Vocational Training in India

• India should prioritise Vocational Education and Training (VET) to enhance productivity amid external sector volatility and demand-driven growth challenges.

India’s Vocational Training Landscape

• Institutional Spread: India operates 14,000 ITIs offering 25 lakh sanctioned training seats.
• Utilisation Gap: Only 12 lakhs enrolled in ITIs, reflecting just 48% utilisation.
• Workforce Skilling: PLFS 2022-23 shows that only 3.8% workers are formally trained.
• Placement Outcomes: Only 63% ITI graduates were employed in 2018, reflecting weak absorption.
• Funding Constraint: India spends 3% education budget on VET, versus 10–13% in OECD countries.

Significance of Vocational Training

• Job Readiness: VET improves employability, simultaneously strengthening workforce formalisation.
• Wage Impact: Formal skilling increases average earnings by 11%, enabling upward economic mobility.
• Adaptability: Transversal skills from VET cushion automation-driven labour displacement.
• Reskilling: Digitalisation requires 50% workforce reskilling, underscoring the critical role of VET.
• Equity: Marginalised youth experience 30-70% higher placement rates through vocational skilling.

Associated Challenges of VET

• Employment Gap: India’s 63% VET absorption lags OECD’s 80-90%, reducing competitiveness.
• Faculty Shortage: 30% vacant instructor posts in ITIs erode training quality and industry relevance.
• Curriculum Obsolescence: Outdated syllabi undermine digital skills, weakening graduate employability.
• Integration: A lack of school-level VET delays skill development during the formative years.
• No Progression: Absence of academic pathways discourages students from pursuing higher education.
• Weak Monitoring: Irregular ITI grading and a lack of trainee-employer feedback weaken accountability.
• Social Stigma: The prevailing bias against vocational careers significantly deters youth enrolment.

Key Policy Interventions

• PMKVY: Flagship scheme funding short-term skilling, linking outcomes with placement incentives.
• NAPS: Subsidises employers hiring apprentices, strengthening formal skilling-linked contracts.
• Skill Hubs: Provides school-level vocational exposure through shared institutional training infrastructure.
• ITI Upgrade: Modernises 1,000 ITIs under PPP, aligning curricula with industry demand.
• SANKALP: Builds district skill ecosystems via performance-based funding and capacity expansion.
• STRIVE: Improves apprenticeship training quality through World Bank-supported institutional reforms.

Way Forward

• Early Exposure: Introduce vocational subjects in schools, aligning with NEP-2020 recommendations.
• Credit System: Implement the National Credit Framework for smooth academic–vocational mobility.
• Training Quality: Update curricula, expand NSTIs, recruit instructors, and strengthen ITI grading.
• PPP Expansion: Scale employer participation to co-finance training infrastructure and design curricula.
• Funding Reform: Increase VET expenditure & link grants to placement-driven performance outcomes.

Strengthening India’s VET ecosystem through initiatives like PMKVY, NAPS, and ITI Upgrades is vital for improving employability and productivity. Coupled with PPP models, updated curricula, and school-to-work pathways, it ensures inclusive and future-ready skill development.

Reference: Indian Express

PMF IAS Pathfinder for Mains – Question 317

Q. In light of global supply chain realignments and increasing automation, assess whether India’s current Vocational Education and Training (VET) framework is adequate to bridge the skills gap in manufacturing and empower the informal workforce. (250 Words) (15 marks)

Approach

• Introduction: Write a contextual introduction by mentioning the current data.
• Body: Write the current vocational education and training (VET) framework, limitations and ways forward.
• Conclusion: Write a balanced conclusion by mentioning the future course of action to bridge skills gaps.