Economic Survey Calls Upon Industry To Take Lead In Skill Creation

The Economic Survey 2023-24, presented by Finance Minister Nirmala Sitharaman, underscores the importance of education and skill development for achieving the vision of ViksitBharat@2047. It highlights six major pillars for this goal, with a key focus on aligning education and skill policies to improve learning and skilling outcomes.

New Delhi:India’s education policies and skill policies should adopt a laser-like focus on learning and skilling outcomes and need to be aligned with each other, as well. This is one of the six major pillars for realising the collective goal of ViksitBharat@2047 in the medium term, as stated in the Economic Survey 2023-24, tabled by Union Minister for Finance Nirmala Sitharaman in Parliament on Monday.

Terming that the NEP (New Education Policy) 2020 provides a good framework to realise this objective, the survey said new skilling initiatives and revamping the existing skilling initiatives should continue to be of high priority to the government.

"Skills are acquired on the foundations built by the education system, especially at the schools. Therefore, schooling should focus on the basic requirement of foundational literacy and numeracy and the realisation of grade-appropriate learning outcomes, adds the survey. The survey also calls upon the industry to take the lead in skill creation saying it has much to gain from taking the initiative with academic institutions rather than leaving it only up to the governments to do the heavy lifting. Indeed, it should be the other way around," said the survey.

The Economic Survey 2023-24 noted that the government is taking measures to create job and entrepreneurial opportunities that are in sync with the aspirations and abilities of India’s youth.

Highlighting the significant improvement in the proportion of skilled people across all socio-economic classifications, the survey pointed out that 4.4 per cent of the youth in the age cohort of 15-29 years received formal vocational/technical training, while another 16.6 per cent received training through informal sources.

The Economic Survey said that skill development is at the centre of changes happening in education and labour markets amid the global megatrends, such as automation, action against climate change and the digitalisation of products and services, which are changing the nature of work and skills demands.

It noted that with one of the youngest populations, a median age of 28, India can harness its demographic dividend by nurturing a workforce that is equipped with employable skills and prepared for the needs of the industry.

The survey highlighted that India has not only recognised the potential of its young workforce, but also the issues associated with skilling such a vast population. It says the National Policy on Skill Development and Entrepreneurship (NPSDE) focuses on bridging gaps, improving industry engagement, establishing a quality assurance framework, leveraging technology and expanding apprenticeship opportunities.

This, in combination with the National Education Policy (NEP), holds tremendous potential for bridging the education-employment gap in India, adds the survey.

The survey mentioned that 65 per cent of India’s fast-growing population is under 35, and estimates show that about 51.25 per cent of the youth is deemed employable. However, it must be noted that the percentage has improved from around 34 per cent to 51.3 per cent in the last decade, the survey adds.

Noting that productive jobs are vital for growth and inclusion, the survey says India’s workforce is estimated to be nearly 56.5 crore and will continue to grow until 2044. It estimates that the Indian economy needs to generate nearly 78.51 lakh jobs annually in the non-farm sector to cater to the rising workforce. However, to create these many jobs, there is a need to create the conditions for faster growth of productive jobs outside of agriculture, especially in organised manufacturing and services, even while improving productivity in agriculture, the Survey adds.

The survey further calls for maximising the outcomes from various skilling initiatives through convergence and utilisation of synergies with other employment-centric programmes which can further mutually benefit the two verticals.

Linking skill development with Production Linked Incentive (PLI) schemes and employment-linked incentive schemes in high growth potential sectors like toy, apparel, tourism, logistics, textiles, leather sector etc. would aid in upgrading skills as production moves up the value chain. On the apprenticeship promotion front also, there remains considerable scope to add flexibility to the regulatory framework, the Survey added.