SCIM-II MBA 10-12 I2IM DEMOGRAPHIC DIVIDEND

INDIA SKILLINGPrepared by: Satprit Hanspal-10MBA027 Meera Patel-10MBA067 Krupali Makwana-10MBA044

Preamble India will remain the largest contributor to the global

workforce over the next few decades. A young population is India's demographic dividend. Rise in the working age population is necessary for

economic growth. But the demographic dividend is turning into a

liability.Source: www.peoplematters.in

Indian Demographics India is a home to 17% of the total world population. The population of India is 1.21 billion. China stands first in terms of population with 19.3% of

total world population while India stands second. Among the top ten countries, Japan stands 10th with a

total world population of 1.83%. 4.03 billion people live in those ten countries,

representing 58.7% of the world's population.Source: Census report India 2011

India's GDP contributionYear 20082009 2010

March 8.505.80 8.60

June 7.806.00 8.90

September 7.508.60 8.90

December 6.106.50 8.20

GDP: $1.209 trillion GDP Growth: 8% GDP per capita: $1016 GDP by sector: Agriculture: 17.2% Industry: 29.1% Services: 53.7%

Source: www.livemint.com

Quality

Quantity

Problems with the workforce Half of Indias 1.2 billion people are under the age of

25 Employability rates vary from just 4-30% According to one estimate India produces 500,000

engineers every year when the market needs250,000 So there should be plenty because only one in five of

them are employable, India actually has a shortfall of 150,000 engineers.Source: www.peoplematters.in

The literacy rate

Status of educationThe gross enrollment ratio: Classes (I-V) (6-11 years) Classes (VI-VIII) (11-14 years) Classes (I-VIII) (6-14 years) Classes (IX-X) (14-16 years) Classes (XI-XII) (16-18 years) Higher Education (18-24 yrs) The drop out rate

109.4% 71.15% 94.92% 52.26% 28.54% 11.61 %

Classes (I-V) (6-11 years) Classes (I-VIII) (6-14 years) Classes (I-X) (6-16 years)Source: www.indexmundi.com

25.47 % 48.71 % 61.59 %

Educated unemployed

Unemployed in Rural Areas: 57% Unemployed in Urban Areas: 65% TOTAL SKILLED labor force: RURAL - only 8.3 % URBAN - 15.6 %

Of all new employment generated Govt. 1% Organized Sector 2% Unorganized Sector 97% The unemployment rate of India's graduates are still 17. 2% than the overall unemployment rate of 10.1%. (2.5 million graduate every year)Source: www.indexmundi.com

Vocational training in India Every year 5.5 million students pass out of Class X, of

which 3.3 million go to Class XI, leaving 2.2 million out of the education stream. Urgent attention is needed for this 21 million-target

group. Available formal training capacity of the country -

only 2.3 million students. This leaves a gap of 18.7 million.

Among persons of age 15 years and above: Only 2 % had any type of technical degrees/ diplomas/ certificates. The proportion was only 1% in the rural areas and 5 % in the

urban. Only 40 % of the 55,000 instructors have undergone a full

instructor-training course About 95% of the world youth (15 - 35 yrs) age learn any type of

vocation / skill / trade, with a choice of 3000 vocational streams. In India we have identified only about 170 trades and only 2-3%

of the youth (15-29 yrs) goes in for formal vocational training..

The proportion of persons (15-29 yrs) who received formal vocational training was the highest among the unemployed. 3 % for the employed 11% for the unemployed, and 2% for persons not in the labour force

Compared to many developed countries India is far behind in introducing new and innovative trades in VET to attract young children. About 5% to 7% of our population (50 to 70

million) every year should be involved in vocational programmes.

Countries labour force in (20-24 yrs) age undergone formal vocational

training

India - 5 % Mexico - 28 %

Most industrialised nations - 60 to 80 %Korea - 96 %.

Germany, Indonesia, Japan, Korea, Israel and China have supported

vocational education at the school level on a large scale since the decade of 1970s. A strategy to achieve full employment must include as an important

component, a strategy to ensure that all new entrants to the workforce are equipped with the knowledge and skill needed for high productivity and high quality.Source: Source: Data compiled from Planning zCommission Reports, NSSO, Times of India, The Economic Times

Challenges to be addressed Disconnect between skills provided and skills required by the

industry Skill demand of Services/ Unorganized Sector are largely

unmet Unsatisfactory employability of trainees because of poor

quality of training Shortage of trained instructors and low instructor training

capacity in the country Low prestige attached to vocational training

Source: www.peoplematters.in

What can be done?

Expand and upgrade vocational education and training

Expand and upgrade higher technical educationPromote research in educational institutions; and Redesign the educational pattern at the school level to facilitate skill development.

Source: www.peoplematters.in

Recommendations Need for creation of large scale skill development

opportunities and infrastructure Integration of vocational education at the school

level

Skill Mapping Informal training for short duration at affordable

fees structure

Source: www.peoplematters.in

THANK YOU