Indo – EU Seminar on Skills Development, Training and

Employment

“Skills & Training in a Globalised World Economy”

Lt Gen (Retd) S S Mehta, PVSM, AVSM and Bar, VSM

Director General

Confederation of Indian Industry

IndiaIndia

Size: 2,973,190 sq km Population: 1096 Mn Languages: National –

Hindi (14 other official languages)-English enjoys Associate Status.

Multi Ethnic,Multi Religious; Pluralistic Society

Largest Democracy. Confluence of Civilizations

IndiaIndia

One of the fastest growing economies – avg 7% since 1994 and 7.5 - 8.1% in 2005.

Inflation – 4-5 %. Forex Reserves – USD

150 Bn. GDP – USD 650 Bn. Leadership in ICT.

ChallengesChallenges

•Social Appreciation of Skills As a Livelihood Asset

• Linking Education to Employability in the Global Knowledge Economy.

• No One Solution. Every Region demands an innovative approach.

India’s AdvantageIndia’s Advantage

• Demographic

• Societal Building Block

• English Language

• Affinity to Maths

• Credible IT Image

• Steady Growth Trajectory

Snapshot: Global Snapshot: Global DemographicsDemographics

Country2000 2025 2050 2000 2025 2050

India 23.7 31.3 38 8.1 12.1 22.6Mexico 23.3 32.5 39.5 7.6 13.8 30USA 35.5 39.3 40.7 18.6 29.3 34.9Australia 35.2 40.5 41.9 18.2 29.3 37.9China 30 39 43.8 10 19.4 37.2Canada 36.9 42.9 44 18.5 32.6 40.9France 37.6 43.3 45.2 24.5 36.2 46.7UK 37.7 44.5 47.4 24.1 34.8 47.3Europe 37.7 45.4 49.5 21.7 33.2 51.4Russia 36.8 43.8 50 18 27.6 47.1Germany 40.1 48.5 50.9 24.1 39 54.7Japan 41.2 50 53.1 25.2 49 71.3Italy 40.2 50.7 54.1 26.7 40.6 68.1Spain 37.7 49.2 55.2 24.8 36.1 73.8

Indicators of Aging in Selected Countries (2000, 2025, and 2050

Median Age (Years) Old Age Dependency Ratio

Global Demographics Global Demographics ScenarioScenario

47

Note: Potential Surplus is calculated keeping the ratio of working population (age15-59) to population constant. Source: US Census Bureau; BCG Analysis

An IdeaAn Idea

India has the unique opportunity to:

• Complement what an ageing world needs the most -- Productive Workers.

• Provide investment opportunities for ageing population to earn high levels of post –retirement income.

GlobalisationGlobalisation

A complex series of economic,

social, technological, cultural and

political changes are increasing

interdependence, integration and

interaction between people and

companies in disparate locations.

…. IMF

 

Trends to WatchTrends to Watch

• Centres of economic activity will shift profoundly, not just globally, but also regionally.

• Shifts within regions will be even more dramatic

• Today, Asia (Excluding Japan) accounts for 13 percent of the world’s GDP, while Western Europe accounts for more than 30 percent. Within

20 years the two will converge.

……. Mckinsey Quarterly Web Exclusive 2006

• Global Talent deficit is fundamental to sustainability.

• Owing to the flux in the global economy it is difficult to forecast where a skill shortage will arise next.

• External markets are not delivering the right skills at the pace of change

…….Infosys Davos 2006 Panel Debate

Pumping the Global Talent Pipeline:

The 21st Century Imperative

• The challenge is to have the right people, at the right place, at the right time.

• The Paradox of ‘Skill versus Will’.

• The need for the public and private sectors to work together towards the vision of the future.

…….Infosys Davos 2006 Panel Debate

Pumping the Global Talent Pipeline:

The 21st Century Imperative

Skills: A Global CurrencySkills: A Global Currency

• "Skills" are a global currency for a globalising world.

• Countries with a significant skills capital can innovate; remain competitive and enable sustainable growth.

• “Skills Development” will create inclusive societies.

• Global Skills Development should be added as a UN Millennium Goal.

India - Sectors Demanding Multi- India - Sectors Demanding Multi- Level Skills OptionsLevel Skills Options

Construction

Finance, Real Estate, Insurance & Business Services

Transport, Storage & Construction

Wholesale & Retails Trade

Manufacturing

Community, Social and Personal Services

Agriculture

Electricity

Mining & Quarrying

Four Collar Work ForceFour Collar Work Force

White Collar - Well understood across the World

Grey Collar – The knowledge worker, which includes ICT Skills, problem solving, analytical and effective communication skills.

Blue Collar – Shop floor work in the manufacturing and service sector.

Rust Collar – Skilled worker at the grass root level in currently unorganised and un-benchmarked sectors like – Construction, Agriculture and related trades.

Guiding PrinciplesGuiding Principles

• Independent Assessment and evaluation

• Competitive basis for quality

• Employment Orientation

• Global Benchmarking

• Levels and Progression routes

• License to Practise

Features of the CII ‘Skills Initiative’Features of the CII ‘Skills Initiative’

• Localised Approach – Relevant to local needs

• Scaleability

• Short Duration, Focussed Programmes

• Modular Approach

• Smart Card Certification

Smart Card CertificationSmart Card Certification

Biometric Identification

Tamperproof

Multifunctional

Convenient

Access to a gateway of Services

Possibility of bank linkages for Micro-Credit

ConclusionConclusion

• Skills formation delivers not only needed economic benefits but important social benefits as well.

• "Skilling a Million Indians" is a catalytic project of CII.

• Need for Quality Certification which is credible at Regional, National and International levels.

Focus on Developing Human Focus on Developing Human ResourceResource

Countries that get addicted to selling their natural resources rarely develop their human resource and the educational and innovative companies that go with that. So, after the ore has been mined, the trees cut, and the oil pumped, their people are actually even more behind.

………Thomas Friedman

We need to do more to get each stakeholder deeply involved, to have a sense of where society is going. …… Professor Jagdish Bhagwati

What we need is a……. What we need is a……. Thought ShiftThought Shift

• We need a “thought shift ” from employment to employability ; from providing fish to teaching how to fish.

• Our progress will not be worth the trip if we do not give a majority of our people the strength and self esteem that comes with a job .

• The Journey has just Begun…..

India & EUIndia & EUEU

India

Relations go back to early 1960.

India – EU Key Trading Partners

Demographic Dividend

Shared Values:

•Democracy

•Pluralism

•Liberalism

•Open, Inclusive Societies

Thank You