(i) The government set a target of skilling 400 million persons by 2022, till 2016 it had only skilled 10 million people. At this pace, the 2022 target appears to be a far cry.
(ii) India faces a severe shortage of trained workers 2.3% of India’s work force has formal skill training compared to 68% in the UK.
(iii) The Comptroller and Auditor General (CAG) have pointed out flaws in the design and operations of the NSDC and National Skill Development Fund which has resulted in falling short of skill development goals.
(iv) The Sharada Prasad Committee findings:
The NSDC is responsible for poor implementation of the Standard Training Assessment and Reward (STAR) programme. It highlighted that only 8.5% of the persons trained were able to get employment.
NSDC has not been able to discharge its responsibilities for setting up sector skill councils (SSCs) owing to lots of instances of serious conflict of interest and unethical practices. SSCs became a hotbed of crony capitalism that have tried to extract maximum benefit from public funds.
(v) India has not been able to develop a sound vocational education and training system in the last 70 years. By providing focus on vocational training for only these disadvantaged categories, India has put a stigma on it.
(vi) Government is conducting vocational training courses without any connect with the actual industry demand.
(vii) Apprenticeship training is not an integral part of Vocational Education/Training (VET) system.
(viii) National Skill Development Fund (NSDF) meets its objectives through NSDC but its governance structure is flawed.