Page 60 - EducationWorld March 2023

Special Essay

Bridge skills gap to

boost job creation

SANJAY VISWANATHAN

ITH A GDP OF RS.300 LAKH CRORE AND India’s biggest problem is bridging the
6.5 percent growth forecast — making the skills gap for job creation at scale. The
country the fastest growing economy glob-
Wally — India is adding 12 million youth to its country's GDP can grow to Rs.400 lakh
labour force annually. Nearly half are employed in agricul- crore, if its working-age population is
ture, and the other half is in industry and services.
India has the advantages of favourable demographics employed
and rapid digital penetration. Industry 4.0 supported by
the Gig economy is opening up a range of opportunities for ously through a learner’s journey, (2) Capability building of
youth. However, India’s target of 29 million skilled profes- educators, (3) Partner ecosystem for content, internships/
sionals and GDP target of Rs.850 lakh crore (by 2030) is apprenticeships/jobs/capital, (4) Hybrid infrastructure
perhaps too ambitious. with technology across skill spokes, skill hubs and skill
Unemployment at 8.3 percent is dragging down growth. universities (36 Indian Institutes of Skills in state capitals
Digitisation is driving automation while the workforce is and Union territories), and (5) National Command Control
unsuitable for the digital era. Only a quarter of India’s Centre with linkages to India’s 766 Skill Hubs for real-time
graduates are employable. With unemployment highest in data, interventions, monitoring of results/impact for skills
the 15-29 age group, the future looks grim. and jobs creation.
India’s biggest problem is bridging the skills gap for job India has renowned experts in the country and abroad.
creation at scale. The country’s GDP can grow to Rs.400 Woo them to provide skills training in India’s 1.5 million
lakh crore (i.e, 1.5x of the current US economy), if its work- schools, 42,000 colleges and universities. Half their time
ing-age population is employed. India needs a National should be spent on train-the-trainer (i.e, existing 9 million
Doctrine with four strong pillars — Mindset, Structure, teachers) to create core capacity and capability across the
Building Blocks, and Values. In my previous essay (https:// learning ecosystem.
www.educationworld.in/transforming-india-into-a-global- The AIMS platform with Skills + Internship = Employ-
education-hub/), I wrote about Mindset. Here I address the ability + Entrepreneurship equation must have best-in-
structure that India can adopt to bridge the skills gap for class partners for content, internships/apprenticeships,
jobs creation. jobs and capital. Government and industry should be joint
Make cars so highways can be built. Tomorrow’s owners of this platform for cohesive commitment to out-
world belongs to the skilled, not merely educated. Skilling comes, i.e, bridging the skills gap and create jobs at scale.
youth is similar to making cars first so highways can be Cross the checkered flag. Committed long-term finance
built. India’s current institutional framework of National is critical for the success of AIMS. South Korea provides an
Skill Development Mission, NEP 2020, Samagra Shiksha, apt case study.
Rashtriya Madhyamik Shiksha Abhiyan, and Sarva Shiksha After the Korean War (1953), South Korea’s GDP was
Abhiyan, are in the right direction and an excellent founda- Rs.4,250 crore. By investing in skills through education and
tion to build on. training at 7.5 percent of GDP — 5 percent from government
Yet making India’s youth skilled and employable calls for and 2.5 from industry — she grew to a GDP of Rs.153 lakh
a shift in the education system from emphasis on knowl- crore (ROI: 1,300 percent). Today South Korea’s GDP is
edge accumulation to its application. Skills training will 60 percent of India’s. Its population is 5 percent of India’s.
have to start from primary school and culminate in higher India can achieve similar growth if the Union Ministry of
education with internships/apprenticeships. Skill Development jointly builds AIMS with State/UT gov-
Industry has to partner with government through PPP ernments and industry, funded through PPP at 0.75 per-
(public private partnerships) to build a synergistic next gen- cent of GDP (i.e, Rs.300 lakh crore) annually (Rs.95,000
eration platform — Advanced Integrated Mission for per learner), 51 percent from government and 49 percent
Skills (AIMS) — for a skills ecosystem customised to de- from industry (as commercial investment, not CSR) secured
liver high quality, well-trained talent supply chain (i.e, cars) through sovereign guarantee so capital cost is low. Cumu-
to meet rising industry demand for skilled professionals in latively, Rs.19.25 lakh crore (2023-2030) can potentially
climate-smart agriculture, quantum computing, AI, robot- deliver additional GDP of Rs.168 lakh crore in 2030 (ROI:
ics, space, and green economy. AIMS can create long-term 875 percent).
impact among learners, employers/investors and govern- Skills for job creation at scale is the new infrastructure
ment to enable jobs creation and start-ups incubation (i.e, required to enable India to achieve her potential in a struc-
highways) to power India in Industry 4.0 and beyond. tured way, and become a First World nation in our lifetime.
When rubber meets road. AIMS should have five struc- (An alum of Harvard Business School, Sanjay Viswanathan is founder-
tural elements. (1) Testing at point-of-entry and continu- chairman of the London-based Adi Group and Ed4All)

62 EDUCATIONWORLD MARCH 2023