Monday, July 21, 2025

A template for skilling: Financial Express 22nd July 2025

 One of the anomalies in our system is that there is talk of demographic dividend where there is a large young population. At the same time there is a constant lament that we do not have adequate trained youth who can be hired for various jobs. This is a serious issue of demand and supply, which on deeper thought leads to the question of skilling the population. So, while we have a large number of youth with varying levels of education, the skill gap is still quite high. That there is scope to improve on this metric is a no-brainer.

There should be a medium-term strategy to bring about an alignment. There is some urgency given that the large-scale spread of use of technology and artificial intelligence can exacerbate the problem. Post-Covid, there has been a tendency among companies to gravitate more toward using technology that is displacing labour.

Skilling must begin in schools

First, there is a need for students in schools to be exposed to different crafts such as rudimentary carpentry, plumbing, electrical jobs, etc. These are skills which would be required all through one’s life. While presently the majority do hire such workers for their jobs, having the knowledge helps in times of emergency. At the school level, the mind is also alert and receptive to acquiring skills. This is evidently the case with sports and should be extended to other skills too. Ideally, this should be a part of the curriculum for all schools. This can be kept mandatory for two years in the 9th and 10th classes.

There can be a buy-in with the boards to set aside some marks for completing such courses. Several school boards also include foreign languages as part of the grading process. This can be included in a similar manner. In fact, schools have classes for art, craft, and physical training that can be extended to these skills too. Children from the lower income groups would be going to state-assisted schools—also called municipal schools—which should be covered in a more comprehensive manner. At a practical level, it may make sense for state boards to include these options in the curriculum and then expand to all-India boards depending on the outcomes.

Second, we need to have specific courses which look at honing these skills. Just like there are streams like arts, science, medicine, engineering, and information technology, there could be ones looking at practical skills that make students fit for joining industries such as construction, automobiles, or textiles that suffer from a skill shortage. By making it a formal course with a degree instead of a certification from vocational training institutes, an element of seriousness is introduced. In fact, there can be aptitude tests to guide students on what courses suit them best. The qualifying marks in school, which is normally fixed for professional courses, can be fixed at a lower level to draw students who are not good at academics. Also those who are unable to pass the school-level board exams can be nudged to these courses that are oriented more towards actual use of skills rather than textbook learning.

Link training to real jobs

Third, the employment-linked scheme of the government introduced last year was largely successful. The concept of having internships with companies is a novel way to get the youth have access to on-the-job training. Some public infrastructure spaces can be the perfect ground for grooming such students. There is a lot of investment in railways, ports, airports, among others. These organisations can accept students who have finished basic courses in schools and colleges and need to be provided jobs on real projects.

Here, the government can get youths to register with their qualifications in a database that can then be evaluated periodically and candidates short-listed for internship programmes. The companies which require such labour and are willing to train them in the requisite skills can also be enrolled. In this manner, demand and supply for such skills can be matched. The government can offer incentives in the form of a tax break or allow the cost to be reckoned under corporate social responsibility. A similar modality has been implemented in the internship scheme announced last year by the government; it can be modified for this purpose.

The problem is acute today given that employment generation has been a challenge. Spaces like logistics, retail, and construction have generated a good number. While some jobs like delivery do not require specific skill sets, they may not be sustainable for the individuals in the medium term as one cannot build a career in the same. As more unemployed individuals join this workforce, the earnings tend to get depressed. Construction too has challenges where developers are not able to get skilled persons like carpenters, electricians, etc. The major headcount is in menial jobs, which again do not help one move up the income

Hence a relook at our education system is necessary where a separate opportunity can be created for those who aren’t good in academics. In this manner the skill requirements in industries such as construction, auto repairs, sewing, handicrafts, etc. can be filled by creating a formal workforce with these qualifications. The on-the-job training via internships should focus more on manufacturing rather than services as this is where there is more value to be added. Besides, when we are talking about India becoming a part of global supply chains in manufacturing, having a skilled manpower is an imperative. It must also be noted that the government is only an enabler and has taken the first few steps. The states need to join in focusing on fine-tuning the education systems, but at the end of the day it is private enterprise which needs to hire and train labour. This can be a template that can be pursued for the next five years or so until 2030.

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