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Strategic and implementation framework for skill development in India - EY - India

Strategic and implementation framework for skill development in India

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Today’s competitive world demands trained, certified and skilled manpower to address the challenges of growth and converting them into opportunities. This report focuses on the existing strategic and implementation models of Skills Development, both in India and across the world.


India has one of the youngest populations in the world and a very large pool of young English-speaking people. Therefore, it has the potential to meet the skill needs of other countries and also cater to its own demand for skilled manpower.

Ironically, most industries in India are currently struggling with scarcity of skilled labor. Although more than 40 million people are registered in employment exchanges, only 0.2 million get jobs.



The current education system does not focus on training young people in employable skills that can provide them with employment opportunities. Today, a large section of India’s labor force has outdated skills. With current and expected economic growth, this challenge is going to only increase further, since more than 75% of new job opportunities are expected to be “skill-based.”

The Government is therefore strongly emphasizing on upgrading people’s skills by providing vocational education and training to them. It has formulated the National Policy on Skill Development and set a target for providing skills to 500 million people by 2022. Various stakeholders are involved in this process.

In the current framework, the Ministry of Labor & Employment is running various schemes and has set up industrial training institutions across the country. Other ministries such as the Ministry of Human Resource Development, the Ministry of Rural Development and the Ministry of Urban Development & Poverty Alleviation have also launched their skill upgrading programs and self-employment schemes.

In addition, as part of its National Skill Development Mission, the Government has established the National Skill Development Corporation in the Public Private Partnership mode to facilitate setting up of large, high quality, for-profit vocational institutions. It also aims to set up 1,500 new ITIs and 5,000 skill development centers across the country as well a National Vocational Qualification Framework (NVQF) for affiliations and accreditation in vocational, educational and training systems.

Realizing the significance and need for skilled manpower, private sector entities are taking several initiatives to contribute effectively to the Government’s endeavors. Across business sectors, companies and industry associations are not only boosting their in-house training facilities, but are also taking steps to make potential employees job-ready before they join organizations.

For a detailed overview of skill development and existing skill gaps in India and the world, download our report.

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