India—one of world’s fastest-growing economies and home to one of the world’s youngest populations—faces a unique and paradoxical problem. While it has the numbers in terms of manpower, that manpower lacks skill and training. Roughly 50% of India’s population is under the age of 25. Also, India’s working population is expected to account for close to a third of the working-age population of the world in the next two decades. But, currently, only 2% of the country’s working population is trained in any vocation.
India’s high GDP growth expectation, which corresponds with respective sector growth, is expected to generate 98 million incremental jobs over the period 2010-15. This will mean approximately 20 million workers on average will require some form of vocational training annually. The current situation, though, cuts a sorry picture, with a capacity of a mere 5.5 million. So the fact remains that the existing supply of vocational training is inadequate to meet the demand (See Tables).
The government has set itself an ambitious target of training 500 million people by 2022 in its National Skill Development Plan (NSDP). . Key amongst these are PPP (public private partnerships)
To complement private investment in this space, the setting up of a National Vocational Qualifications Framework (NVQF) and establishment of National Skill Development Corporation (NSDC) to foster skill training in the identified sectors.