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AIR spotlight summary on “Centre’s Initiatives for Skill Development”.



AIR spotlight summary on “Centre’s Initiatives for Skill Development”.





The government has started various skill development initiatives. Skill is a very old subject in context of Indian economy. In the skill system the entire ecosystem has to develop. It is not creating people with skills without knowing what skills they require and later they searching for jobs. India has to have a comprehensive programme for skill development. The government has setup a separate ministry for skill development – Ministry of Skill Development and Entrepreneurship and has started Skill India Mission.

Major challenges in skill development

  • We see lot of mismatch in skills provided. There are places where there are skilled workforces but no jobs available; and there are jobs available but no skilled workforce. There is mismatch between what market is looking for and what people are trained at.
  • Another challenge is the mindset of the people from last 100s of years. People are looking at professions like doctors, engineers, charted accountants etc, but at present there are 1600 job roles which many even don’t know. For example the society may not accept a plumber even if he is earning 1lahk per month during marriage proposal. So there is still lot to be done in India like educational programmes especially for parents where they start sending their children towards skill development. There is need for mindset change. Whether it is in agriculture, manufacturing or services, we need to create respect for that particular job. Creating awareness and creating respect for skills is very important.
  • Skill development initiatives in India are focussed towards creating employment for the youth. Over the time there has been issues regarding placements. People study in good colleges because of good placements and employment opportunities. The last mile connectivity towards employment is less focussed, that means companies does not visit colleges in remote and far off places.

Government’s Initiatives

  • Government spends 1000s of crores towards skill development through its programmes like Deen Dayal Upadhyaya Grameen Kaushalya Yojana, UDANN, and Pradhan Mantri Kaushal Vikas Yojana (PMKVY) etc.
  • The initial impact on the salaries of people who come out of skill development ecosystem and those without has hardly any difference. But after one year those with skills get increment of 20 to 30%.

Need of the Hour

  • It is not the time to produce people with skill training certificates; rather we need to produce people who are actually employable.
  • For the people with skill certificates the industry must give a premium and preference to that certificate while hiring. If industry does not show traction towards this the entire ecosystem won’t be complete. We need to bring industries to the forefront of skill development rather than creating centres of skill development across India.
  • The government must ask the contractor or during tender how many certified skilled people they employ. The banks before providing loans to an organisation can ask for how many certified skilled people has the organisation employed. When these questions are asked and provide a cut in interest rate, then the whole idea of certified skilled manpower starts moving very fast.  
  • While proving contract or a tender if more number of certified skilled workforces is employed there will be reduction in the cost of wastage, the productivity will increase and thereby reduces the cost of the project.
  • There will be shortage of 55 million workforces in the world by 2022 whereas India will have a surplus of 47 million workforces. We need to create a standard for skill training and make it Transnational so that the trained worker can be absorbed world over.  


It is the time we need to start looking at the requirement of international organisations where India can become the source for hiring people. During 1950s the mechanical revolution changed the European economy. During 1970s it was the oil economy for the Middle East. Cant 2020 be a man power revolution which changes Indian economy. The prime minister is looking for making India the skill capital of the world. India may have not become the super power but it has the potential to achieve the human resource super power.