Q. 4. “India’s demographic dividend risks becoming a demographic burden unless skill development is aligned with emerging economic opportunities.” Discuss the efficacy of Skill India Mission. (250 words, 15 marks)


Introduction

With over 65% of the population under 35, India holds vast demographic potential. The Skill India Mission, launched in 2015, aims to transform this into a dividend by enhancing employability and aligning youth skills with market demands.

Body

When Demographic Dividend Becomes a Burden

  1. Unemployment and Underemployment: Youth unemployment remains high at over 17% (PLFS 2022–23), indicating failure to absorb the growing workforce into productive jobs.
  2. Low Skill Levels: As per recent estimates, only about 3.7% of the working population has formal vocational training, reducing productivity and employability.
  3. Social and Economic Strain: Idle youth population leads to increased economic dependency, rising crime, and social unrest, negating the dividend’s benefits.

These concerns make skill development the cornerstone of harnessing India’s youth power.

Major Features of Skill India Mission

  1. Pradhan Mantri Kaushal Vikas Yojana (PMKVY): Provides short-term training and Recognition of Prior Learning (RPL) to youth for industry-relevant skills.
  2. National Skill Development Corporation (NSDC): Acts as a public-private partnership to promote skill training institutions and fund skill initiatives.
  3. National Policy for Skill Development and Entrepreneurship (2015): Provides an integrated roadmap for skilling with focus on quality and market relevance.
  4. Industrial and Sectoral Skill Councils: Create occupational standards and curricula to ensure alignment with industry needs.
  5. Digital Initiatives: PM-DAKSH portal, Skill India Digital, and eSkill India promote digital learning and certification.

These provisions aim to create a structured and inclusive skilling ecosystem in India.

Efficacy of Skill India Mission

Successes

  1. Massive Reach: Over 1.6 crore candidates trained under PMKVY since its inception.
  2. Industry Collaboration: 37 Sector Skill Councils ensure training content aligns with market needs.
  3. Recognition of Prior Learning (RPL): Enabled formal certification for workers in informal sectors.
  4. Focus on Marginalized Groups: Special programs target SCs, STs, women, and differently-abled individuals.
  5. Digital Push: Use of platforms like Skill India Digital widened access, especially during COVID-19.

Challenges

  1. Low Placement Rates: PMKVY-3 reported placement rates below 20% in many sectors, with overall placement under STT hovering around 43%.
  2. Mismatch with Market Needs: Training not always aligned with evolving sectors like AI, green economy, and gig work.
  3. Quality Issues: Variations in training standards and lack of practical exposure affect employability.
  4. Drop-out and Certification Issues: Many candidates fail to complete training or get certified.
  5. Limited Private Sector Participation: Industry involvement remains patchy outside select high-growth sectors.

These issues need urgent redressal to ensure that the mission’s potential translates into real outcomes.

Way Forward

  1. Demand-Driven Training: Align skill programs with regional industry clusters and futuristic sectors like green energy, robotics, and health tech.
  2. Strengthen Apprenticeship Model: Scale up the National Apprenticeship Promotion Scheme to integrate skilling with real-world work experience.
  3. Tracking and Monitoring: Use Aadhaar-linked dashboards for real-time tracking of training, certification, and employment outcomes.
  4. Public-Private Partnerships: Deepen industry collaboration through outcome-linked incentives and curriculum co-design.
  5. Integration with Formal Education: Embed vocational training within school and college systems under NEP 2020.
  6. Mobile Skill Labs: Replicate Brazil’s “Skill Trucks” model to take mobile vocational training units to remote and underserved areas.

Only a multi-pronged approach can bridge the gaps in skilling and employment linkage.

Conclusion

To emerge as the skill capital of the world, India must convert its youth bulge into a trained workforce. A robust Skill India Mission is essential to avoid wasted potential and ensure inclusive development.

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