Problem Description

  • In the last 25 years ~ 17 million people p.a. have been pumped into the employable age-group in India.
  • HRD funnel shows ~ 16.6 million drop outs per year
    • 6.8 million fall into agriculture – not prepared by their education for farm or rural non-farm enterprises
    • 2.5 million fall into Small scale industry or self employment – no help from their formal education.
    • 7.3 million is the unemployment generation per year
  • 1996-97 estimate of cumulative unemployed is 200 mn; 2007 estimate 300+ mn.
  • Present HRD system and policies ignore those who have failed and disregards this significant & critical yet productive group.

Characteristics of 200 mn Unemployed population (Millions)

  • Disproportionate contribution from Agriculture & Services to total Labour force & GDP
  • Inequitable economic growth highlights the impending need & opportunity for up-skilling of unemployed & semi skilled labour from agriculture into skill intensive services & manufacturing sectors & improving Productivity of existing workforce.
  • Increasing pressure on existing urban centres is driving industry to Tier II cities & towns where there is an urgent need to increase employability of human capital.
  • India Economic Growth story is threatened by the impending skills shortage

Market Need: Global Shortages @ bottom of the pyramid

  • India will have a surplus of 47 million people in the working age group by 2020 vs. a shortage of 56 million in the rest of the world.
  • Great opportunity for India to tap international labour markets in the next decade
      - Signaling an urgent need to increase mobility of the Indian workforce.
      - Capitalize on the unique demographic dividend (young working age population).
      - Subject to upgradation of the quality of its education and skill set development.

Conclusion

  • Growth is hampered by poor standard of education at school & college level and high drop out rates.
  • Present HRD system and policies ignore those who have failed and disregards this significant & critical yet productive group
  • Existing solutions delivered through ITIs & VETs lack academic depth, technical rigor, geographical reach & faculty/curriculum quality
  • India, over the next five years, will have surplus of un-trained and under-educated people of ~ 1.3 million and will fall short of real talent by ~ 5.3 million (Source Boston Study Group, 2008)
  • There is a clear and present need for intervention of the private sector either independently or in PPP models to start bridging these gaps and augment the supply of “employable talent” through skill enhancement of our human resources.