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DRAFT -

NOT TO

BE

QUOTED

December 2017

Karnataka Vision Document 2025

SKILL DEVELOPMENT AND EMPLOYMENT

Author:

Basavaraju Rajashekharamurthy

Executive Director | GRAAM | [email protected]

Grassroots Research And Advocacy Movement

CA-2, KIADB Industrial Housing Area, Hebbal, Ring Road, Mysore – 570016

Mobile:+91-9686666306|Landline:+91-821-2415412 | Email: [email protected]

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KAUSHALYA KARNATAKA – KUSHALA KARNATAKA

(Skilled Karnataka – Prosperous Karnataka)

mailto:[email protected]

mailto:[email protected]

KVD 2025 – Skill and Employment

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Table of Contents

1. Executive summary .....................................................................................................................6

1.1 Karnataka – State of Opportunities .............................................................................................. 7

1.2 Confronting Issues and challenges ................................................................................................ 7

1.3 Opportunities for Skilled Human Resource in Karnataka ............................................................. 8

1.4 Vision Statement ........................................................................................................................... 8

1.5 Kaushalyabhivruddhi Panchasuthragalu - Five Formulas for Skill Development .......................... 8

1.6 GOAL ................................................................................................................................................... 8

1.7 Key Milestones and Result Indicators for 2025 .................................................................................. 9

1.8 Sector Focus ........................................................................................................................................ 9

1.9 Signature Initiatives .......................................................................................................................... 10

2. Overview of the Skill and Employment Sector ........................................................................... 11

2.1 Sector Overview ................................................................................................................................ 11

2.2 Skill development in India ................................................................................................................. 11

2.3 Skill Development and Employment - Profile of Karnataka .............................................................. 13

2.4 Industrial and Economic Growth ...................................................................................................... 14

2.5 Status of Employment in Karnataka ................................................................................................. 15

2.6 Sector Benchmark with other states in the country with good practices to emulate ...................... 18

2.7 Global Benchmarks in the sector ...................................................................................................... 19

3 Strategic Analysis of the Sector in Karnataka ............................................................................. 22

3.1 Analysis of growth drivers ................................................................................................................. 22

3.2 Analysis of demand and supply of skilled labour force..................................................................... 23

3.3 Assessment of strengths and opportunities ..................................................................................... 24

3.4. Assessment of issues and challenges ............................................................................................... 25

3.5 Government of Karnataka schemes .................................................................................................. 28

4. Skill Development Vision 2025 for Karnataka ................................................................................ 31

4.1 Vision Statement ............................................................................................................................... 31

4.2 Panchasutra for Skill Development and Employment ...................................................................... 31

4.3 Estimated Reach ............................................................................................................................... 32

4.4 Guiding Principles ............................................................................................................................. 33

4.5 Sector Focus ...................................................................................................................................... 34

4.6 Emerging Sectors .............................................................................................................................. 36

4.7 Automation Technologies: Challenge or Opportunity? .................................................................... 37

4.8 Target segments (Primary Stakeholders): ......................................................................................... 39


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4.9 Target Segments and Skill Provision: ................................................................................................ 40

4.10 Key Milestones and Result Indicators for 2025 .............................................................................. 41

4.11 Signature Initiatives ........................................................................................................................ 41

4.12 Implementation Road Map - Key strategic interventions ............................................................... 52

4.13 Role of stakeholder departments ................................................................................................... 61

4.14 Institutional Mechanism ................................................................................................................. 63

4.15 Financing (Budget) for Vision Implementation ........................................................................... 64

5. METHODOLOGY ........................................................................................................................... 65

Reference list ................................................................................................................................... 67

List of Figures Chart 1: Demand Supply Gap in Karnataka, 2012 - 2022 (figures in Lakhs) Chart 2: Envisioned Reach List of Tables Table 1: Focus Sectors for incremental growth ..................................................................................... 9

Table 2: Incremental Human Resource Requirement for India across sectors by 2022 .............. 12

Table 3: Distribution of workforce across different sectors in Karnataka ........................................ 14

Table 4: Classification of workers according to working conditions ................................................. 15

Table 5: Comparative statement of LFPR for India and Karnataka ................................................. 16

Table 6: Comparison of unemployment rates between India and Karnataka ................................. 16

Table 7: Employment rates among post graduates from General and SC Categories ................. 16

Table 8: Sectoral distribution of Workers (in %) of Karnataka and India - 2011-12 ....................... 17

Table 9: Comparative statement for the neighbouring states of Karnataka .................................... 17

Table 10: Key Takeaways for Karnataka from the Vision Documents of 4 states ......................... 18

Table 11: Insights for Karnataka from International experience of 5 countries .............................. 19

Table 12: Incremental increase in employment for Karnataka between 2012 and 2022 .............. 22

Table 13: SWOC analysis of the skill eco system of Karnataka ....................................................... 24

Table 14: Focus Sectors for incremental growth ................................................................................. 34

Table 15: Jobs of the future: Employment growth and decline by occupation ............................... 37

Table 16: Jobs and Occupations: Employment Outlook .................................................................... 38

Table 17:Target Segments for skill provision ....................................................................................... 40

Table 18: Key Performance Indicators and key activities to achieve the vision 2025 ................... 44

Table 19: Roles and responsibilities of different stakeholders .......................................................... 61 Table 20: Institutional Mechanism……………………………………………………………….………….63


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List of Abbreviations

CSO Civil Society Organization

CSR Corporate Social Responsibility

CTE Centre of Trade Excellence

DCE Department of Collegiate Education

DDU GKY Deen Dayal Upadhyay Gramin Kaushalya Yojana

DET Department of Employment and Training

E Hubs Entrepreneurship Hubs

EMC skill Electrical, Mechanical and Computer Skills

FDI Foreign Direct Investment

GDP Gross Domestic Produce

GP Grama Panchayat (Village Panchayat)

GSDP Gross State Domestic Produce

GSVA Gross State Value Added

GTTC Government Tool Room and Training Centre

HDR Human Development Report

ICT Information Communication Technology

IGNOU Indira Gandhi National Open University

IT Information Technology

ITES Information Technology Enabled Services

ITI Industrial Training Institute

KEONICS Karnataka State Electronics Development Corporation Limited

KPO Knowledge Process outsourcing

KSQF Karnataka Skill Qualification Framework

KSRLPS Karnataka State Rural Livelihood Promotion Society

KVTSDC Karnataka Vocational Training and Skill Development Corporation

LFPR Labour/Work Force Participation

MES Modular Employment Scheme

MHRD Ministry of Human Resource and Development

MSDC Multi Skill Development Centre

MSDE Ministry of Skill Development and Entrepreneurship

NGO Non-Government Organization

NRLM National Rural Livelihood Mission

NSDA National Skill Development Agency

NSQF National Skill Qualification Framework

NSSO National Sample Survey Organization

NULM National Urban Livelihood Mission

OBC Other Backward Class

PMKVY Pradhan Mantri Kaushal Vikas Yojana

PPP Public Private Partnership

PVTG Primitive Vulnerable Tribal Group

QP Qualification Pack

RPL Recognition of Prior Learning


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RSETI Rural Self Employment Training Institute

RTO Registered Training Organization

RUDSETI Rural Development and Self Employment Training Institute

SC Scheduled Caste

SDC Skill Development Centre

SDC Skill Development Centres

SDEL Skill Development, Entrepreneurship and Livelihood

SDG Sustainable Development Goals

SECC Socio-Economic Caste Census

SEP Self Employment Program

SGSY Swarna Jayanti Gram Swarozgar Yojana

SHG Self Help Group

SSC Sector Skill Council

ST Scheduled Tribe

STP Skill Training Provider

SWOC Strength Weakness Opportunities Challenges

ULB Urban Local Body

UNDP United Nations Development Program

VET Vocational Education and Training

VTP Vocational Training Provider


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1. Executive summary

Karnataka is one of the rapidly developing state in the country. It is the ‘Knowledge hub of India’ with

a wide network of academic and research institutions. Benguluru is rated as the 4th Best Technology

Hub in the world. It is also the hub of manufacturing sector, IT and ITES, biotechnology providing direct

and indirect employment to millions. The Gross State Domestic Product (GSDP) of the state is Rs

11,33,194 crores as per 2016-17 estimate with an anticipated growth rate of 10.3% at current prices.

The share of Karnataka's GSDP in All India GDP is 7.5 percent during 2016-17. Per-capita income of

the state is Rs 1,59,893 (at current prices) with an increase 9.2 percent over the last fiscal. Karnataka

attracted Foreign Direct Investment (FDI) of Rs 4121 million US Dollars and stands at top five hot

destination for FDI in India. Coupled with this, the rise of the secondary and tertiary sectors and the

service sector which provide competitive advantage and attract global investment into the state. This

substantiates that the state is rapidly progressing, and it is the land of abundant opportunities. With

the significant portion of the state’s

population in the age group of 20 to 59

years and expected incremental demand

for people to work (8.47 million skilled

persons by 2022)1 state has both the

advantage and the need to undertake the

skill development programs more

aggressively. As said ‘demography

provides potential and is not destiny’,

hence, skilling the people is critical for the

state to reap the benefit of demographic

dividend.

The Skill and Employment Vision Document provides a detailed account of the efforts done in the past,

the lessons learnt from the earlier experience, prevalent opportunities for the state and potential

challenges. This document not only provides a vision at a broader or an abstract level, but additionally,

it takes a leap to provide key pathways, strategic initiatives that should be taken up to reap the benefit

the demographic dividend. The suggestions made by the people of Karnataka at district level

workshops and through the various engagement platforms created by the Government are suitably

reflected in this document. People’s suggestions, expert’s recommendations and the expertise of

sector specialists have been meticulously distilled and amalgamated to provide a visionary pathway

for the state.

1 Economic Survey of Karnataka 2015 – 2016

With 55 percent of the population in the

age group of 20 to 59 years, Karnataka

has an excellent opportunity of achieving

economic growth through favourable

demographic dividend. This can be

accomplished only by promoting skill

development of the working population in

general and youth in particular. Skill

development is imperative than anything

else for Karnataka at the moment while the

state is aspiring to be a choice of

destination for the skilled human capital


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1.1 Karnataka – State of Opportunities

The rise of the secondary and tertiary sectors and the service sector provide a competitive advantage

to the state. This developed infrastructure and strong industry presence attracted global investment

into the state. Out of 6.11 crore population, 2.44 crore have registered as workers in the state.

Agriculture and allied sectors account for nearly 56 percent of the total workers. Key sub-sectors of

the non-agricultural sector are manufacturing and mining (11 percent), shops, establishments and

trade (9 percent) and construction (7 percent). Services account for the remaining 17 percent. Three-

fourths of workers are estimated to be in the unorganised sector. Workers in the unorganised sector

consist of agricultural labourers and those in the sub-sectors of non-manufacturing such as shops,

establishments & trade, construction, real estate & business activities and hotels & restaurants. Most

of the workers in the organised sector are found in manufacturing & mining and information technology

& biotechnology.

In addition to strong industry presence, the advantage of demographic dividend and incremental

demand for 8.47 million persons by 2022, skill development becomes imperative for the state to

provide meaningful employment to the young population. In this context vocational education imparted

through network of all the stakeholders that includes Government, Industry, academia, civil society

organization and the other private sector skill building initiatives assume significance for providing

meaningful employment to the growing population of the state.

1.2 Confronting Issues and challenges

Though vast infrastructure is available for the skill development in Karnataka, with several agencies

playing a key role much needs to be achieved in terms of making it more popular and acceptable.

Although state has an array of opportunities to augment skill development and employment, there are

some limiting factors posing a challenge. The issues such as regional disparities in terms of resource

allocation and resource availability, inadequate knowledge base and information asymmetry, changing

complexity of the job market and chronic under investment in skill sector are the key bottlenecks.

Apprenticeship has not made a satisfactory progress so far and non-inclusion of marginalized group

is still a prevalent issue. Lack of mobility for vocational streams into formal education system resulting

in preference for the regular degree (graduate) courses. Skill training courses which are currently being

offered are not being in sync with the market demand. Lack of industry involvement while designing

and modifying the course curriculum, lack of quality infrastructure, gaps in providing industry training

and exposure to the faculty, no recognition for apprenticeship, lack of skill premium provision, and very

limited industry institute interaction are other critical challenges that needs to be strategically

addressed.


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1.3 Opportunities for Skilled Human Resource in Karnataka

The National Skill Development Corporation (NSDC) estimated that the incremental demand for the

workforce in Karnataka during the period 2012 to 2022 is 84.76 lakhs, of them, 27 percent are

minimally skilled, 43 percent are semi-skilled, 25 percent are skilled and 5 percent are highly skilled.

NSDC estimates show that there is a mismatch between the demand and supply of skilled and highly

skilled workers in Karnataka. There will be shortage of 7.12 lakh skilled and 3.88 lakh highly skilled

people in the state by 2022 if appropriate efforts are not made.

The recent reports released by McKinsey Global Institute also predicts the growing need for skilled

human resource in India despite the speculated automation disruption.

1.4 Vision Statement

Internationally acceptable skilling to enable decent2 employment and sustainable

livelihood opportunity for all the citizens to thereby reap optimum demographic dividend.

1.5 Kaushalyabhivruddhi Panchasuthragalu - Five Formulas for Skill

Development

The focus and thrust shall be provided to ensure the following five factors that would establish an

efficient skill development ecosystem to realize the vision.

1.6 GOAL

The total number of targeted population for the skill and livelihood programs during the period of 2018

to 2025 is 89 lakhs3 by 2025

▪ Flow – Fresh entrants to the labour force from 2017-2025 is 54 Lakhs. This excludes those

who go for higher education.

2 Decent Employment: Full and productive employment and decent work for all women and men, including for young

people and persons with disabilities, and equal pay for work of equal value (as per SDG 8) 3 Source:Dept of Skill Development and Entrepreneurship, GoK

Strengthening Formal Vocational Training

System with an industry oriented, future ready and

vibrant curriculum

Universalized Career guidance and

placement services

Revitalizing School Education Curriculum

to make students employable

Strengthening Apprenticeship

System

Universal Financial Inclusion and Secured

Productive Asset Creation for the Poor


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▪ Stock - Already in the labour force not with formal vocational training 35 lakhs

1.7 Key Milestones and Result Indicators for 2025

o Position Karnataka as the preferred destination of choice for skilled human capital in India by

2025

o Skilling 89 lakh persons by 2025

o Emerge among the top 10 global hubs for highly skilled manpower by 2030

o Establishing Skill University in the State by 2020

o Dedicated institutional structure is established from state to the block level for strategizing,

planning, implementing and monitoring skill development and employment (livelihood) initiatives

in the state by 2018

o Establishing a Special Focus Group Cell under the Skill Mission by 2018 to ensure affirmative

action to provide skill and employment opportunity for marginalized community

o Policies to Prosper: Exclusive and Futuristic Policies as well as Strategic Plan on

i. Skill Development and Employment

ii. Entrepreneurship Development

iii. Livelihood Development

iv. Social business policy for addressing social challenges with a sustainable approach

1.8 Sector Focus

The skill development courses will be designed/further improved to utilize the potential employment

opportunity in the following sectors on priority. The sectors are listed in the order of priority as per the

incremental employment opportunity in Karnataka as estimated in the Skill Gap Study conducted by

NSDC. The top 10 focus sectors are expected to have incremental employment opportunity in higher

numbers (six-digit numbers) and the additional 08 focus sectors are expected to have an incremental

opportunity in thousands (five-digit numbers).

Table 1: Focus Sectors for incremental growth

Top 10 Focus Sectors

1. Agriculture and allied 2. IT & ITES

3. Building, Construction industry and Real Estate

4. Tourism, Travel, Hospitality & Trade

5. Transportation, Logistics, Warehousing and Packaging

6. Healthcare Services

7. Education and Skill Development 8. BFSI

9. Organised Retail 10. Textile and Clothing / Garment

Additional 08 Focus Sectors


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11. Construction Materials and Building Hardware

12. Media and Entertainment

13. Auto and Auto component 14. Food Processing

15. Furniture and Furnishings 16. Electronics and IT hardware

17. Mining 18. Chemicals & Pharmaceuticals

1.9 Signature Initiatives

Strengthening Employment Exchange at 29 Locations in Karnataka

Initiative towards Organized Labour Force

KAUSHALY BANDI (SKILL ON WHEEL)

Six International Skill Training and Innovation Centres (Instinct) with a total intake capacity of

12,000 students.

GREEN SKILL INITIATIVE: Sustainable Agriculture, Green Building, Water Harvesting and

Renewable Energy Sectors

Recognition of Prior Learning (RPL) in Farmers Community

BUILD GREEN: Alternative and sustainable construction technology to foster eco-friendly

construction in the state.

SAVE WATER: Water Harvesting, Water Conservation and Water Reuse techniques will be

imparted on priority.

GREEN ENERGY: Harvesting renewable energy, particularly solar energy.

Establishing International Migration Centre: An overseas employment cell to facilitate citizen of

Karnataka to venture in to global employment market

Establishing Centre of Trade Excellence (CTE)

Design Karnataka Skill Qualification Framework (KSQF)

Language for Livelihood: Language Learning Centre will be set up at the Career Guidance Cell

at the taluk level

Initiating Livelihood Facilitation Centre at the block or cluster level

Summer Vocational Programs at the hobli level to reach children of secondary schools

An efficient Labour Market Information System

Skill Summits to bridge the gap between industry and academia / skill providing agencies.


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2. Overview of the Skill and Employment Sector

“Education, vocational training and lifelong learning are central pillars of employability,

employment of workers and sustainable enterprise development”

- International Labour Organisation

2.1 Sector Overview

Indian economy is primarily dependent on agriculture followed by secondary and tertiary sectors for

achieving growth rate of above seven percent. Agriculture employs 49.7 percent of human resource

while industry and service sector employ 21.5 percent and 28.7 percent respectively in their

workforce4. Another eight to nine percent from the current workforce are engaged in the organized

(formal) sectors of the country, about 5 percent of this segment are equipped with marketable skills.

Considerable number of workers are likely to shift from agriculture5 to the secondary and tertiary

sectors which requires realigning of the skillsets of the migrant workforce to meet the industry

requirements. The population projections predict that 12 million people will be added to the workforce

annually. The large chunk of young population is available in India. With an appropriate and futuristic

skill development initiatives, India can seize the opportunity to become the global hub for providing

skilled workforce to meet the future skilled manpower demands of the world6

2.2 Skill development in India

India is a fast-growing developing country with relatively modest potential for automation over the next

10 to 15 years. Various national and international analysis observed that most occupational categories

are projected to grow in India and strong economic expansion is anticipated. However, India’s labor

force is expected to grow by 138 million7 people by 2030, or about 30 percent. Employing these new

entrants in formal sector jobs will require job creation on a much larger scale than in the past.

Automation which has begun in the various sectors make this challenge more difficult; some fear

jobless growth. But, there is a potential in India to create enough new jobs to offset automation and

cater the to the new entrants as well.

4 www.statistia.com 2013 estimates

5 Planning Commission document on Employment and Skill Development

http://planningcommission.nic.in/hackathon/Skill%20Development.pdf

6 Government of India, Report on Education, Skill Development and Labour Force III (Chandigarh: Government of

India), 2016, preface.

7 India’s labor market: A new emphasis on gainful employment, McKinsey Global Institute, June 2017

http://www.statistia.com/

http://planningcommission.nic.in/hackathon/Skill%20Development.pdf


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Increase of the population in the working age group which provides a window of opportunity by

reducing the ratio of dependents to total workers resulting in higher rates of savings, investment, and

growth. If appropriately utilized, this change in the age structure will result in the demographic dividend

and provide immense growth opportunities to the nation. The provision of employable skills to youth

remains to be an important challenge to reap opportunities of the demographic dividend. Despite the

policy focus on skill development from 11th Five-Year plan onwards, India still faces the dual

challenges of the paucity of a skilled workforce as well as non-employability of large sections of youth

who are educated but lacking employable skills. The data provided by the National Sample Survey

Organisation (NSSO) show that only 2.4 percent of the Indian workforce has undergone formal

skill training and another 8.6 percent have received non-formal vocational training. This

indicates that only a very small portion of youths with vocational training are entering into the labour

force. Since India emerges as a young country in the world, in order to harness the potential

employment opportunity not only within the country, but also in the global job market, it is imperative

to establish an efficient ecosystem for skill development in the country.

A skill gap study conducted by the National Skill Development Corporation (NSDC) during 2010-2014

indicates that there is an additional net incremental requirement of 109.73 million skilled

manpower by 2022 in twenty-four key sectors. The Government of India has initiated steps to

strengthen skill development by setting a target of skilling 500 million people by 2022. The Ministry of

Skill Development and Entrepreneurship (MSDE) was established in November 2014 to aggressively

pursue ‘Skill India’ agenda to ensure that the existing skill training initiatives are scaled up across the

country within a short span of time and the quality of the programs are not compromised in the process

(National Policy on Skill Development 2015). Table 1 below provides a snapshot of the incremental

human resource requirement for the country across 24 different sectors by 2022.

Table 2: Incremental Human Resource Requirement for India across sectors by 2022

S. No Sector Employment in 2013 (million)

Projected employment by 2022 (million)

Incremental requirement from 2013-2022 (million)

1 Auto and Auto Components 10.98 14.88 3.9

2 Beauty and Wellness 4.21 14.27 10.06

3 Food Processing 6.98 11.38 4.4

4 Media and Entertainment 0.4 1.3 0.9

5 Handlooms and Handicrafts 11.65 17.79 6.14

6 Leather and Leather Goods 3.09 6.81 3.72

7 Domestic Help 6 10.88 4.88

8 Gems & Jewellery 4.64 8.23 3.59

9 Telecommunication 2.08 4.16 2.08

10 Tourism, Hospitality and Travel 6.96 13.44 6.48


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11 Furniture and Furnishing 4.11 11.29 7.18

12 Building, Construction and Real Estate

45.42 76.55 31.13

13 IT and ITES 2.96 5.12 2.16

14 Construction Material and Building Hardware

8.3 11 2.7

15 Textile and Clothing 15.23 21.54 6.31

16 Healthcare 3.59 7.39 3.8

17 Security 7 11.83 4.83

18 Agriculture 240.4 215.6 (24.8)

19 Education/ skill development 13.02 17.31 4.29

20 Transportation and Logistics 16.74 28.4 11.66

21 Electronic and IT Hardware 4.33 8.94 4.61

22 Pharma and Life Sciences 1.86 3.58 1.72

23 BFSI 2.55 4.25 1.7

24 Retail 38.6 55.95 17.35

Total 461.1 581.89 120.79

Removal of Duplication in Retail Sector (10.37) (21.43) (11.06)

Total Requirement 450.73 560.46 109.73

(Source: Ministry of Skill Development and Entrepreneurship, 2015)

2.3 Skill Development and Employment - Profile of Karnataka

2.3.1 Distribution of Workforce

It is the responsibility of any progressive state to provide a productive and appropriate employment for

the increasing work force. It is a challenge for any government including that of Karnataka to provide

an updated and industry oriented skill development programs in the competitive environment, amidst

multiple global challenges and rapidly changing employment landscape. High economic growth is

necessary condition for creating new work opportunities, but it is the pattern of economic growth which

has an important implication for productive and quality employment for the large section of labour

force.

Karnataka has an opportunity of achieving faster economic growth through favourable demographic

dividend, provided that appropriate skills are imparted to the working population in general and youth

in particular. Skilled persons will then be able to find employment in the state as well as outside

(including other countries) where there is a demand for them. Out of 6.11 crore population, 2.44 crore

have registered as workers in the state8. Agriculture and allied sectors account for nearly 56% of the

total workers in the state, while the rest are in the non-agricultural sector. Key sub-sectors of the non-

8 Economic Survey of Karnataka


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agricultural sector are manufacturing and mining (11 percent), shops, establishments and trade (9

percent) and construction (7 percent). Services account for the remaining 17 percent. The challenge

is to shift employment structure towards more productive non-agricultural sectors so that better and

sustained source of livelihood for the working population can be sustained.

Three-fourths of the registered workers in Karnataka are estimated to be in the unorganised sector

comprising of agricultural labourers and those in the sub-sectors of non-manufacturing such as shops,

establishments & trade, construction, real estate & business activities and hotels & restaurants. Most

of the workers in the organised sector are found in manufacturing & mining and information technology

& biotechnology.

Table 3: Distribution of workforce across different sectors in Karnataka

S No Distribution of workforce across sectors % of population involved

1 Agriculture and allied sectors 56

2 Non-agriculture sector (Manufacturing, mining, shops and establishments and construction)

27

3 Services sector 17

(Source: Karnataka Economic Survey 2015 - 2016, Department of Labour & Employment)

2.4 Industrial and Economic Growth

The growth of the economy is vital for creating jobs. The stagnant or slowly growing economy will

create jobs at dismal rate. Country or a state with good economic growth, high productivity and

conducive environment for innovation will contribute to create more jobs. Karnataka has an advantage

of constantly growing economy and an encouraging environment for innovation and entrepreneurship.

The state requires to take a more strategic responsibility of converging and channelling different

growth drivers.

Karnataka is a leading state in the establishment of knowledge based industries such as Information

Technology, biotechnology and engineering, and in the exports of electronics and computer software.

Advance estimates show that Karnataka's Gross State Domestic Product (GSDP) at constant (2011-

12) prices is expected to grow at 6.9 percent and reach Rs.871995 crore in 2016-17. Per Capita State

Income (i.e. per capita NSDP) of Karnataka at current prices is estimated at Rs.159893 during 2016-

17 (Rs.146416 in 2015-16) with an increase of 9.2 percent. Nearly, two-thirds (64 percent) of GSDP

came from the services sector, followed by 24 percent from the manufacturing and 12 percent from

agriculture. However, as per 2011 census, 49 percent of the workers (26 percent cultivators and 23

percent agricultural labourers) who are in agriculture contributed only 12 percent to the GSDP, thus

indicating the need to provide appropriate skills to enhance their income both in the primary and


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secondary sectors. Movement of labour across sectors resulting in economic mobility happens only

with enhanced and appropriate skill development.

Karnataka is the pioneer of the IT Revolution in India and is home for over 3500 companies and

contributing over Rs. 2.20 lakh crore of exports. The industry contributes to over 25 percent of the

State's GSDP with the state’s share in IT exports is about 38 percent of the country’s exports. The IT

Industry in the State has emerged as one of the largest job providing sector and provides direct

employment to over a million and indirect employment to over 3 million persons. According to a recent

UNDP Report, Bengaluru is the 4th Best Technology Hub in the world and etched a global brand in

the IT space with almost all the Fortune 500 companies have one or the other of their operations

outsourced in Bengaluru. According to the Global Start-up Ecosystem Ranking Report 2015,

Bengaluru, is the only Indian city to be ranked within the best 20 Start-up ecosystems across the

world9.

Karnataka has played a key role in India's emergence as a significant player in the global

biotechnology industry. Out of the 800 plus biotech units in the country, 228 companies and about 65

biotech startups are in Karnataka. The biotech export revenues contribution of Karnataka is Rs.3613

crore (USD 530 million). Karnataka has a vibrant auto industry which is fourth largest in the country

with investments of around US$ 713 million and annual revenues of US$ 604 million. The automotive

industry of Karnataka grew at a CAGR of 15 percent during 2009 to 2014.

2.5 Status of Employment in Karnataka

In Karnataka the highest numbers of persons are self-employed (43.2 percent), followed by casual

labourers with 36.7 percent and wage earners with 17.9 percent while the proportion of contract

workers is 2.3 percent. The State has more number of casual workers than the national average of

33.1 percent and wage earners of 16.2 percent. Among the total working force, self-employed and

casual labourers account for more than 80.3 percent, at all India level. In Karnataka also, their share

is 79.9 percent. This once again reiterates the importance of sustainable livelihood opportunities for

this category of workers. The classification of the workers according to their working conditions is given

in Table 3 below:

Table 4: Classification of workers according to working conditions

Categories of workers Rate of employment (%) Self employed 43.2 Casual laborers 36.7 Wage earners 17.9 Contract workers 2.3

9 Government of Karnataka. Economic Survey of Karnataka, 2016 – 2017, Department of Planning, Programme

Monitoring and Statistics, 2017, page 5


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(Source: Economic Survey of Karnataka 2016 – 2017, Department of Planning, Programme Monitoring and Statistics, Government of Karnataka, March 2017, p 406)

Labour/Workforce Participation in Karnataka

In Karnataka, the Labour/Work force Participation (LFPR) for persons aged 15 years and above is

56.2 percent, whereas this is 52.4 percent for India. This rate is 79.3 percent for males in rural

Karnataka, which is third highest among the comparable States. The comparative statement for the

LFPR for the country and the state are given below in Table 4

Table 5: Comparative statement of LFPR for India and Karnataka

Indicator India (%) Karnataka (%) Labor/Work Force Participation rate (for persons 15 years and above)

52.4 56.2

LFPR for rural men 77.3 79.3 LFPR for rural women 26.7 34.1 LFPR for urban men 69.1 74.3 LFPR for urban women 16.2 26.5 Worker Population Ratio (WPR) 50.5 55.5 WPR for rural men 75.7 78.5

WPR for rural women 30.2 37.6

WPR for urban men 67.1 73.2

WPR for urban women 14.8 25.7


The unemployment rate for Karnataka is 1.4 percent for all persons i.e., urban and rural put together,

far below that the national rate of 3.7 percent (Economic Survey of Karnataka, 2016 -2017). Table 5

below provides comparative statement of India and Karnataka with respect to unemployment rates.

Table 6: Comparison of unemployment rates between India and Karnataka

State Rural Urban Urban and rural

M F T M F T M F T

All India 2.9 4.7 3.4 3.0 10.9 4.4 3.0 5.8 3 3.7

Karnataka 1.1 1.4 1.1 1.5 3.1 1.9 1.2 1.8 1.4


When we look at employment and education among different social groups in Karnataka, the overall

rate of employment among Post-graduates is 64.6 percent. Only 4.9 percent is unemployed, and the

remaining 30.5 percent are not in labour force, meaning they are not seeking employment. The same

rates for SC workers are 87.7 percent, 6.4 percent and 6.0 percent respectively, the details are

provided in Table 6

Table 7: Employment rates among post graduates from General and SC Categories

Employment among post graduates

Employed (%) Unemployed (%) Not in labour force (%)

General category 64.4 4.9 30.5


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SC 87.7 6.4 6.0 (Source: Economic Survey of Karnataka 2016 – 2017, Department of Planning, Programme Monitoring and Statistics, Government of Karnataka, March 2017, p 403)

Among all the social groups, the rate of employment is high among SC post-graduates (87.7 percent)

followed by ST (69.1 percent) and OBC (62.2 percent). Among Others (63.4 percent), highest rate of

employment is found among people with just below primary education.

Sectoral Distribution of Workers and Labour Productivity

The sectoral distribution of workers across industry shows that about 49 per cent of the workers in

Karnataka and 53.8 per cent of workers at all India level are engaged in agriculture and allied sector

for their livelihood during 2011-12 (Table 7). The corresponding share in the Karnataka and India was

61 per cent and 58.2 per cent respectively in 2004-05. This shows that the share of agricultural

employment in Karnataka and all-India level has declined between 2005 and 2011-12 by 12 per

cent and by 4.4 per cent in Karnataka and India respectively, which is a positive trend towards

structural transformation. This means workers are moving from farm to non-farm sector employment,

which needs to boost further by devising appropriate policies to ensure structural transformation in

coming years

Table 8: Sectoral distribution of Workers (in %) of Karnataka and India - 2011-12

Industry Karnataka India

Rural Urban Total Rural Urban Total

Agriculture & allied 70.2 7.8 49.0 64.1 6.7 53.8

Mining & Quarrying 0.3 0.3 0.3 0.5 0.7 0.5

Manufacturing 9.4 18.4 12.4 8.6 23.6 11.3

Construction 4.3 9.7 6.1 11.1 9.3 10.7

Electricity, gas & water supply 0.2 0.8 0.4 0.2 1.3 0.4

Transport, storage & comm. 3.3 13.8 6.9 3.0 9.9 4.2

Trade, Hotel & Restaurant 6.2 24.5 12.4 6.5 23.4 9.5

Finance, Business & Real Estate etc 1.0 8.3 3.5 0.8 6.5 1.8

Pub Admin, Health & Edu. 5.1 16.4 8.9 5.3 18.4 7.6

Total 100.0 100.0 100.0 100.0 100.0 100.0

Employment (in millions) 18.6 9.6 28.2 448 98 546

(Source: Employment from the results of 68th NSSO round data (UPSS) and First Revised Estimates GSDP & GDP for 2011-12 from DES Karnataka and CSO, New Delhi)

Table 9: Comparative statement for the neighbouring states of Karnataka

S No Indicator India (%)

Karnataka (%)

Andhra Pradesh (%)

Maharashtra (%)

1 Unemployment rate10 2.2 1.6 2.0 1.3

10 Source: Employment and Unemployment Schedule, 68th Round, 2011-12, NSSO


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2 Literacy rate 72.1 75.4 67.35 82.3

3 Primary sector employment rate 46.1 56 55 (2015) 47.2 (2012)

4 Manufacturing sector employment rate

21.8 27 10 34.5

5 Services sector employment rate 32 17 35 18.3

(Andhra Pradesh source: Budget analysis for 2016 – 2017, Maharashtra – Economic Survey 2016 – 2017 (figures based on 2011 census), Karnataka – Economic Survey 2016 – 2017)

Karnataka has been experiencing structural change in the composition of State Domestic Product with

the share of primary sector declining in favour of the tertiary sector over a long time. Only in the last

one decade or less, the structural change in employment has started showing up with share of

agriculture and allied declining by 11 percent in all workers and 15 per cent in principal worker

category. Correspondingly the share of industry and tertiary sector has gone up. But unlike the rest

of India, the shift of employment from agriculture in Karnataka has moved largely towards services

and not industry.

The shift of employment observed in last several years has increased the requirement of training of

the workers in acquiring skill in non-agricultural occupations. It requires more effective skill training

programme. Further, increasing share of service workers among employed necessitates further

focussing of training of workers in service oriented occupations.

2.6 Sector Benchmark with other states in the country with good

practices to emulate

For identifying the best practices in skill development sector, the Vision Documents of four states i.e.,

Haryana, Tamil Nadu, Madhya Pradesh and Andhra Pradesh were reviewed. In this exercise, two

kinds of inputs – policy related guidelines and implementation mechanisms have emerged. The

relevant points are listed in the below table.

Table 10: Key Takeaways for Karnataka from the Vision Documents of 4 states

Haryana

1. Work towards integration of vocational education into formal education system and smooth

mobility


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2. Skill development initiatives for the girl child to promote leadership and confidence building among girls

3. Measures to make skill development more socially acceptable

Tamil Nadu

1. Achieve universal secondary education through increase in enrolment rates in colleges (including vocation education) to over 50 percent

2. Usher in revolution in skill development aimed at skilling 20 million persons – 15 million new entrants and 5 million already in the workforce

3. Envisions state to be a. Back office capital of the world b. Health care capital of South Asia c. Audio and video production and post production hub for Hollywood d. Tourism

4. Setting up 10 Centres of Excellence

Madhya Pradesh

1. Promote vocational education at secondary education level through curriculum revision 2. Children with special needs are provided skill development in DTP, typing, designing,

music, weaving, sewing, script writing etc 3. Couple of state of the art training facilities to be established with international

collaboration for advanced vocational training 4. Independent third-party assessment and certification system for skill development 5. Market oriented and industry driven courses such as robotics, mechatronics, and nano

technology 6. Technical and professional education in Hindi 7. Private sector to help and facilitate placement process for the trainees 8. Training of soft skills, personality development to be integrated into technical programs 9. Traditional skill sets of artisans and craftsman shall be recognized by formal certification,

after direct assessment for enhancing their employability

Andhra Pradesh

1. Integrating vocational education into formal education system 2. Infrastructure strengthening by adding new facilities and setting up new centres 3. Trained faculty with updated courses

2.7 Global Benchmarks in the sector

International experience has lot of insights to offer in terms of best practices which have the

potential as way forward for Karnataka. The review of skill development policies of Germany,

Australia, Brazil, Singapore and China provide the following insights as elaborated in table below:

Table 11: Insights for Karnataka from International experience of 5 countries

Germany

1. The Dual VET Model: Germany’s dual system of vocational education and training (VET) is a very simple and cost-efficient model. The practical training (approx. 70 percent of training duration) takes place in companies. This training is based on a compulsory curriculum, which is adapted to the conditions of the training company and is monitored and controlled by the respective chambers, who also arrange for the interim and final examinations (comparable to Sectoral Skill Councils). This in-house training is guided and imparted by certified corporate trainers. The ‘apprentices’


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undergoing training sign a vocational training contract with the company and are paid a training salary by them. The theoretical part of the training (approx. 20 percent of training duration) is taught in vocational schools, run by the State governments.

2. Ease of integration of the theoretical and practical knowledge through vocational training

3. Easy mobility from vocational education to formal education system

4. VET in Germany imparts practical training and thus ensures that the curriculum and training is abreast with changes in technology or other changes in the industry.

5. Companies engaged in VET are also constantly involved in the process of upgrading and modernisation of curricula. Industries play a crucial role in identifying future requirement of skills and update training regulations to meet that demand.

6. Active role of the sector specific chambers in conducting exams to ensure quality control

7. Cost effective model of skill development: Industry collaboration for practical training,

Australia

1. Ensuring mobility to the students from vocational education to formal schools

2. Australian school-based apprenticeships, which allow students from year 10 to combine completing school and starting an Australian apprenticeship;

3. Full-time Australian apprenticeships wherein apprentice spends the whole week with on-the-job training (about 80 percent of time) in the company and off-the job training with a chosen training provider;

4. Part-time Australian apprenticeships which are often used by small and medium sized enterprises. A minimum number of hours of on-the-job and off-the-job training per week are provided to the apprentice (e.g. 15 hours per week).

5. Under the apprenticeship system, a legal contract between an employer and an apprentice is necessary, which determines the training wage and conditions. Apprenticeship wages differ according to the level of qualification, training year, industry and the type of apprenticeship (school-based, part-time or full-time). In addition, the employer has to determine a training plan with details about on-the-job and off-the-job training, which has to be endorsed by the chosen training provider. Australia’s VET system is having strong influence of industrial bodies on VET policies and priorities, which enables matching of skills training to the industry requirements Full time and part time apprenticeships offered

6. Vocational Training through social integration approach for the unsuccessful students in the secondary and/or higher secondary schools

7. The system allows recognition of prior learning. Registered Training Organisations (RTOs) would recognize qualifications and statements of attainment which have been issued by other RTOs. Also, if one already has competencies achieved from prior learning, the assessment and certification will be done directly, reducing the training period and facilitating the switch between qualifications.

Brazil

1. Large coverage of the students at the secondary education level in VET

2. Creation of new slots for vocational training to the existing workforce

3. Skill development modules offered for those who don’t have any formal education

4. Socially inclusive policy to include the disadvantaged into the ambit of skill development

Singapore

1. About 89 percent of funds to be raised by the local government

2. Easy mobility between the vocational training and formal education

3. Active role of the government in prioritizing the themes for the skill development and allocating the same to the skill training institutes

4. Social inclusiveness to cater to needs of disadvantaged and the elderly in the community

China


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1. Technical Vocational Education and Training (TVET) a comprehensive

system to meet the needs of vocational education and training at different levels

Provided legal framework through The Vocational Education Law of 1996

2. Market-oriented approach by incorporating methods such as learning and practice, learning while working, emphasizing on practical and vocational competence skills

3. Students should spend one year on workplace training during their upper secondary programme

4. Incentives to encourage industry participation in vocational training, for instance allotment of land at subsidized prices, and preferential treatment in case of award of government projects

5. Decentralised and locally driven skill development initiatives. Local Government and Village Collective will have a major role in deciding a part of the curriculum that is determined locally at the school level with the help of local enterprises

6. Secondary and tertiary vocational education and various training programmes has been planned such that vocational education is not perceived as a ‘dead-end’

7. For rural workers engaged in agriculture, government provides applied technical training in agriculture which includes green certification training and entrepreneurship training

8. Active participation of the industry in curriculum design

9. Ensuring the quality of the teachers through industry exposure

10. Social Integration Scheme to mainstream the disadvantaged section of the society through skill development initiatives by providing scholarship for poor students to continue in VET schools)


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3 Strategic Analysis of the Sector in Karnataka

3.1 Analysis of growth drivers

The NSDC study reports that Karnataka is likely to have an incremental demand for 8.47 million

persons and incremental supply of 8.16 million persons between 2012 and 2022, resulting in a supply

gap of 0.31 million persons. It is estimated that about 20-30 per cent of the new entrants into the

workforce from the educational institutions is unemployable thereby increasing the supply gap from

1.9 million to 2.7 million persons.

According to the study on Skill Gap Analysis for the districts of Karnataka conducted by NSDC, the

following trends are projected incremental increase in employment across 19 trends between 2012

and 2022. The table below provides snapshot of these trends:

Table 12: Incremental increase in employment for Karnataka between 2012 and 202211

Sectors Incremental employment 2012-22

Minimally skilled

Semi-skilled

Skilled Highly skilled

Agriculture and allied 1,618,503 1,347,995 201,480 36,658 32,370

Auto and Auto component 58,298 5,830 37,893 11,660 2,915

BFSI 269,636 - 161,782 80,891 26,964

Building, Construction industry and Real Estate

1,364,835 409,450 682,417 204,725 68,242

Chemicals & Pharmaceuticals 9,634 1,927 2,890 2,890 1,927

Construction Materials and Building Hardware

95,760 9,576 62,244 19,152 4,788

Education and Skill Development

379,100 - - 341,190 37,910

Electronics and IT hardware 15,535 1,554 7,768 5,437 777

Food Processing 41,417 12,425 12,425 12,425 4,142

Furniture and Furnishings 22,125 8,850 8,850 3,319 1,106

Healthcare Services 619,975 - 61,998 433,983 123,995

IT & ITES 1,430,938 - 715,469 643,922 71,547

Media and Entertainment 68,052 13,610 40,831 10,208 3,403

Organised Retail 234,536 23,454 164,175 35,180 11,727

Textile and Clothing 149,250 29,850 89,550 22,387 7,462

Transportation, Logistics, Warehousing and Packaging

639,702 127,940 371,027 127,940 12,794

Tourism, Travel, Hospitality & Trade

1,356,186 271,237 922,206 135,619 27,124

Unorganised 90,129 18,026 52,275 18,026 1,803

Mining 12,523 2,505 7,514 1,252 1,252

Total 8,476,134 2,284,228 3,602,795 2,146,865 442,246

From the above table, building and construction industry and tourism, travel and hospitality are the

emerging sectors for skill development and employment, after agriculture. Karnataka being a natural

resource endowed state, it has lot of potential for tourism and hospitality industry which could be

11 NSDC Skill Gap Report for the Districts of Karnataka 2015


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potential employment generating sector. Though the state has been the hub for manufacturing and

industrial activity, the state has witnessed a growth in furnishings, health care services, organized

retail and transportation and logistics which could be sources of employment with appropriate skill

training.

3.2 Analysis of demand and supply of skilled labour force

The current work force of Karnataka is put at 27.99mn which is about 45.8 percent of the total

population. The labour force in this is about 28.30mn accounting to 46.3 percent. Individuals in the

working age group of 15 to 59 years is about 36.68mn amounting to 60 percent of the population but

only 45 percent of them are working. Out of the current stock of labour force in the state which is an

estimated 27.7 million people, about 85.6 percent are either unskilled or minimally skilled. About 6.5

percent of the labour force is semi-skilled, 4.3 percent is skilled, and the remaining 3.6 percent is highly

skilled labour force. In the next decade, there would be a maximum demand for semi-skilled workers

at 43 percent of the total incremental demand. This is followed by minimally skilled workers at 27

percent, skilled workers at 25 percent and highly skilled workers put at five percent.

About the students coming to join the workforce from different educational institutions, it is estimated

that between 2012 and 2022, about 8.16 million persons are the new entrants into the state’s

workforce. Of these, about 43 per cent will be minimally skilled, 40 per cent will be semi-skilled, 17 per

cent will be skilled and the remaining about one per cent will be highly skilled. According to the Skill

Gap Analysis Report for districts of Karnataka and IMaCS Analysis, the following are the projections

for incremental increase in the requirement of human resources across minimally skilled, semi-skilled,

skilled and highly skilled categories of the workforce

(Source: NSDC Skill Gap Report for the Districts of Karnataka 2015)

22.8

36

21.5

4.4

34.6

32.2

14.4

0.5

11.8

3.8

7.1

3.9

0 5 10 15 20 25 30 35 40

Minimally skilled

Semi skilled

Skilled

Highly skilled

Demand Supply Gap in Karnataka, 2012 - 2022 (figures in Lakhs)

Deficit Supply Demand


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3.3 Assessment of strengths and opportunities

The strengths and weaknesses of the current skill ecosystem of Karnataka are given in the table

below:

Table 13: SWOC analysis of the skill eco system of Karnataka

Strengths ● Considerably good infrastructure for skill

development through network of 270 Govt ITIs and around 290 polytechnics and apprenticeship programs by the government departments and private players

● Availability of world renowned technical training institutes in the state

● Model Technical Training institutions established exclusively by industries or with Government – Industry Collaboration

● State has an advantageous climatic, social and cultural conditions for doing business

● State has all the different topographical conditions such as a coastal region, hilly (ghatt) terrain, irrigated, semi-arid and arid terrain

● Pioneer state for Self Help Group, Cooperative movements

● Variety of artisans and indigenous art forms such as Bidri Works, Ilkal Saree, Ramnagar toys etc

● Land of rich culture and heritage thus always encouraged artistic skills Successful skill development modules already run by the government departments and private organizations

● Strong network / presence of civil society and community based organizations

● Existence of established RUDSETI / RSETI

Weakness ● Declining female work participation rate ● Under populated technical education seats ● Lack of dedicated institutional mechanism below

the state level to plan, implement and monitor skill initiatives

● In sufficient vocational training institutions to make a transition from short term to long term vocational courses

● Lack of effective / proactive industry participation in apprenticeship program

● Nonexistence of an efficient Labour Market Information System

● Lack of institutional and advanced marketing support to entrepreneurial initiatives

● Ineffective facilitation for obtaining financial support for entrepreneurs

● Strong Self Help Group movement started in the state has not translated in to institutions of poor and empowerment bodies

● Skewed VET infrastructure, more in southern part of the state

● Regional imbalances / disparity in development within the state

● Lack of budgetary support for skilling ● Lack of state of the art infrastructure in the

training institutes ● Skill training agencies –Supply-Demand

dynamics

Opportunities ● The tag of IT / BT capital, start-up capital

and Knowledge capital of the country ● Swift and Affirmative Policy Measures by

the Government to foster efficient business environment in the state

● Growing performance of specialized business segments such as ESDM, Automobile, Agro based and ITES

● Growing opportunity in the service sectors ● Upcoming industrial projects and

investments to the state ● Most of the district headquarters are

connected with more than one form of transportation system

Constraints ● Lack of aspiration / orientation amongst supply

side to pursue skill training ● Trained and deficient skill educators to reach the

difficult and remote areas of the state ● Lack of motivating family and community

environment for female skill aspirants ● Funding for the immediate establishment of

infrastructure and resources for skilling ● Increasing rate of unemployment rate in the

nation as well as in the world ● Lack of convergence between organizations

involved in skill training, particularly between academia and industry

● Preference towards white collar jobs over skilled blue collar jobs


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3.4. Assessment of issues and challenges

The Polytechnic and ITI institutes is the corner stone for vocational education in the state. In addition

to this, there are several training and vocational institutes run by government and private sectors with

the private sector having a seating capacity of over 22,000 seats (IMaCS study). The Department of

Employment and Training (DET) implements the Apprenticeship Training Scheme under which over

4,232 establishments are covered. Under Modular Employability Scheme (MES), about 800

Vocational Training Providers offer about 500 courses in 68 sectors. However, there is a shortage of

the institutional infrastructure providing skill training for the agriculture and allied sectors, building,

construction and real estate, Tourism, travel, hospitality and trade, Transportation, logistics,

warehousing and packaging, and health care services that are projected to employ the bulk of the

workers in the coming years.

It is, therefore, imperative to fully utilise the existing capacity in ITIs and Polytechnics to reduce

the skill gap in the state. The capacity of these institutions will be built to assess the demand

for skills in the local area and design courses as per the industry demand aligning with the

NSQF. Also, coverage of this institution needs to be expanded to reach out at least 60% of the

trainee cohort annually in the due course of time.

Some key lessons learnt:

i) Since the short-term training programs did not yield desired results, emphasis should be on

educational reforms, long term measures for institutional strengthening for providing employable

skills and quality training;

ii) Substantial and sustained investment on skill development is needed;

iii) The involvement of different stakeholders (relevant government departments, industry, civil

society, training institutions, academic & research institutions, donor agencies) is key for the

successful skill building;

iv) Mechanisms for the identification of training providers, standardization and certification of

curricula, monitoring, capacity development and so on should be in place and working;

v) Skill missions at the district level and below are required for coordination; and

vi) There is a need for an institutional framework that not only identifies the roles of different

stakeholders but also makes provision for the identification of beneficiaries, dynamic & real-time

information on labour market including skills required, monitoring and evaluation, and impact

assessment of the policy.

The specific issues pertaining to governance, demand side and supply side issues are mentioned

below:


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Governance Issues

The following are the issues related to governance in skill development sector:

● Capacity for Institutional Skilling is limited to deliver new courses and need to be prepared for

the ‘mission mode’ approach for providing training skills that are economically rewarding.

● Facilitative eco-system at the State level needs to be created with convergence at multiple

levels of implementation as the current systems operates in isolation between the various

organizations involved in skill training and employment.

● Coordination problem arises due to the absence of an effective institutional mechanism to

coordinate between the key players in the sector to facilitate interaction between the skill

enthusiasts and those providing employment.

● Regional imbalances in the state like challenge of population diversity, geographical distances,

poorly developed support eco-systems and infrastructures need to be addressed by special

mechanisms such as Special Purpose Vehicles (SPVs) like the Hyderabad-Karnataka

Development Board etc.

● The inclusion of marginalised groups like women, workers in the unorganized sector and

SC/ST communities must become the top priority for the skill development and employment

sector. A dedicated cell / unit within the institutional mechanism is imperative for ensuring the

inclusion of marginalised and special communities like persons with disability.

● Quality related issues pertaining infrastructure, trainers, as well as curricula and pedagogy.

In terms of infrastructure, the institutes often lack appropriate machinery to give students

hands-on training. Even the course curricula often are outdated, redundant and non-

standardised. Additionally, the lack of industry-faculty interaction on course curricula leads to

irrelevant training modules.

● Availability of quality trainers is a key concern as this is affected by the limited efforts towards

re-training and skill improvement of trainers. There is a lack of focus on development of trainers

with a clear career path which can make this an aspirational career choice and can ensure

regular adequate supply of good-quality trainers in every sector.

● Upgradation of the course curriculum is missing as the cost to upgrade the training

infrastructure and pedagogy is high affecting the pace of modernisation and upgradation.

Likewise, the process of standardisation is challenging in India. A sizable portion of total

employment falls under the unorganised segment, where it is extremely difficult to sensitise

the employers on the importance of occupational standards, job roles and qualification packs.

Demand Side Issues The demand side issues in skill development which pertain to the employers

are as given below:

● Inadequate knowledge base & Information Asymmetry as there is no detailed mapping of

the required skills in each district for the employees and the employers do not have a clue

about where the required skilled people are available.


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● Market failure as the wages are not proportional to skills that a person possesses which

requires policy response in terms of correction of ratio of wages paid to investment in skill

acquisition. Participation of the industry to be ensured to make the skill development market

oriented and to provide practical exposure.

● Changing complexity of the job market like advances in technology, digital age and spurt

in machine learning have made jobs skill centric thereby making existing skill modules

obsolete.

● The skill premium as a concept is not understood adequately in India and there is a need to

develop an ecosystem to influence the employers to provide skill premium to the skill human

resources should be encouraged.

● Chronic under investment in skill sector is a critical issue for which the private sector needs to

be encouraged to invest in this sector. Also, the investments which are already done by

different actors should be accounted to arrive at an exact estimate of investment in the skill

sector.

● There is no match between the demand of the industries and the skills provided by the

vocational training institutes in the dynamic and knowledge centric market situations.

● The Apprenticeship training scheme have yielded little success due to ineffective facilitation

and coordination between the industry and the beneficiaries.

Supply Side issues

The supply side issues in skill development pertaining to the trainees are enumerated below:

● Mobility concerns as educational qualifications are preferred over vocational training as it is felt

that the former will fetch better employment opportunities – both in terms of pay and quality and

quantity of work. Added to this perception, there is limited scope to move between formal education

and vocational training in India due to lack of equivalent recognition for the latter. If a student is

enrolled into vocational training, then he/she cannot migrate to institutes of higher education due to

eligibility restrictions.

● Inadequate scale, limited capacity as the existing infrastructure for skill training in the state is

inadequate in view of the projected demand for skilled labor. Though there is a need to create

additional capacity in existing institutes, it is required to create new infrastructure in new towns and

cluster / hobli levels. The number of trained faculty for the institutes is inadequate.

● Awareness, mind-set and perception issues are major hurdles resulting in skill development

being way below the requirement due to a lack of awareness on the type of courses as well as

information on the ensuing career prospects resulting in limited acceptance for these courses.

Skilling is often viewed as the last resort meant for those who have not been able to fulfil their

aspirations in the formal academic system. Another reason is the absence of role models for skill

development to motivate the students thereby making the students consider skill training as an

expenditure.


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● Cost concerns are the primary issues as the skill development programs are driven by government

funds or public-private ventures. Considering the capital-intensive nature of the programs and the

low return on investments, skill development is perceived to be a non-scalable model resulting in

underinvested. The fee based model is not widely accepted as the students are not willing or unable

to pay the training fees. Additionally, a fee-based model also faces challenges as prospective

students are often unwilling or unable to pay high fees for training. The formal banking institutions

are not willing to provide loans to the students to pursue skill development activities as educational

loans due to uncertainty with respect to future employment.

3.5 Government of Karnataka schemes

Education and skill up-gradation has become the corner stones of Government Policy in Karnataka.

The Government has also set up a Knowledge Commission (Karnataka Jnana Aayoga) on the lines

of the National Knowledge Commission. In addition to developing Skill Development Policy on the

lines of National Skill Development Policy, the state set up the Karnataka Vocational Training and

Skills Development Corporation (KVTSDC) in 2008 to impart skills and employment to 10 lakh people

in the five-year period.

As part of the Government of India scheme, NRLM and NULM schemes for skill development and

income generation are implemented in the state. For Karnataka, DDUGKY is placement linked skill

development program initiated by the state from October 2014 by KSRLPS, an integral part of NRLM.

The Department of Municipal Administration was implementing the Urban Livelihood Mission on same

lines as DDUGKY. In Karnataka, Rural Self Employment Training Institutes (RSETIs) is the nodal

agency (with 33 institutions in 29 districts) is engaged in providing self-employment training to rural

youth in 112 traits.

Department of Skill Development, Entrepreneurship, and Livelihood

The Government of Karnataka has set up the Department of Skill Development, Entrepreneurship,

and Livelihood (SDEL) in 2016 to enable the youth to acquire necessary skills for employment and

livelihood promotion. The aims of the department are to:

i) Promoting, planning, implementing, standardising, monitoring, regulating skill development in

the state for achieving excellence and international quality

ii) Converging the resources, institutional strengths and skilling programmes of various other

departments, industry and civils society for better coordination, avoid duplication and under

funding

iii) Functioning as a nodal agency to provide industry interface, quality benchmarks,

national/international best practices, monitoring and impact evaluations.

iv) Primarily focussing on skilling youth in the age group of 18 to 35 years and ensuring equality

and equity


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v) Building conducive environment for motivating youth to acquire quality skills as per industry

demand mitigating skill gap

vi) Reaching estimated target of 188 lakhs youth between 2017 and 2030

Chief Minister’s Kaushalya Karnataka Yojana

Under Chief Minister’s Kaushalya Karnataka Yojana, two new schemes have been launched for 2017

– 2018 by the SDEL department in two streams with a total target of five lakh for both schemes. Under

Stream one, the training target is 2.5 lakhs and programs will be directly implemented by the SDEL

Department and the trainings will be conducted by Skill Mission, KVTSDC, GTTC, KGTTI, NRLM,

NULM and Karnataka Construction Workers Academy.

In the Stream two, with a training target of 2.5 lakhs, programmes are implemented by the department

with domain specific knowledge. The departments include: agriculture and horticulture, animal

husbandry and dairy/KMF, fisheries, IT and BT, KEONICS, handlooms and textiles, technical and

collegiate education, transport, women and child development, leather, sericulture, energy –

KPC/KPTCL/ESCOMs, youth services, tourism, social welfare, tribal welfare, backward classes,

minorities, Dr B R Ambedkar Development Corporation, Karnataka Maharshi Valmiki Scheduled

Tribes Development Corporation, Dr Devaraj Urs Backward Classes Development Corporation,

Karnataka State Women Development Corporation, Karnataka Minorities Corporation and other

departments, corporations, boards and agencies.

The Chief Minister’s Karnataka Livelihood Scheme is a local to global initiative will provide skill

training with support in design and marketing of 50,000 local artisans, especially women in local

handicrafts, handlooms and other informal sectors for their sustained livelihood.

To encourage apprentice training program under Karnataka Apprenticeship scheme, state

government will reimburse stipend of INR1000 per month to each apprentice, covering 50,000

students in stages. It is also proposed that Centres of Excellence will be established to ensure

sustainability, accessibility and industry linkages with focus on placements. About 34 employment

exchanges will be upgraded by providing necessary infrastructure and human resources for training

persons as per the industry demand.

Besides the above-mentioned schemes, several other departments are implementing skill programs.

After the formation of new department for Skill Development, Entrepreneurship and Livelihood, all the

skill development initiatives of Government of Karnataka would be coming under this department.

3.6. Stakeholder Consultations

Skill development and training is a complex activity which involves several stakeholders to make the

process – be it module development, launching the course and its successful completion and


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placement of the students in remunerative jobs and enterprises. Several government, non-

government, industry and corporate houses, NGOs and civil society organizations have a potential

role to play at different points of skill development. Consultation of stakeholders will be done at each

stage of the implementation of the vision document.


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4. Skill Development Vision 2025 for Karnataka

4.1 Vision Statement

Internationally acceptable skilling to enable decent12 employment and sustainable

livelihood opportunity for all the citizens to thereby reap optimum demographic dividend.

The aim is to make the state of Karnataka as the preferred destination for contextual, sustainable,

competitive and passion linked skill building. State will do all that required to leverage the demographic

dividend of youth and will enable them to be Globally employable - with aspirational growth, market

driven salaries, high state pride, social citizenry and competitive spirit. The empirical evidence denotes

the entrepreneurship and self-employment is significantly preferred by the people of Karnataka.

Required eco-system and support mechanism will be further strengthened to foster entrepreneurship

among the youth. Livelihood initiatives for the women will be strategically implemented, thereby

increase the women participation rate in the employment market.

4.2 Panchasutra for Skill Development and Employment

The core of the Vision Document is captured in the following five points. The focus and thrust shall

be provided to ensure following factors

i. Strengthening Formal Vocational Training System with an industry oriented, future ready

and vibrant curriculum

The experience and learning obtained during the earlier policy period clearly inferred that long

term institutional training program with more hands on (practical) exposure is crucial to ensure

quality and effective vocational training. Hence, the thrust shall be on strengthening the

infrastructure and intellectual resources for the formal vocational system.

Short-term vocational training opportunity will be imparted for next five to eight years with a focus

on students missing higher education, out of schools and who are in the labour market without

formal skill trainings. For these students, formal Vocational Training Opportunity will be provided

through three to six-month short term vocational training. This process will be scaled down in due

course, after which the focus will be on long term vocational training program. These two measures

will ensure that sufficient formal Vocational Training Opportunity is provided in the State.

ii. Universalized Career guidance and placement services:

A career guidance system will be established at the high school, higher education institution as

well as at the community level. Lack of information, awareness and orientation to opt appropriate

12 Decent Employment: Full and productive employment and decent work for all women and men, including for young

people and persons with disabilities, and equal pay for work of equal value (as per SDG 8)


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vocational education is a major bottleneck at the supply (community) side. Providing placement

support is vital to make the skill development programs aspirational. And successful. The career

guidance and placement services shall be created in convergence with the key line departments

and employer community.

iii. Revitalizing School Education Curriculum to make students employable

Revitalizing School Education Curriculum to ensure that every child learns adequate

communication, quantitative (numeracy/accounting), digital and lifelong learning and other key life

skills in schools. This will make the children more relevant to life and employment domains.

Providing basic (foundation to) vocational skill is important at the school level. Joint Skill

Education Taskforce will be established in collaboration with Education, Skill Development

departments, Industry experts and other key stakeholders to work out the modalities for integrating

skill development at the school level in the light of various successful international models.

iv. Strengthening Apprenticeship System

Vocational Education and Training through a strong apprenticeship system is undoubtedly a way

to go. Successfully case studies from different countries, experience of the sector experts

emphasised the need for strong apprenticeship system. The provision of apprenticeship should

be universalized for every student in the vocational education and training as well as for those

pursuing higher education. A clear action plan with a dedicated institutional mechanism will be put

in place to encourage proactive industry participation, and expand the scope of apprenticeship

program beyond just the industry / corporate sectors.

v. Universal Financial Inclusion and Secured Productive Asset Creation for the Poor:

Provision of salaried and wage employment for all the skilled human resource is not a prudent

option with the present unemployment forecast and socio-economic limitations. It is vital for a

growing economy like Karnataka to promote entrepreneurship and sustainable livelihood for the

people who are not and who do not want to be in the wage / salaried employment. Universal

financial inclusion will be aimed through self-help groups, small finance schemes and co-operative

movement. State would facilitate to create productive assets for poor by building the institutions of

poor though its livelihood programs.

4.3 Estimated Reach

The total number of youth to be trained by 2025 is 89 lakhs13


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o Flow – Fresh entrants to the labour force from 2017-2025 is 54 Lakhs. This

excludes those who go for higher education.

o Stock - Already in the labour force not with formal vocational training 35 lakhs

The estimates of the flow include the following groups.

First, it is estimated that 54 lakhs (53.59 lakhs) persons will be fresh entrants into the

labour force during the period 2017 to 2030 without any skills. This group includes

dropouts before the completion of secondary and higher secondary education and those

completing secondary and higher secondary education without any formal skilling.

Second, this group excludes those completing at least 3 years of higher education.

Third, those attending to domestic work (mostly women) are included as policy seeks to

make additional effort to encourage and motivate young homemakers to participate in the

workforce.

The estimated stock is 75 lakh persons and in the vision period, it is estimated to reach 35 lakhs

persons out of the total stock covering following sections

All the persons in the labour force who have not received any formal vocational training

or higher education are included

Very young homemakers (in the age group of 16-25 years) are also included.

Those attending to the domestic work in their households (most of whom are women)

and under employed in agriculture are included.

Youth with disabilities are included to promote appropriate skills among are included

4.4 Guiding Principles

▪ The state shall have an institutional mechanism and implementation framework that ensures an

effective CONVERGENCE. The programs and schemes of different line departments of the

Government of Karnataka, Government of India, corporate sector, skill councils, civil society and

bilateral/multilateral agencies and other organizations will be converged at the implementation level

for achieving the policy goal and ensure the best services to the primary stakeholders.

▪ Shall ensure QUALITY in the training curriculum and course materials to meet the standards of the

employer agencies and market needs. Shall improve certification norms for augmenting

employability and free movement of the workforce.

▪ Shall encourage INNOVATION both in ideas as well as in implementation process so that the ideas

are translated into productive action.

▪ The institutional structure would operate in a mission mode having an eclectic mix of people from

Government, Industry, Civil Society, Academia, Banking, and Commerce Institutions.


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▪ Principles of EQUITY, where the most marginalized and disadvantaged groups based on caste,

religion, disability, gender, culture or ethnic affiliation and/or any such phenomena shall get a priority

and strategies would be made to reach them proactively respecting their rights.

▪ EQUALITY shall be ensured where everyone will have fair and equal chance to get the benefits

and advantage of this policy.

▪ ENLIGHTEN, EQUIP AND EMPOWER: The vision would be guided by this 3Es. The stakeholders

shall be enlightened about the need for skilling, entrepreneurship development, and sustainable

livelihood. The choice of opportunity will be provided in the spirit of human development and primary

stakeholders would be empowered to get gainful and sustainable livelihood opportunity.

▪ The Vision Implementation Bodies of the Government will always maintain FUTURISTIC attitude

and constantly update its strategy, approach and activities to suit the future need and changing

dynamics in the country.

▪ COMPLEMENTING RESOURCES AND STRENGTHS would be the key principle of the Vision. A

mutually rewarding and respectful partnership shall be harnessed with the Corporate, Civil Society

Organizations, Academia, and other related agencies to achieve the Vision.

4.5 Sector Focus

The skill development courses will be designed / further improved to utilize the potential employment

opportunity in the following sectors on priority. The sectors are listed in the order of priority as per the

incremental employment opportunity in Karnataka as estimated in the Skill Gap Study conducted by

NSDC. The top 10 focus sectors are expected to have incremental employment opportunity in higher

numbers (six digit numbers) and the additional 08 focus sectors are expected to have an incremental

opportunity in thousands (five digit numbers).

Table 14: Focus Sectors for incremental growth

Top 10 Focus Sectors

1. Agriculture and allied 2. IT & ITES

3. Building, Construction industry and Real Estate

4. Tourism, Travel, Hospitality & Trade

5. Transportation, Logistics, Warehousing and Packaging

6. Healthcare Services

7. Education and Skill Development 8. BFSI

9. Organised Retail 10. Textile and Clothing / Garment

Additional 08 Focus Sectors

11. Construction Materials and Building Hardware

12. Media and Entertainment

13. Auto and Auto component 14. Food Processing

15. Furniture and Furnishings 16. Electronics and IT hardware

17. Mining 18. Chemicals & Pharmaceuticals


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Besides the above organized sectors, there are also expected demand in the unorganized sector jobs.

Under this Vision Document, a systematic Labour Market Research is conducted periodically (once in

two years). An efficient mechanism shall be built to have real-time Labour Market Information and the

priority sectors for the regional/districts would be listed from time to time.

Thrust areas within the Focus Sectors

As the focus of this vision document is to comply with sustainable development goal, the following

factors will be ensured while preparing skilled human resources for the focussed sectors

• Green Constructions: Sustainable Technologies

Building and construction is one of the sector in focus considering its potentiality to employ more

and more people. But, it is important to provide impetus to green/sustainable building technology

and local/regional architecture. Alternative building designs should be given a thrust while

encouraging building and construction sector in general. There is a dearth of skilled human resource

for designing and constructing green and eco-friendly buildings. An intervention shall be made both

at higher education as well technical education level to make necessary inclusion to the syllabus.

To fulfil the immediate requirement, short term courses will be initiated.

• WASH: Conservation – Harvesting – Management

Water, Sanitation and Hygiene (WASH) is one of the necessary sector for the future. Water sustains

lives and livelihoods. It is a precious and finite resource that in future years, is likely to become the

main bone of contention between people, states and nations. Water, like every other finite resource

needs sustainable, equitable and efficient management. Need to focus on reducing the demand,

recycling and reusing water with appropriate alternatives, along with the usual emphasis on supply

solutions. Therefore, state will develop a special program to have the skilled and trained human

resource to work at the implementation level in this sector.

• Health Care and Hospitality: Home Nursing - Geriatric Care

Although, we are the strong youthful state, in the prevalent situation we need a trained and qualified

human resource to take care of aging population, provide home nursing care, work in hospitality

sector.

• Renewable Energy Sector:

India’s renewable energy sector is expected to generate more than 330,000 new jobs over the next

five years (2017-2022) as per the report ‘Can renewable energy jobs help reduce poverty in India?’

released by the World Resources Institute (WRI) in November 2017. The report said, adding that it

would also improve energy security, enhance energy access and help mitigate climate change.

• Handlooms and Handicrafts: About 17.79 million skilled human resources are required in the

projected employment by 2022 in the country in this sector. Karnataka is having rich heritage of


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having skilled artisans both in handlooms and handicrafts. With an effective forward backward

linkage, continuous learning and upgradation in designs, and technology inculcated in this sector,

Karnataka can reap more benefit in the country.

• Sustainable Agriculture: There is a growing demand for organic and natural food products.

Government is encouraging farmers to adopt sustainable and organic farming methods. In this

context, there needs to be investment in this sector to cater the need of existing farmers and new

entrants as well. Government will have GREEN COLLEGE which continuously organized diploma

and short-term courses to skill, re-skill, upskill and recognize prior learning of the farmers in the state

with the thrust on sustainable agricultural (including agri allied sectors) methods

• Sports Skills: Sports and sport industry is also a growing sector. It is also a matter of pride for the

state and nation to produce international champions. Sports as a sector provides multiple

opportunities for the state such as good health, entertainment and recreation for the people beside

economic growth opportunities.

The state of Karnataka will initiate all the necessary steps to ensure recognition of prior learning,

upskilling, providing necessary backward forward linkages through its proposed Centre of Excellence

at the district level. A Skill Upgradation and Finishing School will be contemplated for the sectors

like furniture and furnishing, handicrafts, carpentry, handloom, plumbing, sanitary, WASH, electrical,

basic electronics, beauty and wellness, and other potential sectors. Since most of the people in

these sectors work in unorganized form, the Centre of Excellence will initiate the process to form

Labour Cooperatives to bring them to the organized sector.

4.6 Emerging Sectors

Karnataka being pioneer state in technology has taken cognisance of the following globally emerging

sectors. The state in collaboration between Skill and Employment, Higher Education and IT & BT and

Industry will set up a task force to identify the levels of skills required in these sectors which are not at

the higher education level and carve out a specific strategy amidst the anticipated disruptive labour

market changes in the current period.

● Advanced manufacturing and 3D printing

● Advanced robotics and autonomous transport

● Artificial intelligence, machine learning and nano technology

● Advanced materials, biotechnology and genomics

● Aviation and marine skills

● Cyber Security Skills14

14 According to “the 2015 (ISC)2 Global Information Security Workforce Study, “ 1.5 million Cyber

Security professionals will be needed globally by 2020.


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4.7 Automation Technologies: Challenge or Opportunity?

Automation technologies including artificial intelligence and robotics is expected to pose a greater

challenge by displacing workers and turn many jobs obsolete. But, it is also expected to generate

significant benefits for consumers, businesses, and economies, enhancing productivity and economic

growth. As some experts estimates 50-60 percent of occupations have at least around 30-40 percent

of constituent work activities can be automated. As we have experienced with the impact of

technological advancements on the job market in the past, it will also create new occupations that do

not exist today.

The recent report of the McKinsey Global Institute (MGI)15 infers while about half of all work activities

globally have the technical potential to be automated by adapting currently demonstrated

technologies, the proportion of work actually displaced by 2030 will likely be lower, because of

technical, economic, and social factors that affect adoption. The scenarios across 46 countries suggest

that between almost zero and one-third of work activities could be displaced by 2030, with a midpoint

of 15 percent. The proportion varies widely across countries, with advanced economies more affected

by automation than developing ones, reflecting higher wage rates and thus economic incentives to

automate. In India, 9% of current work activity hours automated by 2030 in the midpoint scenario, and

up to 19% in the rapid scenario.

Even with automation, the demand for work and workers could increase as economies grow, partly

fuelled by productivity growth enabled by technological progress. Rising incomes and consumption

especially in developing countries, increasing health care for aging societies, investment in

infrastructure and energy, and other trends will create demand for work that could help offset the

displacement of workers. Additional investments such as in infrastructure and construction, beneficial

in their own right, could be needed to reduce the risk of job shortages in some advanced economies.

As per the US Bureau of Labor Statistics and McKinsey Global Institute analysis following is the net

impact by the automation on employment growth or decline.

Table 15: Jobs of the future: Employment growth and decline by occupation

Net impact of automation, 2016–30

Occupation Groups Example Occupational Categories % Change

Care Providers

Doctors 100% or more

Nurses, physicians assistants, and pharmacists 100% or more

Therapists 100% or more

Health aides and health support 100% or more

Health technicians 100% or more

Childcare workers 100% or more

Community and social workers 50-99%

Educators School teachers 100% or more

Postsecondary teachers 100% or more

15 JOBS LOST, JOBS GAINED: WORKFORCE TRANSITIONS IN A TIME OF AUTOMATION – December 2017


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Other education professionals 100% or more

Education support workers 100% or more

Managers and executives

Executives 50-99%

Managers 50-99%

Professionals Account managers 25-49%

Engineers 50-99%

Business and financial specialists 50-99%

Math specialists 25-49%

Scientists and academics 25-49%

Lawyers and judges 25-49%

Legal support workers -15 to -24%

Technology professionals

Computer engineers 100% or more

Computer specialists 50-99%

Builders Building Engineers 50-99%

Architects, surveyors, and cartographers 50-99%

Construction workers 100% or more

Installation and repair workers (buildings & infrastructure)

50-99%

Crane and tower operators 25-49%

Creatives Artists and designers 50-99%

Entertainers/media workers 50-99%

Customer interaction

Personal care workers 100% or more

Food serving workers (hosts) 100% or more

Sales workers (retail and online) 25-49%

Entertainment attendants 5-24%

Personal appearance workers 50-99%

Hotel and travel workers 5-24%

Office support Computer support workers 50-99%

Information and record clerks 5-24%

Office support workers 5-24%

Financial workers (procurement, payroll, etc) 5-24%

Administrative assistants 25-49%

Other jobs, predictable

environments

Production workers 25-49%

Material moving machine operators 5-24%

Agricultural graders and equipment operators -5 to -24%

Food preparation workers 5-24%

General mechanics 5-24%

Other jobs, unpredictable environments

Specialized mechanics and repair 100% or more

Emergency first responders 25-49%

Machinery installation and repair workers 50-99%

Agricultural field workers -5 to -24%

Building and grounds cleaners 50-99%

Source: JOBS LOST, JOBS GAINED: WORKFORCE TRANSITIONS IN A TIME OF AUTOMATION – December 2017, P 67

Employment Outlooks as per World Economic Forum:

As per the World Economic Forum’s report (January 2016), which covers most major economies and

labour markets, the current trends could lead to a net employment impact over the period 2015–2020.

As per the report, Manufacturing and Production roles are also expected to see a further decline but

are also anticipated to have relatively good potential for upskilling, redeployment and productivity

enhancement through technology rather than pure substitution.

Table 16: Jobs and Occupations: Employment Outlook


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Growing Declining Stable

Architecture & Engineering

Computer & Mathematical

Education & Training

Installation & maintenance

Management

Transportation & Logistics

Manufacturing

and Production

Office and

Administrative

Arts, Design,

Entertainment,

Sports, and Media

Sales & Related

Source: World Economic Forum

To achieve good outcomes, the state’s policy will need to embrace automation’s benefits and, at the

same time, address the worker transitions brought about by these technologies. Ensuring robust

demand growth and economic dynamism is a priority. Midcareer job training will be essential, as will

enhancing labor market dynamism and enabling worker redeployment. These changes will challenge

current educational and workforce training models, as well as business approaches to skill-building.

Another priority is rethinking and strengthening transition and income support for workers caught in

the cross-currents of automation.

4.8 Target segments (Primary Stakeholders):

The Vision Document will primarily focus on youth in the age group of 16 to 35 years for

providing skill development and will consist of:

● Students completing secondary or higher secondary education and interested in the

acquisition of skills in the technical or non-technical trades through ITIs, Polytechnics and other

formal institutions.

● Drop outs from the school without completing secondary education, who are interested in

acquiring skills in the technical or non-technical trades through informal and formal institutions.

● Unorganised workers and young home makers interested in acquiring new skills, re-skilling or

up-skilling through formal or informal institutions depending on educational qualification.

● Organised workers interested in re-skilling and up-skilling for new or better employment, and

students from the humanities background interested in skills for obtaining suitable jobs.

Special Focus Segments

● Special Group Focus Cell will be established to provide thrust for marginalized and

disadvantageous community.

● Youth from a marginalized and disadvantaged section of the society based on disability16,

belonging to Scheduled caste and scheduled tribes, PVTG, religious minorities, gender,

culture or ethnic affiliation and/or any such groups. Young women shall also get priority over

others. An effort would be made by having a dedicated functional unit in the State Skill

16 As defined in Rights of Persons with Disabilities Act 2016 and mandated under Clause 19 of the same


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Procurement Cell to ensure this group gets the priority and efforts would be made strategically

to include them in the skilled movement.

● This cell will submit a biannual Affirmative Action report to the State Skill Mission. In order to

provide skill development initiatives for Persons with Disability, this cell will come out with a

Skill Road Map for PwD from 2018-2025. The specific mobilization, training and placement

strategy will be developed. The Vocational Skills for training PwD will be mapped out not just

thinking their disability, but appreciating their unique abilities (where they have a comparative

and competitive edge on others)

4.9 Target Segments and Skill Provision:

Table 17:Target Segments for skill provision

Sl. No.

LEARNER SEGMENTS SUITABLE JOB

ROLES of COMPET

ENCY LEVEL

OUTCOME - CANDIDATES

FOR

Initiatives

A. Outside the Education system

A.1 School Drop-outs/ Pass-outs

1. Not in Employment, Education or Training (NEET)

L3, L4 Placement linked Short term training

Department of Skill Development through short term courses

2. Employed L3, L4 Recognition of Prior Learning, re-skill, up-skill

District Level Centre for Excellence

A.2: Graduates: ITI/ Polytechnic / Engg / General (University Degree)

3. Unemployed L4, L5 Finishing Skills Training

District Level Centre for Excellence

Short Term Re-Sill Courses (Advanced Diploma)

4. Employed L5 and above

Re-Skilling and Up-Skilling

Opportunity facilitated by the Skill Development Dept in collaboration with Industry (Self Finance Mode)

B. Within Education system

5. School Students IX, X, XI, XII

L1, L2, L3, L4

Skills @ Schools Training

Department of Education with Dept of Skill Development

6. ITI/ Polytechnic L4 and above

Skills @ Vocational Course Training

Dept of Skill Development

7. Graduate/ Engineering Colleges

L5 and above

Skills @ College Training

Department of Higher Education and Technical Education and Corporate / Industries


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8. Post Graduate Courses L6 and above

Skills @ PG Training

Universities and Industries

(Source: Adopted with suitable changes from Skill Development in Andhra Pradesh, Vision 2029)

4.10 Key Milestones and Result Indicators for 2025

o Position Karnataka as the skill capital of India by 2025

o Skilling 1.29 crore persons by 2025

o Emerge among the top 10 global hubs for highly skilled manpower by 203017

In every skill sector, the state will bench mark the best in the world and work towards excelling

and will compete to improve state’s ranking in the global skill index

o Ensuring 100% students within the education / institution system passing out employable by

2025

o Establishing Skill University in the State by 2025

o Dedicated institutional structure is established from state to the block level for strategizing,

planning, implementing and monitoring skill development and employment (livelihood) initiatives

in the state by 2018

o Policies to Prosper: Exclusive and Futuristic Policies as well as Strategic Plan on

i. Skill Development and Employment

ii. Entrepreneurship Development

iii. Livelihood Development

iv. Social business policy for addressing social challenges with a sustainable approach

4.11 Signature Initiatives

Strengthening Employment Exchange at 29 Locations in Karnataka to facilitate

employment and entrepreneurship in collaboration with leading industrial houses and

multilateral agencies. The center to be further strengthened to facilitate skill development

programs, act as recognition of prior learning (RPL) centers, building skill ecosystem at the

district level.

Initiatives for Organized Labour Force: Skilling labour force in the unorganized sector will be

taken up extensively through the district skill mission through RPL process, imparting

systematically planned short term skill development programs particularly on customer

relationship management, EDP and business / professional ethics.

KAUSHALY BANDI (SKILL ON WHEEL), a mobile setup equipped with the required audio

visual devices to reach the difficult terrains in the district to achieve twin objective of inspiring

and aspiring. Inspire and motivate beneficiaries to join skill development courses through

17 Year 2030 mentioned as the New Skill Policy is planned for the period of 2017-2030 and the milestone requires

appropriate time


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effective Information, Communication and Education methods. With an appealing audio visual

materials, an effective orientation can be provided. The vital requirement is to build aspiration

among the supply side to consider the time they spend for getting skilled is an investment for

tomorrow’s better life. Also, these vehicles will be equipped to impart preliminary or basic

vocational skills.

Six State of the Art Skill Development Training facilities (International Skill Training and

Innovation Centres - InSTInCt) with international collaboration for advanced vocational

training

Six International Skill Training and Innovation Centres (Instinct) hall be established with an

industry and international collaboration for advanced vocational training with a total intake

capacity of 12,000. This is primarily to cater the demand for Highly Skilled Persons both within

and outside the state as well as at the overseas market. This would also serve as a career

advance centres for in-service ITI and Polytechnic faculties. The centres will be strategically

located considering the geographical advantages, need for promoting inherent skills /

occupations of the region, local industry sectors (for eg: Automobile in Dhwarwad, ESDM in

Mysuru, Artificial Intelligence, Nano Technology and Robotics in Bengaluru). The centre will

also be supporting innovation, constantly update curriculum to match the global standards,

providing virtual experience of technological advancements and industry to the students of

other polytechnics, ITIs and other technical courses.

GREEN SKILL INITIATIVE: Sustainable Agriculture, Green Building, Water Harvesting and

Renewable Energy Sectors

o Recognition of Prior Learning (RPL) in Farmers Community: Upskilling, reskilling and

recognizing prior learning of farmers is vital. The District Skill Mission will work in

coordination with the Agricultural department and Krishi Vigyana Kendra to establish a

certification and recognition program for the farmers. The focus is to have the skill

certification of farmers as well so that they have recognition when they go for financial

assistance, risk mitigation or coverage. The thrust will also be upon promoting sustainable

agriculture as well.

o BUILD GREEN: Alternative and sustainable construction technology to foster eco-

friendly construction in the state. The existing courses and curriculum will be updated /

integrated with the green building skills to train various cadre of the construction industry.

o SAVE WATER: Water Harvesting, Water Conservation and Water Reuse techniques will

be imparted on priority.

o GREEN ENERGY: Harvesting renewable energy, particularly solar energy.

Establishing International Migration Centre: An overseas employment cell to facilitate

citizen of Karnataka to venture in to global employment market

Establishing Centre of Trade Excellence (CTE) at the existing polytechnic colleges situated

at the district headquarter. Each CTE with an excellence in one special trade which is primarily


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relevant to the district’s business environment in particular while continuing to have other

regular trades in general

Design Karnataka Skill Qualification Framework (KSQF) on the lines of National Skill

Qualification Framework (NSQF) to ensure quality and accreditation of skill programs

Language for Livelihood: Language Learning Centre will be set up at the Career Guidance

Cell at the taluk level in collaboration with reputed language training institutes. In order to

strengthen agricultural allied activities and rural business process outsourcing centres,

building language capabilities of youth in the rural area is vital. Effort will be made to introduce

one additional foreign language along with English in every taluk. Each taluk centre will have

different foreign language in addition to the English so that the people in the district would have

four to five language learning opportunities sponsored by the state.

Initiating Livelihood Facilitation Centre at the block or cluster level to support rural women,

particularly those who are part of Self Help Groups. This is expected to function as one stop

facilitation centre providing convergence, provision of different schemes of Government

departments, credit linkages and marketing support.

Summer Vocational Programs at the hobli level to reach children of secondary schools will

be initiated. This is expected to build motivation and aspiration in the children to pursue

vocational training and education. Basic vocational training will also be provided at the L1 to

L4 level in this summer programs.

An efficient Labour Market Information System with an annual Skill Requirement Forecast

(both at supply and demand side). With this state will have an updated information at the

district and sub-district level on marketable and employable skills.

Skill Summits: Proactive partnership with Industry through district level industry summits,

regional level sector summit and state level summits to bridge the gap between industry and

academia / skill providing agencies.


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Table 18: Key Performance Indicators and key activities to achieve the vision 2025

Sl No Key Performance

Indicators

Challenges / Issues Indicators 2018 -2020

2020 – 2023

2023 -

2025

Key Activities / Approach Required to be Taken

1 Increasing employment opportunities in Karnataka

Unemployment rate for Karnataka is 1.4 percent (below national rate 3.7 percent

Shortage of 7.12 lakh skilled and 3.88 lakh highly skilled people in the state by 2022 (NSDC Estimate)

Growing global and national unemployment trend

Mobility issues among supply side

Lot of untapped potential in food processing, dairy, fisheries, coconut and cashew processing sectors

Tapping the potential 11 lakhs employment opportunity of (both skilled and highly skilled)

Coverage under career guidance and placement services will be 1.5 lakh youth in 2017, three lakh youth in 2018 and six lakh youth by 2020 in a phased manner.

Increased job opportunities in secondary and tertiary sectors by facilitating skilled labour transition

Increasing employment in

03 Lakh

1.5 lakh

05 Lakh

03 lakh

03 Lakh

06 lakh

Establishment of Self-sustaining social enterprise at each Grama Panchayath providing a platform to bridge the gaps in livelihood and jobs through skill development

Incentivising rural and social business initiatives

Localized trainings such as agriculture and allied services in agricultural regions

Initiating Diploma Courses in agricultural and allied sectors

Easy access and facilitation to financial assistance for upcoming entrepreneurs

Placement Services through job mela and employment exchanges


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the sectors allied to agriculture

Increased entrepreneurship opportunities

2 Increasing Skilled Labour force

Status: Only 13.2 percent of youth in the labour force having formal and non-formal vocational training.

Cumulative persons trained since 2008-09 under various skill development initiatives in the state is 9,41,507 as per the data reported Economic Survey 2016-17

Demand: semi-skilled workers at 43 percent of the total incremental demand. This is followed by minimally skilled workers at 27 percent, skilled workers at 25 percent and highly skilled workers put at five percent

Percentage of women receiving vocational training is significantly lower than men. Similarly, the proportion of youth receiving vocational training is low among those belonging to

Increasing skilled labour force from 14 % to 50% by 2025

Training 54 lakh fresh entrants to the labour force

Training 35 lakhs members who are already in the labour force without any formal vocational training

Transformation from short term, informal training courses to long term, institutional training courses by 2025

Strengthening Labour Market Information

20 percent

10 lakh

05 lakh

2 Labour Market

40 percent

24 lakh

20 lakh

3 Labour Market

50

percent

20 lakh

10 lakh

2 Labour

Three lakh students pursuing general education will be covered in a phased manner starting with 50,000 in 2017, One lakh in 2018 and so on.

Skills on Wheels program to reach difficult terrains and women in need of vocational training

Reaching un-organized sector with targeted skill development programs and RPL models

Robust training modules to meet the dynamic market demand with state of art infrastructure and faculty

All districts to have quality educational and skills training centres.


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ST and SC castes as compared to other categories

Gap in terms of availability of manpower for functional skill like plumbing, masonry, electrician, carpenter, welder for the existing industries. Tourist guide, driver, staff at various levels for the hospitality and tourism

Current programs are short term, not to meet market requirement, quality of trainers is an issue, student enrolment is low in many courses

Lack of interest and aspiration among young people to get skilled. Skill Development is not perceived as an investment, rather it is considered as a liability in the absence of a short term gain

System and creating a vibrant information bureau at the state level

Entrepreneurship Development Training for about 1.75 lakh members by 2020

Survey Reports

1.75 lakhs

Survey Reports

Market Survey Reports

Engineering colleges and polytechnics to have R&D centres by industrialists to bridge theory and practice gap

Skill development should also include promoting sports and sports sector. Skilled resources are also required for sports management

Skill Orientation and Summer Skill Schools for the students of higher secondary level

Creating awareness among supply side through effective media / communication channels including e-platforms

Market oriented innovation and high-end vocational training programmes on subjects such as robotics, mechatronics, nano technology etc. shall be introduced

3 Improving women

Work Participation of Women in rural is 37.6 percent and at urban area is 25.7 percent

Increasing participation in Urban (U) area

R-40% U-30%

R-45% U-35%

R-50%

Government to ensure a safe work place environment in all


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participation in the workforce

Work Participation of Women in other states are 1. Andhra Pradesh - 36.2 percent 2. Tamil Nadu - 31.9 percent 3. Madhya Pradesh - 32.6 percent 4. Maharashtra - 31.1 percent 5. India aggregate - 25.5 percent

Work Participation of Women in other comparable countries are

Bangladesh - 57 percent Thailand - 60.47 percent Sri Lanka - 35.05 percent Nepal - 82.73 percent Mynmar - 51.27 percent Indonesia - 50.74 percent China - 61.48 percent

Percentage of women receiving vocational training is significantly lower than men.

Labour force participation of young women (16-35 years) is only 31%

to 40% and in Rural (R) to 50%

& U-40%

the sectors as well as in the society at large

Targeted programs for women engaged in unpaid household activities environment for women entrepreneurs

Ensuring gender just budget and track expenditure in the skill development programs

Thrust for mobilization through Special Focus Cell

4 Increased investment in the Skill Development and Employment Sector

Chronic underinvestment in skill development

Lack of consolidated information about investment and spending by different departments, industries, CSR foundations,

Earmarking 0.5% of GDP in budget of Government of Karnataka

Establishment of Karnataka Skill Mission Fund

12 thousand crores

20 thousand corores

14 thousand crores

Incentivize private sector investment in skill development

Incentivising Social and Rural Business activities in the rural area


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NGOs etc on skill development activities

One Lakh Crore is expected to be allocated towards the Skill Development, Entrepreneurship and Livelihood activities from 2017 to 2030 in the state

Creating State of Art International Skill Training and Innovation Centres (Instinct) in 06 strategic locations (like Marine and Fisheries in Mangalore, Automobile in Dharwad etc) of the state

Creating 30 Centres for Trade Excellence at the existing district polytechnic colleges

5 Creating market opportunity for traditional and artisan (inherited) skills

Niche market for the products is not explored and exploited to its potential

The comprehensive data base of the trades and inherited skills is not developed

Marketing is the biggest need but the weakest provision for the artisans involved in handicrafts, handlooms and other indigenous vocational trades

No scope for Recognition of Prior Learning and skill accreditation of artisans

Obtaining a sufficient and timely financial assistance is a challenge for artisans

Creating urban haat at the major cities

A portal with a detailed inventory of traditional and inherited skills, and artisans involved

Developing master craft professionals at the district level and facilitating skill development of rural artisans

05

Commissioning Survey

05

Establishment of Portal

05 Urban Haat (in the line of Delhi Haat) to be developed / strengthened in the major cities

District level skill mission to facilitate recognition of prior learning, re-skilling and upskilling

Provision of entrepreneurship development programs

Strategic marketing and brand building support through MSIL or other such competent public / private sector body leveraging the strength of Information


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Lack of proper export market opportunity

Decreasing the trend of rural to urban compelled migration for the sole reason of survival

Export promotional centres at the regional level

02

04

Communication Technology (e-Haat / e-marketing)

Establishing exclusive sales outlets for artisan products through a franchise model at the district level

Setting up export promotion centres at the regional level by the government or appropriate agencies and ensuring efficient overseas marketing support

Creating of Livelihood Investment Fund to facilitate easy financial assistance to the artisans

6 Increasing number of apprenticeship opportunities in the state from 24,992 to 3.5 lakhs per annum with a target to reach Target 21.5 lakhs by 2025

1. Lack for proactive measures to facilitate apprenticeship program

2. Less number of industries participate in the program

3. Sector focus should be expanded not limited to for profit organization

4. Perceived statutory and policy restriction by the industries

1. Generating awareness about apprenticeship among the students

2. Incentivising apprenticeship both for the industry as well as the apprentice

4 lakhs 10.5 lakhs

7 lakhs

Create sensitization for all the key stakeholders (not limited to the industry) on importance of building talents and, realise apprenticeship is a nation building activity

Having an inventory of apprenticeship opportunities in the central and state public sector institutions, commercial and non-profit (NGO) entities, line departments of the


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Government, academic institution

Facilitate interaction between the industry and training institutes

Mandating apprenticeship for all the technical and general graduation courses

7 Inclusive Skill Development System for training Persons with Disability (PwD)

Growing trend of disability not only in the state of Karnataka but in the world due the lifestyle and other related issues

Shrinking employment opportunity for the PwDs in the rural area

Training infrastructure, content and materials are not accessible to the PwDs

Lack of orientation / capacity building to the faculties to train PwD

Making at least 04 trades inclusive in the ITI / Polytechnics situated in the district headquarters to ensure skill development opportunity for PwDs

Skill Development Infrastructure following Universal Accessible Design

Special Focus Group Cell established at the state level

In 06 ITI / Polytechnics

01



Accessible IEC and other resource materials on skill development to reach PwDs effectively

Ensuring accessibility of all the training resources (physical and intellectual) for the PwD

Earmarking budget for Skilling PwD in the department’s budget

An exclusive cell at the state level to design, facilitate, ensure and monitoring programs for skilling PwD

All training infrastructure, existing and new, government and private will be made accessible to


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Top 10 Focussed Skills Identified and necessary training resources (intellectual) developed mapping institutes at the district level to impart the short term courses

10 Skills are identified and materials developed

Trainings imparted at the district level

people with disabilities based on the standards as per the Rights of Persons with Disabilities Act, 2016

8 Strengthened governance and implementation mechanism at the district and sub district level

Absence of dedicated institutional mechanism for implementing and monitoring of skill development program at the district and below level

Monitoring Learning Quality at the vocational training providers site is a challenge due to the absence of dedicated institutional mechanism

Motivating beneficiaries to join vocational courses was a challenge

Establishing District Skill Mission by 2018

Establishing Taluka Level Skill Mission by 2018

Having dedicated human resource at the district level to monitor the skill development programs

Establishing 34 Centre of Excellence in the state

34

Establishing Skill Mission Fund

Establishing KSQA

Developing Livelihood, Entrepreneurship and Social Business Policies

Developing Strategy for Skill Development and Employment

Developing detailed action plan


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4.12 Implementation Road Map - Key strategic interventions

Environment Building:

Information, awareness, and mobilization

● By developing Strategy focussing on Information, Education and Communication along

with modules and tools in Kannada in accessible format also keeping special focus

segment (specifically PwD) in consideration; awareness on the role of skills as well as

choices available in terms of sectors, modules and training providers with better career

opportunities will be provided to youth, parents, teachers and other stakeholders to develop

pro-skilling environment.

● Information and awareness on advantages of skills, returns to skill education, marketable

skills in the technical and non-technical trades and institutions providing courses on such skills

will be provided to students completing secondary and higher secondary education, school

drop outs, unorganised workers.

● The state government will utilise the existing web portal www.kaushalkar.com for youth

interested in going for skill training. Mobile technology (KaushalKar App) and social media will

be used for better social networking, better engagement and collaboration with the prospective

candidates.

Environment Building

Awareness Generation

Creating Aspiration among

Supply Side

Revitalizing School

Education Curriculum

Developing Appropriate Institutional Mechanism

Skill Training

Infrastructure Development

Futuristic Curriculum &

Quality Assurance

Thrust on Institutional /

Long Term Courses

Mandating Apprenticeship /

Internship

Livelihood and

Entrepreneurship: Exclusive Policy

Partnership & Placement

Proactive Partnership with

Industry - Civil Society - Academia

Universalized career

guidance and placement services

Augmented Employment

Opportunity

http://www.kaushalkar.com/


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● Campus Orientation Programs (at ITI / Polytechnic campus) to provide orientation to different

vocational trades for the high school children and enhance awareness

● The support of CSOs/ NGOs and other community based organizations will be obtained to

mobilize the youth. A Foundation Course will be initiated to provide the orientation of various

vocational skills, career opportunities and to create aspirations for the target group who are

outside the school environment.

● The Self Help Groups (SHGs) and other Community Based Group will be efficiently used as

the platform the orient the families of potential candidates on the importance of skill training

with a special focus on skilling female candidates

● Information Centres in the Village Panchayat’s wherever exists would be equipped with ICT

tools to enrol youth directly for the training program. A bi-monthly Skill Development and

Employment Kiosk will be set up to provide skill information and linkages for

training/employment.

● The existing database such as Socio-Economic Caste Census (SECC), 201418, will be utilised

for identification and mobilisation of youth priority basis

● Skill missions at the taluk and district levels will work to facilitate counselling and guidance to

the youth about various skilling programmes and opportunities.

● Short term basic and multipurpose skill programs in coordination with local skill agencies will

be organized at the village/cluster level in coordination with GPs/ULBs.

Building Aspiration

● A premium wage for skilled workers who have gone through a formal vocational education

course will be institutionalized in collaboration with the industry. Minimum wages will be

upwardly revised and additional premium will be set for skilled employees in the same job to

make vocational education aspirational for the youth as well as the industry.

● High quality vocational education options will be made available to students.

● Efforts will be made to ensure 80%-90% placements after the training program depending on

the courses. This would create the confidence among the youth to pursue the skill training.

● Efforts will be made to make NSQF aligned skills mandatory for government procurement.

● Pathways between vocational education and general higher education will be created through

mechanisms such as equivalence through a credit framework and bridge courses etc.

Working with Education Department:

● Necessary reforms in the education system will be initiated at the higher primary and high school

and higher secondary (PU College) level in phased manner to achieve seamless integration of

18 SECC has collected data pertaining to gender, age, educational qualification and occupation for each person in

a household. This information can be utilized for the purposes of identification, mobilization and selection of

youth for various skill programmes of the Department.


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vocational education into the formal education system. The assessment and certification bodies

will support the Boards of School Education to carry out reforms.

● There is need to introduce broad based fundamental skill courses at the school level. The skills

such as life (soft) skills, enhancing language (communication) skills, lifelong learning, numeric and

business accounting skills, computer skills are very important part of skill program. Along with the

above, additional employability skills primary to higher education shall be imparted along with the

regular curriculum. This will ensure that dropouts will have some skill or will have an exposure to

an alternative avenue of getting employed in the organized sector.

● The Basic Skills such as sustainable agriculture, basic EMC (electrical, mechanical and

computer skills) should be imparted from the higher primary school (class 06th) level. The

vocational education could be an optional paper in the class 08th and 09th. The required

resources (both physical and intellectual) to be established in the state in a phased but

aggressive manner.

● Summer vocational school at the cluster (Hobli) level would be planned to provide a flair of

vocational skills to the rural youth.

● Changes in the curricula of higher secondary education in favour of vocational skills to improve

employment prospects in the formal sector.

● To address the employability issues amongst students of general education, a basket of related

courses will be identified, and students will be facilitated to opt a course of their choice.

● Students pursuing general education will be imparted a certified skill training course during their

regular studies in line with the finishing school concept.

● The government will make efforts to bring skill training at par with the general education system.

Courses offered under skill development will have both theoretical and practical frameworks so

that workers have complete knowledge. This will help them to seek the same promotional and pay

packages as normal jobs offered in private and public sector.

● Courses such as Bachelor of Vocational Studies will be started to introduce skilling as a subject at

college and university levels to enable the students to have trans-disciplinary vertical mobility into

those courses where the entry qualification is bachelor degree. Such a course, as decided by the

UGC, will have multiple points of entry/ exist and appropriate content of general education along

with skills relating to a profession.

Skill Training

Training infrastructure

● The primary focus is on utilizing existing infrastructure at the ITIs and polytechnics for skill

building for large number of young people. Further, the quality of infrastructure will be improved

and new public and private institutes will be strengthened. These will be made accessible to

people with disabilities based on the standards as per the Rights of Persons with Disabilities

Act, 2016.


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● The government will standardise and institutionalise private sector capacity by increasing the

number and mix of skill training courses through means like a public-private partnership, equity,

grant and soft loan support from the Government. Private sector and CSR initiatives in skill

training will also be encouraged.

● Industries will be encouraged to earmark funds for periodic skilling and up-skilling of personnel

employed in the industry within the space and infrastructure available in the government ITIs

and polytechnics.

● Industries and / or Area Industrial Associations will be encouraged to start training centres.

● The structure of the course will be re-designed to make students spend more time (50-

60%) in the industries thus augmenting the utilization of existing training infrastructure

and provide maximum hands on learning opportunity for the students.

● Community Schools and e-learning platform will be created to address the issue of scaling up

and capacity in collaboration with CSOs and Industries.

● In order to reduce gender disparity, basic workshop subjects such as metal work, woodwork,

technical drawing, and basic electrical will be made compulsory for both girls and boys.

● The criteria for inclusion and exclusion of target group in SECC will be adopted to select the

beneficiaries for schemes on skill development, entrepreneurship, and livelihood.

Improving quality of training and capacity of teachers

● State would develop a quality assurance framework in line with national policy / NSQF.

● To promote accountability among ITIs and assess their performance, ratings based on their

outcome linked parameters will be applied.

● Preparing curriculum which is in sync with emerging market demands and aligned to latest

NSQF. Qualification packs will be recommended by the sector committees. The latest teaching

aids will be promoted to disseminate quality training on a large scale. The curriculum will be

revised once in every three years to accommodate the changes in the market, and in

consultation with the industry.

● Training and retraining program will be periodically organised for the teachers of ITIs and

Polytechnics so that they can update their expertise on the curriculum driven by the demand

in the labour market.

● Teachers will be deputed to the industry to upgrade their skills and keep abreast of the

technological advances made in the industry. ITIs and Polytechnics will be mandated to solicit

the services of those working in the industry as guest faculties for stipulated number of hours

for each course.

● Training capacity will be improved by identifying adequate training providers to all the villages

and localities in Karnataka for imparting training or re-skilling or up-skilling in the identified


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trades. Skill Upgradation and Trainer’s program will be organized for Master Craft Persons

involved in traditional and artisan skills

● The government will prepare the standard curricula and courseware, monitor the training

providers, and assess the process of certification of the trainees.

● Government would commission a study to map the redundant and irrelevant courses and

suggest new courses be initiated according to the need in today’s and future context.

● The government will operationalize the Recognition of Prior Learning (RPL) for unorganised

workers for strengthening and certifying their skill base. A district level Master Craft Person will

be recognized at the first stage. A qualification and accreditation framework shall be developed

and MCPs will do an accreditation of skill level observing practical/on-the job performance of

artisans and labours in the unorganized sector. The certificate courses to recognize the already

skilled persons in the informal sector by the distance universities (such as IGNOU) shall be

explored.

● Annual District level teachers, industry, SME, CSO meet will be facilitated with other line

departments of Government and key stakeholders to discuss changes in need for skilled

human resource, facilitation for apprenticeship and sharing industry updates

● The sector councils to have Industry Summit at the regional level to come out with annual

report on Sectors/Jobs redundant in the industry and sectors/jobs emerging in the industry

(including non–profit, co-operative, academia).

Apprenticeship programme

● Integration of apprenticeship training into the regular curricula and certificate courses will be

initiated.

● Efforts will be made to adapt the German dual system into the ITI system wherein a trainee is

given the opportunity to spend more time in the industry.

● Karnataka government will link with MSDE’s National Apprenticeship Promotion Scheme

● Efforts will be made to include more industries such as telecom, insurance, banking and

finance, information technology, and civil aviation and retail trade.

● An action plan for strengthening and effectively implementing apprenticeship program will be

drawn

● An exclusive institutional mechanism will be established to provide required focus to effectively

implement apprenticeship program

● A Scheme will be introduced to incentivize the industry association to play the role of an

aggregator and facilitate Apprenticeship Programme

Vocational training for school dropouts

● The vocational training will be provided through various private Skill Development Centers

(SDC) or Vocational Training Providers (VTPs).


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● For girls, decentralised training arrangement will be made if required and taking feasibility

in to account.

● Training capacity will be augmented by identifying at least one SDC or VTP in each taluks in

Karnataka for imparting training in the identified trades.

Partnership and Placement:

Industry engagement

● An environment will be built to translocate urban jobs to rural areas. The private/industry sector

will be encouraged to create Rural BPOs in labor intensive activities such as garment making,

food processing, packaging etc by offering appropriate incentives.

● Strong linkages with the industry will be established for skill development especially in the

mobilisation of candidates, development of course content and curriculum, training of trainers,

establishing placement support system, overseas employment and so on.

● Industries will be involved in the assessment and provision of information on marketable skills

on regular basis.

● Industry and industry associations will be encouraged and incentivised to actively participate

in designing curricula and standards for skill training courses, depute their industry members

as faculty, make shop floor available for practical training and institutionalise paid

apprenticeship. Workplace training will be promoted as part of overall skill curriculum aligned

to NSQF and embedded in appropriate credit framework.

● For effective skill development, the link between demand for skills by employers and supply of

quality skills is crucial. The government will provide incentives to those industries which are

successful in establishing such a link.

● Partnerships with industries successful in setting up of training centres will be established to

learn from such experience as well as to replicate on a larger scale.

Career guidance and Placement Support Services

● Career Guidance, Counselling and Placement Centers in Industrial Training and Employment

Department at the state level and District Employment Exchanges will be upgraded in to Centre

of Excellence.

● A strategy and required information system on career guidance and placement support

services will be put in place.

● The database of trained candidates will be put in place and their progress will be tracked

constantly to provide required follow up support

● In due course, a separate Directorate of Employment Services and Career Guidance will be

established.

● Career guidance for the class 10th children with Passion Pathfinders in the schools (people

who are equipped to identify the individuals’ passion/interests) to orient children about potential

career opportunities organized once a year


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Interstate and Overseas employment

● An Overseas Employment Cell will be established to facilitate overseas employment

opportunities for skilled persons.

● An effort will be made to reap the benefit of highly skilled employment opportunities available

in the other states of the country. State Employment Facilitation Cell will facilitate interstate

employment information and movement.

● To promote overseas employment, the government will make efforts to ensure that the

curriculum of vocational education and content of skill training meet international standards.

Transnational standards will be promoted in partnership with destination countries.

Digital infrastructure

This is critical as physical infrastructure and other resources to foster skill development. The

Government of Karnataka under skill development department already created Kaushalkar app

and website to facilitate both skill training aspirants and training providers. But, high quality

internet/broadband facilities should reach villages, computer kiosks and affordable smartphones

required to be made available. The Government will build the overarching eco-system.

Fostering Entrepreneurship Development and Livelihood Promotion

Skills for entrepreneurship development

The strategic focus points for successful entrepreneurship development among youth are given

below.

● Efforts will be made to identify potential and early stage entrepreneurs from among those

attending formal skilling courses as well as others. In order to educate and equip them,

entrepreneurship education curricula will be developed.

● The Department will provide entrepreneurship curriculum to aspiring entrepreneurs with

the help of ICT.

● Colleges and universities, both public and private, will be encouraged to start entrepreneurship

courses. Electives will be initiated at the engineering, general graduation level to foster

entrepreneurship.

● Web and mobile based platforms will be used to connect the students and budding

entrepreneurs with the ecosystem of entrepreneurship, and opportunities for skill training and

other services such as credit.

● Karnataka government will encourage the creation of new incubators and scale up of the

existing incubators through appropriate support.

● A state-wide network of Entrepreneurship Hubs (E-Hubs) will be set up (or the existing

ones will be used) to provide guidance and extend support to entrepreneurs such as delivery

of services as part of the state programme on entrepreneurship and other resources.


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● The government will undertake steps to rationalise business procedures and regulations

to improve ease of doing business. The Government will constitute a committee to arrive at

the procedures and regulations.

● Access to institutional finance is key for the success of business. The government will

initiate steps to ensure the flow of adequate and timely credit to budding entrepreneurs by

strengthening coordination between entrepreneurs and banks/other financial institutions.

● The curriculum, tools and training materials, web and mobile platforms, e-hubs, assessments,

access to finance, etc. would be made accessible to people with disabilities and reasonable

accommodations and appropriate support would be ensured for people to access them

easily.

Livelihood promotion

Livelihoods go far beyond generating income and much more than employment. The Government

will develop an exclusive policy on livelihood to provide necessary impetus to strengthen

human/individual, social, financial, economic, natural and intellectual capital following sustainable

livelihood approach. Following diagram provides the strategic framework for the rural livelihood

activities in the Karnataka.


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Social

Mobilization Community

Participation at each stage

Reaching the 'Last Person '

Capacity Development

and Social Inclusion

From

Marginalized to Mainstream

Building Strong Institutions of &

for the Poor

Livelihood Promotion

Farming and Allied Activities

with Market Creation

Marketable and

Employable Skills

Promoting

Inherent Artisan Skills

Financial Linkages

Proactive and Effective Bank Relationship

Safe and Profitable Financial Habbits

Partnership for Entitlements

and Additional Benefits

Reaching key Entitlements

Proactive Partnership for Comprehensive

Benefit

Monitoring and

Evaluation

Concurrent and Effective

Monitoring Mechanism

Concept of Supportive Supervision

Efficient

Utilization of Technology


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4.13 Role of stakeholder departments

Skill development and training is a complex activity which involves several stakeholders to make

the process – be it module development, launching the course and its successful completion and

placement of the students in remunerative jobs and enterprises. Several government, non-

government, industry and corporate houses, NGOs and civil society organizations have a potential

role to play at different points of skill development. Table 19 below provides a comprehensive

picture about different organizations, levels of engagement and their proposed role in skill

development.

Table 19: Roles and responsibilities of different stakeholders

S No

Organization Level of engagement

(State/district/taluka/village)

Proposed role

Government department

1 Rural Development and Panchayati Raj

District, taluka Taluka and village

● Facilitation role in identifying the young people in 18 – 35 years for skill training

● Creating rural infrastructure for skill development

● Infrastructure for Cluster Level Livelihood Facilitation Centres

● Considering mobilization of youth skill development as one of the major activity under

● Providing enabling environment for Self Help Groups

2 Education State, taluka and village level

● Ushering in education reforms at the state level

● Coordinate and facilitate the skill development programs

● Identification of resource persons and developing training modules

● Forming Joint Skill Education Council / Taskforce for planning skill and vocational education integration with school curriculum, integration of courses for the easy movement from general education to skill education and vice-a-versa

● Organizing summer vocational schools

3 Urban Development and municipal administration

District / city, Taluka / Town level

● Facilitation role in identifying the young people in 18 – 35 years for skill training

● Infrastructure development for skill training at the urban areas

● Coordination / support for Water, Sanitation and Renewable Energy Skill Development programs


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5 Women and Child Welfare

Taluka and village ● Facilitation role in identifying the young people in 18 – 35 years for skill training

● Facilitating SHG’s to pursue skill development and livelihood activities

● Mobilizing and motivating women for skill development

6 Agriculture and Horticulture

Taluka and village ● Coordinate and facilitate the skill development programs


● Establishing Negila Yogi Hasiru Gurukula for RPL, Re-skilling and skilling people for agricultural sector

● Introducing basic agricultal training course for children in Higher Primary School

7 Animal Husbandry & Milk Federation

District, Taluka and Villages

● Coordinate and facilitate the skill development programs


● Facilitation of financial assistance for skilled persons

9 SC/ST/BC corporations

State and taluka level

● Targeted mobilization of SC/ST community for the skill development program

● Financial support for skilled persons to establish enterprise

● Special mobilization drive for indigenous / primitive and vulnerable tribal community

● Hostel / accommodation support for the trainees

10 Finance department

State ● Provide budgetary allocations from the annual budget

Industry and corporate houses

10 Industry and corporate bodies

State, district, taluka and village

● Generate awareness about the skill development

● Provide resource persons from their network

● Develop training modules

● Proactive apprenticeship programs at the industries

● Accommodating trainees for on the job / hands on training courses

● Industrial Association to act as aggregators for apprenticeship program

● Providing required material and technical support for strengthening training institutions

● Collaboration for sate of art and centre of excellence initiatives

Civil Society Organizations


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11 NGOs and community based groups

State, district, taluka and village

● Policy advocacy for enhancing the effectiveness of skill development programs

● Contribution to the course content and suggest new courses (need based)

● Generate awareness about the skill development

● Provide resource persons from their network

● Develop training modules

Media houses

12 Media State, district, taluka and village

● Generate awareness about the skill development initiatives of the government

● Identify success stories of skill development and provide wide coverage

● Provide information about the different skill development programs taken up by the central and state governments

● Provide resource persons from their networks wherever appropriate

Academic institutions

13 Universities, colleges in the district and the state

State and district level

● Inputs necessary for developing new modules and fine-tune the existing ones

● Conduct need assessment studies

● Develop courses for highly skilled segments and emerging trades

● Upgradation programs for ITI / Polytechnic faculties

● Evaluation of the skill training programs

Before launching any skill development, need assessment survey and/or livelihood analysis of the

village/taluk needs to be conducted to find out the current situation. Institutional mechanisms need

to be put in place to facilitate the interaction between the different stakeholders.

4.14 Institutional Mechanism

One of the major limitation experienced by the state in implementing skill development programs

successfully is absence of robust institutional mechanism. State will establish a well thought,

comprehensive and an efficient implementation mechanism from the state to sub-district level that

works proactively to plan, implement and monitor the program effectively, as well as ensure

convergence with the public and private organizations.

Table 20: Institutional Mechanism

Institution Key Functions / Sub – Institutions

Karnataka Skill Mission Governing Council

Empowered Committee

Mission Secretariat


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Skill Policy Implementation Cell

Consisting of experts in the field will assist the Mission Secretariat and act as a think tank in taking policy decisions

Karnataka Skill Development Agency

Skill Information Bureau

KSQF and SCVT Board

Karnataka Skill Qualification Framework and State Council for Vocational Training Board

Skill, Education, Training and Knowledge Research Institute

Skill Education, Training and Research Institute on the lines of DSERT in Education Department

To undertake the development of curriculum, pedagogy, books, training tools, teaching learning material and to do research in Vocational Education.

Commisionerate for Industrial Training and Employment

Skill Procurement Agency

Special Group Focus Cell (SGFC)

State Apprenticeship Facilitation Centre

Sub-state level skill missions

Commissionerate for Entrepreneurship and Livelihood

Implementing Rural and Urban Livelihood Programs

Implementing Entrepreneurship Development Programs and creating an enabling environment for entrepreneurship

The detailed functions, roles and responsibilities of the institutions will be drawn in the action plan

developed further.

4.15 Financing (Budget) for Vision Implementation

Karnataka Skill Mission Fund will be created and will have accruals from Government of Karnataka,

Government of India, Corporate Social Responsibility Funds and any other donations. The fund

will be operated jointly by the Commissioner, Employment and Training and Director, Employment

and Training. Karnataka Skill Mission Fund will be used as per rules and regulations approved by

the Governing Council. It is assumed that during the period 2018 to 2025 about 89 lakh persons

will be provided. Fund required to provide the skill training (both short and long-run) for the persons

in stock classification is Rs. 7500 crores and Rs 40,000 crores for the flow category including

capital investment for long term, operational cost, short term courses in addition to the existing

department budget. The total funds may be required to implement the skill development programs

is around Rs. 47,500 crores. The funds required for signature initiatives are will be properly

estimated once the action plan is drawn.


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5. METHODOLOGY Government of Karnataka’s Vision 2025 Document is an articulation of the State’s aspirations by

providing a strategic road map to achieve its potential (in the short and medium term) for the next

8 years i.e., till 2025. With the pertinent question of ‘What is in it for me’ for different stakeholders,

the Vision Document 2025 was developed through an iterative process and intends to serve as a

bridge between different stakeholders and diverse interests19. This exercise involved two kinds of

process – horizontal and vertical. In the horizontal process involving several rounds of

consultations with the Heads of Departments within Government of Karnataka, the following 13

priority themes in line with the UN Sustainable Development Goals (SDGs) were identified:

1. Agriculture and allied sector,

2. Energy and transportation,

3. Governance,

4. Rural Development,

5. Information Technology and

Biotechnology,

6. Social Justice and Empowerment,

7. Infrastructure,

8. Industrial Development,

9. Employment and Skilling,

10. Urban Development and Smart

Cities,

11. Health and Nutrition,

12. Education and

13. Law and Justice.

To kick start the envisioning exercise for Karnataka, a state level Sector Consultation Workshop

was organized by the Vision Document Project Office, Government of Karnataka in September

2017. This meeting brought together different stakeholders like government departments,

corporates, industry, civil society organizations to discuss and deliberate on the way forward in

preparing the Document. The Sector Level Consultation Workshop provided the necessary

direction, milestones for the next eight years and process to be followed to ensure that the

community’s voice is incorporated into the Vision Document. One of the key parameters for the

Vision Document was to arrive with three to four strategic steps through which the Vision Document

could be implemented and achieved by 2025. Focus also should be on highlighting the forward

and backward linkages at the district/taluk/village level necessary for achieving the strategic

results.

The State Level Stakeholder Consultation meeting was followed by a series of District Level

Consultation Workshops (as part of the vertical process) in all 30 districts of the state between

October first week till 10 November 2017. During these workshops, the Vision Document Project

team interacted with different stakeholders at the village/community level to understand their

aspirations and expectations to enable the inclusion of their voice into the policy narrative.

19 https://navakarnataka2025.in/site/en/about accessed on 15 October 2017

https://navakarnataka2025.in/site/en/about


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Considering the diversity and regional disparity within Karnataka state, several region-specific

points emerged in these interactive meetings at the district level in terms of suggestions, ideas,

implementable solutions and policy recommendations, which were incorporated into the document.

The Policy Document was developed and finalized after several rounds of iterations between

different stakeholders i.e., the government officials, industry, corporate houses, civil society

organizations and the village communities after ensuring that the community voice reaches the

policy makers.

Data sources

Both secondary and primary data was sourced and used for the present exercise. While the

deliberations at the stakeholder consultation and district level consultations provided primary

source of information, the secondary sources of information were the documents/reports of

international agencies (UN Human Development Report 2016), national organizations

(Employment and Unemployment Report 2015 – 2016 by Government of India) and state agencies

(Economic Survey of Karnataka 2016 – 2017 and District HDR Report 2014). These documents

were used to provide background information about the global population growth and employment

patterns in the global workforce. These documents were also used to present the trends of

population growth in India and set the backdrop of population growth demographic dividend for

‘Advantage Karnataka.’

For the Skill Development and Employment chapter, the extensive review of policy documents

such as National Skill Development Policy document, National Skill Development Mission

document, Report on Education, Skill Development and Labor Force 2015 – 2016, Employment

Unemployment Survey 2015-2016, Apprentice Act was undertaken. This was useful in

understanding the trends of employment and unemployment in the country and Karnataka along

with a comprehensive understanding of the institutional/legal framework guiding skill development

in India and Karnataka. For identifying the best practices from other states, the Vision Documents

of four other states i.e., Andhra Pradesh, Haryana, Tamil Nadu and Madhya Pradesh were

reviewed. A review of the skill development ecosystems of five countries – Australia, Brazil, China,

Germany, and Singapore – was also undertaken to distil crucial lessons which could be used in

the Karnataka context.


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Reference list

Documents of International Organizations

1. Marc S. Tucker, ‘The Phoenix: Vocational Education and Training in Singapore’

(Washington, DC: National Center on Education and the Economy), 2012

2. United Nations Development Program, Human Development Report (New York: United

Nations Development Program), 2016

3. International Labour Office, ‘World Employment Social Outlook, Trends 2016’

(Geneva: International Labour Office)

4. KPMG India, India Soars High, February 2016

5. KPMG China, The 13th Five Year Plan – China’s transformation and integration into

the world economy Opportunities for Chinese and foreign businesses, October 2016

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employment, June 2017

Government of India documents

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Commission), p 1 – 40

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Vocational Training. (New Delhi: Planning Commission), 2006, p 1 – 55

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Sector Profile. A brief overview about the skill development sector, (New Delhi: FICCI),

p 1 - 18

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Development Landscape in India and Implementing quality skill training’, (ICRA

Management Consulting Services Limited), August 2010, p 1 – 35

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Development Landscape in India and Implementing Quality Skills Training’, (New

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Implementation, (New Delhi: Ministry of Skill Development and Entrepreneurship),

2015, p 1 – 32.

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III, 2015 – 2016, (Chandigarh: Ministry of Labour and Employment), 2016, p 1 – 244

17. Government of India, Report of Fifth Annual Employment – Unemployment Survey,

Volume I, 2015 – 2016, (Chandigarh: Ministry of Labour and Employment), 2016, p 1

– 360

Karnataka state documents

18. Government of India, Karnataka Development Report by the Planning Commission,

2007, (New Delhi, Government of India), p 1 – 700

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Employment and Training, (Bangalore: Government of Karnataka), 2008. p 1 – 32

20. Government of Karnataka, Karnataka Industrial Policy 2009-14, p 1-47.

21. ICRA Management Consulting Services Limited (iMaCS), ‘District wise skill gap study

for the State of Karnataka’ (New Delhi: National Skill Development Corporation), 2013,

p 1 – 1070

22. Human Development Performance of Districts, Taluks and Urban Local Bodies in

Karnataka, 2014 – A Snapshot (Bengaluru: Human Development Division, Planning,

Program Monitoring and Statistics Department), 2015, p. 1 – 226

23. State profile of Karnataka, August 2015, document compiled by India Brand Equity

Foundation (www.ibef.org), p 1 – 84.

24. Government of Karnataka, Economic Survey of Karnataka, 2015 – 2016, (Bengaluru:

Department of Planning, Program Monitoring and Statistics), March 2016, p 1 – 849

25. Government of Karnataka, Economic Survey of Karnataka, 2016 – 2017, (Bengaluru:

Department of Planning, Program Monitoring and Statistics), March 2017, p 1 – 812

26. Government of Karnataka, Skill Development Policy for Karnataka, Final Report

(Bengaluru: Department of Skill Development, Entrepreneurship and Livelihood),

December 2016, p 1-38

Vision Documents of other states

27. Government of Andhra Pradesh, Skill Development in Andhra Pradesh, Vision 2029,

(Ernst & Young LLP (EY)), March 2016, p 1 – 79.

28. Government of Haryana, Vision 2030, (Chandigarh: Government of Haryana), 2017, p

1 – 174.

29. Government of Tamil Nadu, Vision Tamil Nadu 2023 Strategic Plan for Infrastructure

Development in Tamil Nadu, March 2013, (ICRA Management Consulting Services

Limited), p 1 – 68.


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30. Government of Madhya Pradesh, Madhya Pradesh Vision 2018, An Agenda for

Development, Change and Good Governance (Bhopal: Department of Planning,

Economics and Statistics), December 2013, p 1 – 42.

Articles and journal publications

31. Manjunatha, S. 2013. ‘The Role of Women Self-Help Groups in Rural Development of

Karnataka State, India’, International Research Journal of Social Sciences, Vol 2 (9),

September, pp 23 -25 accessed on 29th September 2017 from www.isca.in

32. Okada, Aya. 2012. ‘Skill Development for Youth in India: Challenges and

Opportunities’, Journal of International Cooperation in Education, Vol. 15, No, 2, pp.

169 – 193

33. Saini, Vandana. 2015. ‘Skill Development in India: Need, Challenges and Way

forward’, Abhinav National Monthly Referred Journal of Research in Arts and

Education, Vol. 4, Issue 4, April, pp. 1 – 9

34. Briefing Note 2. 2012. ‘Empowering women through skill development – Challenges

and opportunities’, Forum II, Gender and Economic Policy Discussion Forum, 24 April,

pp 1 – 8.

http://www.isca.in/

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