ICTACT Bridge 2014 - Skills for INDIA 2020 by Mr.Dilip H.M Chenoy, Director & CEO , NSDC.
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Presentation on Skills for INDIA 2020 delivered by Mr.Dilip H.M Chenoy , Director & CEO , National Skill Development Corporation at ICTACT Bridge 2014, Chennai Trade Centre.
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ICTACT Bridge 2014 - Skills for INDIA 2020 by Mr.Dilip H.M Chenoy, Director & CEO , NSDC.
- 1. For Private Circulation only Skills for India 2020 Chennai 26th February 2014 Dilip Chenoy CEO and MD
- 2. 1Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2014 NSDC. All Rights Reserved. India towards 2020 – On the road to a demographic advantage Demographic Dividend is an opportunistic competitive advantage that a population possesses as a result of a rising share of working age people which can lead to a rise in economic growth rate. • Demographic Advantage - India will be expanding it’s most productive cohorts (population between 15-60 years) as most developed countries and some developing ones will be heading towards an inflection point where they start contracting theirs. • Realizing this opportunity can pull the Indian economy into a virtuous cycle of growth with meaningful job creation. An ageing world needs workers; A young country has workers Income of Working Population > Income of Dependant Population
- 3. 2Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2014 NSDC. All Rights Reserved. The Need to Skill - Local & Global Skilled Manpower Shortage Local Need: The 20 high-growth sectors are estimated to face a skilled manpower shortage of 347 million people over the next 10 years just to sustain industry growth. Global Need: There is also a global shortage of manpower projected and there would be an opportunity for people from India to work overseas. Industry Incremental requirement (in million) Building and Construction Industry 33.0 Infrastructure Sector 103.02 Real Estate Services 14.0 Gems and Jewellery 4.6 Leather and Leather Goods 4.6 Organised Retail 17.3 Textiles and Clothing 26.2 Electronics and IT Hardware 3.3 Auto and Auto Components 35.0 IT and ITES 5.3 BFSI 4.2 Furniture and Furnishings 3.4 Industry Incremental requirement (in million) Tourism and Hospitality services 3.6 Construction Material and Building Hardware 1.4 Chemicals and Pharmaceuticals 1.9 Food Processing 9.3 Healthcare 12.7 Transportation and Logistics 17.7 Media and Entertainment 3.0 Education and Skill Development Services 5.8 Select informal employment sectors (domestic help, beauticians, security guards etc) 37.6 Total Incremental 347
- 4. 3Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2014 NSDC. All Rights Reserved. India @ 75 vision: • India becomes the largest pool of trained manpower • India becomes the home for at least 30 of the Fortune 100 firms • India accounts for 10 percent of the global trade • India becomes source of global innovations • India focuses on the bottom of the pyramid as a source of innovations for the world • India has 500 world class cities through planned urbanizations
- 5. 4Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2014 NSDC. All Rights Reserved. The Roadmap to Achieve this Vision: Institutional Framework for Skill Development in the Country Government Initiatives 23 Central Ministries State Ministries Mandate to skill 350 million people by 2022 National Skill Development Corporation Target of skilling/upskilling 150 million people by 2022 by fostering private sector initiatives Government Initiatives Private sector initiatives National Skill Development Agency (NSDA) Cabinet Committee on Skill Development
- 6. 5Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2014 NSDC. All Rights Reserved. Multiple entities working towards achieving the plan targets Ministry/ Department Target by 2022 (in lakh) Ministry/ Department Target by 2022(in lakh) Ministry/ Department Target by 2022(in lakh) M/o Labour & Employment 1000 M/o Housing & Urban Poverty Allev. 150 M/o Women & Child Development 100 D/o Heavy Industries 100 M/o Tourism 50 M/o Rural Development 200 D/o IT 100 M/o Social Justice & Empowerment 50 M/o Women & Child Development 100 M/o MSME 150 M/o Textiles 100 NSDC 1500 M/o Agriculture 200 D/o Higher Education 500 State Target (2012- 2017) (in lakhs) State Target (2012- 2017) (in lakhs) State Target (2012- 2017) (in lakhs) State Target (2012- 2017) (in lakhs) Uttar Pradesh 132 Tamil Nadu 48 Madhya Pradesh 48 Chhattisgarh Haryana 17 17 Maharashtra 74 (225) Rajasthan 45 Kerala 22 HP 5 Bihar 69 Karnataka 40 Jharkhand 22 NCR of Delhi 11 West Bengal 60 Gujarat 40 Assam 21 J&K 9 Andhra Pradesh 56 Odisha 28 Punjab 18 Uttarakhand 7
- 7. 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 was created as a unique model to catalyze private sector To encourage private sector to participate in skill development for 2 reasons: • Need to drive the quality of trained manpower • Need private sector participation to create capacity As private sector needs commercially attractive models, NSDC to provide “patient funding” to encourage private sector to enter this space NSDC’s mandate to extend to the skill development ecosystem is achieved through 3 inter-dependent pillars: • Create a vision • Fund scalability & sustainability • Enable an ecosystem Certainty comes from the courage to follow uncertain paths Key elements of NSDC’s underlying philosophy 1 2 3
- 8. 7Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2014 NSDC. All Rights Reserved. *2 projects, IAHV & Arunium have been completed, Everonn discontinued. MERC & Energy SSC cancelled. 122 skill businesses approved - Projected to create annual capacity of over 15 Mn As on 25th Feb, 2014 Parameters for evaluation Achievement (FY 2010-11) Achievement (FY 2011-12) Achievement (FY 2012-13) Progress* (FY 2013-14) Total Number of Proposals Approved 26 29 42 54 • Skilling 24 20 35 43 • Sector Skill Councils 2 9 7 11 No. of Trainees in first yr (Lacs) 1.8 1.5 2.2 2.35 Cumulative Training Capacity over 10 yrs (Mn) 27.7 52.7 69 78.42 Cumulative Training Capacity per annum (Mn) 6.2 11.2 13.5 15.02 Cumulative Funds Commitment (Rs Cr) 490 1180 1798 2175
- 9. 8Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2014 NSDC. All Rights Reserved. Addressing the Skill Gaps – Development of a Research Base Sector Level Skill Gap Studies • 20 high growth sectors being updated. • To be completed by March 2014 • Other sectors covered subsequently: Sports, Capital goods & Infrastructure State Level District-wise Skill Gap Studies • Studies for all states in India except Bihar, Chhattisgarh and J&K are completed • Remaining studies for these 3 states expected to be completed by March 2014 For further details, visit: http://nsdcindia.org/knowledge-bank/index.aspx District skill gap studies almost complete, working with states for the remaining three
- 10. 9Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2014 NSDC. All Rights Reserved. Tamil Nadu – Human Resource Supply-Demand Gap (2012-17) 9 Text Text Skilled Semi-Skilled Minimally-Skilled Incremental Human Resource Requirement 2012-17 Incremental Human Resource Availability 2012-17 Deficit Of Human Resources 2012-17 18.96 L 15.11 L 17.18 L 2.58 L 10.65 L 21.79 L 8.31 L 12.53 L (4.61) L The State needs to skill about 4.61 Lac candidates to meet the demand of skilled manpower.
- 11. 10Proprietary 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 : Ensuring Industry Involvement TRAINING NEED ANALYSIS CURRICULUM DEVELOPMENT ROLLOUT OF TRAINING ASSESSMENT AND CERTIFICATION • Creation of Occupational Standards • Towards National Vocational Qualification Framework • Labour Market Information System • Skill Development Plan • Accreditation of Training Institutes • Academics of Excellence • Training of Trainers • Guidelines and Participate in Assessments and Certification of Trainers and Trainees • Sector Skill Councils (SSC) consists of representation from Industry Member, Government Bodies, Industry Associations, Business Leader and Training providers to ensure participation of all ecosystem members • IT/ITES SSC – developed standards for 73 Job Roles (QPs) across levels 4-8 till the end of 2013 • IT Services (Security Analyst, Software Developer, Test Engineer, Web Developer etc) • Business Process Management (Document Coder, Analyst Research, Associate Analytics etc) • Engineering and R&D (Hardware Engineer, Quality Engineer, Market Research Associate etc) • Software Products (Product Executive, Design Engineer, Packaging Engineer etc)
- 12. 11Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2014 NSDC. All Rights Reserved. IT- ITES Sector in Tamil Nadu (FY 2013-14) Partners active in the sector 10 Partners D. B Tech, IIJT, ISDC, Laurus, NYJL, Providers, Rooman Technologies, Rural Shores, TalentSprint and TMI Number of Districts Covered 6 Districts Chennai, Coimbatore, Erode, Kancheepuram, Thanjavur and Tiruppur Number of Training Centers 16 Selected Courses Diploma in Computer Applications, Basic Computers, Data Analysis, BPO Voice Business Training, BPO Non-Voice Business Training, Java, .Net, PLSQL, Desktop Publishing, Web Designing etc. Total trained till Jan 2014 More than 80,000 Total employed till Jan 2014 More than 14,000
- 13. What we leave IN our next generation is more valuable than what we leave FOR them!!!
Notes de l'éditeur
- Session Brief/Focus:India towards 2020The need for skilling the youthRoad map to achieve vision 2020Other Keynote Speakers in the session:Dr.OmkarRai, Director General, Software Technology Parks of India (STPI), GOIThiru. TK Ramachandran IAS, Secretary - Information Technology, Government of Tamil NaduThiru. Atul Anand IAS, Managing Director, ELCOTSession Manager: Mr. K. Purushothaman, Senior Director, NASSCOM CEO, ICT Academy of Tamil Nadu - M. SivakumarNote the same color scheme in both logos – in case you want to use that in your introduction on this slide
- Clearly, India has an advantage in terms of the “total workable population” ie. the number of workers in the economyBut we cannot just rely on the increase in workable population for a brighter future.India's working population will surpass China's working population by 2040.
- It is critical that we manage our most valuable and abundant resource – our people – to make the most of this opportunity.There’s however a war for talent.Going forward it is estimated that the 20 high growth sectors would face a skill shortage of 347 million persons. I would like to share with you the strategy that is in place for addressing this and leave you with thoughts in executionI will come to the Global opportunity later in when I address how NSDC is leveling the playing field for our people through the implementation of Sector Skill Councils.This conference is an Industry-Academia bridging initiative.People in this room have congregated from Corporate, Colleges, Schools and the GovernmentThe Youth, Employers and Education Providers are living in a parallel universe – mismatch in skills and requirement
- Instead of the vision for 2020, let us discuss the vision for 2022 when India turns 75.
- It is also important to note that many Ministries and state government also have targets and skill development plans and missions. Last year this ecosystem trained just overSimilar persons from 3.1 million in 2008.The Target this year is 8 million!There are many programmes being run by different Government departments in the centre and state.Many of you in this room may be engaged with the ITI system or with Engineering collegesLet me turn to NSDC and how we could work together.
- The Underlying Philosophy of NSDCPromote Scalable, Sustainable , Low cost ,high quality ,Skill Development by the Corporate SectorProvide patent fundingPartner to create a ecosystem for Skills
- Till date NSDC has been able to attract 122 entrepreneurs to set up sustainable Skill development business, by the end of the year we need to have another 30 plus to the list.The NSDC Board has approved a total of 122 skill development proposals that are expected to skill over 78 million people over the next 10 years with an annual training capacity of 15 million when these organisations reach full capacity. The total financial commitment for these skill development proposals and SSC’s is 2175.39 Crores.For the past 3 years NSDC has exceeded the training targets set by the PM’s National Council on Skill Development. Until Jan 2014, NSDC funded partners have trained a total of 13,49,715 people while the total number of people placed stands at 7,50,771. 181,691 in 2011-12 as against 1250004,02,506 in 2012-13 as against 4,00,000We wish to speed this process This year we have to cross 10,00,000
- NSDC is also trying to address the information asymmetryWe had commissioned sector wise skill gap study report in 2008 Which are being redone as we speak.We have also commissioned district level state wise skill gap reportsThere have bought out a disconnect between jobs and aspirations
- The second role that NSDC plays is to help industry set up sector skill councils that will provide for industry leadership in the skills space 28 have been approvedThe SSC’s have clearly defined functions and are key to future of skill development in the country As a corporate and individual you have to participate in their work. If you don’t it would be …………….to bridge the gap between education and employabilityA Significant change is happening in the education framework as we speakA national Skill qualification framework is being developed , that would cut across the Vocational and educational space.Jobs would be aligned to a particular level. It will promote equivalence & mobility.The Skill council would develop qualification packs that are aligned to levels.The IT/ITES SSC has already created occupational standards for 73 Job Roles (QPs) across levels 4-8 till the end of 2013
- This structure is in place , what we leave in our next generation will depend on what you do when you leave the room.
- The Planning is overThe execution depends on you NSDC would be hoping to help you transform the level of millions of youth in India , your leadership in execution will determine the outcome ACT NOWThank you
- Youth aspirations and infrastructure creation for skill development are correlatedThere are gaps between industry demand and youth aspirationsThere is a need for skill infrastructure and targeted student mobilization activities through awareness campaigns and student interactions in sectors such as leather, construction and food processing.
- This conference is an Industry-Academia bridging initiative.People in this room have congregated from Corporate, Colleges, Schools and the GovernmentThese are some interesting numbers to consider…