No big solve for unemployment yet

India’s skills development arena is in a terrible shape. And that would be putting things mildly. 

Even after thousands of crores that have been spent over last one-and-a-half deces in improving skill sets of India’s youth, employability of young people continues to pose a huge challenge to world’s most populous nation in terms of its ability to ensure that those in employable age can secure decent, well-paying jobs or gain access to gainful self-employment opportunities.

Economic Survey for financial year 2023-24, released on July 22, said that “about one in two are not yet reily employable, straight out of college.” In past, too, numerous industry leers have voiced ir concerns about low employability of our youth.

Seen in this backdrop, measures on skill development announced in Union Budget for FY25 – while being reflective of federal government’s continued commitment to skills cause – may not move needle much on employability parameter as y do not dress in detail fundamental issues that lie at heart of employability problem plaguing India.

most that upgring 1,000 Industrial Training Institutes (ITIs) and an enhancement in amount that can be availed as a skill loan can do is provide a pathway for increasing number of Indian youths with formal skill certifications. Nothing more.

Quality dilemma

Why do I say this?

Somehow in all hullabaloo surrounding establishment of more skill training centres, little attention has been paid towards monitoring quality of training being imparted at India’s numerous vocational training facilities which have mushroomed almost everywhere in recent years. re has also been inequate focus on quickening pace of upskilling trainers in vocational education domain so that se people are better equipped to provide youths with relevant skills for gaining employment.

If trainers mselves are not upgring ir skills on a regular basis, what hope can we possibly have of increased employability of our youths who are undergoing training under those whose own knowledge of ir craft are not keeping pace with times?

If you think that fixing this is all that is required to improve youth employability in India, hold on. re are more issues that require to be dressed.

In many cases, need to meet an announced target has led to training mandates under various government skill training schemes being provided to all kinds of private skill training providers. Many of se training providers also lack requisite industry connect. This, in turn, has compromised quality of training received by trainees and done little to improve ir employability quotient even with a formal skills certificate to boast of.

solution for this? Authorities taking a close, hard look at performance of private training providers associated with different government schemes and only giving training mandates to such organizations whose work is found to be meeting key deliverables. 

Undertaking a closer scrutiny of performance of government-backed and industry-led Sector Skill Councils (SSCs) – which are supposed to bring in industry voice to skilling process – is also something that should figure on agenda of authorities to raise youth employability. Any instances of vocational educational curriculum for a particular domain developed with active involvement of SSC in that arena being debunked by companies active in this sector as “outdated” should be examined in detail.

SSCs that have been consistently underperforming should be hauled up for not being able to live up to ir billing. leership at such organizations may also be changed, if necessary, if it is felt that such a step could contribute to betterment of ir work going forward.

SSCs are funded by National Skill Development Corporation (NSDC), which, in turn, is a public private partnership. A clutch of industry bodies, which include likes of CII, Ficci, Nasscom etc., have shareholding in NSDC.

Way forward

A favourable demography is considered one of India’s biggest strengths as it aspires to become a developed country by 2047. But leveraging this demographic dividend would require us to come up with a new playbook for skills arena so that low youth employability does not come in way of India’s ambitious growth and development agenda.

Given government’s stated commitment to Sabka Vikas (development for all) mantra, one would hope, though, that process of revamping skills training arena is embarked on soon. With those entrusted with this responsibility keeping in mind saying that “we cannot always build future for our youth, but we can build our youth for future”.

(Sumali Moitra is a current affairs commentator. Views expressed are personal. X: @sumalimoitra.)