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We need a data-driven strategy to plug our skill gaps
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Context
India's demographic dividend presents both opportunities and challenges for economic growth. The country needs to equip its workforce with skills aligned to the global economy's changing demands to capitalize on its youth population.
Workforce Trends and Skill Gaps:
- Declining Labour Mobilization: Labour mobilization rates in India have fallen from over 70% in 1990 to 56% in recent years, according to World Bank data.
- Shrinking High-Skill Workforce: Periodic Labour Force Survey (PLFS) data shows a declining growth rate of highly skilled individuals (skill levels 3 and 4) in 22 of India's 36 states and Union territories between 2017 and 2022.
- Rise in Semi-Skilled Workers: The semi-skilled workforce (skill level 2) has grown significantly, with a national compounded annual growth rate of 59.5% between 2017-18 and 2022-23.
Skill Development Initiatives and Challenges:
- PMKVY Impact: The Pradhan Mantri Kaushal Vikas Yojana (PMKVY) has contributed to the growth of the semi-skilled workforce through skill training and certification.
- Formal Training Gap: Despite progress, 72.6% of the workforce aged 15 to 59 still lacks formal vocational or technical training as of 2022-23, down from 91.9% in 2017-18.
- Urban-Rural Skill Disparity: There is a noticeable skill intensity disparity between rural and urban areas, with metropolitan districts hosting skill-intensive trade clusters.
Data-Driven Strategy for Skill Development:
- Skill Census Proposal: The concept of a 'skill census', as proposed by the Chandrababu Naidu-led government in Andhra Pradesh, can help assess current skill levels across regions and sectors.
- Targeted Skill Mapping: Mapping the current skill landscape can help policymakers identify specific areas with skill shortages and devise targeted actions.
- State-Specific Programs: State governments can create specialized skill-building programmes to address the demands of their unique workforces and industries.
UPSC Mains Questions:
Q. Analyze the challenges India faces in transforming its demographic dividend into a skilled workforce. Suggest measures to bridge the skill gap and enhance the country's global competitiveness.
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