Private Circulation only NATIONAL MSME CONCLAVE Skilling Challenges in the Indian SME Sector Anup Gulati November 19, 2014 New Delhi.

6Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2014 NSDC. All Rights Reserved.

THE NSDC• PPP setup by Ministry of Finance. Equity base Rs 10

crore (Government of India 49%, Private Sector 51%)• Private-sector shareholders include 10 business

chambers & industry associations (5.1% shareholding each)

• Federation of Indian Chambers of Commerce and Industry (FICCI)- Associated Chambers of Commerce and Industry of India (ASSOCHAM)- Confederation of Indian Industry (CII)- National Association of Software & Services Companies (NASSCOM)- Society of Indian Automobile Manufacturers (SIAM)- Confederation of Real Estate Developers Associations of India (CREDAI)- Gems and Jewellery Export Promotion Council (GJEPC)- Confederation of Indian Textile Industry (CITI)- Council for Leather Exports (CLE)- Retailers Association of India (RAI)

Page 7: For Private Circulation only NATIONAL MSME CONCLAVE Skilling Challenges in the Indian SME Sector Anup Gulati November 19, 2014 New Delhi.

LARGE, QUALITY VOCATIONAL TRAINING INSTITUTIONS

LARGE, QUALITY VOCATIONAL TRAINING INSTITUTIONS

COMMERCIALLY VIABLE, SCALABLE, SUSTAINABLE TRAINING ENTERPRISES

COMMERCIALLY VIABLE, SCALABLE, SUSTAINABLE TRAINING ENTERPRISES

• SECTOR SKILL COUNCILS

• QUALITY ASSURANCE & CERTIFICATION

• OCCUPATIONAL STANDARDS

• SECTOR SKILL COUNCILS

• QUALITY ASSURANCE & CERTIFICATION

• OCCUPATIONAL STANDARDS

CREATE THE VISION,

DEFINE THE PATH

CREATE THE VISION,

DEFINE THE PATH

DEMONSTRATE COMMITMENT DEMONSTRATE COMMITMENT

CREATE A VIABLE

ECOSYSTEM

CREATE A VIABLE

ECOSYSTEM

ADDRESSING CHALLENGES:NSDC’s 3 PRONGED APPROACH

CREATE FUND ENABLE

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Page 8: For Private Circulation only NATIONAL MSME CONCLAVE Skilling Challenges in the Indian SME Sector Anup Gulati November 19, 2014 New Delhi.

8Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2014 NSDC. All Rights Reserved.

SECTOR SKILL COUNCILS:Creating an enabling ecosystem - Aligning training with employers’ needs

TRAINING NEED

ANALYSIS

CURRICULUM DEVELOPMENT

ROLLOUT OF TRAINING

ASSESSMENT & CERTIFICATION

• 22 SSCs have developed • 879 Qualification Packs (QPs) covering • 2,247 unique National Occupational Standards (NOS) of which• 455 QPs have been declared as National Standards

International collaboration to create transnational standards

Page 9: For Private Circulation only NATIONAL MSME CONCLAVE Skilling Challenges in the Indian SME Sector Anup Gulati November 19, 2014 New Delhi.

9Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2014 NSDC. All Rights Reserved.

Endorsement Campaign

CREATING AN ASPIRATION FOR SKILLS

• Advocacy campaign encouraging youth to take up skills - a series of TV, radio, print ads and posters supported.

• A TV serial ‘Hunnarbaaz’ supported (40 episodes)• Hunar Yatra• Creating mobile kiosks which will go around the

country• Target catchment areas to like weekly markets, pooja

pandals, panchats, job fairs etc • Collaborate with local TPs to drive on-the-spot

enrollment

Page 10: For Private Circulation only NATIONAL MSME CONCLAVE Skilling Challenges in the Indian SME Sector Anup Gulati November 19, 2014 New Delhi.

10Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2014 NSDC. All Rights Reserved.

FOSTERING SKILL DEVELOPMENT IN CLUSTERS

• Standardized Training & Certification as per Industry led standards through SSCs

• Work-Ready manpower with industry relevant skills

• Creation of new entrepreneurs

• Skilling Centers• Leveraging ITI’s

• Campaign to increase aspirational values of Skills

• Testimonials from Industry Leaders

Aspiration Training

Quality

Employment/

Entrepreneurship

Page 11: For Private Circulation only NATIONAL MSME CONCLAVE Skilling Challenges in the Indian SME Sector Anup Gulati November 19, 2014 New Delhi.

11Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2014 NSDC. All Rights Reserved.

SKILLED VS UNSKILLED WORKERS

Skilled workers

Unskilled workers

Productivity

Unskilled workers

Skilled workers

Defects

Unskilled workers

Skilled workers

ReworkSkilled workers

Unskilled workers

Wages

• Skilling has a cost - it takes money and time to skill workers• A skilled worker demands and deserves more than an

unskilled worker

Page 12: For Private Circulation only NATIONAL MSME CONCLAVE Skilling Challenges in the Indian SME Sector Anup Gulati November 19, 2014 New Delhi.

12Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2014 NSDC. All Rights Reserved.

WHAT CAN YOU DO?

Create entrepreneurs in skill development. A number of NSDC training partners are SMEs.

Ensure the success of Sector Skill Councils – dialog with them continuously.

Create awareness amongst employers:• Hire certified employees• Encourage existing employees to get certified• Provide access to training opportunities to potential

employees• Mandate all suppliers and service providers to have certified

employees• Encourage employees to act and enrol as trainers &

assessors

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Page 13: For Private Circulation only NATIONAL MSME CONCLAVE Skilling Challenges in the Indian SME Sector Anup Gulati November 19, 2014 New Delhi.

Thank youContact Information: [email protected]