India stands at a critical juncture, with a vast youth population that can either be its greatest asset or a significant challenge. 

• To truly unleash the potential of our demographic dividend’, a fundamental overhaul of our vocational education and training (VET) system is an urgent necessity. 

The Current Reality of Vocational Education and Training System In India

• Low Formal Training: Only 4% of India’s workforce is formally trained. 
  • This is alarmingly low when compared to developed nations like Germany, Singapore, and Canada, where 80% to 90% of their workforce is formally skilled.
• Underutilised Capacity: While India boasts over 14,000 Industrial Training Institutes (ITIs) with 25 lakh sanctioned seats, actual enrolment in 2022 stood at a mere 12 lakh, signifying just 48% seat utilisation. 
• Poor Employability Outcomes: The employment rate among ITI graduates in 2018 was a modest 63%, significantly lower than the 80-90% reported by countries with robust VET systems. 
• Limited Funding: India allocates a meagre 3% of its total education expenditure to VET, a stark contrast to countries like Germany, Singapore, and Canada, which invest 10% to 13%.

Core Problems Hindering VET Effectiveness

• Late Integration into Education: In India, VET is often an afterthought, typically offered only after high-school education. 
  • This significantly shortens the period available for practical, hands-on training before youth enter the job market.
  • In contrast, countries like Germany integrate VET much earlier, at the upper secondary level, through a “dual system”. 
    • Students combine school education with paid apprenticeships, gaining practical experience and even earning a stipend while studying.
• Absence of Defined Academic Pathways: India’s VET system currently acts as a dead end. 
  • Once a student enters vocational training, there is no formal academic progression or credit transfer to mainstream higher education like B.Tech or BA.
  • This lack of upward mobility deters parents and students who wish to keep the option of traditional academic education viable.
  • Singapore offers clear pathways from VET to traditional university education, ensuring that vocational training is not a closed-off route but a gateway to further academic or advanced technical education.
• Compromised Quality and Negative Perception:
  • Many VET courses in India, particularly in ITIs, are outdated and entirely misaligned with current industry needs. 
  • A significant challenge is the shortage of qualified instructors; over one-third of ITI instructor posts remain vacant due to limited training capacity at National Skill Training Institutes.
  • Quality monitoring of ITIs is weak, with irregular grading and no systematic feedback from employers or trainees.
  • Singapore, by contrast, boasts industry-led curriculum design, high instructor quality, and regular audits with continuous feedback from both employers and trainees. 
    • Its “Skill Future Programme” even provides government subsidies for lifelong upskilling, promoting continuous learning and employability.
• Weak Industry Connection:
  • Indian ITIs are overwhelmingly dependent on government funding, with minimal private sector investment in infrastructure or training.
  • There is a significant gap in engagement from the private sector, especially from Micro, Small, and Medium Enterprises (MSMEs), which are the primary job creators at the local level.
  • Sector Skill Councils, designed to bridge the gap between industry and training, often lack a strong state-level presence.
  • In leading VET nations like Germany, Singapore, and Canada, the entire VET system thrives on robust Public-Private Partnerships (PPP). 
    • Governments fund institutions, while employers contribute through apprenticeships, share training costs, and actively participate in curriculum design.

Shortcomings of Current Initiatives of Government

• While recent government schemes like the Employment Linked Incentive (ELI) scheme, the PM Internship Scheme, and the ITI Upgradation Initiative demonstrate an increased focus on employment outcomes, they largely tinker at the margins of the existing system:
  • The ELI schemes promote formalisation but lack a direct skilling component.
  • The PM Internship Scheme provides placements but does not guarantee pathways to permanent jobs.
  • The ITI Upgradation Scheme focuses on modernising infrastructure in 1,000 government ITIs but does not explicitly ensure the quality of training or address the critical issue of instructor shortages.

Way Forward

• Early Integration of VET: The National Education Policy (NEP) 2020’s recommendation to integrate VET into early schooling must be fast-tracked. 
  • This means introducing practical skills training much earlier in the curriculum, not just as a post-high school option.
• Establish Clear Progression Pathways: Implement the National Credit Framework with urgency. 
  • This framework must define clear progression pathways from vocational training to higher academic education, allowing credit transfers and ensuring VET is not a dead-end but a stepping stone.
• Elevate Training Quality:
  • Align VET courses with local industry demand through continuous market assessments. This requires direct input from businesses on the skills they need.
  • Expand National Skill Training Institutes (NSTIs) and fast-track instructor recruitment to address the critical shortage of teaching staff.
  • Strengthen ITI grading and quality monitoring by incorporating direct feedback from trainees and employers.
• Boost Public-Private Partnerships:
  • Scale up PPP models, leveraging government infrastructure with private sector expertise.
  • Actively involve MSMEs in training design and delivery, as they are crucial for local job creation.
  • Mandate and strategically utilise Corporate Social Responsibility (CSR) funding for skill development projects that directly align with industry needs.
• Increase Funding and Grant Autonomy:
  • Significantly increase public spending on VET, moving closer to the 10-13% allocated by leading nations.
  • Link public funding to the performance of ITIs, rewarding those that achieve higher employability rates and better quality outcomes.
  • Grant ITIs greater autonomy to design their own courses based on local demand and to generate their own revenue, fostering innovation and self-sustainability.

Conclusion

Overhauling India’s vocational training system is non-negotiable for future growth and stability. 

• It must be a respected pathway that provides our youth with both degrees and demonstrable skills, transforming our demographic dividend into a powerhouse of productivity rather than a demographic disaster.

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