India has shown remarkable growth in the recent past and thus there is a vibe filled with optimism. Given the reforms continues and government handles its issues well, India is expected to display further growth. The government of the country has been taking some progressive steps, which includes reforms and policies in various sector namely retail, logistics, insurance etc. In addition, the government issued such guidelines in the segment of higher education, which enables foreign universities to introduce programs in India. There is a whole lot to be done to bring India to the level of mid income economy. One plus point that the country has is favourable population demographic. The median age of Indians is 25 years; India can potentially become a supplier of the skilled work force to various countries with ageing populations. Every year almost 11-13 million people are to search for employment opportunities expectedly, in the upcoming decade. Now coming on the question of concern, Is the population employable? A lot is required to be done to make this population productive and employable.
The vocational training market grew at a steady CAGR of nearly 25% from 2008-2013. There was nearly a 15.7% increase in the enrollments from 2011 to 2012.
Skill India Initiative- The government has predicted skilling to be a very crucial activity to accelerate Indias development and thus has laid emphasis on skill development through various initiatives. These will be increasing the profitability of Indias workforce while making them more employable.
In the period of 2015-2020, over 80 million Indians are expected to need vocational training while other 460 million needs retraining to keep up with the trend and technological changes.
The Ministry of Skill Development and Entrepreneurship has allocated more funds towards skilling, an increase from INR2,173 crore (Union Budget 2016-17) to INR3,016 crore
Given the liberty to hire labour at lower wages and to add more people at a task to reduce the time taken to complete the job, productivity was forced to take back seat here, as it was not considered a concern of importance. Recently the factor of productivity has become of importance as wages are at a rise, along with the work pressure on employees. Hiring more workers was not as attractive as it requires a lot more space to accommodate extra people and arises a need for extra managerial team to deal with them.
Technology and mechanisation at work places, skilled workforce and utility of time have all become important factors in running a business successfully and profitably. The fact that Indias labour productivity has improved remarkably in the past 7-8 years, the scope of improvement is huge. India ranks amongst the lowest in this particular index in Asia.