The Indian government recently developed ‘The National Skill Development Policy’ to provide skills to a huge population and make them employable. The core operating principles of the National Skill Development Policy are:
Government financial support must complement private investment: The Central Ministries must focus on areas where private investment in skilled development is unlikely to be available or forthcoming. The Government would aim at useful public-private partnerships.
States as key actors: The States being the key actors in Skill Development would set up overarching integrated framework for action for Skill Development through State level Skill Development Missions.
Deployment of funds: The funds would be deployed more for activities than for buildings and other hard assets. However, upgradation of machinery and equipment, teaching and learning aids will be a continuous process. Creation of infrastructure in latest technology, need-based new initiatives, creation of infrastructure in rural, remote and difficult areas will continue.
Focus of modular courses, open architecture and short term courses: With fast changing skills in the labour market, focus would be on short, relevant and effective courses that would get candidates into the workplace. They will be welded through NVQF to maintain dynamism and open to feedback.
Separate financing from delivery: Today Government funds are only available for government delivery. National Skill Development Corporation will support private skill development initiatives. Following financing options will be explored:
a) Link financing to outcomes: Today public and private training is financed largely on inputs viz. number of courses, number of students, faculty, etc. Efforts would be made to move towards Government financing linked to placement ratios and outcomes.
b) Focus funding on candidates: The focus would be on funding the candidates rather than institutions to create choice. This could be structured as a scholarship, skill voucher, outcome based reimbursement, etc.
Create infrastructure for on-the-job-training and encourage apprenticeships: The enabling infrastructure for large number of formal apprentices needs to be built that includes modification to the Apprentices Act, 1961.
Publicise rating and outcome information on training institutions: A framework of accreditation and infrastructure for information dissemination around measurable criteria on institutions will be created. Ratings of public and private institutions would be put on public domain.
Effective assessment and credible certification: Quality assured learning, credible assessment and certification will be developed. This will allow employers to use the certificate as a proxy to fast track job applicants.
Restructure employment exchanges as career guidance centres: Employment Exchanges will be restructured as career guidance centres to channelize candidates into jobs, apprenticeships and training.
Expand formal employment: Formal employment is not only fiscally attractive but more amenable to financing innovations. This will require a review of existing State and Central legislations which encourage informal and unorganized employment.
Source: Ministry of Labour and Employment; Government of India