For Private Circulation only NATIONAL MSME CONCLAVE Skilling Challenges in the Indian SME Sector Anup Gulati November 19, 2014 New Delhi
Dec 21, 2015
For Private Circulation only
NATIONAL MSME CONCLAVE
Skilling Challenges in the Indian SME Sector
Anup Gulati
November 19, 2014New 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
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.
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
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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.
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)
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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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
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
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
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
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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Thank youContact Information: [email protected]