This document proposes a new approach to skill development in India to address the large skills gap. It identifies 224 million people who will require skill enhancement by 2015 across several sectors like manufacturing, agriculture, and construction. The document recommends establishing Indian Institutes of Vocational Training at the zonal level to oversee skill development institutions. It also recommends improving existing district-level vocational training institutions and incorporating basic skill training into K-12 schools. The proposed approach aims to create a holistic ecosystem with industry involvement to effectively train the workforce and meet demand. Challenges to implementation include ensuring quality control, monitoring institutions, and preventing exploitation.

1. Boosting Skillsets:
Increasing The Employability Of Youth
ARPITA MAHESHWARI
DEEPANT KANDOI
NIKUNJ MALL
SHASHANK SINGHAL
VAIBHAV SRIVASTAVA
INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR
Be Skilled. Be Employed.

2. Demand of Skill Development in India
Identifying the critical areas requiring skilled labor and their supply potential in 2010-15
0%
38%
(85 mn)
28%
(63 mn)
34%
(76 mn)
38%
28%
10%
10%
9%
2% 3%
Manufacturing
Agriculture
Hospitality
Retail & Trade
Construction
IT/ITES
Others
Unemployed
graduates that
may require skill
enhancement in
2015
Workforce which
was employed in
2010 and shall
require skill
enhancement by
2015
Workforce
entering the
market in 2010-15
which shall require
skill enhancement
 224 million people shall require skill
enhancement by 2015
 The size of market makes it difficult for the public
sector and/or private sector to provide the
facilities alone
 Different approach required for the graduates
and non-graduates
 Manufacturing Sector shall have the maximum
requirements of skilled work force by 2015
 Six major sectors have been identified based on
the requirements for which skill training has to
be improved
 Different level of skill development required to
meet the need of highly skilled and partially
skilled work force
Addressable Market for Skill Training in India Sector Wise Skill Labour Requirement in India
Sources: EIU, Economic Survey, CRISIL, BCG-CII and Manthan team Analysis

3. Training scenario in India
Educational Institutions catering to skill development in India

4. Qualitative Problems in skill development
Highlighting the current problems faced by institutions and students (Primary Research)
Mobilization
• Demand for SDIs
• Supply of SDIs
Training
• Lack of resources
• Back dated curriculum
Financing
• Commercial viability of SDIs
• Sources of Funding
• Sustainability
Social Inclusion
• Equal provision of services
and equal quality of training
to all groups
• Accreditations and
Certifications
Employment of Students
• Migration
• Employment Sustainability
• Willingness of industries to
employ
Job for Drop outs
• Financial problem leading
to dropout
• Lack of skills amongst this
new workforce

5. “Indian Institute of
Vocational Training” at
zonal or national level
District Level Institutions
for Diploma Courses
Skill Development
at K-12 institutions
• High end skill Development of trainees
and trainers for specific skill set
• Guidance to all the Skill Development
Institutes with respect to
curriculum, expertise and exposure
• Skill development institutes focused
according to the industry
requirements
• Self sustaining model created with
the help of local industries
• Motivation and counseling to the
students at school level for skill
development
• Provision of basic theoretical skill
training to help the students
appreciate the job
Our Approach: Institutional Level
Defining the structure to cater to the problems faced by the current system

6. Indian Institute of Vocational Training
Focused institutions to direct and regulate skill development institutions
People Trained: Holistic Ecosystem
• Graduates and employees, who have been
given “Skill Development Vouchers”
• Bright students from ITIs and other
vocational institutions
• Instructors of regional Institutions
• Aspiring engineers and specialists in the
respective trade
Setting up
“Indian Institute of Vocational Training”
• Zonal IIVTs set up based on the industry
density of the region
• Funding: PPP with mega industries
(Allowing investments in such institutions
to come under CSR)
• Certifications: In collaboration with the
industries of the respective sector
Responsibilities
• Promote the idea of recruitment of skilled
labors in the industries
• Design curriculum for the respective trade
to be followed in local institutions
• Train the instructors and quality
enhancement at local institutions
Sustainability and Growth
• Mapping the demand and supply of skilled
work force for the particular trade
• Mobility of resources in terms of training
and recruitments across the country
• Capacity building through training
corporate and government officials and
contractors in management practices
Based on a case study on National Academy of Construction (launched at Andhra Pradesh in 1998) and Manthan team analysis

7. District Level Institutions
Improvisation of district level institutions to make skill development more productive
• Creating awareness of opportunity
• Employment exchange functioning
• Linking schemes like MGNREGA
• Advertisement drives
• Increasing will to pay among employers
• Incorporating vocational training into
formal education
• Boosting dignity of labors
• Guidelines for safety
• Portals for information decimation
• Linking curriculum with industry
• Modular courses with upgradation
• Contracts from local industries for
hands-on industrial exposure
• Assuring Quality of trainers
• Performance based incentives
• Developing infrastructure
• Upgradation by channelizing funds
through PPP, World Bank etc.
• Generating revenue for loans and funds
• National skill voucher scheme
• Incentivize banks to provide loans for
skill development courses
• Student loan guarantee fund
• Targeted Government schemes to
support non-viable skills
• Improving Placement opportunities
• Encouraging entrepreneurship
• Bridging the demand-supply gap
• Providing practical exposure
• Internship and apprenticeship
• On the job training to be facilitated by
skill institutes
• Salaries linked to productivity
Mobilisation
Delivery
RevenueModel
IndustryLinkage

8. Skill Development at K-12 institutions
Skill training started at school level to help young children decide and pursue their interest
NightEducationCentre(NEC)
• Working
• Academic Curriculum: Subjects
relevant to local trades
• Field work: Practical knowhow
• Structure
• Teachers: Local experts
• Regular Vigilance: ITIs
• Feasibility
• Increase in employability in
family motivates parents
• No hindrance in daily activities
• Minimum infrastructure
• Specialised training suited for
local environment
TrainingatRegularSchool
• For the students older than 14
years of age
• Optional Courses to impart them
education/skill set
• Teaching pertaining to availability
of best local resources
• Skilled and experienced people
from the locality to serve as
teachers
• Provides motivation for both
parents and students
• Gives very strong basic
foundation
• Prepares them for the future

9. Implementation: Major requirements
Key factors to be considered to implement the program and make it successful nationally
• Set Up: Model Institutions under Director General of Vocational Training based on PPP model.
The investment by companies shall come under CSR
• Student fees: Funded by Government and by themselves/loan to keep the spirit of IIVT
• Instructors and Faculty: Engineers having work experience in the specific sector shall be the
instructors under Government pay role. Industry Experts to conduct workshops and video
tutorials for all levels of institutions
• Certification and Quality Control Board: Faculty and industrial experts to monitor the skill
development of the particular sector throughout the country
• Placements: Industry to provide requisition for work force at IIVT which shall be met from the
students at IIVT and regional institutions
• Placements: Dedicated employment officer working in tandem with the IIVTs for placements and
district administration of MGNREGA , etc.
• Entrepreneurship: NMDFC and other loan disbursing organisation to be involved to help
students
• Marketing & Advertising: National level television and print media campaigns motivating the
students to join the vocational training institutes
• Sustainability: DIC shall help to take sub-contracts from industries as a revenue stream
• Target K-12 institutions: Schools selected based on a region’s economy
• Instructors: Training for local experts and teachers of schools at the Poly-techniques
• Quality: Mobile vans having video tutorials and faculty to have weekly workshop at NECs
IndianInstituteof
VocationalTraining
Regional
Institute
K-12

10. Challenges and Risks
The implementations of the proposed system shall encounter difficulties
Indian Institute of Vocational Training:
• Demand & Supply mismatch can dilute the importance to be prevented
• Curriculum to be designed minutely keeping in mind the diversity
• Continuous check on quality of the regional institutes
• Corruption/forgery in capacity building
Regional Institutions:
• System to be protected from industrial exploitation
• Continuous up gradation to be ensured
• Proper account and use of severe to be generated
• Continuous vigilance and monitoring to be ensured
K-12 Institutions:
• Parents and students to be motivated join NEC
• Proper training of the local experts and school teachers to be ensured
• Enabling school kids to absorb the counseling and theoretical sessions

11. Cost Benefit Analysis of the proposed system
Sustainable model taking the critical aspects hindering skill development into consideration
Costincurringfactors
•Infrastructure
•Land, building, instruments for Centre of
Excellence
•Up gradation of facilities at current
regional institutions
•Mobile vans for reaching out to remote
locations
•Human Resource
•Instructors to be hired at CoE
•Dedicated officers for placements and
coordination with CoE
•School teachers and local experts have to
be trained
•Resources
•Benefits to industries for investment and
practical exposure
•Ensure value of certification
Benefitsoftheproposal
•Motivation
•People made aware about opportunities
at a nascent age
•Television and media campaigns shall
motivate the people
•Skilled Workforce
•CoEs shall provide highly skilled
workforce and trained instructors
•Quality control of curriculum shall ensure
homogeneity in training
•Industries Benefited
•Industries shall be able to generate
resources according to their
requirement and then use them
•The importance of skilled labour shall be
highlighted in the industries

12. Glossary & References
• ITI- Industrial Training Institute
• SDI- Skill Development Institute
• CSR- Corporate Social responsibility
• PPP- Public Private Partnership
• DIC- District Industrial Centre
• NE- North-East
• NMDFC- National Minorities Development and
Finance Corporation
• MNREGA- Mahatma Gandhi Rural Employment
Guarantee Act
• NEC- Night Education Centre
• IIVT- Indian Institute of Vocational Training
• Report on other state policies
• Concept paper on labor market information
system
• Building trainers' skills in vocational
employability
• NSDC and the skills scenario FFFAI
Conference, Udaipur
• Reasons for drop out amongst children living in
slum areas of Delhi
• Econometric study on Indian states and UTs
• www.planningcommission.nic.in
• www.nac.edu.in
• Challenges & Solutions in Skill development in
India: A Skill development conference by Athena
Infonomics
References Glossary