India’s Vocational Training System & Employability

Syllabus: GS3/Employment & Related Issue

Context

• India needs to address the long-standing gaps in its vocational education and training (VET) systems to truly transform its growth model.

About the India’s Vocational Training System

• It is one of the largest in the world, designed to equip youth and workers with industry-relevant skills across sectors.
• It is overseen by the Ministry of Skill Development and Entrepreneurship (MSDE) and regulated by the National Council for Vocational Education and Training (NCVET).

Key Statistics: India’s Vocational Training Landscape

• Scale & Reach:
  • Over 14,000 ITIs across India.
  • More than 127 recognized awarding bodies and 68 assessment agencies under NCVET.
  • Training offered in both formal and informal modes, including Recognition of Prior Learning (RPL).
• Formal Vocational Training (Ages 15–59): Only about 4.1% of individuals received formal vocational training as of 2023 (rise from 1.8% in 2017).
• Informal Training Trends: In 2023, 65.3% of people aged 15–59 had received no vocational training, down from 92.6% in 2011.
  • Hereditary training (skills passed down in families) rose from 1.45% in 2017 to 11.6% in 2023.
  • On-the-job training increased from 2.04% in 2017 to 9.3% in 2023.
  • Self-learning also grew, reaching 7.1% in 2023.

Core Challenges

• Late Integration: India introduces vocational training only after high school. It limits early exposure and hands-on skill development.
• Limited Pathways: Vocational training in India lacks a clear route to higher education, making it a dead-end for many students.
  • It discourages participation and undermines its credibility as a viable career path.
• Vocational Training Deficit & Low Employment: In 2022, only 48% of ITI seats were filled, and employment rates among graduates stood at 63%, below the 80–90% achieved in countries like Germany, Singapore, and Canada.
• Poor Quality and Perceptions: Outdated curricula, vacant instructor positions, weak monitoring, and minimal industry participation have made VET unattractive.
• Limited Industry Engagement: Indian ITIs remain dependent on government funding, while global models rely on strong public–private partnerships.
  • Employer involvement — particularly from MSMEs — is minimal, reducing training quality and job linkages.
• Structural Barriers:
  • Social Stigma: Vocational careers are often viewed as inferior to white-collar jobs, discouraging youth participation.
  • Fragmented Curriculum: Many programs lack updated content and fail to reflect current industry needs.
  • Insufficient Infrastructure: Schools and ITIs often lack modern equipment and skilled trainers.

Current Policy Measures

• Government Initiatives:
  • Pradhan Mantri Kaushal Vikas Yojana (PMKVY): It offers short-term courses, sometimes as brief as 10 days.
  • Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDUGKY): It targets rural youth.
  • National Apprenticeship Promotion Scheme (NAPS): It encourages industry-based training.
• National Education Policy (NEP) 2020: It aims to integrate vocational education from pre-school to Grade 12, breaking the divide between academic and skill-based learning. Key reforms include:
  • Early exposure to trades like carpentry, gardening, and metalwork.
  • Vocational Interest Inventories and Aptitude Tests to guide career choices.
  • Partnerships with local industries and ITIs for hands-on training.
• Ministry of Skill Development and Entrepreneurship: Targeted schemes like:
  • Modular Employable Skills (MES) for school leavers and workers;
  • National Apprenticeship Promotion Scheme (NAPS) to boost on-the-job learning;
  • Skill labs and incubation centers under the Hub-and-Spoke model.
• Initiatives like Employment Linked Incentive (ELI) Schemes, the PM Internship Scheme, and ITI Upgradation focus more on formalisation and infrastructure.
  • There is a need to focus on skilling quality.

Way Forward: Lessons from Global Best Practices

• Early Integration: Introduce vocational training within school curricula, as recommended by the NEP 2020.
• Clear Progression Pathways: Implement the National Credit Framework to allow movement between VET and academic tracks.
• Industry Alignment: Regularly update courses based on local labour market demand, expand training institutes, and recruit qualified instructors.
• Public–Private Partnerships: Encourage private training providers, involve MSMEs, and leverage CSR funding for skilling initiatives.
• Increased Public Spending: Raise vocational education expenditure from the current 3% to levels seen in advanced economies (10–13%).
• A recent report by the Institute for Competitiveness, unveiled by the Ministry of Skill Development, emphasizes a demand-driven, market-aligned ecosystem. It recommends:
  • Creating a robust employability index to track outcomes;
  • Recognizing informal and experiential learning;
  • Incentivizing industries to recruit from skill-certified talent pools.

Source: IE