Post on 11-Apr-2018
YEAR February, 2014
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TITLE Skill Development and Higher Education in India
AUTHORS Public & Social Policies Management Group (PSPM), YES BANK
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CONTRIBUTORS National Skill Development Corporation (NSDC)
Delivering quality education is critical for holistic development of a Nation and is a key enabler for ensuring
inclusive and sustainable development. Expanding access to higher education, skill development and vocational
training enhances a Nation's competitiveness in the global economy and propels socio-economic development.
India has the world's third largest education system with the education market valued at USD 80 bn. With more
than 50% of India's population below the age of 25 years, it is imperative to focus on the youth of the country
and provide a suitable impetus to reap the demographic dividend.
th The Government has increased allocation for the sector to USD 66 bn in the 12 Five Year Plan and the
'Education for All' program has achieved significant milestones in extending education to even the remotest
villages, thereby significantly improving the literacy ratio. Private investment has also seen an upward trend with
FDI of USD 740.35 mn during April 2000 to September 2013, according to the Department of Industrial Policy &
Promotion (DIPP).
Despite a positive tide being witnessed, the sector faces a greater challenge of providing equal opportunities for
higher education and addressing sectoral and social imbalances. To match global excellence standards, it is
imperative to provide quality infrastructure and facilities as well as a robust curriculum by increasing investment
in R&D and pursuing greater international linkages and collaborations. India's higher education system is large
and complex, with 574 universities and almost 36,000 affiliated colleges having an enrolment of over 20 mn
students. Despite such large numbers, NASSCOM's report on Education and Employability highlighted low
employability of existing talent, with only 10-15% employable graduates in business services and 26%
employable engineers in technology services. To bridge these skill gaps and also promote entrepreneurship,
academia-industry tie ups need to be strengthened, along with policy reforms to improve faculty training,
encourage research and integrate changing global perspectives into academic courses. The academia also needs
to transform from pure learning institutions to centers of growth through partnerships with community, industry
and economy.
I am pleased to present this joint Knowledge Report titled 'Skill Development and Higher Education in India' by
ASSOCHAM and YES BANK, supported by NSDC, that provides a comprehensive framework for higher
education and skill development to build a truly world-class education system for India.
I am confident that the contents of this knowledge report will provide important insights to policy makers in
achieving Economic Security for India.
FOREWORD
Thank you.
Sincerely,
Rana Kapoor
President, ASSOCHAM
Managing Director and CEO
Education is of utmost importance for our youth given the fact that India has more than 50% of its population
below the age of 25 and more than 65% below the age of 35. It is expected that, in 2020, the average age of an
Indian will be 29 years, compared to 37 for China and 48 for Japan; and, by 2030, India's dependency ratio
should be just over 0.4. As the future of the country belongs to our youth, it is imperative that the stakeholders
should come together for deliberation on the way forward. Bridging the gap between education and
employability through skill development needs strategic and institutional planning.
ASSOCHAM is proud to present the National Education Summit and Awards 2014 on the most important
subject and hopes that the Conference creates a suitable platform for further deliberation. I am happy to
welcome the partners who have joined hands with the Chamber to make this endeavour successful. The
Knowledge Report titled “Skill Development and Higher Education in India” partnered by NSDC and YES BANK
has attempted to discuss the current scenario in education and skill development in India. ASSOCHAM sincerely
hopes that the publication can provide the basis for discussion.
MESSAGE
Thank you.
Sincerely,
D.S. Rawat
Secretary General
MESSAGE
Dilip Chenoy
CEO, National Skill Development Corporation (NSDC)
Education, Skills and employability are of paramount importance in today's context. The NationalSkill
Development Corporation is addressing the issue of skills through a focused approach in terms of creating
capacity and outcome driven workforce development through Sector Skill Councils. Human capital needs in all
20 high growth sectors identified by the planning commission such as automotive, tourism, security, retail,
media and entertainment, IT&ITeS, healthcare, constructionare being targeted but the task is challenging and
innovative and disruptive solutions are needed . India's demographicsoffera huge opportunity to utilize the
potential of Indian youth and the government and the private sector are working in tandem to ensure the same.
NSDC is working with the government to address critical ecosystem needs such as the Qualification
Framework. The National Skills Qualification Framework which was approved by the Cabinet in December 2013
will allow pathways and equivalence for both academic and vocational streams. NSDC is also working with state
governments to introduce vocational education in schools.
It is important that corporate houses, private institutes, state governments and non-government organizations
join hands to comprehensively address the skill gap issueand create an enabling ecosystem for skill
development and employability. NSDC has sector specific skill gap studies as well as disaggregatedreports in
form of state skill gap reportswhich is aimed to help all interested to serve this space to understand status and
needs across industry and geographies.
NSDC is happy to partner ASSOCHAM in its endeavour to provide a discussion platform among stakeholders.
Education and skill is not only about numbers but also quality. All education and training initiatives are moving
from a knowledge based regime to an outcome based one. The need is for diverse partners to collaborate and
strategize on the way forward in education and skill development to create shared value. Several countries have
well developed TVET systems and their experience in aligning academics and VET to meet the needs of the
labor market is greatly valued. Cooperation with international organizations and effectively adapting and adopting
best practices is in India's best interest. I am sure the knowledge publication by YES BANK and ASSOCHAM will
provide reference for effective discussions during deliberations.
I look forward to the participation of industry leaders in promoting education and skill development more
proactively to transform the lives of youth across the country.
Regards
1. Education Scenario in India 01
2. Skill Development 11
3. Delivering Education 19
4. Reforms in Higher Education 27
5. Conclusion: Education Catalyzing Equitable Growth 33
1.1 Education: A Catalyst for Social and Economic Development 03
1.2 Access and Equity 05
1.3 Quality of Education and Trainers 08
2.1 Enhancing Employment Potential 12
2.2 Framework for Skill Development 15
3.1 Right to Education 21
3.2 Distant Learning 23
3.3 Paving way for E-Learning / Cloud University 24
3.4 International Engagements in Education and Skills 25
4.1 Financing Infrastructure 29
4.2 Academic Restructuring 29
4.3 Governance and Regulatory Reforms 31
CONTENTS
Skill Development and Higher Education in India02
Ministry of Human Resource DevelopmentMinistry of Labour and Employment,
and other ministries agencies of Government of India
Education Skill Development Vocational Training
PrimaryEducation
SecondaryEducation
HigherSecondaryEducation
HigherEducation
ITI/ITCsOther Vocational
TrainingModular/Short-term
State Government and their agencies
The importance of education in stimulating social and economic development has always
been central to Government interests. Education positively influences various facets of
growth and development such as poverty reduction, health, gender equality among others.
The Government has made significant progress with respect to primary education
attendance rates and literacy penetration has increased to nearly one third of the entire
population in India. In 2012, 96.5% of all rural children aged 6-14 and 83% of all rural
children aged 15-16 were enrolled in school. As per current estimates, nearly 80% of all 1schools in India are Government schools . In cities, more than 50% of the children were
enrolled in private schools whereas the share of rural children enrolled in private schools
was nearly 20% in 2004-05. As per the 2011 census, there is still a vast disparity between
States in terms of their literacy rates. Kerala had a literacy rate of 93.9%, while the literacy
rate of Bihar stood at 63.8% in 2011.
Education Scenario in IndiaChapter1
Figure 1: Structure of Education and Skill Development in India
Source: Human Resource and Skill Development in the Education and Skill Development Services Sector, NSDC
1 Annual Status of Education Report 2012
Skill Development and Higher Education in India03
1.1 Education: A Catalyst for Social and Economic Development
Education is a key enabler towards driving the agenda of inclusive and sustainable
development. Stepping forward and expanding access to higher education and vocational
training can enhance India's competitiveness in the global economy, thereby reinforcing the
social and economic development of the country. Even if we look at the business aspect of
education, the Indian market stands at USD 80 billion, and is the third largest education
system in the world.
üThe Right of Children to Free and Compulsory Education Act was enforced in April
2010. This had farfetched implications on the Sarva Shiksha Abhiyan programme,
one of the largest programmes in the world launched with the aim of
universalization of elementary education in India.
Figure 2: Elementary Education (Class I – VIII) – Statistical Overview
Source: Annual Report, 2012-13, Ministry of Human Resource Development, Government of India
Year
2006-07
2007-08
2008-09
2009-10
2010-11
Enrollment (in lakh)
1881
1927
1899
1951
1974
Gross Enrollment Ratio (in %)
97.1
100.3
99.8
102.5
104.3
Drop Out Rate (in %)
45.9
42.7
42.3
42.4
40.6
üIndian higher education system is a large and complex system with 574 universities
and more than 35,539 affiliated colleges enrolling more than 2 crore students.
Figure 3: Higher Education System - Statistical Overview
Year
Universities
Colleges
AICTE approved Technical Institutions
Distance Teaching Universities /Institutions
Enrollment in the Universities and Colleges (in lakh)
Enrollment in Open Distance Learning (ODL) System (in lakh)
Enrollment in Post School Diploma/PG Diploma (in lakh)
Intake in AICTE approved Technical Programmes (in lakh)
2011-12
574
35539
1350
200
203.27
38.56
23.02
30.1
Source: Annual Report, 2012-13, Ministry of Human Resource Development, Government of India
Skill Development and Higher Education in India04
üGross Enrollment Ratio (GER)
measuring access to higher 2
education for the year 2011-12 is
at 18.8%.
thüThe Planning Commission (12
plan) aims at raising the Gross
Enrollment Ratio (GER) in Higher
Education to 20% by 2017 and
25% by 2022. The XII Plans aims
an additional enrollment of 10
mill ion in higher education
equivalent to 3 million additional
seats for each age cohort
entering the higher system.
üThe figure below gives an inter-
country analysis of the Gross Enrollment Ratio. Strikingly, India's GER not only lags
behind developed countries such as US, Japan and Australia but also developing
countries such as China, Brazil, and Malaysia.
2 GER measures the access level by taking the ratio of persons in all age group enrolled in various programmes to
total population in age group of 18 to 23
Figure 4: Gross enrollment Ratio (GER)
in Higher Education
Source: Annual Report, 2012-13, Ministry of Human
Resource Development, Government of India
20
18
16
14
12
10
8
6
4
2
02005-06 2006-07 2007-08 2008-09 2009-10 2010-11
11.6112.39
13.113.7
15.0
18.8
Figure 5: Country-wise GER and GDP per capita comparison
Source: EandY Report Higher Education in India: Twelfth Five Year Plan (2012–2017) and beyond
USADeveloped nations
Switzerland
JapanFrance
SwedenUK
Spain
Republic of Korea
Russia
120
80
GE
R,
201
0
40
Philippines
ChinaIndonesia
India
Brazil
Saudi Arabia
Malaysia
Developing nations
Australia Denmark
0
0
20,000 40,000 60,000 80,000
GDP per capita (Current USD), 2010
Skill Development and Higher Education in India05
The higher education system has
been witnessing healthy growth
over the last decade. Nearly
1 ,211 new co l leges were
established during 2010-2011,
thus taking the total number of
colleges to 33,023 in 2010-2011
as against 31,812 colleges in
2009-2010, reg is ter ing an
increase of approximately 4%.
Despite the increase in the
number of higher education
centers, it does not imply that
the ent i re populat ion has
equitable access to education
infrastructure or quality trainers.
To improve enrollment, entree
and job worthiness through
higher education, India needs to focus on the following:
üPolicy changes in favour of improving the education system in India
üAdopting innovative techniques for imparting education through e-learning and
distant education
üAddressing the requirement of the less privileged class through proper training and
skill development
In terms of GER, India lags behind
as compared to other countries.
Within the country there is wide
disparity in the GER of higher
education across States, gender
(17.1 for males and only 12.7 for
females), regions - urban and rural
areas, and communities (GER for
SCs and STs were 11.1 and 10.3,
respectively).
1.2 Access and Equity
35000
30000
25000
20000
15000
10000
5000
0
No
. o
f C
oll
eg
es
No
. of U
niv
ersitie
s
700
600
500
400
300
200
100
01950-51 1960-61 1970-71 1980-81 1990-91 2000-01 2010-11 Dec, 2011
Years
No. of Universities No. of Colleges
33023
3055
103133
190
256
634
564
12806
7346
47223604
1542695
Figure 6: Number of Colleges and Universities
Source: MHRD / UGC
100%
60%
80%
40%
20%
0
Russian
Federation
OECD Brazil China Indonesia India
Source: Annual Report, 2012-13, Ministry of Human
Resource Development, Government of India
Figure 7: Enrollment of students in higher
education institutes
Skill Development and Higher Education in India06
State Distribution
As far as the number of universities and affiliated colleges are concerned, there is an
uneven distribution of universities amongst States with Tamil Nadu (2,234), Uttar Pradesh
(3,786), Rajasthan (2,289) Andhra Pradesh (3,777), Maharashtra (4,249), Karnataka (2,907),
Gujarat (1,736), have major concentration.
Source: UGC, Higher Education at a Glance
Figure 8: State wise Number of Universities / University Level Institutions in the
Country (December, 2011)
Despite a considerable rise in higher
education, a State wise disparity in the
distribution of colleges has been
observed. A majority of colleges are
situated in southern India which
accounts for nearly 33% of all colleges
in the country. On the basis of this data,
22% of the colleges are located in the
central region, 19% in the western
region, 11.5% in the eastern region and
10.5% in the northern region.
46
3
10
21
15
25
36
2218
11 12
42
19
28
44
3
9
3 4
1917
48
59 58
19
26
3 4
Andhra
Pra
desh
Aru
nac
hal
Pra
desh
Ass
am
Bih
ar
Chat
tish
gar
h
Goa
Delh
i
Guja
rat
Har
yana
Him
achal
Pra
desh
Jam
mu a
nd K
ashm
ir
Jhar
khan
d
Kar
nat
aka
Kera
la
Mad
hya
Pra
desh
Mah
aras
htr
a
Man
ipur
Meghal
aya
Miz
ora
m
Nag
alan
d
Odis
sa
Punja
b
Raj
asth
an
Sik
kim
Tam
il N
adu
Trip
ura
Utt
ar P
radesh
Utt
arak
han
d
West
Bengal
Chan
dig
arh
Puduch
err
y
0
10
20
30
40
50
60
Num
ber
States / UT's
Region
Southern
Central
Western
Eastern
Northern
Percentage
of Colleges
33
22
19
11.5
10.5
Population in
the age group
18-23 (in crore)
2.90
4.70
4.26
3.56
–
North-East 3.5 0.60
Figure 9: Regional Distribution of
Colleges in India
Source: UGC, Higher Education at a Glance
Skill Development and Higher Education in India07
Skilled workforce provides the backbone for economic development. Ensuring equitable
access to higher education is imperative to infuse balanced development across the
landscape of the country.
üDecentralization of universities is important to improve access to education.
üDevelopment of supporting infrastructure to improve the outreach of quality
education should be facilitated through appropriate mapping, policy and budgetary
support.
Figure 10: State wise Number of Colleges 2010-11*
Source: UGC, Higher Education at a Glance
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
16
507 653
641
54
1836
902
344
328
231
3078
1063
2236
4631
76 64
28
55
110
0852
2412
2267
3859
360
942
6 25
3 4
243
1 86
Andhra
Pra
desh
Aru
nac
hal
Pra
desh
Ass
am
Bih
arC
hat
tish
gar
h
Goa
Guja
rat
Har
yana
Him
achal
Pra
desh
Jam
mu a
nd K
ashm
ir
Jhar
khan
dK
arnat
aka
Kera
la
Mad
hya
Pra
desh
Mah
aras
htr
aM
anip
ur
Meghal
aya
Miz
ora
mN
agal
and
Odis
sa
Punja
b
Raj
asth
an
Sik
kim
Tam
il N
adu
Trip
ura
Utt
ar P
radesh
Utt
arak
han
dW
est
Bengal
A &
N I
slan
ds
Chan
dig
arh
Lak
shdw
eep
Dam
an &
Diu
Delh
iD
& N
hav
eli
Puduch
err
y
*Provisional States/UT's
The table above covers public, aided and private unaided colleges. Evidently a skewed
distribution of the number of institutions of higher education in India is observed across all
states. Moreover, a skewed growth has also been observed in professional disciplines in
comparison to basic sciences, social sciences and humanities. In addition to this disparity,
efforts made towards expanding higher education have majorly been concentrated towards
the private sector lending to non-affordability of higher education by greater share of the
society. This has therefore made higher education an enterprise rather than medium
serving long term social and economic good.
Skill Development and Higher Education in India08
üInfrastructure provisions and supporting infrastructure such as facilities for hostel
accommodation, infrastructure to enable learning through ICT etc. provides a
conducive environment for promoting higher education and research and
development.
India has been moving towards ‘Education for All’ and has achieved considerable success in
extending education to even the remotest villages in the Country. Despite this success, the
quality of education still remains a major concern. Some key observations concerning the
quality of education in India are:
üOnly 20% of graduates are found employable by the industry and this is more so in
professional education like Engineering. Reports and survey indicate that students
qualifying from higher education institutes lack skills required by the industry. This is
primarily because academia curriculum is mostly not in line with the skill
requirements of industries. To bridge skill gaps, academia should tie up with
industries to help design curriculums in line with their requirements.
üIndia has one of the highest students–teacher ratio as indicated in the figure. The
ratio stood at 26 which is comparatively high compared to 16 for BRIC and 15.3 for
developed economies.
üNational Assessment and Accreditation Council (NAAC) had rated 62% of the
universities and 90% of the colleges as average (B) or below average (C)
üIt was found that only 25% of the students in grade V were able to solve basic
arithmetic calculations and most students were found to be three grades below the
level they were actually in.
üIn 2010, 46.3% of all 5th
grade children couldn’t
read a 2nd grade level text.
This proportion increased
to 51.8% in 2011 and
53.2% in 2012. A state
wise disparity has also
been witnessed in terms
of the quality of education.
The major decl ine in
reading levels was mainly
identified in the states of
Bihar, Madhya Pradesh,
Maharashtra, Kerala and
Haryana.
1.3 Quality of Education and Trainers
Figure 11: Skill required for trainers
'Hard' teaching
skills (Subject
Specific)
'Soft' Skills
Aptitude and
attitude for
training
Awareness of
'Principles of
Teaching'
Industry
Experience
Skill Development and Higher Education in India09
üSome of the major reasons attributing to the decline in quality of education have
been the increasing use of single classrooms for teaching children in more than one
grade and decline in attendance rates of teachers and students in rural areas.
üEvidently greater emphasis is being laid on increasing literacy rates over quality of
education. It is essential to ensure the quality of expansion along with increase in th
enrollment. The 12 Five Year Plan addresses this problem and focuses on improving
the quality of education.
üFaculty Re-Charge Scheme, aims to strengthen high quality research in science
related disciplines and encourage innovative teaching through introduction of new
talent across all levels of academic hierarchy.
üScheme for Enhancing Faculty Resources of Universities is responsible for tapping
intellectual and scholarly resources available outside the university and college
mainstream in the public and private sector organizations.
Figure 12: Student Teacher Ratio (in %) Figure 13: NAAC Accreditation (in %)
26
16 15.3
India BRICaverage
Developed economiesaverage
38.4
57.9
3.810.1
68.0
21.9
Universities
A (A++, A+ and A) B (B++, B+ and B) C (C++, C+ and C)
Colleges
To ensure quality of education in India, the
following steps must be adopted -
üD i a l o g u e a n d c o o p e r a t i o n o f
professionals and experts from outside
the university-and-college mainstream.
üEnsure interface with Industry by inviting
professionals to advice on the courses
structures and provide course materials
that include with practical experience.
Figure 14: U21 Ranking of Higher Education Systems
100
77.8
76.8
48.3
47.2
34.4
Australia
United States
UK
China
Brazil
India
Source: EY Report: Higher Education in India: Twelfth Five Year Plan (2012–2017) and beyond
Source: EY Report Higher Education in India:Twelfth Five Year Plan (2012–2017) and beyond
Skill Development and Higher Education in India12
Instilling the right skills and knowledge base can form the building blocks of our economy,
taking growth to a new high. With 672 million people out of 1.1 billion in the working age
group of 15 to 59 years, it is imperative to focus on the youth of the country and provide
suitable impetus to reap the demographic dividend. There is a pressing need to address the
problems associated with skill development in India, given the trends of the rising youth
unemployment in the country. India's demographic asset if equipped with appropriate skills,
can effectively contribute to the development of the country.
Skill Development Chapter2
Figure 15: India- State by literacy 2001-2011
2.1 Enhancing Employment Potential
The higher education system in India is in a transition stage. Various initiatives
transformations have taken place and proposed to keep pace with the growing industry
demands and global positioning of Indian economy.
r
Biha
Rajast
han
n
aP
de
Adhr
ra
sh
Utt
rar
Pad
esh
C
thga
hatis
rhd
Oiss
a
Meg
halay
a
Har
yana
We
eg
st B
nal
Uttara
khnda
Nag
alan
d
Ski kim
Ha
hP
e
imc
al ra
dsh
Kerala
Tru
aip
r
0102030405060708090
100
2001 (in%)
2011 (in%)
Source : Census 2001 and Census 2011
(in P
erc
enta
ge)
Skill Development and Higher Education in India13
thThe 11 Five Year Plan focused on developing a comprehensive National Skill Development
Mission, with the establishment of a three-tier institutional structure comprising of Prime
Minister's National Council; National Skill Development Mission Coordination Board
(NSDCB); National Skill Development Corporation (NSDC). The PM's National Council
delineates the policy advice and aims to create nearly 50 crore skilled people by 2022
through skill systems that demand a high degree of inclusivity. NSDCB is responsible for
coordinating the efforts of Central Ministries/Department of States while NSDC has
adopted comprehensive action plans that would encourage the adoption of PPP models of
financing skill development.
th Higher education reforms under the 11 Five Year Plan saw a nine-fold growth in
Government spend on higher education in India, based on recommendations of the
National Knowledge Commission (NKC) report (2009). However, improvements in terms of
quality of higher education delivery have been in significant. The issues of skills shortages,
and unemployable graduates still prevails at large.
As a result of the initiatives, there has been tremendous growth in the number of higher
education institutions and enrollment rates. However, the problem of inequitable access to
higher education across the Indian geography along with shortage of competent faculty,
deficient infrastructure and inadequate research persists.
Employability is a very important aspect of the higher education system. The need of the
hour is to take serious consideration of the career paths to inculcate the requisite skills
such as analytical thinking, communication skills, presentation skills, working in teams and
information technology. Various recommendations from the NKC Report also point in the
same direction:
üLack of command over spoken and written English which is the primary medium of
teaching in all higher education courses.
üLibraries and portals for access to information, books, multi-lingual translations of
major works in all spheres
The report has recommended to:
üSet up 50 national universities
üIncrease focus on research across streams and on Math and Science.
üDevelop distance education as a methodology and also create open content for
education
In the current scenario, employers look at academics not only as achievements, but also for
three key types of skills: cognitive, non-cognitive, and technical skills. Cognitive skills
include critical thinking and basic functions like literacy and numeracy. Non-cognitive skills
Skill Development and Higher Education in India14
or behavioural skills include interpersonal communication skills, while technical skills are
usually geared towards a specific occupation. While technical and basic cognitive skills are
still important in workplaces, transferrable and non-cognitive skills such as communication,
problem-solving, punctuality, and flexibility are increasingly important, particularly for the
informal economy.
Crucial non-cognitive skills are not being acquired by students in the present academic
setting. Although the curriculum is getting reviewed to better promote skills such as
teamwork and communication, actual teaching and learning have not kept pace. Teachers
are often not appropriately trained to impart these new skills, and still take a “direct
transmission” view of teaching, where rote-learning is common and teaching is geared only
towards the national examinations, which are themselves mainly geared towards selection
for further admissions.
Qualitative capacity building being need of the hour, enrollment ratios also need to increase
manifold to match international standards. The pedagogy, regulations, evaluation criteria,
curricula and infrastructure needs to be revamped. The focus needs to shift to innovative
curriculum that trains the students not just to deal with a technical situation but also to
inculcate behavioral traits that enable them to become a better contributor to the industry.
Degree courses account for bulk of the enrollment over diploma courses
• Enrollment in Degree Courses -
üUndergraduate Degree- 16.2 million
üPostgraduate Degree – 2.2 million
üPhD Degree – 0.1 million
• Enrollment in Diploma Course – 3.3 million
Enrollment in professional courses has also increased in the last five years. Professional
courses account for significant enrollment, the fee for such courses is significantly higher
than general courses (upwards of 10 times), resulting in majority expend towards such
courses.
To empower the working population, it is essential to restructure academic courses to
ensure their relevance in the industry. It is also essential to form effective linkages with
employers, external advisory resource support, trainers and courses to encourage
innovation and absorption into the work-force. Research to formulate suitable skill
development framework should be undertaken to ensure employability of the learners.
Skill Development and Higher Education in India15
Along with reforms in the course structure, it is important to provide necessary supporting
infrastructure to ensure efficient delivery of the envisioned education system.
Education is the key to human resource development and a vehicle for economic growth of
a country. But without a support skill for employment or vocational work, the appropriate
utility of education cannot be done. Employers are increasingly finding it difficult to find
employable youths, even though there are enough educated unemployed
2.2 Framework for Skill Development
Figure 16: Annual Growth Rate of Enrollment (million) 2007-12
CAG
.6R
5%
14.3
10.9
7.1
2.8
CAG
R 20.
6%
General courses Professional courses
Annual growth rate of enrollment (million) 2007-12
*Excludes enrollment 'other'courses
2007 2012
Figure 17: Level wise Student Enrollment Figure 18: Faculty wise Student Enrollment
Graduate 64%
PostGraduate
27%
Research 5%
Diploma/Certification
4%
4%1%
0%2% 1%
Arts
Science
Commerce/Management
Education
Engineering/Technology
Medicine
Agriculture
Veterinary Science
Law
Others
36%
19%
17%
3%
17%
Level-wise Student Enrollment : University Teaching
Department / University College 2010-11
Faculty -wise student Enrollment :
Universities and Colleges: 2010-11
Source: EY Report: Higher Education in India: Twelfth Five Year Plan (2012–2017) and beyond
Source: EY Report: Higher Education in India: Twelfth Five Year Plan (2012–2017) and beyond
Skill Development and Higher Education in India16
Currently, there exists a three tier institutional mechanism framework in the country with
the Cabinet Committee on Skills at the apex with the National skills Development Agency
mandated to oversee and co-ordinate the efforts of various Government initiatives and the
National Skill Development Corporation.
Figure 19: Skill Development
Skill development
OptimizingResources Increased
Productivity
EconomicGrowth
• Increasing income• Improving employability
• Increasing investment• Entrepreneurship
Involvement of private and setting up of Public Private Partnerships in skill development
was aimed to lower the burden on the exchequer and also develop financially viable and
self-sustainable models to be taken up for standalone skill development as a focus area for
an organization. The NSDC Board till date has approved more than 100 large scale,
sustainable, outcome driven projects from various private sector players across all sectors
with high projected demand for manpower. As on date more than 2000 NSDC Training
Partner centers are available in over 350 districts of the country.
The influx of private players into higher education and vocational educational sectors has
not just shown that the education industry is financially viable, but has also brought the
focus on how high quality and standards which can be maintained without much
intervention from various state agencies.
Several special initiatives are also being implemented by NSDC such as the STAR scheme
which is a monetary reward scheme for youth who successfully complete a standards
based training course with third party industry certification. The UDAAN program which is
Special Industry initiative for graduates and postgraduate youth of JandK is targeted to train
40,000 in next five years. More than 40 large corporates have taken the lead to train these
youth and link them to jobs
The Cabinet also approved the National Skills Qualification Framework on December 19,
2013 wherein there would be a 10 level architecture catering both to academic and
vocational streams. Since the available career and academic pathways for vocational
streams is limited, the importance of this framework cannot be overstated as it will allow
every qualification to be mapped to a given level in the framework and will allow
equivalence and enable pathways for vertical and horizontal mobility.
Skill Development and Higher Education in India17
As part of the framework, there is a requirement to understand the skill sets that are
required by various industries among their workforce and a setup to follow and create a
curriculum that can inculcate the same in the students and existing and future employees
of these industries. Also the same needs to be constantly upgraded to meet the changing
requirements of the industry with the advent of new technologies. With the involvement of
the industry, the process for skill development can take place at an accelerated pace and
towards this end Sector Skill Councils which have been set up. As industry led bodies,
SSCs are mandated to analyze the job roles in demand sector wise and develop occupation
standards and qualification packs for each job role. This creates the base for aligning all
curriculum and content to be aligned to defined job roles with uniform standards. This
enables a move from knowledge led to an outcome or demand driven skills training regime
for the country.
Vocational training which was largely Government-led till recently today has several large
private sector players who have set up training capacity across the country. The capacity
created caters both to fee based employment linked training as well as different State and
Central Government skill schemes.
Figure 20: Vocational Training Infrastructure in India
Type of Source Institute
Mainstream education System Centrally Sponsored Scheme of Vocationalisation of Secondary
Education run by the Ministry of Human Resource Development
Training institutions outside the
school and university systems
Industrial Training Institutes (ITIs) and Industrial Training
Centres(ITCs)
Diploma level Polytechnics
Source: Website of Ministry of HRD Ministry of Labour & Employment
The Vocational training initiatives cater to a wide variety of job roles across sectors and
cater to all segments ranging from school drop outs to graduates.
As per the NSDC report on Human Resource and Skill Requirements, the demand for
vocationally skilled persons (in addition to Industrial Training Institutes (ITI) /Industrial
Training Centres (ITC) qualified persons) is anywhere between 25% and 85% of the
workforce depending on the nature of the industry.
Vocational training institutes can also enhance the marginalized population's income earning
capacity, only if the awareness among the employers can be built up between certified
workers and unorganized employment. The need for a standardized certificate is the biggest
need of the hour in vocational education
Skill Development and Higher Education in India18
It is expected that the requirement for such Vocationally Trained human resource (with skills
acquired over a short timeframe and are modular/job oriented, over and above that of
ITI/ITC) would be over 112 million persons between 2008 and 2022, i.e., over 8 million
persons annually.
The relative proportion of this requirement is spread across key industries such as textiles,
electronics and hardware, organized retail, leather, gems and jewelry, building construction,
auto and auto components, furnishing, food processing, chemical and pharmaceuticals,
transportation and logistics. This would further fuel the demand for trained
teachers/trainers.
The Ministry of Labour and Employment and Ministry of HRD play a key role in expanding
capacity of institutions (Government and private), polytechnics and community colleges
across the country. Modular Employment Scheme (MES) under the DGET provides a wide
range of short term courses in the vocational stream. Similarly, the National Council for
Vocational Training (NCVT) and State Council for Vocational Training SCVT course options are
also available.
The Ministry of HRD is also actively promoting Vocational Education in schools. Pilots have
been launched in states like Haryana and Himachal Pradesh in conjunction with select
Sector Skill Councils. These courses would be available from Class IX to XII.
The coordinated efforts of the Government and private sector to provide training to all
segments of society while addressing the underlying need for standards and Quality
Assurance and helping build the eco system through a Qualifications Framework, Labour
Market Information System etc is expected to go a long way in addressing needs of the
economy and larger social issue of empowering youth through skills
In light of market demands, the current focus of skill development has shifted to the learner
and his/her requirement and expectations from vocational education and training.
Evolving a framework for organizing qualification according to series of level of knowledge
along with competency based skill framework has been undertaken under the National
Vocational Educational Qualification Framework (NVEQF) pilot, which will help link various
levels of learning and provide comprehensive information on possible pathways for a leaner
to progress in the education system. According to the estimates of MHRD, new entrant to
workforce every year is 12.8 million of which existing skill development capacity is only for
3.1 million people.
Skill Development and Higher Education in India20
In the recent years, emphasis has been laid on widening the reach of educational
institutions to the masses. India has made remarkable progress in increasing the
attendance and participation rates in primary education and expanding literacy to almost
three quarters of the population. Distant learning and e-learning have also considerably
contributed towards the number of students enrolled in higher education.
Delivering EducationChapter3
Figure 21: Percentage of rural elementary schools (primary and upper primary) with
inadequate number of classrooms, 2008–09 (in %)
State
Andhra Pradesh
Assam
Chhattisgarh
Gujarat*
Himachal Pradesh
Jharkhand
Kerala*
Maharashtra*
Meghalaya*
Nagaland
Arunachal Pradesh
Bihar
Goa
Haryana
Jammu and Kashmir
Karnataka
Madhya Pradesh
Manipur
Mizoram*
No classroom
4.34
0.03
4.06
0.95
0.00
21.90
0.67
3.64
4.28
0.00
2.68
21.86
0.54
0.77
1.86
0.24
1.05
1.56
0.80
Single classroom
27.21
49.03
3.20
2.72
5.82
1.29
1.07
6.75
24.85
0.18
34.98
5.28
18.00
1.50
17.93
9.08
3.68
1.56
2.34
Less than four classrooms
64.03
81.27
78.37
42.93
65.33
72.59
5.82
52.49
78.15
2.50
67.38
66.92
65.85
33.18
66.19
51.80
70.48
39.99
39.15
Skill Development and Higher Education in India21
3.1 Right to Education
Over the last decade, the Indian education system achieved significant success. India is
now one of the few countries in the world to ensure the provision of child centered, child
friendly education to help them derive their maximum potential. The Right to Education Act
came into effect in April 2010 with the aim to provide free and compulsory education to all
children in the age group of 6-14 years as a Fundamental Right. The Act provides for the
following:
üRight of children to free and compulsory education till the completion of elementary
school.
üIt makes provisions for a non-admitted child to be admitted in an age appropriate
class
üIt mentions duties and responsibilities of appropriate Governments, local authorities
and parents in providing free and compulsory education and outlines the share of
financial and other responsibilities between the State and Central Governments.
üIt lays down the norms and standards relating inter alia to Pupil Teacher Ratios,
infrastructure, school-working days; teacher-working hours.
üIt provides for the appointment of well trained teachers with requisite entry and
academic qualifications.
üIt also provides for an all round development approach in building the child's talent,
knowledge and potential.
State
Orissa*
Rajasthan
Tamil Nadu
Uttar Pradesh
West Bengal
Punjab
Sikkim
Tripura
Uttarakhand
India#
No classroom
5.64
2.21
0.00
0.92
11.82
1.54
1.19
0.05
2.24
4.31
Single classroom
5.06
3.21
0.00
0.29
5.75
2.97
1.37
0.66
1.92
8.43
Less than four classrooms
59.60
50.96
38.60
40.02
54.39
50.61
19.52
22.48
72.24
57.07
Source: NUEPA (2010) Elementary Education in India
Skill Development and Higher Education in India22
The Right to Education Act does have ambitious goals, but there are major flaws evident as
well. The schedule of the act lays down discriminatory and inferior infrastructural and
teacher-associated standards and norms. If we go by the current rate, two-thirds of primary
schools will be left without a separate teacher or classroom for each class. Nearly three-
fourth of the primary schools and more than half of the upper primary schools would not
have a headmaster. This would imply that a single teacher would be teaching children in
more than one grade simultaneously while managing administrative responsibilities also.
This is believed to remain a normal feature in all government schools as long as the RTE Act
continues to prevail, due to sheer manpower problem coupled with government's inability
to pay. The government therefore needs to ensure greater investment for educational
infrastructure and well qualified teachers with requisite skills. Moreover, training local
communities to educate rural children can be undertaken to encourage a more inclusive
approach towards expanding education.
In addition to these flaws, the Act's Section 27 permits the administration to involve the
teachers in a number of non-teaching tasks like census, election duties and disaster-related
duties. Also, the Act provides for the recruitment of only contract teachers which denies
them of dignified salaries and social security. This is expected to have detrimental
implications on the quality of education imparted. Moreover, the no-fail policy for students
upto class eight further reduces the competitiveness of the students leading to an overall
deterioration of quality of education. Government efforts need to be directed towards
attracting well qualified teachers and adopting suitable policies that encourage student
teacher interaction and also improve the quality and teaching environment.
Figure 22: Male Female Gap in Literacy Rates
M
halay
eg
a
izor
M
am
Tri
ura
p kSi kim
Assam
Tam
il Nad
u
Aruna
chal P
rade
sh
Mah
aras
htra
Andhr
a Pra
dehs
INDIA
Odiss
a
Ut ar
ra
desh
tP
m
i
Jam
u an
d Kas
hmr
as
h
Chtti
hgar
a asth
a
Rj
n
Source :Census 2001 and Census 2011
2011 Male Female Literacy Gap
0
5
10
15
20
25
30
While the gap between men and women in access to higher education has been eliminated th
in a few states, the 12 Five Year Plan aims to eliminate this gap atleast at the overall level. 3
The GER for males stood at 19.0 and that for females stood at 15.2 in 2007-2008 . This gap
Skill Development and Higher Education in India23
Source: Higher Education in India: Twelfth Five Year Plan (2012-2017) and Beyond, EY
Figure 23: Growth in Distance learning
AG 10.9
CR
%
4.2
2.74
1.38
0.590.17
1980-81 1990-91 2000-01 2011-122006-07
Student enrollment in distance education (million) Distance education enrollment by institution (2011-12)
*These DEIs include more than 40 private institutions
16.6%
25.7%57.7%
Indira Gandhi National
Open University (1)
State Open Universities
(13)
Other DEIs (183*)
between male and female literacy rates has been observed to be lower in urban areas,
indicative of the need for the government to adopt geographically targeted efforts towards
reducing this disparity in states with greater inequality.
Over the last three decades, enrollment in distance education has grown at a rate of 11%
with 4.2 million students. Distance education offers vast opportunities for Indian students
to gain first-hand knowledge of global developments, trends and techniques without
physically living in countries abroad. It also opens avenues for employment and international
careers thereby fostering globalization of economies and labour forces.
Some of the key challenges faced by the Distance Learning process include:
üHigh drop-out ratio
üLow engagement between students and the university / college conducting
distance education
üFocus more on theory with practical learning getting diluted owing to lack of touch
3.2 Distant Learning
3 http://www.ugc.ac.in/ugcpdf/740315_12FYP.pdf
The Distance Education Council was established under the IGNOU Act, 1985 with the
purpose of coordinating the maintenance of standards in the Open and Distance Learning
System. In line with its objectives, DEC launched many initiatives for determining the
standards in the system while providing financial, academic and technical assistance to 13
State Open Universities and over 200 Directorates linked with conventional universities and
Private/Autonomous Institutes referred to as Distance Education Institutions. The DEC is
responsible for taking all necessary steps for promoting Open University/Distance
Education Systems, its development and standard determination.
Skill Development and Higher Education in India24
DEC also aims to establish a network of open universities/distance education institutions to
identify priority areas in which distance education programmes should be organized and
provide the requisite support for their organization. Currently, the lack of adequate human,
technical and infrastructural resources and the surge in the number Open and Distance
Learning institutions has made DEC incapable of matching the rising demand for efficient
and effective regulation. Emphasis should be laid on suggesting measures for regulating
the standards of education imparted through distance mode.
The future trends of internet and multimedia will influence and change the traditional
methods of teaching and learning, and enlarge the sphere of dissemination of knowledge.
The implementa of computer technology in education and training has enhanced the quality
of education in various organizations and training institutes. Educators strongly feel that ICT
is the most valuable tool to overcome the problem of illiteracy. Academics are now being
challenged by the rapidly growing technologies of multimedia, internet and other virtual
computer technologies, which demand changes in the styles, attitudes and skills towards
information handling.
E-Learning has been doing its rounds for more than a couple of decades now; new
technologies have also created various enhanced opportunity in virtual learning. Khan
Academy, Coursera and many other such open source content have provided top quality
content access to every student. Various activities like FLIP Class Rooms and Cloud
Universities have started entering the market.
Key Observations in this field are:
a. Huge online and digital content are available for access across the spectrum of
learning levels (from elementary schools to high end technology)
b. Massive Open Online Courses (MOOCS) have come to stay with increasing
popularity albeit among self-motivated students
c. Adoption to technology is high among the young population in general and Indian
children in specific
d. Technology infrastructure required for accessing these content is becoming more
easily available
In light of the above, e-learning and cloud university has an opportunity to become integral
in making educational resources available through network arrangements between different
institutions across the length and breadth of the country and improving the reach of quality
education to many more beyond physical boundaries of universities.
3.3 Paving way for E-Learning / Cloud University
Skill Development and Higher Education in India25
Key features of National Mission on Education through Information and Communication
Technology (ICT) :
üLeverage the potential of ICT in teaching and learning process for the benefit of all
the learners in Higher Education Institutions
üIntervention in enhancing the Gross Enrollment Ratio (GER) in Higher Education by th
5% during the 11 Five Year Plan period.
üModestly priced Aakash Tablets, were also introduced and initiatives such as Ten
Thousand Teachers Training Programme – a live video interaction with participants
and clicker applications for real time feedback in country-wide classroom
üTo ensure success of ICT in delivering education it is imperative to formulate
mechanism for Assessment and Certification (through e-testing, computer based
tests, supporting current theory and practical tests) and by providing placement
linkages (employer and student views on demand, centralized placement systems).
E-learning has several advantages in a country like India. Since it allows for the delivery of
education or training at an accelerated rate despite geographical distances, E-learning has
the potential to raise the level of education, literacy and economic development of a
country. This is exceptionally true in countries where opportunities are limited, technical
education is expensive and economic disparities exist. However, one major drawback of E-
learning in India is the inadequate course content, more so outside the mainstream area of
IT education, English-language content and tutorial-like courses. In the future there will be a
higher demand for individuals who are capable of developing multi-lingual courseware that
spans various topics. The government should therefore focus on adopting e-learning
methods for achieving its objective of extending quality education to the grass-root levels.
The challenge lies in ensuring that the rural regions are not left out in this age of rapid
digitization. While ICT can fill the knowledge gap, it can also widen it if equanimity is not
ensured in the dissemination of education and skills.
The growing professional and academic requirements for graduates have important
implications on the rising demand for globalization of economies and their respective labour
markets. Hence it has become imperative for higher education to equip its workforce with
the requisite skills and knowledge for such a globalized environment. Moreover, the level of
specialization required in certain areas of research demanding huge investments mandate
international cooperation and collaborative efforts. International collaborations in the
education sector are thus critical for economic growth and development.
üWith the aim of providing quality education benchmarked to international standards,
collaborating with international institutes to provide education would go a long way
in providing higher education at affordable prices.
3.4 International Engagements in Education and Skills
Skill Development and Higher Education in India26
üAlthough 100% FDI in companies engaged in higher education is permitted under
the automatic route, regulatory issues tend to constrain the flow of FDI in this
sector. Moreover, foreign investments have been barred in AICTE regulated
technical institutes in the country which has further strained the flow of FDI.
üWith respect to the number of collaborations of Foreign Universities with Indian 4
educational institutes, 161 collaborations were recorded in 2011 .
üAbout 50 foreign institutes are operating in India through twinning arrangement 5which promise an international degree and exposure to foreign campuses .
Universities such as Virginia Tech, Georgia Tech, Schulich School of Business (part of
York University in Toronto), and Boston, Duke and Middlesex (UK) universities are
expected to enter India.
üDuring 2012-13, India signed Educational Exchange Programmes with countries
including Yemen, Quatar, Tajikistan, Burundi, Belarus, and South Korea. India has also
been active in multilateral forums including IBSA, SAARC, ASEAN, Commonwealth,
EAS etc. and is the lead country in 3 of the 13 projects adopted by the East Asian
Summit Educations Ministers' Meeting for regional cooperation.
One of the major roadblocks in the flow of FDI in higher education sector can be attributed
to the 'not for profit principle'. The higher education sector is evidently capital intensive in
nature which makes it very challenging for private investors to make huge investments
without gaining any benefit. On the other hand, allowing 'for profit' institutions can lead to
the commercialization of higher education which could lead to lack of quality etc. These
problems can be addressed by imposing adequate regulatory checks. Given the aggressive thGER target under the 12 Five Year Plan, it has become imperative for the government to
attract private/foreign investments. The government should permit profitability and mandate
a certain share of profit to be directed towards education as CSR. This would encourage
foreign/private investors to invest and solve the problem of inadequate investments in the
education sector.
4 UK- Indian Education and Research Initiative
5 http://articles.timesofindia.indiatimes.com/2013-09-26/news/42425813_1_technical-institutes-ugc-notification-
indian-institutes
Skill Development and Higher Education in India28
thThe approach adopted in the 12 Five Year Plan on skill development is based on Enhancing
Skills to reap Demographic Dividend. The changing demographic profiles showcase a
demographic window of 20 to 25 years in the Indian Scenario which is rightly recognized as
the country's greatest asset. The current skill development landscape of the country has its
inherent deficiencies due to the delink between the skills taught and industry requirements
and lack of industry recognition to the skill training modules at the Government recognized
skill training institutes.
The other problems faced by general education in India are the lack of learning material,
inferior quality of teachers, remoteness of education facilities, high dropout rate etc. The
problem obviously intensifies itself in rural and backward areas, where education gets least
importance as far as priorities are concerned. ICT in its capability of low cost tool with
higher outreach can play a big role in teaching the rural population - a mixture of all age of
students the basics of language, mathematics and environment.
The Government has taken several initiatives in reforming the higher education systems
while identifying the major bottlenecks straining its potential. With the emerging
importance of the role of ICT in education, some of the initiatives taken by the Government
are:
üAakash Tablets
Billed as the 'cheapest tablet PC in the world', Aakash (or Ubislate, as the retail
name goes) is one of the most ambitious projects taken up by the Indian
Government to impart tech based education in schools and colleges.
üLearning through Exploration, Discovery and Adventure (LEDA)
Led by NIIT, a private IT education enterprise, LEDA was an initiative to test the
'invasive education' approach for delivering better results while trying to penetrate
the underprivileged sector in child education.
Reforms in Higher EducationChapter4
Skill Development and Higher Education in India29
4.1 Financing Infrastructure
üThe planning commission has envisioned a budget of INR 110.7 crore on higher theducation during the 12 Five Year Plan. The allocation is 1.3 times higher than the
thplanned expenditure of the 11 Five Year Plan.
thüThough there were significant developments during the 11 Five Year Plan, with
growth in number of HEI by 9.6% per annum and increase in private sector
participation, only 45.6% (INR 39,647 crore) of the planned expenditure was
materialized.
üGiven the serious budget constraints faced by the Government, large private
participation is required to create adequate access and improve the quality of
education.
üRecently, there has been a continuous push by the Government towards engaging
the private sector in achieving the goal of universalization of elementary education in
India. For instance 2500 schools have proposed to be setup under the Model School
Scheme-PPP mode.
The evident disjunctive between education and employment calls for an examination of the
nature of discourse between what passes for higher education in the country and the
ability of the economy to absorb the products of higher education through the creation of
'quality' employment. Economies such as India, faced with growing imbalance between the
output of the school system and the absorptive capacity of their labour markets for such
types of educated personnel, need to reform the contents of education without questioning
their development strategies or development goals.
4.2 Academic Restructuring
3.90
3 80.
3 70.
3 60.
3 50.
3 40.
3 30.
3 20.
3 10.
6000
5000
4000
3000
2000
1000
0
GD
P in
th
ou
san
d C
rore
s
% e
xp
en
dit
ure
on
ed
uca
tio
n
3.81 3.78
3.51
3.64
3.743.78
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
2,0982,261
2,538
3.36
2,878
3.45
3,2823,779
4,3214,933
Source: Ministry of Human resource and Development (MHRD). Government of India
Figure 24: Expenditure on Education as percentage of GDP
Skill Development and Higher Education in India30
Several legislative initiatives have been made with the aim of improving the higher
education system through restructuring academic programmes. These initiatives primarily
aim at replacing the traditional repetitive experiments with open-ended design oriented
work that encourages creativity and invention; improving the overall quality of education
through highly qualified teachers and compulsory interactive seminar tutorials to strengthen
fundamental concepts; giving a common platform and establishing domestic and global
linkages with employers thereby ensuring their relevance to modern market demands.
Some of the legislative proposals that were introduced to improve the quality and
transparency in the higher education system are given below:
üHigher Education and Research Bill, 2011
üThe Educational Tribunals Bill, 2010
üThe National Accreditation Regulatory Authority for Higher Educational Institutions
Bill, 2010
üThe National Academic Depository Bill, 2011
üThe Foreign Educational Institutions (Regulation of Entry and Operations) Bill, 2010
üAmendment of Indian Institutes of Technology Act, 1961
üNational Institute of Technology (Amendment) Bill, 2010
Vocational Training Institutes should also be given greater freedom in terms of resource
generation (sale of production or service activities, consultancy) and in utilizing the
proceeds for not only cost recovery but also incentivizing those vocational training institutes
which generate revenues. However, along with autonomy there needs to be a new
accountability framework for ITIs. Indicators of internal and external efficiency should be
used to measure the performance of institutions and to match performance to financing.
Emphasis should be laid on integration of vocational education with higher education.
Initiatives should be taken to ensure that vocational education is not a dead end and
appropriate institutional framework should be created to allow performing students in the
vocational education track to proceed onto higher education. This will ensure that the
vocational stream is not seen as an option of last resort by prospective students
The most important requirement for successful systems of skills development is close links
with industry and employers. Employers know best what skills are needed in the economy.
In order to re-orient the training modules as per the changing skill requirements of the
Industries, broad based craftsmen training on modular pattern is offered in 4 model
Industrial Training Institutes at Haldwani, Kozhikode, Jodhpur and Choudwar under the
DGEandT. Apart from this, a number of private industrial players are moving towards
establishing sector specific skill development centres to train youth in states. However,
these efforts are more localized and can be strengthened through the sector skill council
which will be established by the National Skills Development Council. Given the need to
Skill Development and Higher Education in India31
ensure standards, industry involvement and industry led initiatives, it is required to expedite
the formulation of Sector Skills Councils.
Industries have to be induced to partner with the academic institution directly for the
development of human resources dedicated to their interests. This can happen through
creating infrastructure faculty sharing and direct support with funds. Practical training is of
paramount importance in today's day and age. Internships with industry help students get a
sound understanding of the way industries run while also being exposed to real life
technical situations and problems that are not present during classroom lectures. Another
important tie up between educational institutions and industry to raise the standard in
education particularly in rural and semi urban areas is faculty training by industry experts
and the industry trained faculty then imparting knowledge to the students
üThe Government aims to reform the affiliating college systems such that large and
reputed colleges are transformed into universities or college-cluster universities;
some large affiliating universities are bifurcated to manageable units; colleges can
be merged to provide multidisciplinary education; affiliating universities can revamp
their college development councils for effective governance and can give more
autonomy to the colleges.
üThere is a pressing need for beefing up the Vocational Training infrastructure. This is
demonstrated by the demand for need based, job-oriented training, which would be
implemented under the Modular Employable Skills framework. This would drive the
need for Vocational Training Providers, trainers, accredited certifying
bodies/agencies, etc. According to NSDC report on Human Resource and Skill
Requirements in the Education and Skill Development Services Sector, the
requirement for such Vocationally Trained human resource (with skills acquired over
a short timeframe and are modular/job oriented, over and above that of ITI/ITC)
would be over 1,120 crore persons between 2008 and 2022, i.e., over 80 crore
persons annually.
üTo develop academic leadership the Government will set up an Institute for
Academic Leadership in Higher Education which would function as a hub, with the
node being a university-based academy for Leadership Development. At least five
such academies are expected to be set up in the Plan period.
üIt is imperative for setting up a Council responsible for coordinating the planned
development of higher education. Their role would include encouraging sharing of
resources between universities, lead academic and governance reforms at the
institution level, maintaining databanks on higher education and conducting research
and evaluation studies.
4.3 Governance and Regulatory Reforms
Skill Development and Higher Education in India32
üEmphasis should be laid on giving greater autonomy to public institutions and
establishing smaller and more effective Government bodies that have
representation from all stakeholders.
üThe major bottlenecks in the flow of FDI in the higher education sector can be
attributed to the 'not for profit principle' and insufficient clarity on existing
regulations. Efforts should therefore be made in making investments in the higher
education sector more attractive.
üInstitutions should be categorized based on their focus such as research focused,
teaching focused and skill based institutions, and each category should be managed
distinctly in terms of governance, funding and regulation.
üFunding of skill development initiatives is largely restricted to publicly provided
training and little attention is paid to financing as an innovative means to encourage
good quality public / private / in-service training. Once an institution begins to
receive funding, subsequent funds are assured regardless of the institution's
performance. Student fees in ITI's/polytechnics go to the State treasuries and
hence, training providers have very little financial incentive to improve efficiency and
cater to market requirements. Hence, there is a need to develop innovative
mechanisms to stimulate funding in skill development activities.
Skill Development and Higher Education in India34
India is already referred to as a Knowledge Economy by the World Bank with a vision that it
has the maximum potential to achieve thought leadership in select segments like
information technology, healthcare, science and technology, social entrepreneurship, art
and culture and other service driven industries.
To achieve this India needs a flexible education system:
üBasic education to provide the foundation for learning; secondary and tertiary
education to develop core capabilities and core technical skills; and further means of
achieving lifelong learning.
üThe education system must be attuned to the new global environment by promoting
creativity and improving the quality of education and training at all levels.
üEstablishing links with industry and employers is crucial to ensure quality of
education and employability.
üGreater impetus on skill development and vocational institutes to push growth of the
economy should be facilitated through suitable policy framework. Ensure awareness
among the employers to take certified skilled workers and fixing the lower limit of
pay-scale.
üEstablishing Skill development Framework to enhance employability potential should
be undertaken to reap benefits of the demographic dividend of the country.
üEnsure Quality and Accreditation –Upgrading the course structure and inviting
experts from the industry to contribute to skill development would help improve the
quality of education in India.
üThe investment deficit in the education and skill development sector is significant.
With limited public funds and several other priorities for its spending. There is a
need to induce greater participation and investment from the private sector to
supplement public investment. Encouraging Private Sector to set up affordable
higher education institutes as well as institutes for skill development centers/training
institutes would also bridge the gap between demand and provision.
Conclusion: Education Catalyzing Equitable Growth
Chapter5
Skill Development and Higher Education in India35
üPrivate sector participation, particularly in the case of social sector projects can
include all non-Government agencies such as the corporate sector, consortiums,
special purpose vehicles, development agencies, non-profit organizations, self-help
groups, partnership firms, individual entrepreneurs and community group based
organizations. The effort is to induce investment and enhanced capabilities of each
of these participants to strengthen the delivery and reach of the service already
being extended by the Government. PPP in social sectors such as health and
education are sometimes referred to as Public-Social Private Partnership (PSPP).
Some innovative structures for Public Partnerships are:
• Basic Infrastructure Model: The private sector invests in infrastructure and the
Government runs the operations and management of the institutions in turn
making annualized payments to the private investor
• Outsourcing Model: Private sector invests in infrastructure and runs operations
and management and the responsibility of the Government is to pay the private
investor for the specified services
• Equity Hybrid Model: Investment in infrastructure is shared between the
Government and the private sector while operation and management is vested
with the private sector
• Reverse Outsourcing Model: The Government invests in infrastructure and the
private sector takes the responsibility of operation and management
Facilitating synergetic partner ships Train representative from local communities to educate
Employment skill developmnet Empowerment
Contribute land
Structure Social Equity Advisory and PPPimplementation
Example - YES Bank Initiative -UDAAN
CSR
GovernmentGovt. Facilitation
NGO
Local Community
Knowledge Bamk
Private Sector
Figure 25: Innovative Structures for Public Partnerships
Skill Development and Higher Education in India36
H i g h e r e d u c a t i o n a n d s k i l l
development plays a crucial role in
enhancing the human capital, of the
country, pushing the economic
g r o w t h a n d s u s t a i n a b l e
development. Skill development
enhances the earnings of individuals
and plays a significant role in
reduction of poverty. With increase in
demand for skilled workforce, higher
education requires focused attention.
Suitable policy impetus can foster
growth of the education sector,
equip people with the right skills and
stimulate economy, putting India on
the track development.
Case Study: Community Model
Vedanta's sustainability strategy, collaboratively
working with the community:
üLiteracy and education initiatives for more
than 140,000 children and adult illiterates
üA computer literacy programme in 300
schools and 315 literacy centres covering
more than 140,000 students
ü28 company-run schools and a post-
graduate colleges for girls reaching out to
16,000 students