THE CONTEXT: Recently, Congress has promised to enact a Right to Apprenticeship law, mandating private or public sector concerns to provide a one-year internship with part-government funding to any college degree/diploma holder on demand.
ISSUES:
- Bad idea of forcing legal entitlement: The idea of forcing companies to accept candidates seeking temporary employment as a legal entitlement amount is a bad idea. The decision to hire even if for only a year should be the employer’s liberty and not a government order. But the idea of the government subsidising an apprenticeship training system in private industry isn’t a bad one.
- Unnecessary cost to company: There is unnecessary cost attached to company in decision to engage in apprenticeship training. The potential employee’s capabilities aren’t fully known at the time of recruitment, which is often based on unreliable CVs or personal recommendations.
- Non-utilisation of employees during training: The employee does not contribute much to the firm’s revenues during the period of training, when they are still learning on the job. As, there is no certainty that the apprentice who has acquired the requisite skills will remain after the training period is over.
- Implications for MSMEs: These costs and uncertainties are higher for MSMEs (micro, small and medium enterprises), which can neither afford to hire people from top-notch educational institutions nor invest in training employees whom they cannot retain. This leads to a classical market failure where firms are deterred from hiring due to a lack of skilled workforce and their own reluctance to train those who may end up working elsewhere.
VARIOUS INITIATIVES TAKEN FOR SKILL DEVELOPMENT:
- SANKALP and STRIVE:Skills Acquisition and Knowledge Awareness for Livelihood Promotion (SANKALP) and Skill Strengthening for Industrial Value Enhancement (STRIVE) are outcome focused schemes marking shift in government’s implementation strategy in vocational education and training from inputs to results.
- Mandatory CSR (Corporate Social Responsibility) Expenditure in Skilling:Since the implementation of mandatory CSR spending under the Companies Act, 2013, corporations in India have invested over ₹100,000 crores in diverse social projects. Of these, about ₹6,877 crores were spent on skilling and livelihood enhancement projects. Maharashtra, Tamil Nadu, Odisha, Karnataka, and Gujarat were the top five recipient States.
- TEJAS Initiative for Skilling:TEJAS (Training for Emirates Jobs and Skills), a Skill India International Project to train overseas India was launched at the Dubai Expo, 2020. The project aims at skilling, certification and overseas employment of Indians and creating pathways to enable the Indian workforce to get equipped for skill and market requirements in the UAE.
- National Apprenticeship Promotion Scheme (NAPS): National Apprenticeship Promotion Scheme aims to promote apprenticeship training in the country. It provides partial stipend support to the apprentices engaged under the Apprentice Act, 1961, undertaking capacity building of the apprenticeship ecosystem, and assistance to the stakeholders.
THE WAY FORWARD:
- Employment as key election issue: The opposition party’s effort to make jobs for the youth a key election campaign issue is a welcome step. This will force government to take certain steps and will bring them under obligations.
- Tapping demographic dividend: India has a huge ‘demographic dividend’ which means that it has a very high scope of providing skilled manpower to the labour market. Subsidised apprenticeship programme can contribute to developing skills, help country reap demographic dividend.
- Government should bear the cost: One way to avoid under-employment and under-provision of training at the workplace is for the government to bear part of the cost. For example, a government-financed workforce training programme incentivising companies, especially MSMEs, to hire is preferable to unemployment allowance schemes such as the Congress-ruled Karnataka’s recently rolled out Yuva Nidhi.
- Generate gainful employment: India has to generate gainful employment for its young labour force both a challenge and a demographic dividend-seizing opportunity.
- Skill development: Government need to impart skilling in the youth to make them employable. Those skills have to be imparted in schools, colleges and the workplace. The government can and should do more there, both by itself and partnering with the private sector.
- Collaborative approach: Skill development is the most essential aspect of the development of our country. This needs a coordinated effort from all stakeholders including Government agencies Industries, Educational and training institutes and Students, trainees and job seekers.
THE CONCLUSION:
Though apprenticeship programs are essential for developing competent and trained individuals. There is a need for emphasis on comprehensive evaluations, certification processes, and ongoing assessments that ensures that apprentices emerge not only with theoretical knowledge but also practical expertise. Through responsible practices, continuous improvement, and a collective dedication skill development becomes a transformative experience for both individuals and organisations alike.
UPSC PREVIOUS YEAR QUESTIONS
Q.1 “Demographic Dividend in India will remain only theoretical unless our manpower becomes more educated, aware, skilled and creative.” What measures have been taken by the government to enhance the capacity of our population to be more productive and employable? (2016)
Q.2 Skill acquisition for the youth of India is a prerequisite if it wants to tap into the demographic potential. In this context discuss the various initiatives taken for Skill Development. (2022)
MAINS PRACTICE QUESTION
Q.1 Analyse the significance and implication of subsidies apprenticeship programme for developing skill and in tapping the demographic dividend of the country. Suggest measures/initiatives that should be taken in this regard.
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