1.1 Skills and knowledge are the driving forces of economic growth and social development for any country.
1.2 India currently faces a severe shortage of well-trained, skilled workers. It is estimated that only 2.3 % of the workforce in India has undergone formal skill training as compared to 68% in the UK, 75% in Germany, 52% in USA, 80% in Japan and 96% in South Korea. Large sections of the educated workforce have little or no job skills, making them largely unemployable. Therefore, India must focus on scaling up skill training efforts to meet the demands of employers and drive economic growth.
1.3 India’s annual skilling capacity was estimated at approximately 7 million during the period 2013-20143. Apart from meeting its own demand, India has the potential to provide a skilled workforce to fill the expected shortfall in the ageing developed world.
1.4 India is one of the youngest nations in the world, with more than 54% of the total population below 25 years of age and over 62% of the population in the working age group (15-59 years)4. The country’s population pyramid is expected to bulge across the 15–59 age group over the next decade. This demographic advantage is predicted to last only until 20405. India therefore has a very narrow time frame to harness its demographic dividend and to overcome its skill shortages.
1.5 The enormity of India’s skilling challenge is further aggravated by the fact that skill training efforts cut across multiple sectors and require the involvement of diverse stakeholders such as: multiple government departments at the centre and state levels, private training providers, educational and training institutions, employers, industry associations, assessment and certification bodies and trainees. All these stakeholders need to align their work together in order to achieve the target of ‘Skill India’.
1.6 The Ministry of Skill Development and Entrepreneurship (earlier Department of Skill Development and Entrepreneurship, first created in July 2014) was set up in November 2014 to drive the ‘Skill India’ agenda in a ‘Mission Mode’ in order to converge existing skill training initiatives and combine scale and quality of skilling efforts, with speed.
1.7 The Ministry, therefore, proposes to launch the National Mission for Skill Development (NMSD – known henceforth as, the Mission), which will provide the overall institutional framework to rapidly implement and scale up skill development efforts across India.
1.8 The vision, objectives and design of the Mission, draw on the lessons learnt from the implementation of skill development efforts over the past decade. It seeks to provide the institutional capacity to train a minimum of 300 million skilled people by the year 2022.
1.9 This Framework for Implementation will provide strategic direction to State governments and establish a clear line of action to enable India to achieve its skilling targets.
4.1 There will be a National Skill Development Mission at the Centre to steer, drive and execute the Mission’s objectives. Key institutional mechanisms for achieving the objectives of the Mission have been divided into three tiers. The Mission will consist of a Governing Council at apex level, a Steering Committee and a Mission Directorate (along with an Executive Committee) as the executive arm of the Mission.
4.2 Mission Directorate will be supported by three other institutions: National Skill Development Agency (NSDA), National Skill Development Corporation (NSDC), and Directorate General of Training (DGT) – all of which will have linkages with Mission Directorate to facilitate smooth functioning of the national institutional mechanism. These three agencies would continue to lie under the umbrella of Ministry of Skill Development and Entrepreneurship.
4.3 At State level, States will be encouraged to create State Skill Development Missions (SSDM) along the lines of National Skill Development Mission with a Steering Committee and Mission Directorate at State level. States will in turn, be supported by District Committees at the functional tier.
Mission Governing Council at Apex level will be headed by Hon’ble Prime Minister. Constitution of the Governing Council is as follows:
Union Ministers from MoF, MSDE, MHRD, MoRD, MoLE, MSME, MoA, M/o
Deputy Chairman, NITI Aayog
Principal Secretary to the Prime Minister
Secretary, SDE (as Member Secretary)
3 members from industry/academia as determined by Governing Council
3 State Chief Ministers as determined by Governing Council, on rotation basis
A Steering Committee, chaired by Minister incharge of Ministry of Skill Development and Entrepreneurship will be responsible for ensuring that implementation of Mission activities is done as per policies and decisions laid down by Governing Council. Secretary, Skill Development and Entrepreneurship will be Member Secretary of the Steering Committee. It will also consist of Secretaries of M/o Finance, M/o Rural Development, M/o Labour and Employment, M/o MSME, M/o Agriculture, M/o Human Resource Development, M/o Overseas Affairs, M/o HUPA and M/o Information Technology which are running large scale skill training programmes across the country.
Research & Development
National Skills Research Division (NSRD), under NSDA will be established to serve asthe apex body for providing technical and research support to the Mission. This institution will act as a think-tank for Ministry of Skill Development and Entrepreneurship and be the core skill development hub, which will connect implementation of the Mission with academic research and data. It will leverage expertise in Private domain and be headed by an economist/expert in the field of planning, with adequate domestic or international experience in skill development.
State Skill Development Missions
States will be encouraged to create State Skill Development Missions (SSDM) along thesame lines as National Skill Development Mission structure. Many States have already established SSDMs and others have started moving in this direction. A model frameworkwould be circulated for customized adoption by States. The organizational structure of the State Skill Development Mission is to be decided bythe respective States.
Seven key sub-missions
National Skill Development Mission will initially consist of seven sub-missions under its purview. Key focus areas of the sub-mission include: addressing the long-term and short-term skilling needs through revamp of existing institutional training framework and establishing new institutions, undertake sector specific skill training initiatives, ensure convergence of existing skill development programmes; leverage existing public infrastructure for skilling; focus on training of trainers, facilitate overseas employment, and promote sustainable livelihoods. Each sub-mission will act as a building block for achieving the overall objectives ofthe Mission.