National Policy For Skill Development and Entrepreneurship

National Policy for Skill Development and Entrepreneurship focuses on training the youth mainly from underprivileged section of the society. Creating a better employment opportunity for them in India as well as in abroad is its prime motto.

In 2015, the Union Cabinet spearheaded by Prime Minister introduced the National Policy for Skill Development and Entrepreneurship. A follow up on the government's 2009 National Policy for Skill Development, the scheme aims at developing the skill of the youth and the employed in the country. Apart from this, the scheme focuses on instilling a sense of entrepreneurship in the citizens of the country, encouraging self-reliance and giving them opportunities not only in India, but across the globe. Considering that the stats predict that the world would have a 50% shortage in employment by 2020, the government aims at giving its youth and those hailing from the rural areas and below the poverty line, the opportunity to hone their skills in areas they are interested, inevitably offering them a chance to make something for themselves. In order to make their vision a reality, the government is adamant on improving the standard with regard to the training for skill development, the facilities required to do so and hand opportunities on a platter to those youth who have the talent to spread their wings across the globe and in India.

Objectives of National Policy for Skill Development and Entrepreneurship

  • The government has introduced over the years quite a few skill development programs, but to make this effective, they have realised that the key areas need to met:
    • The infrastructure of the facilities carrying out the skill development programs need to be top notch.
    • Establish an IT based infrastructure to monitor the demand and supply of workforce.
    • Ensure quality vocational training for youth.
  • Focus on entrepreneurship education. Train youth and instill a sense of entrepreneurship in individuals, thereby boosting micro enterprises.
  • Promote National skill development Universities and institutes. Here, trainers will be given a course on the requirements to impart skill development. At these institutes and universities, citizens will also be trained on skill development.
  • Keep a close eye on the talent emerging from these institutions and universities to offer them placements and opportunities in India and around the globe.
  • Introduction of skill development along with formal education.
  • Implementing the mantra, “One Nation One Standard” to ensure that quality training is passed on to participants across the country, irrespective of their cast, economic background, disability, if any, and religion. The vision of the mantra is to form youth that could be desirable for companies in India and across the world.
  • Following the Recognition of Prior Learning (RPL), which includes the initial assessment of the individual, the skill gap training and the final assessment resulting in a certificate that would be recognized globally.

Impact of National Policy for Skill Development and Entrepreneurship

  • By offering a variety of incentives for institutions as well as for trainers, the National Policy for Skill Development and Entrepreneurship has been able to spread across 1.5 million schools, 3,000 polytechnics, 25,000 colleges, and 83 youth hostels across the country. Participants wishing to enrol themselves in the scheme can do so at over 1.5 lakh post offices and over a lakh kiosks across the country.
  • With the government incentivising apprenticeship with a stipend, the government is sure that apprenticeship in MSME (Micro Small and Medium Enterprises) in the country will increase ten-fold.
  • The government has set up the Ministry of Skill Development and Entrepreneurship (MSDE) in the country to monitor the skill development and the outcome of the training programs. By doing so, several government schemes on skill development will prop up over the years to follow.
  • The National Labour Market Information System (LMIS) has been set up to keep a record and analysis of the growth of employment following the skill development courses, its effectivity on the population and so on. Using the analysis of the LMIS, amends would be made to the development courses, to increase the overall standard and outcome.
  • The National Policy for Skill Development and Entrepreneurship is directly related to the Make In India campaign introduced by the government. Thus, the skill development programs is relative to 25 existing working sectors falling under the ambit of Make In India.
  • The use of technology has made training cost-effective, and has resulted in the skill development programs reaching even the most remote parts of the country. The e-content portal has enabled trainers as well as participants to access required knowledge pertaining to skill development.

Special components of the National Policy for Skill Development and Entrepreneurship

  • With the main focus of the scheme to improve the employment rate and reduce poverty, as a result, the scheme reaches out to citizens below the poverty line - citizens deprived of shelter.
  • The scheme also includes youth belonging to remote areas, hilly areas, youth residing in Jammu and Kashmir, and the forest areas of central and eastern India that do not even have basic education.
  • Specific training modules have been formalized to include women in the scheme. A sort of women empowerment, trainings have been made flexible - with regard to the timings and conditions of the area - to ensure that women find it easy to take up these skill development courses. Afternoon batches, mobile units and so on have been set up to encourage women to participate.
  • For trainers and assessors of the scheme, a National Portal has been set up for registration and so on. Trainers have been offered luring incentives to be part of the scheme, thereby increasing overall employment.

Entrepreneurship strategy used for National Policy for Skill Development and Entrepreneurship

For the policy to be a success with the citizens and the youth of the country, the government implemented a nine-part entrepreneurship strategy:

  • To motivate the youth, the scheme connected participants to a number of successful entrepreneurs and mentors. The move made the youth believe in the outcome of the scheme and the number of opportunities out there.
  • Realise the potential in candidates by nurturing them with the tricks of the trade - with regard to being an entrepreneur.
  • Through entrepreneur hubs, candidates who would be budding entrepreneurs would be supported, connected and encouraged.
  • Cause a shift in emphasis and place entrepreneurship at the helm of the market.
  • Throw light on the possibilities of becoming an entrepreneur for those hailing from an underprivileged background and from underrepresented groups.
  • Encourage women entrepreneurs, thereby causing a shift in the mentality of a majority of the population with regard to women. The National Policy for Skill Development and Entrepreneurship has been looked on by many as a powerful women empowerment tool.
  • Improve the ease of doing business by connecting various entrepreneurs and stakeholders and opening the doors of opportunity for all.
  • Improve the access to finance, that people from underrepresented sections of society currently face as a barrier to growth.
  • Spark innovative ideas by studying the trend of society, in a bid to foster social entrepreneurship.

How the National Policy for Skill Development and Entrepreneurship has been financed

  • While implementing the scheme, the government has set up the National Skill Development Fund.
  • Companies have been encouraged to spend 25% of their Corporate Social Responsibility fund towards the National Policy for Skill Development and Entrepreneurship.
  • 10% of all government schemes will be allotted to the skill development of citizens in the local regional area.
  • The National Credit Guarantee Trustee Company (NCGTC) has been set up to offer loans for participants willing to invest in skill development.

Launched in 2015 by Prime Minister Narendra Modi, the scheme targeted a figure of 40 crore people of India to be trained in various skills by 2022. Since its initiation, citizens across the country have been employed and fulfilling dreams they never could have imagined. For example, the "Indian Leather Development Programme” has trained an approximate of 1.5 lakh people every year. In just 100 days, the programme trained over 50,000 citizens, with most of them being employed by the company just after completing the course.

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