A paper on development of entrepreneurship in India by implementing  various Skills development programs by state and central government of India and it's challenges.

By:

Dr Preeti R Gotmare

Post Doctoral Fellow,

PGTD, Department of Commerce,

RTM Nagpur University, Nagpur.

Email Id : preeti.r.gotmare@gmail.com

Mr. Amit Arya

Faculty, Department of Business Management(BBA),

Dhanwate National College,

Nagpur

Email Id: mailtoamitarya@gmail.com

Skills and knowledge are the driving forces of economic growth and social development for any country. Countries with higher and better levels of skills adjust more effectively to the challenges and opportunities of world of work. Potentially, the target group for skill development comprises all those in the labour force, including those entering the labour market for the first time (12.8 million annually), those employed in the organized sector (26.0 million) and those working in the unorganized sector (433 million) in 2004-05. The current capacity of the skill development programs is 3.1 million. India has set a target of skilling 500 million people by 2022.

As the proportion of working age group of 15-59 years will be increasing steadily, India has the advantage of ‘demographic dividend’. Harnessing the demographic dividend through appropriate skill development efforts would provide an opportunity to achieve inclusion and productivity within the country and also a reduction in the global skill shortages. Large scale skill development is thus an imminent imperative.

Major challenge of skill development initiatives is also to address the needs of huge population by providing skills in order to make them employable and help them secure ‘decent work.’ Skill development for persons working in the unorganized sector is a key strategy in that direction. This will also inculcate dignity of labour and create greater awareness towards environmental, safety and health concerns. Planned development of skills must be underpinned by a ‘policy’, which is both comprehensive as well as national in character. A national policy response is, therefore, needed to guide the skill development strategies and coordinated action by all stake holders to avoid a piecemeal approach. It is also important that the policies of skill development be linked to policies in the economic, employment and social development arenas. The country is poised at a moment in history when a much brighter future for its entire people is within its reach. Skill development will help actualize this potential. Development and articulation of a national policy on skill development is a matter of priority.

Skills development initiatives for unorganized sectors workers are significant steps taken by the Government of India. Hon’able Prime Minister of India Shri Narendra Modi has a dream to make Indian workforce skilled and competent to meet the global demand of skilled and professional trained workforce. It is true that there is huge unorganized sector in India, which is contribution for the nation. Taking this view into mind for providing skilled workforce, The Maharashtra Government has been more actively engaged with the skills development agenda than many other states. In 2010, India’s labour force was estimated to be 478 million, 52% of the labour force in India is employed in the agriculture sector, with 34% employed in the service sector and remaining 14% in industry. The comparative figures for employment in agricultural sector in China, Russia and Brazil are about 42%, 28% and 22% , respectively . The unemployment rate in India is 11%, ranking at 118th in the world. However, of India’s current workforce of 478 million, only about 14% are involved in the formal economy; 86% are therefore in the unorganized sector.

In 2004-05, the Unorganized sector accounted for 86% of total workers. Between 1999-2000 and 2004- 05, of the total incremental employment generated in the Unorganized sector. Employment projections forecast a gradual shift in employment from agriculture towards industry by 2016-17. However, a majority of these jobs will continue to be in the Unorganized sector.

The programmes of Ministry of Rural Development’s (MoRD) for self-employment and creation of assets started with Integrated Rural Development Programme (IRDP) in the year 1980. During the 9th plan period, Self-Employment Programmes were revamped by merging the Integrated Rural Development Programme (IRDP), the Development of Women and Children in Rural Areas (DWCRA), the Supply of Improved Tool-Kits to Rural Artisans (SITRA), the Training of Rural Youth for Self Employment (TRYSEM), the Ganga Kalyan Yojana (GKY) and the Million Wells Scheme (MWS) into a holistic self-employment scheme called Swarnjayanti Gram Swarozgar Yojana (SGSY). It graduated in 2004 to Swarnjayanti Gram Swarozgar Yojana (SGSY)- Special Projects.

The SGSY special projects provided time-bound training and capacity building for bringing a specific number of Below Poverty Line (BPL) families above poverty through skilling and placement in jobs that provided regular wage employment. Up until May 2013, around 8.60 lakh have been trained and 6.80 lakh youth have been given employment.

During the 12th Plan, MoRD has been given the target to skill 50 lakh rural BPL youth. Accordingly, the strategy has been revised and a decision taken to move from direct implementation by the Central government to further builds capacities of State Governments for implementation of various plans.

Aajeevika Skills is the skill and placement initiative of the Ministry of Rural Development, Government of India (MoRD). It evolved out of the need to diversify incomes of the rural poor and to cater to the occupational aspirations of their youth. The programme’s focus is on skilling and placement in the formal sector for rural youth who are poor. Aajeevika Skills has its origins in the ‘Special Projects’ component of the

Swarnajayanti Gram Swarozgar Yojana (SGSY).

Another initiative of Central and State Government will be included in the research “The Maharashtra Rural Livelihood Innovative Forum” now “Late Pramod Mahajan Skill Development Scheme” is a quest to find the most promising livelihoods initiatives in Maharashtra that are scalable and make a significant impact on livelihoods enhancement of the poor. The aim of the initiative is to create an ecosystem for social entrepreneurship and encourage sustainable, scalable and measurable livelihoods innovation.

 Introduction

India is a South Asian Nation, and the seventh-largest country by area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world. India boasts of an immensely rich cultural heritage including numerous languages, traditions and people. The country holds its uniqueness in its diversity and hence has adapted itself to international changes with poise and comfort. Indian villagers take up farming, advanced agriculture and unique handicrafts as their profession on one

hand while modern industries and professional services sectors are coming up in a big way on the other.

Approximately 85% of 460 million strong labour forces are categorized as unorganized sector workers. Defined broadly, unorganized sector workers are those who do not have contracted employment with a formal sector employer and are engaged as home - based, self - employed or wage workers. Many personalities have given their views about Poverty are:

“Poverty is the worst form of violence.”

- Mahatma Gandhi

 “Overcoming poverty is not a gesture of charity. It is an act of justice. It is the protection of a fundamental human right, the right to dignity and a decent life. While poverty persists, there is no true freedom. Sometimes it falls upon a generation to be great. You can be that great generation. Let your greatness blossom. Of course, the task will not be easy. But not to do this would be a crime against humanity, against which I ask all humanity

now to rise up."

-    Nelson Mandela

National Rural Livelihood Mission

The Swarnajayanti Gram Swarojgar Yojana, better known as the SGSY programme, was restructured into the National Rural Livelihoods Mission by the Government of India in 2010. This reconfiguration has been a result of recommendations from stakeholder consultations with state governments, civil society organizations, bankers and academicians among others. The programme also includes livelihood programmes that demonstrated the value in building self-managed institutions of the poor and their amalgamation for effective poverty reduction. Conceivably, the largest poverty reduction programme for women in the world, the National Rural Livelihoods Mission (NRLM) aims at reaching nearly 70 million rural households in 12 states of India that account for 85% of

the rural poor households in the country. The NRLM will be funded jointly by the Government of India and the World Bank over the next seven years. While the GOI will invest US$5.1 billion including expected allocation for 12th Five‐Year Plan, the World Bank is committing US$1 billion through its national rural livelihoods project (NRLP)—its largest single investment in a poverty reduction program. Apart from the GOI and the WB, the NRLM will leverage funds from formal finance, other public sector programs, the private sector, and CSOs in support of rural poverty reduction.

The Maharashtra State Rural Livelihoods Mission (MSRLM) has been launched in Maharashtra in July 2011 as a registered organization under the aegis of the National Rural Livelihoods Mission (NRLM) – Aajeevika - endeavors to impact rural poverty through a range of comprehensive and strategic livelihoods interventions in a time bound manner. The Mission aims at eradication of rural poverty by building sustainable institutions of poor and ultimately leading them to sustainable livelihoods. The conceptualization and design of the MSRLM goes beyond income generation activities and employment programs to include capacity building, financial inclusion, social mobilization and marketing services as equally important elements of livelihoods enhancement. The exponential growth in the livelihoods sector as a whole, both rural and urban, combined with experiences, has led to a shift in the envisioning of the mission from an agency-beneficiary relationship to a more holistic and equal partnership with the poor. Including Building and strengthening institutions of the poor, putting in place dedicated support structures for such institutions and drawing upon their skills, knowledge and desire to overcome poverty lie at the core of the mission.

Salient Features of the MRLIF

·         Plays a critical role in rural livelihoods improvement on a large scale

·         Facilitates continuous integration of livelihoods innovations across sub-sectors

·         Focus on partnering with multiple stakeholders and agencies including social entrepreneurs, civil society organizations, the corporate, the government, development agencies and academia - by leveraging their respective strengths in developing viable business models at scaled up levels as well as providing incentives and encouraging investments in rural livelihoods.

·         A unique initiative of the Government of Maharashtra towards strengthening rural livelihoods

Objectives of MRLIF

The MRLIF is a quest to find the most promising livelihoods initiatives in Maharashtra that are scalable and make a significant impact on livelihoods enhancement of the poor. The aim of the initiative is to create an ecosystem for social entrepreneurship and encourage sustainable, scalable and measurable livelihoods innovation.

Skill Development Initiative Scheme

Prime Minister’s National Council on Skill Development, under the Chairmanship of

Prime Minister has been set up as an apex institution for policy direction and review. The Ministers for Human Resource Development, Finance, Industries, Rural Development, Housing and Urban Poverty Alleviation, Labour and Employment and Micro Small & Medium Enterprises are members. Deputy Chairman, Planning Commission, Chairperson of the National Manufacturing Competitiveness Council, Chairperson of the National Skill Development Corporation and 6 experts in the area of skill development are other members. Principal Secretary to the Prime Minister is the Member Secretary to the Council.

SDI Scheme formulated by DGET aims at providing short term demand driven vocational training courses to school leavers, existing workers, ITI graduates to improve their employability. Currently, Modular Employable Skills (MES) is being offered under this Scheme. MES aims at imparting minimum skills set through its short terms and flexible course curriculum to prepare the trainees for gainful employment. There are about 6400 vocational training centers providing vocational training to around 1 million people annually in 1257 courses.

Directorate of Vocational Education & Training, Mumbai (DVET) Directorate of Vocational Education & Training, Mumbai (DVET) is the apex authority for vocational training an education in the State. This Directorate has been further divided into (a) Director, Training; and (b) Director, vocational Education

Director, Training looks after the various schemes related with CTS (ITIs), ATS, MES

& other important schemes, • Director, Vocational Education looks after the schemes related to Pre S.S.C. Level Vocational Education, +2 Level Vocational Education, Certificate Courses of MSBVE & other important Schemes. Further, all these schemes are monitored by Department of Higher & Technical Education at the state level, while at the central government level, these schemes under Director, Training are monitored by Ministry of Labour & Employment, DGET, New Delhi. Whereas Ministry of Human Resource Department, New Delhi monitors the schemes under Director, Vocational Education are monitored.

Challenges to Skill Development in India

By 2022, India will have the maximum number of working age population in the world. The FICCI-KPMG Global Skills Report has noted that if properly skilled, they can contribute to economic growth. But there are many challenges to skilling in India. Some of them are:

• Problem in Mobilization
• Student mobilization to get trained has been a major concern due to the traditional mindset, low willingness to migrate, low salaries at entry level.
• Issues in Employers’ Buy-In
• The employer does not distinguish whether an employee has picked up skills on the job or he has acquired them through formal training,
• Problems In Scalability
• Scaling up aspirations to current jobs as well as getting the right kind of training partners and effective stakeholder management are important.
• Mismatch between youth aspirations and jobs
• Finding students to fill the classrooms and getting people to accept new kind of jobs have been difficult,
• Ensuring Minimum Wages
• At present, wages are linked with categorization of ‘skilled’, ‘semi-ski lied’ or ‘unskilled’, but these have to be aligned with skill levels defined as per National Skill Qualification Framework (NSQF) and recognition of higher level of skills in terms of minimum wages is noted.

What can be done?

• With just about 2% of the country’s labour force having formal skill certification, government and industry must create pull factors to attract workers to get vocational training. For this, there is a need to create the macro and micro policies to encourage workers.
• The government should include a minimum percentage of certified skilled work forces in the tendering process of every manpower intensive project and increase the minimum percentage every year.
• At a local level, the industry can enforce it by ensuring that ancillary service providers like drivers, housekeeping and security staff have skill certification.
• Minimum wages need to be re-looked and aligned to the levels defined in the National Skills Qualification Framework.

Roadblocks to quality skill training

There are several challenges that are faced by the government in imparting quality skill training to the youth of the country. These challenges include:

• Increasing capacity and capability of the existing system to ensure equitable access for all
• Maintaining quality and relevance
• Creating effective convergence between school education and the government’s skill development efforts
• Creating institutional mechanism for research development quality assurance, examinations and certification, affiliations and accreditation
• Mobilizing adequate investment for financing skill development

 Conclusion

There will be a huge required of skilled workforce in the country. Our Hon’ble Prime Minister Shri Narendra Modi has initiated various programmes like Make in India projects, which require the workforce which can match the global requirement and demand. So it is very serious issue that India should also develop its workforce to meet the requirement of global Companies and Industries. So This Study will also analyze the current and future demand of various industries, which will also help to the nation to provide skilled workforce to the country and ultimately they will contribute to the economic reformation of the nation. Conclusion of Research will be given after research completes.

References:

1. www.developmentchannel.org

2. www. wikipedia.org/wiki/Below_Poverty_Line_(India)

3. Annual Report to the People on Employment, Ministry of Labour and

Employment, Government of India, 2010

4. Economic Survey of Maharashtra 2011-2012

5. Skill Development in India - The Vocational Education and Training System, The

World Bank, 2007

6. National Policy on Skill Development Scheme Document

7. www.deloitte.com/in