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PROJECT REPORT ON:

“EDUCATION, SKILL DEVELOPMENT, ECONOMIC DEVELOPMENT IN


BACKWARD STATES OF INDIA”

SUBMITTED TO:
Dr. Eritriya Roy
Faculty of ECONOMICS

SUBMITTED BY:
Nikhil Punshi
B.A.LL.B. (HONS.)
SEMESTER – III, SECTION – C, ROLL NO. – 90

SUBMITTED ON:
TH
26 AUGUST, 2019

HIDAYATULLAH NATIONAL LAW UNIVERSITY

UPARWARA POST Nava Raipur Atal Nagar-492002(C.G)


DECLARATION

I hereby declare that the project work entitled “Education, Skill


Developmemt, Economic Developmet in Backward States of India” submitted
to the Hidayatullah National Law University Raipur is the original work done by
me under the guidance of Dr.Eritriya Roy, Hidayatullah National Law University,
Raipur and this project has not performed on the basis for the award of any Degree
or diploma and similar project if any.

Nikhil Punshi
Semester – III Section – C
Roll No. – 90
ACKNOWLEDGEMENTS

I, Nikhil Punshi, feel myself elated, as it gives me immense pleasure to come with the
work on topic, “Education, Skill Developmemt, Economic Developmet in
Backward States of India”. Words fail to express my deep sense of glee to my
teacher, Dr.Eritriya Roy, who enlightened me on my every difficulty in completion
of task. I acknowledge the blessings and support which my mother and father gave
in finishing of this task.

I would like to forward my hearty thanks to my University and Vice-Chancellor


for providing all the necessary requirements which aided me to achieve my
goal. I also thank Librarian HNLU, Raipur, for assisting me and allowing me to use
the library of the University.

I feel a deep sense of thankfulness to all my seniors, my friends who helped me in


achieving my target.

Much Obliged,

Nikhil Punshi
Semester – III Section – C

Roll No. – 90
Table of Contents
INTRODUCTION ................................................................................................................................................ 1
OBJECTIVES ....................................................................................................................................................... 3
RESEARCH METHODOLOGY .......................................................................................................................... 4
2. HUMAN RESOURCE DEVELOPMENT: A CONCEPTUAL EXPOSITION ................................................... 5
DEFINITIONS OF HRD .................................................................................................................................... 7
BENEFITS OF HRD .......................................................................................................................................... 7
3. SKILL DEVELOPMENT ................................................................................................................................... 8
OBJECTIVES OF ‘SKILL INDIA’ .................................................................................................................... 8
FEATURES OF ‘SKILL INDIA ....................................................................................................................... 8
ADVANTAGES OF SKILL INDIA ................................................................................................................. 10
TO SUM UP ..................................................................................................................................................... 10
KEY ACHIEVEMENTSOF MINISTRY OF SKILL DEVELOPMENT ......................................................... 11
4 BRIEF OF STATES .......................................................................................................................................... 13
ECONOMIC DEVELOPMENT .......................................................................................................................... 19
CHALLENGES TO SKILL DEVELOPMENT & ECONOMIC .......................................................................... 27
DEVELOPMENT IN INDIA .............................................................................................................................. 27
EDUCATIONAL DEVELOPMENT IN INDIA .................................................................................................. 32
CHALLENGES .................................................................................................................................................... 38
CONCLUSION .................................................................................................................................................... 39
INTRODUCTION

Several empirical studies made in developed countries, especially the U.S.A. regarding the
sources of growth or, in other words, contributions made by various factors such as physical
capital, man- hours, (i.e., physical labour), education etc. have shown that education or the
development of human capital is a significant source of economic growth. Professor Solow
who was one of the first economists to measure the contribution of human capital to
economic growth estimated that for United States between 1909 and 1949, 57.5 per cent of the
growth in output per man hour could be attributed to the residual factor which represents the
effect of the technological change and of the improvement in the quality of labour mainly as a
consequence of education. He estimated this residual factor determining the increase in the
total output on account of the measurable inputs of capital and labour (man-hours). He then
subtracted this figure from the total output to get the contribution of residual factor which
represented the effect of education and technological change, the physically immeasurable
factors.

Denison, another American economist made further refinement in estimating the contribution
to economic growth of various factors. Denison tried to separate and measure the contributions
of various elements of ‘residual factor’. According to the estimates of Denison that over the
period 1929-82 in the USA during which total national output grew at the rate of 2.9 per cent
per annum, increase in labour input accounted for 32 per cent, the remaining.
68 per cent was due to the increase in productivity per worker. He then measured the
contributions of education of per worker, capital formation, technological change and
economies of scale. Denison found that 28 per cent points of contribution to growth in output
due to growth in labour-productivity was due to technological change, 19 per cent points due
to capital formation and 14 per cent points due to education per workers, and 9 per cent points
due to economies of scale. It is thus clear that education and technological progress together
made 42 per cent (14 + 28) contribution to growth in national product .

Expenditure on Education and Income:

Another approach to measure the contribution of education is based upon the analysis of the
relationship between expenditure on education and income. Using this approach Schultz

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studied the relationship between expenditure on education and consumer’s in come and also
the relationship between expenditure on education and physical capital formation for the
United States during the period 1900 to 1956. He found that when measured in constant dollars,
“the resources allocated to education rose about three and a half times (a) relative to consumer
income in dollars, (b) relative to the gross formation of physical capital in dollars”.

This implies that the “income elasticity” of the demand for education was about 3.5 over the
period or, in other words, education considered as an investment could be regarded as 3.5 times
more attractive than investment in physical capital. It may, however, be noted that these
estimates of Schultz only indirectly reflect the contribution of education to economic growth.

In our above analysis we have explained that education is regarded as investment and like in-
vestment in physical capital, it raises productivity of the labour and thus contributes to growth
of national income. The increased earnings or higher wages made by more educated workers
have been considered as benefits not only to the private individuals, but also to the society as
a whole. This is because higher earnings presumably reflect higher productivity, increased
output in real as well as monetary terms.

Consumption Benefits of Education:

We have explained above the investment benefits of education and therefore its effects on
productivity and national output. But investment benefits are not the only benefits flowing from
education. Education also yields consumption benefits for the individual as he may “enjoy”
more education derive increased satisfaction from his present and future personal life.
If the welfare of society depends on the welfare of its individual members, then the society as
a whole also gains in welfare as a result of the increased consumption benefits of individuals.
from more education. Economic theory also helps us in quantifying the consumption benefits
derived from education.

In economic theory, to measure the marginal value of a product or service to a consumer we


consider how much he has paid for it. An individual would not have purchased a product or
service if it were not worth its price to him. Besides, an individual would have bought more
units of a product if he thought that the marginal utility he was getting was more than the
price he was paying.

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Thus relative prices of various products reflect the marginal values of different products and
the amount consumed of various products multiplied by their prices would, therefore,
indicate the consumption benefits derived by the individuals.

It may, however, be pointed out that the prices in a free economy are influenced by a given
income distribution and the presence of monopolies and imperfections in the market structure
and therefore they do not reflect the true marginal social values of different goods.

However, an objective measure of consumption benefits of education may be difficult and


has yet to be found out, but it should not lead any one to ignore the consumption benefits of
education and its policy relevance. It may also be noted that, according to the new view,
economic development is not merely concerned with the growth of output but also with the
increase in consumption and well-being of the society. Therefore, consumption benefits of
education may also be regarded as developmental benefits.

OBJECTIVES

 To examine what is the significance and concept of Human Resource Development.

 To estimate how the Backward states are categorised and evaluate their development
index and priorities.

 To understand what is the magnitude of skill landscape, education and economic


development in backward states.

 To analyze the initiatives by the government in the emerging backward states.

 To detect the role of education in skill development and economic upliftment.

 To examine the challenges that have arisen and thereby feature what government priorities
are, in tackling these challenges.

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RESEARCH METHODOLOGY

The study has been carried out with the help of secondary data available in the books and
internet. The information regarding the topic has been taken from the Internet while the basic
views & thoughts of Poverty in South Asia with Reference to India contain annotations from
books.
After careful study comparative information regarding Poverty in South Asia with Reference
to India has been described thereby properly differentiating them.

Raghuram Rajan Committee Report


The Raghuram Rajan Committee Report of 2013 stated that Bihar, Odisha, Uttar Pradesh and
Jharkhand are the four most backward states of India. Odisha is supposed to be the most
backward state in India right now. It had also stated that Gujarat is among the less developed
states of India. In recent times, Gujarat has taken some rapid strides in terms of urbanising
itself, especially when Narendra Modi was its chief minister. In spite of that it was found to be
in the lower rung among Indian states and union territories in terms of development. P
Chidambaram, the-then Union Finance Minister, had set up the committee in May 2013. In this
context, it also needs to be remembered that during his speech as a prime ministerial candidate
Modi had expressed a desire to follow the Gujarat model of development.
Rajan has previously served as the Chief Economic Adviser and is presently the Governor of
RBI. The main responsibility assigned to the committee was to divide the states on the basis of
various developmental indices. As per the findings of the report, funds were to be allotted by
the national government to the respective states. At that time, the report had found Goa, Tamil
Nadu, and Kerala to be the most well-developed states of India. In fact, Goa was the best among
all these.
The said list also found Punjab, Uttarakhand, Maharashtra, and Haryana to be states that had
achieved a relatively decent level of development. The panel also devised a new index that was
to be used for determining how backward a state was, which would consequently help the
national administration determine how much assistance a state needed.1

1
https://www.mapsofindia.com/my-india/india/backward-states-in-india-in-need-of-development

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2. HUMAN RESOURCE DEVELOPMENT: A CONCEPTUAL
EXPOSITION

The former chapter presented an outline of the entire research project comprising the
objectives of the study along with the methodology adopted and the hypotheses framed
proved through the application of statistical tools and also conversed about a detailed review
of studies conducted earlier. In the present chapter, the Researcher has discussed the conceptual
framework of Human Resource Development (HRD) at length to get acclimate with the
subject.

Human Resource Development (HRD) is a subject gripping paramount significance at a


national level, and it is much more of prodigious germaneness in a developing and the most
populous country like India. Over the years, organizations worldwide are becoming cognizant
with the prominence of human resource. The real life experiences substantiate the assumptions
that no matter how automated the activities of an organization may become, it is extremely
challenging to manage it unless the human efforts are integrated with them. This realization
has propelled HRD as a major area of study in recent years (Matthews et.al:
2000). The competitors can buy same or better machines or materials, but the difference
between the high performing company and the one performing low lies in its people. An
organization can rise only up to the level its people can take it to. HRD also associates the
growth of the organizations with the development of its employees.

Human resource development is the process of developing the human resource working in an
organization by modernizing their knowledge and upgrading their skills, attitudes and
perceptions in order to meet out the changing trends of the globalised economy and also to
utilize those developments for the attainment of the organizational goals (Michael: 1995).
In the present scenario of globalization and liberalization, it is extremely important to
understand the real worth of the people in any organization. It is not sufficient to address
people as the strategic asset of the organization but to believe that they are
the real and the most important asset in any organization or firm. People are not just the packet
of acquaintance and skills but they are the free agents who are proficient of handling the
competition and dynamism of this era with their potential and are capable of bringing
colossal values to an organization. HRD as an activity is extremely significant in achieving
organizational excellence i.e. to excel with people, process and performance. To be a survivor

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in the present scenario of cut-throat competition, the organizations have to develop some
appropriate HRD strategies to manage their work force in an organized manner and
align their potential with that of their corporate missions and objectives Before going into
the depth of the subject, it is worthwhile to comprehend the term clearly. The term
‘HRD” comprises of two words i.e. ‘Human Resource’ and Development’ which has to
be defined separately. ‘Human resources’ in a general way are the people and their
characteristics at work either at the national level or organizational level. In the words of
(Megginson: 1982) “ From the national point of view, human resources are knowledge, skills,
creative abilities, talents and attitudes obtained in the population; whereas from the
viewpoint of the individual enterprise , they represent the total of the inherent abilities,
acquired knowledge and skills as exemplified in the talents and aptitudes of its employees”
and
‘Development’ is the acquisition of capabilities that are needed to perform the present job or
the future expected job.
Human Resource Development aims at assisting people to acquire competencies that are being
required to perform their duties in an efficient manner and to let the organization ripe the fruits
of their know-how and talents. HRD is a process which is needed to make the people grow
continuously and growth of people will ultimately lead to the growth and development of the
organization (Rao and Pereira: 1986). It is the fundamental responsibility of HRD
department to develop their manpower in a manner that could make them capable enough of
handling the managerial obligations in a pervasive way and to sharpen their know-how in
direction of meeting out the dynamic challenges of time (Michael:1995). HRD process might
have existed to some extent in India earlier, but a professional outlook to HRD began only in
1970s. Larsen and Tourbo was perhaps the first company in India to design and implement
a far-reaching and an integrated system of HRD in their company. Since, human resources are
considered to be the lifeblood of any innovative enterprise, their development and growth
will also become the concern of the organization they are working with. HRD as an activity
and as a process plays a crucial and noteworthy role in identifying the hidden potential of the
workforce employed in the said organization and to polish their skills, talents and
technical knowledge in order to develop them and to prepare them for facing the challenges
on their own. It aligns the goals of the individual human and of the organization for
the sole purpose of their fulfillment. Human resource is the most vital resource of any
organization and with the rapidly changing market conditions, rising expectations of
employees, technological advancement and amendments in management systems have

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necessitated the acknowledgement of development aspect for human resource and to
recognize the significance of their up gradation and progression. Hence, we could say that
HRD is an organized learning experience aimed at matching the need of the organization
with those of the need of the individuals for career growth and development. It is a
systematic process of producing behavioral changes in human workforce to develop their
knowledge and skills to become capable of facing the competitive edge in today’s globalized
era.

DEFINITIONS OF HRD

Human Resources Development (HRD) as a theory is a framework for the expansion of human
capital within an organization through the development of both the organization and the
individual to achieve performance improvement”

In the words of M.N. Khan “HRD is the process of increasing knowledge, skills,
capabilities and positive work attitude and values of all people working at all levels in a
business undertakings”
According to Pareek, U: 1991, “HRD is a new systematic approach to proactively deal with
issues, related to individual employees and teams, and organizations and movement to
develop organizational capability to manage change and challenge”

BENEFITS OF HRD

Henry Ford the pioneer in the field of management states, “Take out my building, take out
my machines and all capital but leave my men with me I will become Henry Ford again”
This statement of Henry Ford highlights that human resource plays a crucial role in an
organization. Development of this resource is of absolute significance in achieving the
organizational goals and also to become capable of capturing the survivor position in this era
of cut throat competition. Human Resource Development is the kingpin around which
all the activities of an organization revolve. It is a process which plays a significant role in
learning and modification of behavior of employees in an organization. HRD is considered

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as the key to higher productivity, better relations and greater profitability for any
organization.2

3. SKILL DEVELOPMENT

After ‘Digital India’ and ‘Make in India‘, the NaMo Government is to launch yet another
programme. This one is a revised version of programmes launched earlier under the
skill development policy. This new programme, called ‘Skill India’, is supposed to be a
multi -skill programme. It will be launched in March 2015. Like all other programmes, ‘Skill
India’ too is a dream project of Narendra Modi and the work to launch this programme has
already been initiated.

OBJECTIVES OF ‘SKILL INDIA’


The main goal is to create opportunities, space and scope for the development of the talents
of the Indian youth and to develop more of those sectors which have already been put under
skill development for the last so many years and also to identify new sectors for skill
development. The new programme aims at providing training and skill development to 500
million youth of our country by 2020, covering each and every village. Various schemes are
also proposed to achieve this objective.

FEATURES OF ‘SKILL INDIA


The emphasis is to skill the youths in such a way so that they get employment and also improve
entrepreneurship.
Provides training, support and guidance for all occupations that were of traditional type like
carpenters, cobblers, welders, blacksmiths, masons, nurses, tailors, weavers etc.
More emphasis will be given on new areas like real estate, construction, transportation, textile,
gem industry, jewellery designing, banking, tourism and various other sectors, where
skill development is inadequate or nil.
The training programmes would be on the lines of international level so that the youths of our
country can not only meet the domestic demands but also of other countries like the US, Japan,
China, Germany, Russia and those in the West Asia.

2
http://www.yourarticlelibrary.com/human-resource-development/human-resource-development-features-
scope-and-objectives/32371

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Another remarkable feature of the ‘Skill India’ programme would be to create a hallmark
called ‘Rural India Skill’, so as to standardise and certify the training process.
Tailor-made, need-based programmes would be initiated for specific age groups which can
be like language and communication skills, life and positive thinking skills,
personality development skills, management skills, behavioural skills, including job and
employability skills.

The course methodology of ‘Skill India’ would be innovative, which would include
games, group discussions, brainstorming sessions, practical experiences, case studies etc.
How is it different from the previous skill development policies?
It’s not that we do not have any skill development programme already. The Government of
India has always considered skill development as a national priority. It is just that since the
ministry is new, the approach taken for skill development is also new. Earlier, the
emphasis was on traditional jobs. But this time, all kinds of jobs will be given equal
emphasis. Earlier, the responsibility was divided among various ministries, but this time,
these are being clubbed together. The ministry of skill development and entrepreneurship
will be the principal ministry which is going to coordinate with other ministries and
organisations.
According to NaMo, Skill India won’t be just a programme but a movement. Here, youth
who are jobless, college and school dropouts, along with the educated ones, from rural and
urban areas, all will be given value addition. The new ministry will be the certifying
agency. Certificates will be issued to those who complete a particular skill or programme and
this certificate has to be recognized by all public and private agencies and entities, including
overseas organisations. Skill India is a programme for the entire nation.

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ADVANTAGES OF SKILL INDIA

The idea is to raise confidence, improve productivity and give direction through proper skill
development. Skill development will enable the youths to get blue-collar jobs. Development
of skills, at an young age, right at the school level, is very essential to channelise them for
proper job opportunities. There should be a balanced growth in all the sectors and all jobs
should be given equal importance. Every job aspirant would be given training in soft skills to
lead a proper and decent life. Skill development would reach the rural and remote areas also.
Corporate educational institutions, non-government organizations, Government, academic
institutions, and society would help in the development of skills of the youths so that better
results are achieved in the shortest time possible.

TO SUM UP

What shape ‘Skill India’ will take and what it will do only time can tell. But no doubt it seems
to be a good initiative – providing skills to people, especially because India is one of the few
countries all across the world whose working age population will be very high, few years
down the line, going by its ever-increasing growth of population, as per the World Bank.

It is also high time now measures are taken to improve the physical and mental development
of the youths of the country so that none of them remains unemployed and the country’s
unemployment problem also gets reduced. It is time to open up avenues by which the youth
accepts responsibility and no one remains idle because an idle youth is a burden to the
economy. The economy should concentrate on job creation and social security schemes.
With this new approach towards skill development, India can definitely move forward
towards its targeted results.

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KEY ACHIEVEMENTSOF MINISTRY OF SKILL DEVELOPMENT

INITIATIVES, POLICIES AND SCHEMES

1. Skilling India – The creation of Ministry of Skill Development

Skill development and entrepreneurship efforts across the country have been highly
fragmented so far. Recognizing the need and urgency of quickly coordinating the efforts of
all concerned stakeholders, to achieve its vision of a ‘Skilled India’ the Department of Skill
Development and Entrepreneurship was created on 31st July, 2014 which was later
made into a full fledged Ministry of Skill Development and Entrepreneurship on 9th Nov,
2014.
2. PMKVY

PMKVY is the flagship outcome-based skill training scheme of the new Ministry and has been
approved by the Cabinet on 20th March 2015. The program aims at skill certification and
reward to enable and mobilize a large number of youth for outcome based skill training and
becomeemployable and earn their livelihood. Under the scheme, monetary reward would be
provided to trainees who are successfully trained, assessed and certified in skill courses run
by affiliated training providers. The scheme has an outlay of Rs 1500 crores and targets to
reach out to 24 lakh candidates (14 lakh fresh training, 10 lakh Recognition of Peior Learning-
RPL) in its first year of implementation.

3. Capacity Building of Private Training Providers and Involvement of Industry

In order to enhance private sector participation in the Skilling, NSDC has been working to
enhance capacity of private training providers through provision of loan, grant and
equity funding.
By end of March 2015, the NSDC Board had approved 203 skilling proposals and 37 Sector
Skill Councils with total financial commitment of over INR 2500 cr.

4.Strengthening Standards & Quality Assurance

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The NSQF is a competency-based framework that organizes all qualifications according to a
series of levels of knowledge, skills and aptitude. NSQF in India was notified on 27th
December
2013. National Occupational Standards (NOS) describe best practices by bringing together
performance criteria, knowledge and skills pertaining to a job role. A set of NOSs related to a
specific job role is called Qualification Pack (QP).

5. Multi Skill Institute Scheme


Progress: An Approach Paper on the proposed Multi Skill Institutes in Public Private
Partnership mode (PPP) has been prepared after extensive stakeholder consultations. This
included a workshop held on 9th Feb, 2015 with training providers, industry representatives,
State Government representatives and donor agencies. A detailed list of inputs received were
incorporated into the Approach Paper and efforts to develop a model for a National
Skill University were initiated.
6. National Skill Universities
Progress: The Ministry has initiated the process of establishment of National Skills
Universities. The Universities are envisioned to provide nationally recognised University
degrees and certification for vocational skills, design and conduct assessment procedures,
design vocational curriculum (with SSCs) customised to providing horizontal academic
mobility, offer faculty training courses and conduct research in the skills landscape. A Working
Group convened by JS, SDE has been created as of 31st Mar, 2015 for developing an
appropriate University model, providing broad recommendations and drafting the legislation
for the National Skills University. The draft Bill on establishment of National Skills
Universities, its Approach Paper and the Report of the Working Group have been prepared
and are currently undergoing internal review before being sent to the Cabinet.

8. National Policy for Skill Development and Entrepreneurship 2015


Progress: The draft has been prepared after several meetings of the Working Committee
and internal consultation on the first and second draft of the Policy. 3Meetings within the
Ministry have focussed on ensuring that all aspects of the 2009 Policy have been accounted
for and revised as required.

3
http://planningcommission.nic.in/plans/planrel/fiveyr/11th/11_v1/11v1_ch5.pdf

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4 BRIEF OF STATES
ODISHA
According to the report of the Odisha skill development authority they have an target 8 lakh
youths to be skilled in 3 years. In this they have not achieved their target in the first 2 years and
it seems that they are not going according to their target and skilled just 3.3 lakhs in 2 years.
They had various schemes and privileges from government as well as from the world to
accomplish the target. OSDA have got 8 advanced training institute from Asian development
bank. To not extend the term of the course and to have maximum enrollment they have taken
short term skill course in their list. Government to give privileges and 44 IT institutes and create
them as centre of excellence and even all IT institutes is to be revamped. By the target achieved
the development is low but the government is working with enthusiasm is clearly shown by the
4
initiatives.

UTTAR PRADESH

Uttar Pradesh Skill Development Mission (UPSDM) is implementing the first of its kind
integrated skill development training program for youth aged between 14 to 35 years across
75 districts in the state of Uttar Pradesh. UPSDM aims to provide skill development
training to over 2.3 million youth over the next three years (2014-15 to 2016-17) and to
provide these youths gainful employment in their sector of training.
There are following key stakeholders concerned with the UPSDM’s Skill Development

Programme:

► Directorate General of Employment & Training, Government of India (DGET)

► Line Departments of the Government of Uttar Pradesh (GoUP) for 5 different schemes
and the Finance Department, GoUP
► Technical Consultant, Outsourcing Agencies and other Advisors
► Mission Director
► UPSDM SPMU PersonnEl
► UPSDM DPMU Personnel for each of the 75 districts

4
http://skillodisha.gov.in/

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► Potential Candidates for Training and Trainees
► Training Partners
► Assessment Agencies
► Employers Candidate Profiling
Information related to whether a candidate belongs to specified age group (14-35) and
whether he belongs to priority beneficiary groups (BPL, SC/ST, Minorities) is critical.
Candidate will be expected to provide proof documents to the training provider before
enrolment so that batches can be formed scheme wise. Particulars once confirmed by PTP,
cannot be changed. A batch is formed taking aggregate of all preference choice sets of
candidates based on systematic batch formation process as detailed in Batch Management.
Candidate is enrolled against one batch for a unique course at allotted Training Partner. Each
batch shall be allocated to a scheme based on confirmation of its beneficiary group by the
Training Partner. Post the completion of training, the scheme allocated to the batch may
change subject to placement record achievement or budget availability. The TP will
maintain candidate record as per entitlement in beneficiary groups (SC, ST, APL, BPL,
physically challenged, gender) for different schemes including NRLM, NULM, SCA to SCSP,
BoCW, MSDP and SDI in a CD. TP can support the candidates in freezing preference in terms
of sector, course, etc. through an automated e-mail mechanism – via which they can email all
the candidates mobilized by them. TP can enter training start date on the system. Based on
the duration of the course, a range for training end date shall be generated from which a TP
can pick an alternative.5

BIHAR

Initiatives and achievements for Skill Development and Entrepreneurship in the State of
Bihar are grouped on the basis of two implementing arms of the Ministry of Skill
Development and
Entrepreneurship (MSDE):
A. Initiatives and Achievements of National Skill Development Corporation (NSDC)
NSDC and the Bihar Government have collaborated to take forward skilling initiatives in
the

5
https://www.upsdm.gov.in/

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State since 2011. In the last 4 years NSDC has trained 1.71 lakh and has placed more
than

51,000 candidates in the state. Currently 23 NSDC empanelled training partners are providing
skill training in the following sectors (Telecom, Auto and Auto Components, Security, IT and
ITES, Transportation/Logistics, Tourism and Hospitality Services, Textiles & Clothing,
Healthcare, Organized Retail, Education & Skill Development Services, Electronics and IT
Hardware, Banking and Financial Services, Informal Sectors, Food Processing, Chemicals &
Pharmaceuticals, Agriculture, Building, Construction & Real Estate and Capital Goods)
through
59 centers which are covering 19 districts across Bihar.

I. Skill Gap Study

NSDC is in process of conducting a skill gap study for the state of Bihar which would include
the following salient features
§ Socio-economic profile – demography, economic profile of district by industry, state
of education.
§ Identify developmental opportunities keeping in mind factor endowments and
stakeholder perspectives.
§ Identify specific developmental initiatives/projects which have an impact on employment
generation.
§ Articulate the aspirations of the youth.
§ Identify the current and future (2011-12 to 2017) skills and manpower requirements
by industry and estimate the gap that exists.
§ Study the existing VT infrastructure both in the private sector and the government domain

The study once completed would enable focused planning of training efforts across sectors
and districts in Bihar
II. Bihar Board of Open Schooling & Examination (BBOSE)

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In the year 2011 NSDC and BBOSE entered into an MoU to develop mechanisms for training
the trainers, selection of training providers, assessment & certification through the Sector Skill
Councils, curriculum development, developing a Skill Development Management System to
facilitate real time data collection, setting up of model training centers and capacity building.

III. Pradhan Mantri Kaushal Vikas Yojna (PMKVY)


Enrollments have started in 17 centers covering 12 districts & constituencies across Bihar
till now in the Phase I of the Program.

IV. Iconic Skill Development Centers in each constituency

NSDC is in process of setting of 40 Model/ Iconic Training Centres in each Parliamentary


constituencies of Bihar focused to skill the school dropouts.

V. Bihar State Skill Development Mission (BSSDM)

NSDC has also been in discussion with the Bihar State Skill Development Mission to enter
into an MoU for capacity building, convergence of all skill development schemes to outcome
based trainings, assessment & certification on Qualification Packs and National
Occupational Standards.

B. TRAINING
I. Status of Skill Devvelopment Initiative (SDI) scheme in Bihar
Number of VTPs. 356
Number of persons undergoing training: 116

Ii. New Initiatives Under Women’s Training

Setting Up Of A New Rvti For Women Under Central Sector In The State Of Bihar

In February, 2014, EFC convened under the Chairmanship of Secretary(LEM), Govt. of India
had appraised setting up of 08(Eight) additional new RVTIs for Women in the States,
where there is no RVTI. It includes the State of Bihar also.

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State Govt. of Bihar has allotted a required piece of land measuring 07(Seven) acres approx.
at Dighaghat(Patna) for setting up of this RVTI. Land Lease Deed Agreement between the
State Govt. of Bihar and Govt. of India has already been signed. The registration of the land
would be completed shortly with State Govt. of Bihar.
This RVTI is expected to cater to the vocational training needs of 480 women/girls annually
in regular courses under Craftsmen Training Scheme(CTS) and Craft Instructor’s Training
Scheme(CITS) and around same number of candidates would be trained under various short
term courses in skill areas having high market demand.
For initial start of this RVTI w.e.f. August, 2015, the State Govt. of Bihar has also allotted a
rent free temporary accommodation at Women’s Industrial Training Institute(WITI) -
Dighaghat(Patna). Possession of this temporary accommodation has already been taken over
by Govt. of India. Officer I/C has already been declared for setting up of RVTI at Patna .
The training courses at RVTI-Patna would commence from this temporary accommodation
w.e.f. August, 2015. The advertisement for training courses likely to be started at RVTI-Patna
w.e.f. August, 2015 has already been released and the process of filling up of application
form has already been started.
Vocational Training Courses in the areas like Fashion Technology, Interior Design &
Decoration, Electronic Mechanic etc. would be started initially in this RVTI from the
temporary campus. More skill areas for training would be added/increased in a phased
manner and the RVTI would be made fully functional in its own permanent campus by
July/August, 2017.
CHHATTISGARH

Batra and senior associate editor Suman K. Jha, and also explains why the Naxalite-affected
region’s needs are different from those of other states. Edited excerpts:
During the election campaign for your state Assembly elections, people used to call you “chaur
wale baba” — a leader who got them rice at an affordable price. How far have you come since
then in your 12 year’s journey as the CM?

When we came to power, there was a lot of starvation, migration and malnutrition in our
state. So, our first priority was to mitigate these pressing issues. We have constituted a wide-
ranging Act to provide food and nutrition security to our people. We are the first state in the
country to take such an initiative and this way we have covered 90 per cent population of the
state. This has changed the situation dramatically and controlled migration, malnutrition and

Page | 17
hunger problems to a great extent. This step has addressed various health issues also. All-
roun development of the state has paved the way for better income generation and betterment
in human development indices.

You say you are changing the food security system in the state to nutrition s curity. What
are your other big achievements?

We have addressed a complete food chain to improvise our public distribution system. We
have reduced the cost of agriculture t farmers. We have made proper and transparent
arrangements to procure paddy directly from our farmers and then made a strong and
transparent system to

distribute foodgrains. Our other achievements are enactment of Skills Development Act,
women empowerment initiatives, providing energy security, agriculture budget, youth
budget, first greenfield smart city project ‘Naya Raipur’, etc.

Chhattisgarh is among the top four states in the ease of doing business report. What measures
are you taking to further improve the ease of doing business in your
state? We made several tax and labour reforms, conducted third party inspections, created
online systems which were appreciated by the World Bank and Department of Industrial Policy
and Promotion. Land, electricity, water, steel, cement, aluminium, human resources and better
infrastructure are available here. The state government is second to South Africa in enacting
a Skill Development Act. We have allocated Rs 6,151 crore to youth budget in the year 2015-
16. About 2 lakh youth have been trained at vocational training
centers.
How is Naxalism affecting the GDP of the state? What latest measures have you taken to
curb this menace?
There is a lot of development in the Naxalite-affected regions. To some extent, the
development is slow in these areas and their contribution to state GDP is hit, but the state is
doing its best to lessen the impact of these activities. The Centre is co-operating in tackling
the menace. After NarendraModi became Prime Minister, the central government has come
up with strong commitment and active support to eradicate Naxalism from our state. In the
last few months, an investment of Rs 24,000 crore has been assured in Bastar for

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commissioning ultra-mega steel plants, railway network and other
industrial expansion projects.

A number of BJP-ruled states like Madhya Pradesh, Rajasthan, Gujarat, and now Haryana are
undertaking large-scale labour reforms. What is Chhattisgarh doing on this?
We have addressed 93 per cent of unorganised labour. For them, we have 48 welfare schemes.
We have cut down on obsolete labour laws. Also, we are working not only for the organised
sector, but we are running the country’s largest scheme for the unorganised labour force. We
annually spend about Rs 600 crore on their healthcare, education, etc. There’s a health
insurance.6

ECONOMIC DEVELOPMENT

Economic development is the process by which the economic well-being and quality of life of
a nation, region or local community are improved. The term has been used frequently in the
20th and 21st centuries, but the concept has existed in the West for centuries. "Modernization",
"Westernization", and especially "industrialization" are other terms often used while discussing
economic development.
Whereas economic development is a policy intervention endeavor aiming to improve the well-
being of people, economic growth is a phenomenon of market productivity and rise in GDP.
Consequently, as economist Amartya Sen points out, "economic growth is one aspect of the
process of economic development.
Investment in Physical Capital

Improvements and increased investment in physical capital – such as roadways, machinery and
factories – will reduce the cost and increase the efficiency of economic output. Factories and
equipment that are modern and well-maintained are more productive than physical labor.
Higher productivity leads to increased output.

Labor becomes more productive as the ratio of capital expenditures per worker increases. An
improvement in labor productivity increases the growth rate of the economy.

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Quantity and Availability of Natural Resources

The quantity and availability of natural resources affect the rate of economic growth. The
discovery of more natural resources, such as oil or mineral deposits, will give a boost to the
economy by increasing a country's production capacity.

The effectiveness of a county at utilizing and exploiting its natural resources is a function of
the skills of the labor force, type of technology and the availability of capital. Skilled and
educated workers are able to use these natural resource to spur the growth of the economy.

Improvements in Technology

Improvements in technology have a high impact on economic growth. As the scientific


community makes more discoveries, managers find ways to apply these innovations as more
sophisticated production techniques.

The application of better technology means the same amount of labor will be more productive,
and economic growth will advance at a lower cost.

Countries that recognize the importance of the four factors that affect economic growth will
have higher growth rates and improved standards of living for their people. Technological
innovation and more education for workers will improve economic output which lead to a
better living environment for everyone. Increases in labor productivity are much easier to
achieve when investments are made on better equipment that require less physical work from
the labor force.

BIHAR
Bihar is located in the eastern part of India. The state is surrounded by Nepal in the north, West
Bengal in the east, Uttar Pradesh in the west and Jharkhand in the south. The state enjoys a
unique location specific advantage because of its proximity to the vast markets of eastern and
northern India, access to ports such as Kolkata and Haldia and to raw material sources and
mineral reserves from the neighbouring states.
The Gross State Domestic Product (GSDP) of Bihar grew at a CAGR of 11.99 per cent between
2011-12 and 2017-18. Bihar's per capita GSDP increased from US$ 490.62 in 2011-12 to US$
655.42 in 2017-18 at CAGR of 10.25 per cent.

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Bihar is one of the strongest agricultural states. The percentage of population employed in
agricultural production in Bihar is around 80 per cent, which is much higher than the national
average. It is the fourth largest producer of vegetables & the eight largest producer of fruits in
India. Food processing, dairy, sugar, manufacturing and healthcare are some of the fast growing
industries in the state. The state has planned initiatives for the development of other sectors
such as education and tourism and also provides incentives for information technology and
renewable energy.
The state enjoys a unique location specific advantage because of its proximity to the vast
markets of eastern and northern India, access to ports such as Kolkata and Haldia and to raw
material sources and mineral reserves from the neighbouring states. The state has a large base
of cost effective industrial labour, making it an ideal destination for a wide range of industries.
Total FDI for Bihar & Jharkhand, between April 2000 and March 2019, stood at US$ 113
million. Total merchandise exports from the state stood at US$ 1,345.31 million during 2017-
18. During April-December 2018, the exports stood at US$ 1,243.34 million.
Recent Developments
As of April 2018, work on NH2 in Bihar has been started. Total cost of the project is estimated
as Rs 882 crore (US$ 136.85 million).
Under BSHP – 2, construction of ROB (part of SH 83 - Baghi-Barbigha Road) is expected to
complete in January 2019. total cost of the project was Rs 32.74 crore (US$ 5.08 million)
In 2018-19 (up to Feb 19), Patna handled 25,866 aircraft movement, 3,726,697 passengers and
10,402 MT freight.
As on April 2018, under the AMRUT scheme, total amount of Rs 2,469.77 crore (US$ 383.21
million) were allocated to the state of Bihar.

Key Sectors:
Total horticulture production in the state for 2018-19^ was 21,204.97 thousand MT with
1,185.36 thousand hectares of area under production.
State produced 6,787.8 thousand MT of rice and 62 thousand MT of pulses in 2018-19^.
In 2017-18(P), Bihar produced 16.51 million tonnes of sugarcane.
The foreign tourist arrival in Bihar in the year 2018 (up to Sep-18) was around 0.77 million.
Domestic tourist arrival in the state stood at 18.72 million during the same time.

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ODISHA

Odisha is one of the most mineral-rich states in India. Key minerals found in the state are iron,
coal, bauxite, manganese, nickel, chromite, limestone, dolomite, graphite, decorative stones,
beach sand, China clay, tin ore, etc. At 34.3 per cent in 2017-18, Odisha contributed the largest
share of mineral production India in terms of value. Value of minerals produced in the state
reached Rs 200.92 billion (US$ 3.12 billion) in 2017-18.
Odisha accounts for over 55 per cent of India’s bauxite reserves, making it an ideal location
for setting up aluminium and aluminium-based companies. The state ranks first in the country
in terms of both production capacity and actual output of aluminium.
Odisha is one of the favoured investment destinations for domestic and international iron and
steel players as well as one of the largest producers of iron and steel in India. The total
production of iron ore in Odisha was stood to at 36.83 million tonnes during 2018-19*.
Between 2011-12 and 2017-18, Gross State Domestic Product (GSDP) expanded at a
Compound Annual Growth Rate (CAGR) of 10.30 per cent to Rs 4.16 trillion (US$ 64.54
billion) whereas the Net State Domestic Product (NSDP) expanded at a CAGR of 10.08 per
cent to Rs 3.63 trillion (US$ 56.37 billion).
Odisha is amongst the top ten states accounting for the highest number of MSME enterprises.
The state offers a wide range of fiscal and policy incentives for businesses under the Industrial
Policy Resolution, 2015. Additionally, the state has sector-specific policies for IT and micro,
small and medium enterprises. The state government has constituted "Team Odisha" to help
with investment promotion.
Odisha has vast potential for development of tourism. It is one of the critical sectors of the
state’s economy, in terms of foreign exchange earnings as well as employment generation
opportunities. In 2017, 14,011,229 domestic tourists & 100,014 foreign tourists visited the state
of Odisha.
The following are some of the major initiatives taken by the government to promote Odisha as
an investment destination:
Total merchandise exports from Odisha were US$ 5.75 billion during April 2018-February
2019.
The Odisha Cabinet has approved the Odisha start-up policy, aimed at setting up at least 1,000
start-ups over the next five years and bringing the state amongst the top three start-up hubs by
2020.

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In order to increase the employment opportunities in the state, Odisha government has
announced plans to invest US$ 28.69 billion in the manufacturing sector generating nearly
three lakh job opportunities by 2020.
In January 2018, the state government has given approval for five investment proposal
including two Angul Aluminium Parks worth Rs 328 crore (US$ 50.66 million).
A mega food park is being established near Bhubaneswar over 282 acres through the PPP
mode. Odisha Industrial Infrastructure Development Corporation (IDCO) is the nodal agency
for the establishment of this park.
In the State Budget 2019-20, the government has deployed Rs 400 crore (US$ 55.44 million)
for development of Railway projects and Rs 10 crore (US$ 1.39 million) is allocated to
complete the railway projects of strategic Importance through SPVs.
As per the State Budget 2019-20, the Government of Odisha has allocated an amount of Rs
5,578.69 crore (US$ 773.21 million) under the Housing and Urban Infrastructure Department.
As per Budget 2019-20, an amount of Rs 7,552.27 crore (US$ 1046.75 million) has been
allocated to the Department of Agriculture and Farmers’ Empowerment.

UTTAR PRADESH
Uttar Pradesh is the most populous state in India, with a large pool of skilled, semi-skilled and
unskilled labour. Alternately, the population is also looked upon as the largest consumer base
in the country with around 200 million people. It is the largest producer of food grains among
all states in India and accounted for about 17.83 per cent share in the country’s total food grain
output in 2016-17. Food grain production in the state in 2017-18 stood at 51,252.7 thousand
tonnes and 18,416.3 thousand tonnes in 2018-19. Pulses production in the state stood at 2,208.0
thousand tonnes in 2017-18 (4th Advance estimates) and 660.7 thousand tonnes under kharif
season in 2018-19 (1st Advance Estimates).
Production of vegetables is 27,515.92 (Provisional) thousand tonnes in 2017-18. The state has
become a hub for the semiconductor industry with several major players having their offices
and research and development (R&D) centres in Noida.
Between 2011-12 and 2018-19, Gross State Domestic Product (GSDP) expanded at a
Compound Annual Growth Rate (CAGR) of 11.41 per cent to Rs 15.42 trillion (US$ 213.78
billion) whereas the Net State Domestic Product (NSDP) expanded at a CAGR of 11.42 per
cent to Rs 13.76 trillion (US$ 190.66 billion).

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As of April 2019, Uttar Pradesh had an installed power generation capacity of 25,130.02 MW
(comprising 6,218.20 MW under state utilities, 12,443.93 MW under private utilities &
6,467.89 MW under central utilities).
The state’s resources, policy incentives, infrastructure and climate are best suited for
investments in diverse sectors such as Information Technology (IT), agro-based and food
processing, light engineering goods, sports goods, textiles, leather-based, tourism and
biotechnology.
The state has a well-developed social, physical and industrial infrastructure. It also has good
connectivity through 48 national highways, six airports and rail links to all major cities. The
state has witnessed a high rate of infrastructure growth in the recent past. There has been a
considerable rise in the number of industrial clusters/hubs and Public-Private-Partnership
(PPP) projects in the infrastructure domain.
The Uttar Pradesh State Industrial Development Corporation (UPSIDC) and the Department
of Infrastructure and Industrial Development are responsible for the development of industrial
infrastructure in the state.
The state has a robust industrial infrastructure, including 15 industrial areas, 12 specialised
parks, four growth centres and industrial infrastructure development centres (IIDC). As of
January 2019, Uttar Pradesh had 21 notified, 12 operational SEZs and 24 formally approved
SEZs. Merchandise exports from Uttar Pradesh reached US$ 13.80 billion in 2017-18 and US$
16.29 billion in April 2018-March 2019.
In 2017, domestic tourist arrivals in the state were 234 million and stood second. Foreign tourist
arrivals had crossed over 3.57 million and rank third.
According to the Department of Industrial Policy & Promotion (DIPP), cumulative FDI
inflows1 in Uttar Pradesh, during April 2000 to December 2018, amounted to US$ 686 million.
Some of the major initiatives taken by the government to promote Uttar Pradesh as an
investment destination are:
The Government of Uttar Pradesh presented Rs 4,28,384.52 crore (US$ 66.47 billion) Budget
for 2018-19.
In January 2018, 10 cities have been included by the central government up to the fourth round
of the Smart Cities Mission in the state.
As of July 2018, Rs 800 crore (US$ 119.33 million) has been released for smart city projects
in Uttar Pradesh.

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 As per Investor Summit 2018, Uttar Pradesh government will majorly focus on key
sectors such as:
o IT and ITeS
o Dairy
o Electronics
o Tourism
o Manufacturing
o Renewable Energy
o Agro & Food Processing

 In June 2018, Cabinet Committee on Economic Affairs approved construction of 9.9


km long new 6 lane bridge across river Ganga at Phaphamau in Allahabad with a cost
of Rs 1,948.25 crore (US$ 290.61 million).
 In state budget 2018-19, Uttar Pradesh government has increased its railway budget to
Rs 36,000 crore (US$ 5.59 billion) for development of several railway projects as
compared to previous year.
 As of October 2018, the Cabinet Committee on Economic Affairs had approved new
railway line between Bahraich and Khalilabad, the total length will be 240.26 km with
an estimated cost of Rs 4,939.78 crore (US$ 703.87 million).
 The state is in the process of implementing and testing the public–private partnership
model in the power sector with an input-based franchisee system.
 As per state budget 2018-19, Rs 29,883 crore (US$ 4.64 billion) has been allocated to
power sector schemes.
 The state cabinet approved UP Defence and Aerospace Units and Employment
Promotion Policy 2018, with an intention to generate 0.25 million jobs and expects an
investment of Rs 50,000 crores (US$ 7.46 billion) over the next five years.
 The state offers a wide range of subsidies, policy and fiscal incentives as well as
assistance for businesses under the Industrial and Service Sector Investment Policy,
2004 and Infrastructure & Industrial Investment Policy, 2012.
 The Uttar Pradesh Information Technology and Start-up Policy, 2016 is aimed at
promoting Uttar Pradesh as a preferred and attractive location for investments for
various IT/ITeS companies and for establishing IT Parks as well as IT cities for the
development of IT Infrastructure in the state.

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 The government of Uttar Pradesh has sanctioned 20 SEZs across the state, such as IT
and ITeS, electronic hardware and software, handicrafts and agro-based industries.
 The state has proposed 40 IT/ITeS parks (apart from IT SEZs), two biotech zones and
a knowledge park.
 CHHATTISGARH

Chhattisgarh is located in central India. It is among the richest Indian states in terms of mineral
wealth, with 28 varieties of major minerals, including diamonds. Chhattisgarh ranked 4th in
terms of value of mineral production (excluding atomic, fuel and minor minerals) in India, with
a 15.66 per cent share in 2017-18.
At current prices, gross state domestic product (GSDP) of Chhattisgarh stood at Rs 3.12 trillion
(US$ 43.20 billion) in 2018-19. GSDP (in Rs) of the state at current prices grew at a CAGR of
10.18 per cent between 2011-12 and 2018-19.
Total mineral production in the state during 2017-18 was worth Rs 9,184 crore (US$ 1.42
billion). Moreover, considerable reserves of bauxite, limestone and quartzite are available in
the state. Chhattisgarh is the only state in India that produces tin concentrates. The state
accounted for 35.4 per cent of tin ore reserves of India. During 2017-18, tin concentrate
production in the state stood at 16,758 kgs. Chhattisgarh's combined exports of aluminium &
products, iron ore, iron & steel products, and cement from Chhattisgarh reached US$ 931.63
million in FY18 and US$ 266.97 million between Apr-Dec 2018.
The natural resources, policy incentives and infrastructure in the state support investments in
the iron and steel, cement and power sectors. Korba district in Chhattisgarh is known as the
power capital of India. As of April 2019, Chhattisgarh had a total installed power generation
capacity of 14,044.10 MW. Moreover, considerable reserves of bauxite, limestone and
quartzite are available in the state.
Chhattisgarh is making significant investments in industrial infrastructure. The Chhattisgarh
State Industrial Development Corporation (CSIDC) has set up industrial growth centres, five
industrial parks and three integrated infrastructure development centres (IIDC). The state has
a notified special economic zone (SEZ) in Rajnandgaon District.
The following are some of the major initiatives taken by the government to promote
Chhattisgarh as an investment destination:

 As per State Budget 2019-20, Rs 396 crore (US$ 54.89 million) has been allocated for
the three smart cities.

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 A wide range of fiscal and policy incentives for businesses have been announced under
the state’s Industrial Policy 2014-19.
 The Government of Chhattisgarh plans to set up a food processing park in Rajnandgaon
district on around 303 hectares of land.
 Chhattisgarh state government, in partnership with Indian Railways will build two fully
electrified rail corridors in the state at a cost of Rs 10,000 crore (US$ 1.56 billion,). As
of October 2018, the Indian Railways has raised private equity for the first of these
corridors.
 Under Atal Mission for Rejuvenation and Urban Transformation (AMRUT), Rs
2,192.76 crore (US$ 303.92 million) has been allocated to Chhattisgarh as of January
2019.
 The state government, in partnership with Indian Railways will build two fully
electrified rail corridors in the state at a cost of Rs 10,000 crore (US$ 1.56 billion). As
of October 2018, the Indian Railways has raised private equity for the first of these
corridors.
 As per Budget 2018-19, the state government allocated Rs 5,178 crore (US$ 716.87
million) for the development of roads & bridges in the state.7

CHALLENGES TO SKILL DEVELOPMENT & ECONOMIC


DEVELOPMENT IN INDIA
Skill development refers to all the efforts to improve the effectiveness and contribution of
labor to the overall productivity as well as production, which lead the economy to a higher
trajectory. The skill development has been a hot topic in current times in our country. What
triggered such focus? Mainly two things as follows:
 Demographic dividend
 Expansion of knowledge based economy
Demographic dividend was indicated by the changing demographic profiles of India vis-à-
vis some other countries such as China. The changing demographic profile indicated that
India has a unique 20-25 years window of opportunity. This opportunity comes to us
because of increased ratio of young and working population, lesser dependency ration due to
declining birth rates and improvement in life expectancy. More working people means
more savings which, in turn, means more money for investments. As the number of

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working people grows, it also reduces the dependency ratio, which is the proportion of non-
working population to the working.
The expansion of the talent based economy worldwide indicated that global economy is
witnessing an acute shortage of skilled manpower.

Efforts till UPA-2 regime

On the basis of an 11th plan recommendation for creation of a comprehensive National Skill
Development Mission, a Coordinated Action on Skill Development was envisaged in UPA-2
regime. In 2009, the government launched a National Policy on Skill Development to train
500 million people by 2022 by empowering all individuals through improved skills,
knowledge and nationally and internationally recognized qualifications to gain access to
decent employment and ensure India’s competitiveness in global market. It also aimed to
increase produce workforce in organized and unorganized sectors especially among
youth, women, disables, disadvantage sections.
In this way, a three tier institutional structure came up in India in last decade which had the
following three tiers:

PM’s National Council on skill development



National Skill Development Coordination Board (NSDCB)

National Skill Development Corporation (NSDC) In the above structure, the functions were as
follows:
The PM’s National Council spelt out vision to create 500 million skilled people by 2022
through skill systems.
NSDCB was given the task to cooperate with a large number of central ministries,
departments and state governments.
NSDC was charged for preparing comprehensive action plans and activities which
would promote PPP models of financing skill development.
The National Skill Development Corporation was set up as a public-private-partnership
project, and the then prime minister Manmohan Singh brought in S. Ramadorai, the then

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vice-chairman of Tata Consultancy Services Ltd, to be his skill adviser. However, so far,
India is marred with various problems in the skill development sector.

Problems with Skill Development Programmes


The UPA regime is known for tedious governance structures. The biggest problem that
occurred was of lack of coordination. Government was preoccupied with financing and
implementation lost track. The Employment Exchanges, NCVT SCVT etc. were not utilized
properly for training.
and information dissemination. The skill development programmes were implemented
by ministries, departments and state governments. For example,

 In UPA regime, 20 different ministries handled 73 different skill development schemes.

 There was not centralized curriculum or certification.

 NSDC was kept under the Finance Ministry. It had hardly succeeded in coordination
among various ministries and departments.
 Involvement of Industry and employers in the skill training structures (such as ITIs) is
almost nothing. They could not be brought forward to proactively participate in the skill
development. They were not brought forward because this would entail larger autonomy to
institutions.
 India has a fragmented vocational education system, managed by multiplicity of
bodies under the NCVT, DGET and the SCVTs. Lack of coordination among them has
resulted in ineffectiveness of any top down approach to skill development. The quality of
vocational institutes is also low.
 Funding of vocational education in India is restricted largely to government, where
little attention was paid to quality. Once an institution begins to receive funding, subsequent
funds are assured regardless of the institution’s performance. Moreover, Education being a
state subject, the implementation of any vocational; education would be in the domain of
respective state governments. While the student fees in ITI’s/polytechnics go to the State
treasuries, the institution itself does nothing to cater to the market requirements.
 For now, far too much of young India learns on the job. It learns well but lacks the
stamp of authority, and languishes in low-paid jobs or in the informal sector.

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 A large number of students with vocational education need to look for placement
in private organizations or for self employment. The condition of private industrial
employments and self employment are inferior in India in comparison to other countries.
Subsequently, only a smaller fraction of students (~5%) opt for vocational education.

The Efforts under New Government : Separate Ministry


 The incumbent NDA government has established a separate ministry for
skill development. This central ministry takes the core elements from various ministries and
pools them under one minister, Sarbananda Sonowal, and under one budget, which could be in
the region of Rs 25,000 crore. In June 2014, the ministry had begun negotiations with two
dozen ministries, however, most of them had apparently objected to losing their turf. The
current position is as follows:
 The 73 schemes remain (as of now) with the respective ministries and the skill
ministry to work as coordinator
 The new ministry will devise training curriculum in key sectors and issue certificates
to trained personnel.
 Three key agencies — National Skill Development Corporation, National
Skill Development Agency and National Skill Development Trust — which used to be
attached to the department of economic affairs under the ministry of finance are now under
the administrative control of new ministry.
 Whether the government will continue to fund individual ministries for skill
development as it did earlier or, the new ministry finally gets a mandate of handling all skill
development work across sectors, thereby trimming work assigned to other ministries— this
question remains unanswered as of now.

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.

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 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.8

8
https://www.gjimt.ac.in/wp-content/uploads/2017/10/Sakshi-Sethi-Esha-Sharma_Skill-Development-
Opportunities-Challenges-in-India.pdf

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EDUCATIONAL DEVELOPMENT IN INDIA
ODISHA
In Orissa there are 35928 Primary and 20427 Upper Primary schools to provide education at
elementary level. More 491 New Primary and 490 New Upper Primary schools opened under
SSA to provide schooling in unserved areas.  66 lakh children of 6 to 14 years age group are
inschool, out of which 12 lakh are SC and 17 lakh are ST.  1.87 lakh children of 6 to 14 years
age group are outof-school from which 0.3 lakh are from SC and 0.9 lakh are from ST
community. Out of them 56,995 Children were admitted to regular existing & New Schools
under Enrolment Drive in districts. Further to improve access to Elementary Education and to
achieve 100% enrolment, Government have relaxed the norm for opening of new primary
schools as follows:  In KBK districts and Tribal Sub Plan areas new primary schools will be
opened in habitations having at least 25 children in the 6 -14 years age group provided there is
no primary school within one KM of such habitations.  In all the districts the distance norm
for opening of new primary and new upper primary schools is relaxed in case of natural barrier
like river, hilly terrain, dense forest etc. As per the GIA Rules, 2004, 1981 private High Schools
have been notified to receive block grant.  1375 nos. of Contract Teachers has been engaged
against the 3210 posts advertised.  Contract teachers of High Schools have been allowed the
minimum basic pay of their respective regular scale in Revised Scale of Pay 2008. 
Government have approved 799 candidates as non-teaching staff under the Rehabilitation
Assistance Scheme in the year 2010.  Computer Literacy is being popularized in High
Schools. Board of Secondary Education has included computer learning as an optional subject
in the curriculum for Secondary schools.  To provide secondary school within 5 K.M. and
higher secondary school within 7-10 K.M. of every habitation.  Gross Enrolment Ratio (GER)
of 75% for class-IX & X within five years (by 2013-14). Universal Access to Secondary
Education (SE) by 2017.  Universal Retention by 2020.  Access to Secondary Education
(SE) for all disadvantaged group of children.  To improve quality of education resulting in
enhanced intellectual, social and cultural learning.  Annual Work Plan for 2010-11 and
Perspective Plan for 5 years submitted to Gol. PAB approved for 2009-10 Rs.207.18 crores
and for 2010-11 Rs 507.92 crore. Rs.3.00 crores released by Gol for “Preparatory Activities”
such as Strengthening State and District offices.  Strengthening manpower resources. 
Organising training/workshop/SEMIS etc.  Rs 71.40 crores released by GOI for “ Project
Activities ” such as Civil works for new school.  MMER (Management Monitoring

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Evaluation & Research which is being released to all the 30 districts.  Data collection, data
entry and analysis of “Secondary Education Management Information System” (SEMIS),
2009-10 is completed & is under verification by the Inspector of Schools.  Task force has
been constituted at the state level.  Capacity building of Inspectors of Schools & DPCs done.
 Steps taken to set up RMSA society.  School Mapping completed.  Bank accounts opened
in state & district offices.  SSA society is the implementing society for RMSA until the new
society formed.  The Memorandum & Byelaws of RMSA society (Orissa Madhymika Sikhya
Mission - OMSM) have already been approved by the Hon’ble Chief Minister of Orissa and
has been registered under society registration act.  The Executive Committee will be convened
very soon.  School student helpline has been opened. Along with CTS this also helps in
tracking the out of school children.9

BIHAR
In the north Indian state of Bihar, education has been improving faster than in the rest of the
country. But as this column reminds us, Bihar is starting from the bottom. For education to
continue to improve, Bihar needs to universally provide drinking water facilities, separate
toilets for girls in schools, and more teachers and classrooms per student.
One thing that development economists agree on is the importance of education. Put simply, if
development is to be sustainable, people need to be better educated. Just looking at economic
output, education contributes to growth by increasing the level of human capital of the
workforce – as India has discovered in the IT sector. Looking beyond the statistics, education
can equip people with the tools for a more fulfilling and enjoyable life.
The government of Bihar, one of India´s poorest states, has recently undertaken several policy
initiatives to make education more affordable and accessible to children. These initiatives have
focused on reducing the ‘opportunity cost’ of schooling and providing incentives for enrolment
and performance.
In my study with Priya Ranjan, we look at the state of education in Bihar and analyse the
policies of the Bihar government (Ranjan and Prakash 2012). We draw on our own research,
publically available data, and previous studies on education in India. We find that while Bihar
has made several impressive steps, there is still a long road ahead.

9
https://darpg.gov.in/sites/default/files/EDUCATION%20SYSTEM%20IN%20ODISHA.pdf

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The state of education in Bihar
Using data from District Information System for Education (DISE), we find that starting in
2006-2007 the enrolment rate at the primary level in Bihar – has been increasing and is now
higher than the median of the 20 large states. However, the enrolment rate at the upper primary
level is right at the bottom of the 20 major states in India with less than half of eligible children
attending school. Since the DISE enrolment data for primary grades are not available for Bihar
after 2007, we use an alternative measure from Assessment Survey Evaluation Research
(ASER) called the ‘out of school rate’ which is the percentage of school age children not
attending school. This measure is far less impressive for Bihar. We find that Bihar has a higher
out of school rate than the median state in India, though the percentage has been declining over
time. In line with the enrolment numbers, the out of school rate is higher among older children.
We use ASER scores for Reading and Maths as our measures of quality of education. While
Bihar’s performance in these areas is close to median average among Indian states, there is still
a lot of scope for raising the quality of education. To cite a couple of stark statistics – one third
of students in Class 6 (on average ages 11-12) cannot read a paragraph taken from a Class 2
textbook (for ages 6-8), and half of Class 5 (age 9-10) students cannot solve a simple division
problem.
Schooling inputs
One way of assessing school performance is by looking at ‘schooling inputs’ – that is, what is
being provided in the schools. We find that Bihar performs very poorly in the provision of basic
schooling inputs, both in absolute terms and in relation to other states in India. Bihar has the
highest student-teacher ratio as well as the student-classroom ratio among Indian states. In
2009-2010, which is the last year for which data are available, Bihar had 53 students to every
one teacher, while the national median was 26. The student-classroom ratio is also very poor,
with over 80 students per classroom in all years surveyed, far above the national median. We
also find that the proportion of classrooms in good condition is 60%, which in addition to being
below the national median is 20 percentage points below the best performing state in India.
Among some other measures of schooling infrastructure, Bihar has made some progress in
recent years in the provision of drinking water, and is now ranked above the median in India
on this measure. However, the fact that roughly 10% of the primary schools lack access to
drinking water facilities is clearly unacceptable. Other studies have found availability of a
separate girls´ toilet to be an important determinant both of female schooling and teacher
attendance (see for instance Glewwe et al. 2011). This is particularly important in Bihar, which

Page | 34
despite focusing on hiring female teachers for primary school, has only 20% of schools with
separate toilets for girls – a very low figure in both relative and absolute terms.
Unsurprisingly, we find several of these schooling inputs to be key to providing a good
education. Disease transmission within and across schools adversely affects both the amount
of schooling received and its quality. While the Bihar government has taken some steps in this
direction by implementing a massive deworming programme in 2011 with a follow-up planned
later this year, we argue that the policy imperative should be on providing access to drinking
water and separate girls´ toilets in school.
Teacher absenteeism and perceptions of schooling
In addition to the infrastructural challenges identified above, Bihar needs to consider other
important determinants of a good education. Previous studies, such as Chaudhury et al. (2006),
highlight the problem of teacher absenteeism in several developing countries, including India.
This body of research highlights a strong connection between poor school infrastructure, such
as lack of drinking water, and teacher absenteeism, but also suggests that improved monitoring
by authorities can improve teacher attendance. Indeed, data from a field experiment in Kenya
suggest that scholarship incentives, where good grades were rewarded with grants and payment
of school fees, helped to motivate both students and parents as well as reduce absenteeism
(Kremer et al. 2009).
Focusing on the teachers themselves, most studies on the link between performance-related
pay and educational outcomes find the effects to be positive (see for example Muralidharan
and Sundararaman 2011). An essential prerequisite to the implementation of any kind of
incentive pay scheme, however, is to set up a data system for monitoring the performance of
schools and teachers. Such a data system is essential in linking student performance to teacher
effectiveness. Developing such a data system will have the additional benefit of allowing the
administrators to monitor the performance of schools and take remedial action in poorly
performing schools. Put simply, if Bihar is to implement such a policy of incentivising teachers
and measuring school performance, it needs to have the data system in place first.
But the problem is not just teachers. There is a problem with parents and children demanding
enough education. Our survey of existing research suggests that many parents and children
perceive the returns to schooling as much less than the returns from starting work earlier in life.
The result is people choosing to ‘under-educate’ themselves in many developing countries
(otherwise known as ‘underinvestment’ in education). Experimental studies suggest that public
campaigns aimed at informing parents and children of the benefits of education are extremely
cost effective at increasing school enrolment. Given the current lack of public information in

Page | 35
Bihar, we strongly recommend the government launches such a campaign. In Bihar in
particular, it would be a good idea to emphasise the development of English language skills,
given their high returns in the job market (Azam et al. 2011).
The road ahead
Recent policy initiatives and improvements in primary school enrolment show that Bihar is
making progress in improving its education. Recent policies have focused on lowering the cost
of schooling through subsidising or providing textbooks, uniforms, bicycles and cash transfers
for attendance. While these have reduced the costs of schooling in Bihar, much remains to be
done to boost schooling infrastructure and improve conditions for both students and teachers.
We re-emphasise that policymakers must universally provide drinking water facilities, and
separate toilets for girls in schools. They must also improve the student-teacher ratio and ensure
that classrooms are in good condition. Finally, given the high cost effectiveness of information
campaigns regarding the returns to education, the government of Bihar should seriously look
into this policy option. More generally, understanding the determinants of household’s decision
to ‘invest’ in education should be an important component of academic research and policy in
the area of education, which has previously tended to focus more on improving the quantity
and quality of educational inputs.
Looking to the future, performance-related pay (or incentive pay) for teachers can play an
important role in improving the quality of education. However, to be able to link student
performance to teacher effectiveness, a state-wide data system needs to be put in place.310

CHHATTISGARH
“I used to read in newspapers and hear that Maoists often loot EVMs from polling booths
which either led to no voting or the people go for re-poll endangering the lives of our teachers.
I believe that at such places EVMs can have a software which would directly send voting data
to the control room.”
The above idea from Roshan Sodi, an Adivasi class VI student left everyone amazed and
inspired. Roshan used to graze cattle for his family and did not have access to school. After
receiving the prestigious Dr. A.P.J. Abdul Kalam IGNITE Award from the Hon’ble President

10
https://www.ideasforindia.in/topics/macroeconomics/education-in-bihar-still-a-long-road-ahead.html

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of India, Roshan finally managed to enrol himself in the nearest residential school and started
his transformation journey.
Sukma in Chhattisgarh has seen many such transformational journeys of children and their
families who were disconnected from the mainstream, deprived of basic education facilities
and caught in the conflict between the Government and Left Wing Extremism (LWE) of
Maoists, till the Comprehensive Education Development Plan (CEDP) was launched.
What was done
Under CEDP, target groups were identified in collaboration with security forces, government
agencies and community level influencers using a participatory approach. For children
belonging to habitations with extreme LWE activities, educational facilities were relocated to
District headquarters, as this would cut off the resource for furthering the cadre of Maoist
activities who have been known to recruit school kids in their cadre. Making teachers a resource
for CEDP in inaccessible locations and with appropriate help from the Government Schemes
and CSR funds, Education City and Education Hubs were set up.
Gyanodaya is first of its kind to support out of school children by engaging in an in-house
holistic development through a bridge course programme that makes them school ready in 3-4
months. Primary and secondary residential schools were set up with special coaching for
deserving students. Individual Subject Labs based on multi-lingual and contextual pedagogy
were judiciously paired with free residential set ups for children with a special rehabilitation
programme. In addition to high schools with State Board and CBSE Board, courses are also
designed to educate students in four specific disciplines viz., science, technology, engineering
and mathematics.
Along with the above mentioned Integration Learning Center, Education City also offers
several innovative services like Science Park and Planetarium, Science Centre to explain
various scientific concepts through multiple models. Combined with vocational training,
polytechnics, and professional level training, the CEDP has indeed been a remarkable success.

The result
Till 31st December 2016, approximately 1000 out-of-school children from interior villages
were enrolled after three months in the Back to School Programme in Gyanodaya. Four persons
from Nayi Disha programme have been selected for Government jobs, and eight are waiting
for Public Service Commission mains result. Teachers from 936 schools have been trained for
Model School Concept through Vidyalaya Darpan. Under Aarohan, two have qualified for
Joint Engineering Excellence Advanced exams, and eleven have qualified in PET/AIEEE. The

Page | 37
CBSE Board Model School has had 100% result in Class X. Almost 1300 youth have been
trained for many courses like accounting, BPO, masonry, DTP and publishing etc. The CEDP
programme in remote Chhattisgarh has truly proven that pen is indeed mightier than the
sword.11

UTTAR PRADESH
The Associated Chambers of Commerce and Industry of India (Assocham) reports could break
the stereotypes regarding Uttar Pradesh's bleak education system. In the last decade, primary
school infrastructure has witnessed a ceaseless growth.
The number of schools had skyrocketed between 2005-2006 and 2013-2014. According to the
reports, the Compounded Annual Growth Rate (CAGR) is 5.1 per cent against 3.2 per cent as
the national figure. The number of schools in Uttar Pradesh lies at 2,40,000 against country's
number being at 1.45 million.
Higher CAGR points out the efforts taken in Uttar Pradesh to promote education. The rapid
advancement in the educational infrastructure sector will be a source of encouragement for
higher number of enrollments. Considering the large population of the state and swift pace of
development, growth seems to be the imperative.
Uttar Pradesh's capital Lucknow witnessed the release of the report, labelled as 'UP: Inching
towards double digit growth', by the Assocham National Secretary General D S Rawat on
Monday. The report will soon be accredited to the state government as another feather to the
victory.
Despite the growth, the number of teachers in the schools is still sinking as compared to the
national figure. In 2013-14, the percentage of teachers in Uttar Pradesh and India was around
4.1 and 5.3, respectively. Nonetheless, CAGR still shifted upwards to 8 per cent against 6.4 per
cent of India.12
CHALLENGES
The economies of low-and middle-income countries have been growing at historically
rapid rates. Progress in education-expanded enrolments and longer schooling-has contributed
to this growth and so has helped to reduce poverty in developing countries. In 1990 a typical
sixyear- old child in a developing country could expect to attend school for 8.5 years, up from
7.6 years in 1980. In Eastern Europe and central Asia schooling for 9 to 10 years is the rule;

11
http://vikaspedia.in/education/education-best-practices/pen-proving-to-be-mightier-than-sword
12
https://www.indiatoday.in/education-today/news/story/uttar-pradesh-is-walking-towards-educational-growth-
240812-2015-02-18

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in East Asia and in Latin America and the Caribbean primary education is almost universal.
Countries in the Middle East and North Africa are making steady progress; so are those in
south Asia, although they have a considerable distance to go. Sub-Saharan Africa is lagging;
certain countries there are making gains, but overall, primary enrolment ratios are actually
declining. Yet despite these substantial achievements in the world as a whole, major challenges
remain: these are to increase access to education in some countries, to improve equity, to
improve quality, and, where needed, to speed educational reform. In most countries, more
children wish to go to secondary schools than are able to enroll, and the demand for higher
education is in general increasing faster than the supply. The enrolment gap between the
transition economies of Europe and central Asia and the members of the OECD is also
widening as enrolment ratios decline in the former and rise in the OECD countries. The issue
of equity mainly affects several overlapping disadvantaged groups, including the poor,
linguistic, and ethnic minorities, nomads, refugees, and street and working children. The
different access that boys and girls have to the education system in some parts of the world is
also very important because it contributes to gender differences later in life. The gender gap
in expected years of schooling in now very small in most countries in Europe and central
Asia and in Latin America. It remains large in the Middle East and North Africa and in south
Asia, where it is not closing at all. The quality of education is poor at all levels in low and
middleincome countries. Students in developing countries have a mean level of achievement
below that in industrial countries, and their performance shows a much greater variation
around the mean. Delays in reforming education systems to keep pace with economic structures
are most apparent in the transition economies of eastern and central Europe. Lags in reform
can hinder growth; conversely, timely reform can pay off in terms of economic growth and
poverty reduction, as evidenced by the East Asian countries that have generally invested
heavily in basic human capital, both male and female.

CONCLUSION
The coming decade will be crucial for India and only if India grows at the rate of 8-9 per cent
per annum, India's per capita GDP will grow from the current level of $1,800 to $8,000-
$10,000 by
2025. Only then, India will graduate from being a low income country to a middle income
country and achieving, maintaining and sustaining that high level of growth, the country need
many things. Employability of the growing young demography is an important factor in the

Page | 39
economic development of the country and the crisis of skill development has to be turned
into opportunity to growth. Delivering keynote address Confluence 2014 - Rising Employer
Expectations: A Crisis or an Opportunity, organised by skill development firm Talent Sprint
and National Skill Development Corporation (NSDC), he said, "We need to raise the savings
rate, investment rate and also need to see efficiency in use of capital to maintain that high
level to achieve the growth expected. For all of this, we also need critical manpower. That is
where the skill development progammes comes. Whether it a crisis or an opportunity. I want
to say, that crisis always generates the opportunity."
There is an urgent need to take a look at the effectiveness of the current education system.
Increasingly concerns are being expressed on the employability of the graduates who come
out. It is related to two directions. One is the quality of the domain knowledge that is
being important. And the other is the relevance of the programmes and the courses that are
being offered. Government can broadly set policy framework for skill development, while the
industry could join in public private partnership models to improve the skills. "We have
reached a point where reform of higher education has become urgent. The excellent quality
of our best students is recognised by the people abroad. All our students going abroad do
extremely well,"
The three dimensions of the reform of the higher education is the access, equity and quality.
Access to higher education is to expand the gross enrolment rate, which is still lower than
many other countries. Equity is important as it is important to bring the vulnerable groups
within the scope of higher education. Without quality, achieving quantitative targets, is counter-
productive. Quoting a report of Talent Sprint which said that in 2020, only 27 per cent of the
7,50,00,000 fresh graduates would be employable, he said, "If we are churning out graduates,
out of which only 20-25 per cent are employable, there is a huge waste of human and financial
resources. We need to raise this percentage to a much higher level."

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1
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sword
1
https://www.indiatoday.in/education-today/news/story/uttar-pradesh-is-walking-towards-
educational-growth-240812-2015-02-18

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