Kurukshetra December, 2024

Chapter 1- Government Initiatives in Promoting Skill Development and Entrepreneurship

The Ministry of Skill Development and Entrepreneurship (MSDE) in India has launched several initiatives aimed at fostering a supportive entrepreneurship ecosystem, particularly focusing on inclusivity for women, marginalized communities, and individuals from lower socio-economic backgrounds. Here are some key initiatives:

Pradhan Mantri Janjati Unnat gram abhiyan

Key Initiatives by MSDE

1. Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM-JANMAN):

  • Implemented through NIESBUD and IIE, this initiative focuses on skilling and entrepreneurship for Particularly Vulnerable Tribal Groups (PVTGs) across 18 states and one Union Territory. It is part of the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) framework.

2. Capacity Building Programme for Fair Price Shop Owners:

  • In collaboration with the Department of Food and Public Distribution, this program aims to train 3,000 Fair Price Shop owners nationwide. It covers contemporary retail practices, financial literacy, and government support systems.

3. SANKALP Scheme:

  • This project strengthens the entrepreneurial ecosystem for marginalized groups, including Scheduled Castes (SCs) and Scheduled Tribes (STs), through capacity building, mentoring, and incubation support..

4. Training of Trainers (ToTs) and Entrepreneurship Development Programmes (EDP):

  • Conducted in Jan Shikshan Sansthans (JSSs), this initiative trains 2,000 trainers and aims to foster entrepreneurship among 4,000 trainees through comprehensive capacity-building efforts.

5. Rashtriya Udyamita Vikas Pariyojana:

  • A pilot project in collaboration with the Ministry of Housing and Urban Affairs to train beneficiaries of the PM-SVANidhi scheme. It includes a week-long classroom program followed by 21 weeks of mentoring.

6. STRIVE Project:

  • Under the Skill Strengthening for Industrial Value Enhancement initiative, this project has conducted numerous Entrepreneurship Awareness Programs and Development Programs for over 96,000 beneficiaries in Industrial Training Institutes (ITIs) across India.

Key Government Initiatives to Promote Entrepreneurship

1. Startup India Initiative

Launched on 16th January 2016, the Startup India Initiative aims to build a vibrant entrepreneurial ecosystem. Spearheaded by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry, the initiative offers recognition and incentives to startups.

Achievements:

  • DPIIT has recognized 1,40,803 startups (as of June 2024), creating over 15.5 lakh direct jobs.
  • Inclusive participation from all States and Union Territories.

Key Programs:

  • Startup India Action Plan: Encompasses simplification, funding support, and industry-academia collaboration.
  • Startup India Seed Fund Scheme (SISFS): Financial assistance of ₹945 crore (2021-2025) for earlystage startups.
  • Fund of Funds for Startups (FFS): Corpus of ₹10,000 crore to facilitate early and growth-stage funding.
  • Credit Guarantee Scheme for Startups (CGSS): Offers credit guarantees for loans extended by banks and NBFCs.

2. Ministry of Micro, Small & Medium Enterprises (MSME)

The Prime Minister’s Employment Generation Programme (PMEGP) is a flagship initiative to support entrepreneurs in the non-farm sector.

Features:

  • Margin Money subsidy of up to 35% for special categories
  • Second loan provision for expansion and upgradation.
  • Enhanced focus on rural and marginalized communities.

3. Ministry of Rural Development (MoRD)

The Start-up Village Entrepreneurship Programme (SVEP), under the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM), supports Self-Help Groups (SHGs) in establishing small enterprises.

Components:

  • Community Enterprise Fund (CEF) for loans
  • Cadre of Community Resource Persons (CRP-EP) for business support.
  • Impact: Strengthens rural entrepreneurship and boosts local employment.

4. Department of Science and Technology (DST)

The National Initiative for Developing and Harnessing Innovations (NIDHI) facilitates the establishment of incubation centers to nurture innovation and entrepreneurship.

Key Features:

  • Support for Proof of Concept (PoC), prototyping, and early-stage funding.
  • Promotes academia-industry linkages.

5. Ministry of Social Justice and Empowerment (MoSJ&E)

The PM-DAKSH Yojana aims to skill marginalized communities, including SCs, OBCs, EWSs, and sanitation workers, for wage and self-employment.

  • Focus on Entrepreneurship: Includes entrepreneurial development programs for those with business potential.

6. Other Major Programs and Schemes

  • Support for Intellectual Property Rights (IPR): Fast-tracked patent filing with an 80% rebate for startups.
  • Ease of Doing Business: Over 55 regulatory reforms to simplify business operations.
  • National Startup Awards: Recognition for startups contributing to employment and innovation.
  • ASCEND Program: Focused on capacity building for entrepreneurship in North-Eastern states.

Role of Competitive Federalism

The States’ Startup Ranking Framework (SRF) promotes competitive federalism by encouraging states to adopt best practices in nurturing startups. This initiative fosters innovation at the grassroots and ensures widespread benefits.

Challenges in Promoting Entrepreneurship

1. Access to Capital: Despite schemes like SISFS and FFS, startups often face funding constraints.

2. Regulatory Bottlenecks: Delays in approvals and complex compliance requirements can deter entrepreneurs.

3. Limited Market Access: Many startups struggle to scale due to lack of exposure to international markets.

4. Skill Deficit: A mismatch between entrepreneurial needs and the skills of the workforce hinders growth.

Way Forward

1. Enhanced Access to Finance: Expand financial inclusion for rural and underserved regions.

2. Streamlined Regulations: Simplify regulatory processes further to ease the burden on startups.

3. Skill Development: Strengthen skill training programs tailored to entrepreneurial needs.

4. Global Collaboration: Foster international partnerships to integrate Indian startups into the global value chain.

Conclusion

Entrepreneurship is pivotal for India’s vision of becoming a USD 5 trillion economy. Through holistic and inclusive initiatives, the government has laid a strong foundation for fostering innovation and self-reliance. However, continued efforts in addressing existing challenges and leveraging competitive federalism can propel India’s entrepreneurial ecosystem to global prominence, driving sustainable growth and employment.

Chapter 2- Rural Women Entrepreneurship

Rural women entrepreneurship is a key driver of economic development, social empowerment, and poverty alleviation in India. Recognizing the immense potential of women entrepreneurs, the Government of India has introduced various schemes to promote skill development, access to finance, and capacity building among rural women. These initiatives aim to foster self-reliance, enhance livelihoods, and bridge the gender gap in entrepreneurial opportunities.

Contribution of Women in Workforce and Entrepreneurship

  • Female Labor Force Participation Rate (FLPR): According to the Periodic Labour Force Survey (PLFS) 2022-23, the FLPR in India stands at 37%, which is significantly lower than the global average of 47%.
  • Contribution to GDP: The McKinsey Global Institute estimates that advancing gender equality could add $770 billion to India’s GDP by 2025.
  • Women Entrepreneurs: As per the Sixth Economic Census, women entrepreneurs constitute 13.76% of total entrepreneurs in India, operating approximately 8.05 million enterprises.
  • Rural Women Entrepreneurs: About 25% of women-owned enterprises are located in rural areas, indicating significant untapped potential for growth.
  • Skill Development Impact: Over 70 lakh women have been mobilized under the DAY-NRLM, showing increased entrepreneurial activity among rural women.

Government Schemes to Promote Rural Women Entrepreneurship

skill upgradation mahila coir yojana

1. Skill Upgradation & Mahila Coir Yojana

  • Launched under the Coir Board, this scheme provides skill development and financial assistance to women engaged in coir industry-related activities.

Key Features:

  • Free training programs for women in coir processing.
  • Financial support for setting up coir-related units.
  • Impact: Over 80% of workers in the coir industry are women, particularly in Kerala and Tamil Nadu.

2. Step-up Village Entrepreneurship Programme

  • A sub-component of the Deendayal Antyodaya Yojana - National Rural Livelihood Mission (DAY-NRLM), this initiative aims to promote rural entrepreneurship.

Key Features:

  • Financial and technical support to women Self-Help Groups (SHGs).
  • Encourages setting up micro-enterprises at the village level.
  • Impact: Over 70 lakh women SHG members have been mobilized under DAY-NRLM.

3. Mahila Kisan Sashaktikaran Pariyojana (MKSP)

mahila-kisan-sashaktikaran-pariyojana
  • Launched in 2011, MKSP focuses on empowering women farmers through sustainable agriculture practices.

Key Features:

  • Provides training on organic farming, livestock management, and value chain development.
  • Financial assistance and market linkages.
  • Impact: Empowered over 38 lakh women farmers across the country.

4. The Mahila Shakti Kendra (MSK)

  • Launched in 2017, MSK serves as a one-stop center for rural women to access skill development, health, and employment services.

Key Features:

  • Community engagement through Women Empowerment Centres at the block level.
  • Collaboration with Anganwadi and ASHA workers.
  • Impact: MSK has reached over 10 lakh women across 115 aspirational districts.

5. Women Enterprise Development Scheme (WED)

  • This initiative focuses on financial and infrastructural support for women entrepreneurs in rural and semi-urban areas.

Key Features:

  • Offers low-interest loans and subsidies.
  • Encourages the establishment of small and medium-sized enterprises (SMEs).
  • Impact: Enhanced entrepreneurial skills and job creation among rural women.

6. Annapurna Yojana

  • This scheme provides financial support to women entrepreneurs in the food and catering industry.

Key Features:

  • Loan assistance of up to ₹50,000 to women for starting food-based businesses.
  • Collateral-free credit through government-backed initiatives.
  • Impact: Supports economic independence and sustenance in rural areas.

7. MUDRA Yojana Loans for Women Entrepreneurs

  • Under the Pradhan Mantri MUDRA Yojana, women entrepreneurs can access collateral-free loans for micro-enterprises.

Key Features:

  • Loans categorized into Shishu (₹50,000), Kishore (₹5 lakh), and Tarun (₹10 lakh).
  • Special incentives for women-led enterprises.
  • Impact: Over 68% of MUDRA loans have been sanctioned to women entrepreneurs since 2015.

8. Start-Up India Initiative

  • This flagship program encourages innovation and entrepreneurship among women.

Key Features:

  • Access to funds through the Start-Up India Fund.
  • Training programs and mentorship for aspiring women entrepreneurs.
  • Tax benefits for registered start-ups.
  • Impact: Boosted the growth of women-led start-ups, particularly in sectors like education, health, and handicrafts.

Loopholes in Prominent Schemes

Despite the plethora of schemes, several challenges continue to hinder their effectiveness:

1. Lack of Promotion:

  • Many rural women are unaware of government initiatives due to poor dissemination of information and outreach programs.

2. Skewed Focus:

  • Most schemes emphasize traditional sectors like textiles and agriculture, neglecting other potential areas like IT, e-commerce, and manufacturing.

3. Dearth of Targeted Schemes:

  • There are few dedicated schemes catering specifically to women entrepreneurs in tribal and backward regions.

4. Neglect of Some Sectors:

  • Innovative and non-traditional sectors like technology-based businesses receive limited attention under rural entrepreneurship schemes.

5. Limited Online Access to Schemes:

  • Digital illiteracy and inadequate access to technology hinder rural women from benefiting from online schemes and portals.

Recommendations to Make Government Schemes More Effective, Inclusive, and User-Friendly

1. Improving Awareness and Outreach:

  • Conduct targeted awareness campaigns in rural areas through local bodies, NGOs, and community radio stations.
  • Use vernacular languages to disseminate information about schemes.

2. Diversifying Focus Areas:

  • Promote women entrepreneurship in emerging sectors like renewable energy, e-commerce, healthcare, and technology.
  • Introduce specialized training programs for digital and financial literacy.

3. Enhancing Financial Accessibility:

  • Simplify loan application processes and provide hassle-free access to credit for women entrepreneurs.
  • Increase subsidies and interest-free loans for women-led start-ups in rural areas.

4. Integrating Technology and Digital Platforms:

  • Develop user-friendly mobile applications and websites to enable easy access to scheme-related information and resources.
  • Offer digital training to rural women to bridge the technological divide.

5. Targeting Marginalized Communities:

  • Design special schemes for tribal women, women in aspirational districts, and differently-abled women.
  • Provide additional incentives for enterprises led by marginalized groups.

6. Ensuring Monitoring and Accountability:

  • Set up regular monitoring mechanisms to evaluate the effectiveness of schemes.
  • Involve independent agencies to assess the ground-level impact and address implementation gaps.

7. Skill Development and Mentorship Programs:

  • Partner with private sector organizations to offer mentorship and capacity-building programs.
  • Provide training on entrepreneurship, business management, and market linkages.

8. Promoting Market Access:

  • Facilitate marketing platforms for rural women entrepreneurs through e-commerce partnerships and trade fairs.
  • Encourage the inclusion of women entrepreneurs in government procurement processes.

Conclusion

Promoting rural women entrepreneurship is not just a step toward gender equality but also a means to enhance rural economic growth and social development. While the government has implemented several progressive schemes, addressing their loopholes and adopting targeted measures will ensure that rural women can fully realize their entrepreneurial potential. By fostering awareness, access to credit, digital inclusion, and diversification of opportunities, India can build an ecosystem that empowers rural women entrepreneurs to lead sustainable and inclusive development.

Chapter 3-Building a Skilled Workforce in Rural Areas

India, with a median age of 28 and 65% of its population under 35, has immense potential to harness its demographic dividend. While a significant portion of the youth still lacks industry-relevant skills, employability has improved from 34% to 51.3% over the last decade. Recognizing the critical role of human capital in economic growth and innovation, the government has introduced targeted skilling and employment initiatives to equip the workforce with modern, industry-specific skills.

PM’s Package for Skilling and Employment

national policy for skill development and enterpreneurship

The Union Budget 2024-25 focuses on employment and skilling through a centrally sponsored scheme to skill 20 lakh youth over five years and upgrade 1,000 ITIs.

  • The revised Model Skill Loan Scheme offers loans up to ₹7.5 lakh with government-backed guarantees, benefiting 25,000 students annually. Financial support for loans up to ₹10 lakh with 3% annual interest subvention via e-vouchers will aid 1 lakh students each year.

Government’s Skill Development Initiatives

1. National Policy on Skill Development & Entrepreneurship (NPSDE):

  • Launched in 2015, NPSDE provides a framework to build a skilled workforce and foster entrepreneurship.

Key Features:

  • Target of skilling 500 million people by 2025.
  • Focus on rural, tribal, and marginalized communities.
  • Impact: Enhanced livelihood opportunities and creation of a sustainable skill ecosystem.

2. Pradhan Mantri Kaushal Vikas Yojana (PMKVY):

Pradhan Mantri Kausha Vikas Yojana
  • A flagship scheme under the Ministry of Skill Development and Entrepreneurship (MSDE), PMKVY aims to provide skill certification and employment opportunities.

Key Features:

  • Short-term training and Recognition of Prior Learning (RPL).
  • Focus on rural youth with industry-aligned courses.
  • Financial incentives for skilling programs.
  • Impact: Over 1.37 crore candidates have been trained under PMKVY since 2015.

3. Craftsmen Training Scheme (CTS):

  • Established under the Directorate General of Training (DGT), CTS provides vocational training through Industrial Training Institutes (ITIs).

Key Features:

  • Offers training in 126 trades, including traditional crafts and emerging skills.
  • Focus on rural youth to enhance employability.
  • Impact: Over 15 lakh trainees graduate annually, contributing to rural industries and self-employment.

4. Jan Shikshan Sansthan (JSS):

  • JSS caters to rural, backward, and marginalized communities by offering skill-based education and vocational training.

Key Features:

  • Provides affordable and need-based training.
  • Encourages entrepreneurship and income generation.
  • Impact: Over 25 lakh beneficiaries have been trained across 27 states.

5. Entrepreneurship Training:

  • Entrepreneurship Development Programs (EDPs) promote self-reliance and foster entrepreneurial skills among rural youth.

Key Features:

  • Training modules on business development, financial management, and market linkages.
  • Integration with government credit schemes like MUDRA Yojana
  • Impact: Rural youth are empowered to set up small businesses, leading to job creation.

6. Skill India Digital Hub Platform:

  • A digital initiative to provide skill training and resources through e-learning platforms.

Key Features:

  • Online courses in partnership with industry and academia.
  • Accessible to rural youth via smartphones and community centers.
  • Impact: Ensures last-mile delivery of skill training to rural and remote areas.

7. Targeted Programmes for Rural Youth:

  • Programs like Hunar Se Rozgar Tak and Project LIFE (Livelihoods in Full Employment) focus on skilling rural youth in areas like tourism, hospitality, and construction.

8. Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY):

  • Aims to transform rural youth into economically independent citizens by providing skill training and placement support.

Key Features:

  • Mandatory placement for at least 70% of trained candidates.
  • Focus on SC/ST, women, and minorities.
  • Impact: Trained over 11 lakh candidates, improving employment opportunities for rural youth.

9. Rural Self Employment Training Institutes (RSETIs):

  • RSETIs provide training and mentorship to rural youth to encourage self-employment.

Key Features:

  • Free residential skill training.
  • Post-training follow-ups for hand-holding support.
  • Impact: Over 30 lakh rural youth have been trained, with 70% engaged in income-generating activities.

Partnering with Industry for Skilling

  • The Skill India mission partners with industries through NSDC-driven initiatives for skill development, reskilling, and upskilling. By March 2024, 131 projects have trained over 3.10 lakh people, including 42 aspirational districts.
  • The Skill Impact Bond, launched in 2021, targets training 50,000 youth, with 74% women enrollment. The Directorate General of Training (DGT) collaborates with industry giants like Maruti Suzuki, IBM, and Amazon to train over 21.5 lakh people for Industry 4.0. DGT also partners with organizations like ISRO and BHEL, enhancing vocational training and industry readiness.

Skilling India at Global Standards

  • India’s global skilling efforts include 30 Skill India International Centers (SIICs), MoUs with countries like Australia and Germany for mutual recognition of qualifications, and NSDC International Limited for ethical recruitment.
  • These initiatives enhance international mobility and deploy over 26,000 skilled workers abroad.

Conclusion

Building a skilled workforce in rural areas is pivotal to achieving sustainable economic growth and reducing rural poverty. By leveraging government initiatives, industry partnerships, and digital platforms, India can empower rural youth with skills that meet national and global standards. Strengthening awareness, improving access, and ensuring quality training will transform India’s rural areas into vibrant centers of economic activity, fostering self-reliance and contributing to the nation’s development goals.

Chapter 4- Skilled Farmers: The Bright Future of Indian Agriculture

Agriculture is the backbone of India’s economy, employing nearly half of the country’s workforce. However, despite its significance, the sector faces challenges such as low productivity, outdated farming practices, and an increasing dependence on manual labor.

  • Skill development in agriculture is pivotal to address these issues and ensure that Indian farmers are equipped to meet the demands of a rapidly changing global economy.
  • With the advent of new technologies, sustainable farming practices, and the rising need for a skilled workforce, the future of agriculture in India can be significantly enhanced through targeted skilling programs.

Need for Skill Development in Agriculture

sub mission on agriculture mechanization
  • Technological Development: In recent years, technological advancements have revolutionized the agricultural landscape. From precision farming, drones, and sensors to genetic modification and artificial intelligence (AI), technology can increase productivity, reduce costs, and improve sustainability.
  • However, many farmers lack the skills to harness these innovations effectively. The adoption of technology is often slow, primarily due to the gap in digital literacy, lack of access to training, and inadequate support systems. Skill development is essential for farmers to embrace these technologies and modernize their farming practices.
  • Sustainable Practices: With climate change posing a significant threat to agriculture, there is an urgent need for sustainable practices like organic farming, water conservation techniques, crop diversification, and soil health management. While traditional farming methods are ingrained in rural communities, they are often not aligned with modern sustainable practices. Therefore, training farmers in sustainable agriculture is crucial to reduce environmental degradation and ensure the long-term viability of the sector.
  • Lack of Skills: Despite the increasing demand for skilled labor in agriculture, a substantial gap in skills remains. The agricultural workforce often lacks the necessary expertise in modern farming techniques, machinery operation, and post-harvest management. This skill gap hampers productivity and reduces competitiveness. Addressing this issue through targeted skill development initiatives is essential to enhance the efficiency of the agriculture sector.
  • Employment in Agriculture: Agriculture is still the largest employer in India, but it is also facing issues of underemployment, seasonal unemployment, and migration to urban areas in search of better opportunities. While there is a large labor force in agriculture, many are engaged in low-value, laborintensive activities that do not contribute significantly to economic growth. Skilling farmers can help them transition from traditional, manual labor to more productive and remunerative agricultural activities. Additionally, trained farmers can contribute to value-added sectors such as food processing, agritech, and rural entrepreneurship.

Key Government Programs Promoting Skill Development in Agriculture

  • Mahila Kisan Sashaktikaran Pariyojana (MKSP): Launched under the National Rural Livelihood Mission (NRLM), MKSP aims to empower women farmers by enhancing their skills and improving their access to resources. The program focuses on promoting sustainable agricultural practices and providing training in agro-processing, poultry farming, organic farming, and more. It has helped thousands of women farmers enhance their livelihoods by promoting gender-inclusive agricultural development.
the-pradhan-mantri-formalisation-of-micro-food-processing-enterprises-scheme
  • National Rural Livelihood Mission (NRLM): NRLM is an initiative to alleviate poverty by promoting self-help groups (SHGs) among rural women, enhancing their participation in income-generating activities, including agriculture. Through capacity building, financial inclusion, and skill development, the program aims to transform rural areas by improving livelihoods. NRLM has been instrumental in skill training related to agriculture, particularly focusing on organic farming, livestock management, and marketing.
  • PM Formalization of Micro Food Processing Enterprises (PMFME): The PMFME scheme aims to formalize the micro-food processing sector, including rural entrepreneurs engaged in agricultural activities. This program offers training, financial assistance, and technological support to help individuals scale their micro-enterprises, improve product quality, and gain market access. PMFME contributes to the promotion of entrepreneurship in agriculture and enhances farmers’ ability to add value to their produce.
  • Sub-Mission on Agriculture Mechanization (SMAM): The Sub-Mission on Agricultural Mechanization seeks to increase the adoption of modern agricultural machinery, reducing labor costs and enhancing productivity. The program offers financial support for farmers to purchase machinery and provides training on its usage. Through SMAM, farmers can enhance their skills in operating machinery such as tractors, combine harvesters, and irrigation systems, improving efficiency in various agricultural operations.
  • National Beekeeping and Honey Mission: The National Beekeeping and Honey Mission aims to promote beekeeping as an income-generating activity for farmers. The program focuses on skill development related to beekeeping practices, honey production, and marketing. By training farmers in these areas, the mission creates a new source of livelihood, particularly for small and marginal farmers, while contributing to the diversification of agricultural income.

Conclusion

Skilling Indian farmers is key to ensuring the long-term sustainability and growth of the agriculture sector. Programs like MKSP, NRLM, PMFME, SMAM, and the National Beekeeping and Honey Mission are driving the necessary changes by enhancing the skills of farmers, promoting sustainable agricultural practices, and encouraging innovation. By integrating technology and modern farming practices with traditional knowledge, India can unlock the potential of its agricultural workforce. Skilling efforts should be further expanded to bridge the existing skill gap, empowering farmers and ensuring agriculture remains a significant contributor to India’s economy. With the right interventions and support, the future of Indian agriculture looks bright, fostering both economic growth and rural development.

Upsc Mains Practice Questions-(Around 250 Words)

Q.1 Discuss the need for skill development in agriculture and evaluate the role of key government initiatives like MKSP, PMFME, and others in enhancing farmer skills and promoting sustainable practices.

Q.2 Discuss the challenges and government initiatives in promoting rural women entrepreneurship.