Overview of Skills Market in India
Dipankar Chakraborty
Trade & Investment Adviser
UKTI - India
What will I cover today?
 Indian Economy Overview
 Skills Market Framework & Overview
 Opportunities
 Successes
 Challenges
 How can UKTI assist?
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Indian Economy Overview

India is among the largest economies in the world and is expected to grow faster than its
peers in the coming decades

India has a population of more than 1.2 billion, and is among the world’s largest consumer
markets. India’s GDP (USD 1.9 Trillion) is currently the 10th largest in the world, and is
expected to become the 3rd largest economy by 2030, according to the IMF.
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Indian Economy Overview
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Indian Economy Overview

In recent years, India has emerged as a preferred destination for global FDI.

UNCTAD’s World Investment Report 2012 ranks India as the third most favoured destination
for major global companies. A large market and a gradually improving business environment
both play a role.

FDI inflows have risen from $ 6 billion in 2001-02 to around $ 33 billion in 2011-12.
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Market Overview

The Government has an ambitious target of skilling 500 mn by 2022

Currently the system has the capacity to train only 3 million youth against 12 million
entering the labour force annually.

Currently, 90% of the jobs in India are skill-based, a sharp contradiction to the
current figure of only 6% trained workforce in India.

Skills sector is expected to become an over $20bn market opportunity yearly
(stated in Kotak Securities report 2011).

The Government aims to increase this training capacity to 15 mn/year by setting up
new 1,500 ITI/ITCs and 50,000 skills development centres to be promoted in the PPP
mode.
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Stakeholders
Prime Minister’s National
Council on Skill Development
Office of Adviser to PM
on NCSD
National Skill Development
Coordination Board
Government Initiatives
• 18 Central Ministries
• State Ministries
National Skill Development
Corporation
Mandate to skill 350 million
people by 2022
Target of skilling/upskilling
150 million people by 2022
by fostering private
sector initiatives
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NSDC is a PPP created
by Ministry of Finance
• 51% stake by Private
• 49% stake by GOI
Initial funding of INR
1000 crore received from
the GOI and parked with
NSDF for use of NSDC;
Current total funding of
Rs 2500 crore
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National Council on Skills Development

The Prime Minister chairs this council which sets the policy direction of skills development.

The main objective of the Council is to develop a strategy for skills development at the
National level.

Other members include Ministers for HRD, Labour, Finance, Industries, Rural Development
and Micro, Small and Medium Enterprises; Deputy Chairman Planning Commission,
Chairperson of National Manufacturing Competitiveness Council, Chairperson of National Skill
Development Corporation and 6 experts in the area of skill development.

Mr Ramadorai (Tata Consultancy Services) is the Advisor to the PM in this Council.
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NSDC
Create
Fund
Proactively catalyze
creation of large,
quality vocational
training institutions
Reduce risk by
providing patient
capital
Create the vision
and help define the
path
Demonstrate
commitment to the
purpose
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Enable
Support systems
required for skill
development
•
•
•
•
•
Sector skill councils
Quality Assurance
Information system
Train-the-trainer
Set Standards
Create a viable
ecosystem
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Sector Skills Councils

National Skill Development Policy 2009 has mandated NSDC to constitute Sector Skills Councils
(SSCs) in India. The objective is to establish 28 Sector Skills Councils.

SSCs are national partnership organisations that bring together all the stake holders –
industry, labour and the academia for the purpose of workforce development for particular
industry sectors.

SSCs will be autonomous bodies registered either as Section 25 companies or public limited
companies. The Government will provide the initial funding. Subsequently SSCs will become
self sustaining organisations.

NSDC has incorporated SSCs for Automotive, Security and Energy sectors. SSCs for Retail,
Media & Entertainment and IT/ITES have been approved by NSDC Board and Healthcare,
Foundry, BFSI and Electronics & Hardware are under consideration.
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Market Overview
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Opportunities

Capacity Building – For the government, to reach its target of
skilling 500 mn by 2022 it requires a rapid growth in its skills
delivery capacity from current 3 million to 50 million per
annum.

Upgradation of ITIs – Ministry of Labour & Employment is
seeking private participation to upgrade 1,396 ITIs.

Sectoral Skills Council partnerships

Curriculum, assessment & certification

English Language Training
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Challenges

Vocational Education framework is in evolving stage

Lack of career path for school drop-outs & Bluecollared workers. The current system makes it
almost impossible for a dropout to have a career
progression into a white collar job, however skilled
he may be.

Pricing

Involvement of various ministries leads to lack of
synergy and duplication of effort at times.
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Some UK Successes in India

Bournville College – Set up their South Asia hub in Kolkata. Working with private players to upgrade
ITIs and recently won a project form the Govt. of West Bengal to train 2000 underprivileged youth.

A4e and MoRD – Pilot to deliver sector specific, employment-oriented skills training to 9000 people

IndiaSkills – JV between City & Guilds and Manipal group to deliver skills training to 1 million learners

I-CAN – JV between Educomp and Pearson to deliver logistic skills training to 2000 people

IL&FS, India and Dudley College and Reid Kerr College, UK – Partnership to develop an
‘excellence model’ for colleges in India focusing on curriculum and soft skill development, staff
development through ‘train the trainer’ programmes

Lingua phone and Birla Edutech – Master franchisee for English programmes in India

New College Nottingham and Batra Group – JV signed for setting up skills academy in retail,
hospitality, fashion and media for 500 students also delivering advanced English and Teacher training
qualifications.

AoC, UK has established a presence in India to identify opportunities for its member Colleges

Indian SSC in discussion with their UK counterparts for sharing best practice (this includes food
processing, security and healthcare)
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How can UKTI India Education team
assist?

Overseas Market Introduction Scheme (OMIS)
Service

Providing market information on
– Market size
– Competition
– Potential dealers & agents

Arranging meeting program with potential
customers, dealers, agents

Arranging events like launch reception,
networking sessions, seminars, participation in
trade shows, etc.
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For further information/queries, please contact:
Mr. Dipankar Chakraborty
E: dipankar.chakraborty@fco.gov.uk
T: +91 9674447487
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