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[op-ed snap] ‘Skill India’ urgently needs reforms

Note4students

Mains Paper 3: Economy | Development & employment

From UPSC perspective, the following things are important:

Prelims level: Sharada Prasad Committee, Sector Skill Councils, Skill India, National Classification of Occupations 2015, National Skills Qualification Framework, National Sample Survey Office

Mains level: Various initiatives related to skill development and their impacts & shortcomings


Context

Reaping demographic dividend

  1. Salvaging the Indian demographic dividend must be a key part of India’s growth story (Good intro)
  2. In 2016, the Government of India formed the Sharada Prasad Committee to rationalise the Sector Skill Councils (SSCs) and improve ‘Skill India’
  3. SSCs are employer bodies mostly promoted by the Federation of Indian Chambers of Commerce and Industry, the Confederation of Indian Industry and other industry associations
  4. The committee submitted its report in 2016

Goals of Skill India

  1. To meet employers’ needs of skills
  2. To prepare workers (young and old) for a decent livelihood

Committee suggestions

  1. Each recommendation underlines that the vocational education/training (VET) is not just for underprivileged communities
  2. It is not a stopgap arrangement for those who cannot make it through formal education. It is for all of us
  3. It suggests concrete steps to ensure a mindset change, such as
  • having a separate stream for vocational education (in secondary education)
  • creating vocational schools and vocational colleges for upward mobility, and
  • having a Central university to award degrees and diplomas

What needs to be done for improving VET

  1. It requires a serious engagement of employers
  2. This can be done by aligning the courses to international requirements, ensuring a basic foundation in the 3Rs, and life-long learning
  3. It implies national standards for an in-demand skill set with national/global mobility that translates into better jobs
  4. We should have no more than 450 courses (Germany has only 340 courses) — in accordance with the National Classification of Occupations 2015
  5. National Skills Qualification Framework (NSQF) had recommended rationalization of qualification packs/job roles

Ethics and accountability issue

  1. There is a huge ethics and accountability issue if there is no credible assessment board and when there are too many sector skill councils, each trying to maximise their business
  2. The Sharada Prasad Committee had recommended that the number of SSCs should correspond to the National Industrial (Activity) Classification
  3. It has 21 economic activities across the entire economy

Policy steps that can be taken

  1. The first policy step should be towards a unification of the entire VET system
  • SSCs, which are supposedly industry representatives, should be engaging themselves with each pillar of the system, and not just NSDC-funded VTPs
  • ‘Skill India’ can have an impact only when all of them work together and learn from each other

2. The second step is to enhance employer ownership, responsibility and their ‘skin in the game’

  • Only 36% of India’s organized sector firms conduct in-firm training
  • There can be a reimbursable industry contribution model (applicable only to the organized sector)
  • It could ensure reimbursements for those companies undertaking training while rewarding industry for sharing and undertaking skilling until everyone in the company is skilled

3. The government should have surveys, once every five years, through the National Sample Survey Office, to collect data on skill providers and skill gaps by sector

  • Such data can guide evidence-based policy-making, as against the current approach of shooting in the dark

Way forward

  1. India can surely become the world’s skill capital but not with what it is doing right now
  2. The reforms suggested by the committee can be a good starting point for we cannot let another generation lose its dreams

[pib] Mahila Kisan Shashaktikaran Pariyojana and Value Chain Initiatives

Note4Students

From UPSC perspective, the following things are important:

Prelims level: Mahila Kisan Shashaktikaran Pariyojana (MKSP), Aajeevika Grameen Express Yojana, Deendayal Upadhyaya Grameen Kaushalya Yojana, DAY-NRLM,

Mains level: Schemes to promote entrepreneurship and skilling in rural India


News:

Objective: In order to promote agro-ecological practices that increase women farmers’ income and reduce their input costs and risks, the Mission has been implementing the Mahila Kisan Shashaktikaran Pariyojana (MKSP).

  • More than 33 lakh women farmers were being supported under this scheme.
  • Further, about 8 lakh Mahila Kisans have been mobilized into 86,000 Producer Groups (PGs) which are federated into 126 Producer Companies (PCs).
  • These value chain development initiatives have contributed significantly to the farmers’ income from agriculture, horticulture, dairying, fisheries and Non-Timber Forest Produce (NTFP) related activities.
  • Small and marginal farmers producing Maize, Mango, Floriculture, Dairy, Goatery etc., have benefited significantly through the value chain interventions across different states. As of February 2018, more than 1.05 lakh SHG members have been covered under these interventions.

Community Livelihood Professionals

The community-driven implementation strategy is the cornerstone of the Mission.

More than 1.72 lakh community members have been trained and deployed to provide support to the community institutions in a variety of themes, such as bookkeeping, training and capacity building, financial services etc.  

This also includes more than 22,000 Community Livelihoods Resource Persons (CLRPs) such as Krishi Sakhi and Pashu Sakhi who provide 24 X 7 doorstep extension services to the small and marginal farmers including dairy farmers.

Start-up Village Entrepreneurship Programme & Aajeevika Grameen Express Yojana

  • As part of its non-farm livelihoods strategy, DAY-NRLM is implementing Start-Up Village Entrepreneurship Programme (SVEP) and Aajeevika Grameen Express Yojana (AGEY).
  • SVEP aims to support entrepreneurs in rural areas to set up local enterprises.
  • Implemented in 17 States since 2016-17, about 16,600 enterprises have been supported under SVEP resulting in gainful employment for about 40,000 persons.

Aajeevika Grameen Express Yojana (AGEY), was launched in August 2017 to provide safe, affordable and community monitored rural transport services to connect remote rural villages. As of March 2018, proposals from 17 States have been approved and 288 vehicles are operating.   

Deendayal Upadhyaya Grameen Kaushalya Yojana (DDUGKY) aims at building placement linked skills of the rual youth and place them in relatively higher wage employment sectors of the economy.

Rural Self Employment Training Institutes: The Mission is in partnership with 31 Banks and State Governments, is supporting Rural Self Employment Institutes (RSETIs) for skilling of rural youth to take up gainful self-employment. In FY 2017-18, a total of 4.23 lakhs candidates have been trained and 3.34 lakhs candidates have been settled.

Independent Assessment of DAY-NRLM: Institute of Rural Management Anand (IRMA), was entrusted to carry out the independent assessment of design, strategy and impacts of DAY-NRLM. As part of the study, survey of nearly 4500 households spanning across 746 villages was conducted during January – March 2017.

The results indicate that the households in the treatment areas:

  • Have a higher number of livestock assets as compared to control areas – On an average, each household in a Mission village had more than 2.34 productive livestock assets compared to a similar household in non-Mission village
  • Show a higher proclivity to save in formal institutions;
  • Have a higher loan size (about 67% more than the loan size in the control areas) and are more likely to borrow from formal financial sources; NRLM households also pay a lower rate of interest
  • Have 22% higher (net) income than the households in the control areas, largely due to income from enterprises. On an average, each NRLM village had 11 enterprises more than the non-NRLM villages – suggesting livelihood diversification in NRLM villages.
  • Participate more in PRIs – NRLM households participate 3 times more than their counterparts

Promotion of Farm Livelihoods: DAY-NRLM plans to

  • Include another 5 lakh women farmers under its farm livelihoods interventions like sustainable agriculture, livestock and NTFP based activities with major focus on North East states.
  • Further, the Mission aims at supporting an additional 75000 SHG member households through farm-based value chain initiatives.
  • It would also promote 15 large size farm-based producer enterprises to provide market linkages to women producers.
  • In addition, organic cultivation will be promoted in 1000 village clusters across States.

Promotion of Non-Farm Livelihoods: It is also expected that Start-Up Village Entrepreneurship Programme (SVEP) will support an additional 25000 entrepreneurs during the year 2018-19. In addition, it is expected that by March 2019, about 1500 vehicles will be operating across 17 States under Aajeevika Gram Express Yojana (AGEY).

Setting up of Rural Haats: Development of haats has emerged as one of the most important strategies to market SHG products and agricultural produce. To facilitate marketing of rural produce, it is proposed to set up haats at village and block levels in convergence with MGNREGS and the District and State level using DAY-NRLM resources. It is proposed to set up 4567 rural haats across the country during FY 2018-19

Enabling rural poor’s access to formal sources of finance: The Mission will continue to promote access of SHGs to bank credit and other financial services. In FY 18-19, it is planned to link 22 lakh SHGs to bank credit for total loan amount of Rs. 42500 crores, taking the SHG Bank loan outstanding to Rs. 75000 crore. The Mission will make efforts to expand Banking services to underserved regions through alternate channels in partnerships with various banks.

Rural Self Employment Training Institutes:

  • An increased involvement of State Government has been envisaged in planning and implementation of skill development of rural poor through RSETIs. This would facilitate better mobilization (using Kaushal Panjee app) and identification of needy candidates in rural poor households.
  • The mission is launching Standard Operating Procedures for greater transparency, efficiency and Quality assurance in the implementation of skill training in RSETIs.
  • Mission is facilitating partnership of Industry Bodies with RSETIs to enable scaling up of rural entrepreneurs.
PIB

[pib] Deendayal Antodaya Yojana – National Rural Livelihoods Mission

Note4Students

From UPSC perspective, the following things are important:

Prelims level: DAY-NRLM

Mains level: Schemes for rural development


News:

Related Ministry/Department: Ministry of Rural Development (MoRD)

Aim: Alleviating rural poverty & fostering diversified livelihoods through sustainable community institutions of poor

It is a flagship programme of the Ministry of Rural Development (MoRD) that seeks to alleviate rural poverty through building sustainable community institutions of the poor. The centrally sponsored programme is implemented in partnership with the State governments.

Community Institution Building – Financial year 2017-18

  • More than 82 lakh households mobilized into 6.96 lakh Self Help Group (SHGs) across the country.
  • More than 4.75 crore women have been mobilized into more than 40 lakh SHGs.
  • Cumulatively, these community institutions have been provided more than Rs. 4,444 crore as capitalization support.

[op-ed snap] A global opportunity for the Indian workforce

Image source

Note4students

Mains Paper 3: Economy | Development & employment

From UPSC perspective, the following things are important:

Prelims level: Global Economic Prospects report, Gini coefficient, Annual State of Education Report, World Development Report

Mains level: Ways to improve skill development and employment


Context

Global Economic Prospects report

  1. The World Bank’s latest “Global Economic Prospects” report shows that the second wave of change in the global labour market will play out over the next two decades
  2. Developing economies will be contributing to all of the addition in the global skilled labour force
  3. This is because the number of skilled workers in advanced economies is expected to decline

Global workforce and skilled workers

  1. Skilled workers have been defined as those having at least nine years of education
  2. The global skilled workforce is likely to increase from 1.66 billion workers in 2011 to 2.16 billion by 2040

What will this lead to?

  1. Improvement in the level of education and skill tends to increase income
  2. Rising income in the developing world will lead to a reduction in inequality
  3. The global Gini coefficient is estimated to decline from 65.8 in 2012 to 62.6 by 2030

Gains depend on adjustments

  1. India has benefited by integrating with the global economy
  2. The next wave of gains will depend on how well it adjusts to the changing economic and technological environment
  3. Policymakers will need to work on different levels to be able to create a competitive labour force

What needs to be done?

  1. First, India urgently needs to focus on education and skill development
  • The “Annual State of Education Report” periodically shows the depressing state of education in Indian schools
  • The World Bank also highlighted the problem in its “World Development Report” last year
  • Outcomes in education could be improved by better use of technology

2. Second, the World Bank in its analysis assumes that additional workers will get employed

  • India has not been able to create enough employment opportunities for people moving out of agriculture
  • The basic reason for this is India has not capitalized on labour-intensive manufacturing
  • Recent research shows that India’s competitive advantage in some of the labour-intensive sectors has actually declined in recent years
  • The legal and regulatory requirements in markets like land and labour make it difficult for firms to grow and take advantage of economies of scale
  • To be able to absorb its rising workforce, India needs to remove impediments in the manufacturing sector

3. Third, inequality has gone up in advanced economies

  • Even though inequality at the global level declined in recent decades, it has gone up in advanced economies as the national income share of wages came down
  • Therefore, the lingering risk of protectionism is unlikely to dissipate in a hurry
  • India will need to protect its interest in such an environment and look for opportunities to increase trade at both bilateral and multilateral forums
  • Adequate attention should be paid to currency management in the world of volatile capital flows
  • It will be difficult to grow at a faster pace without the backing of strong exports as exports are an important driver of growth and job creation

Way Forward

  1. An increasing number of skilled workers not only raises the potential growth but also reduces inequality within the country by reducing the skill premium
  2. A skilled labour force along with a focus on manufacturing and exports will help India grow at a faster rate in the medium to long run

Back2Basics

Gini Coefficient

  1. Gini Coefficient is a popular statistical measure to gauge the rich-poor income or wealth divide
  2. It measures inequality of a distribution — be it of income or wealth — within nations or States
  3. Its value varies anywhere from zero to 1
  4. Zero indicates perfect equality and one indicates the perfect inequality
  5. Gini Coefficients can be used to compare income distribution of a country over time as well
  6. A general rise in Gini Coefficient indicates that government policies are not inclusive and may be benefiting the rich as much as (or even more than) the poor

Government to enable skilled persons bag jobs abroad 

Note4students

Mains Paper 3 : Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources.
Prelims level: Policy for skill India
Mains level: Steps being taken by Government for skilling people.
2016 Mains question: “Demographic Dividend in India will remain only theoretical unless our manpower becomes more educated, aware, skilled and creative.” What measures have been taken by the government to enhance the capacity of our population to be more productive and employable?

News

  1. India plans to make it easier for masons, carpenters and plumbers, among other skilled persons, to get jobs overseas.
  2. The skill development and entrepreneurship ministry is giving a final shape to the policy, which will be presented to the Union cabinet for its approval.
Features
  1. The policy and the action plan will address the information asymmetry.
  2. Information Asymmetry exists across the globe for different skills and the basic minimum certification required for each skill in different countries.
  3. Currently, the skill development ministry does not have enough information on how many masons or plumbers are needed and in which countries.
  4. The new policy will help us map this requirement,
Rationale
  1. India will have a surplus manpower of four-five crore over the next decade.
  2. Vision to make India the skilled capital of the world.
  3. Part of the larger vision to imparting skills to 50 crore youth by 2022.
Earlier Steps Taken
  1. Last year, government announced the launch of 50 India International Skill Centres to impart training to youth under the Pravasi Kaushal Vikas Yojana.
  2. The idea was to increase the employability and acceptability of Indian youth on global platforms.

Pradhan Mantri Kaushal Vikas Yojana

  1. News: The Cabinet cleared a Rs 12,000-crore revamped version of the Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
  2. Aim: To impart skills to over 1 crore people in the next 4 years – includes training to 60 lakh youths and certifying 40 lakh informally skilled workers
  3. Includes a mechanism to revive the traditional Guru-Shishya approach to train youth with the help of local craftsmen and trade practitioners
  4. Training centres will be categorised on the basis of their infrastructure and past performance and third party agencies will be deployed to validate their training efforts and placement records
  5. Members of Parliament will also be roped in to mobilise youth for training, monitor the scheme in their constituencies and post-training placement of trainees

Google to train 2 mn developers in Android

  1. News: Google launched a program to train 2 million developers in India on Android, its mobile operating system, in the next 3-year period
  2. Aim: Enabling the developers to make innovative mobile applications on the platform and to make India the global leader in mobile app development
  3. Low rank: Google’s Play Store has over 1 million applications, and less than 4% of the top 1000 applications come from India
  4. Trivia: India is expected to have the largest developer population of 4 million by 2018, overtaking the US

Scheme for apprenticeship training

  1. News: The Centre approved an outlay of Rs 10,000 crore towards National Apprenticeship Promotion Scheme
  2. Aim: To provide apprenticeship training to 50 lakh youth by 2020
  3. The scheme will provide financial incentives to employers to engage apprentices
  4. The Ministry of Skill Development and Entrepreneurship will share 25% of the total stipend payable to an apprentice with employers
  5. The government will also fund 50% of the total expenditure incurred by the employer in providing basis training to apprentices

Skill banks to help India become the HR capital

  1. News: The plan to make India ‘the human resource capital’ of the world will first take off in Uttar Pradesh and Bihar, with setting up of skill banks
  2. The Ministry of Skill Development and Entrepreneurship and the External Affairs Ministry will be co-operating on the vision
  3. Skill banks: To train potential immigrant workers in various job roles as per international standards
  4. Will impart skills across sectors where job opportunities exist or are likely to arise across different countries
  5. Before they emigrate, youth in skill banks would be made familiar with the respective local culture and language of the country they obtain a job

Each district to have at least one skill development centre by 2017

Industry pledges commitment to the National Skill Development Mission.

  1. As part of the Skill India Development Mission, the union Ministry of Skill Development & Entrepreneurship has embarked upon a special industry initiative.
  2. To attract leading corporate to set up co-branded Corporate Skill Excellence Centres in PPP mode.
  3. The Government will provide various tax and non-tax incentives for corporates that set up Corporate Skill Excellence Centres as part of their core business or CSR activities.
  4. The CSR funds can be routed through National Skill Development Fund with specific outcomes.
PIB

Centre to map country’s training infrastructure

  1. The govt is mapping the country’s existing training infrastructure, including thousands of private training institutes.
  2. The capacity created by private investment do not reflect in the official data, though they are doing well.
  3. As part of Skill India Mission NSSO will collect details about training institutions, their capacities for imparting different skill sets and their utilisation by young job market aspirants.
  4. This will help in assessing the shortfall in capacity and a plan for bridging the gap can be formulated and implemented.

Singapore eyeing Skill India collaboration during Narendra Modi visit

  1. Singapore plans to hard sell the ITE concept of vocational training, aligning it with Modi’s pet Skill India.
  2. This will resolve one of the paradoxes of India is that it has an educated population but not a skilled one.
  3. The other agenda will be promoting urban planning concepts, enhancing trade and investment, improving connectivity and increasing engagement with the states.

Uphill task for Skill India mission

The National Sample Survey Office has released data from its 2011-12 round on education and vocational training.

  1. The NSSO data showed that only 2.4% people had technical degrees, diplomas or certificates in fields like medicine, engineering or agriculture.
  2. Nearly 90% of employable people did not receive any vocational training, which poses a challenge to govt.’s Skill India mission.
  3. More than 70% males cited that supplementing household income was the main reason for not being enrolled in any educational institution.
  4. Domestic chores prevented more than half of the females from studies.

National Skill Development Mission & its 3 parts

  1. The National Skill Development Mission, an umbrella body, has 3 institutions under it.
  2. National Council on Skill Development (Chairman = PM) – To give policy direction and review skill development efforts.
  3. National Skill Development Coordination Board (Chairman = Vice Chairman NITI Aayog) – To enumerate strategies to implement the decisions of PM’s council.
  4. National Skill Development Corporation (NSDC) – A non-profit company – to meet the skill training requirements of the labour market including the unorganised sector.
PIB

PMKVY – Pradhan Mantri Kaushal Vikas Yojana (2/2)

  1. How will the govt. ensure quality? – Skill Development Management System + Grievance redressal system + Biometric system and Video recording.
  2. Further,an online citizen portal will be put in place to disseminate information about the program.
  3. Mobilisation of youth to be done through Skill Melas at the local level.
  4. The efforts in this direction, are being carried on a mission mode.
  5. The National Skill Development Mission, an umbrella body, has 3 institutions under it.
PIB

PMKVY – Pradhan Mantri Kaushal Vikas Yojana (1/2)

  1. Implementation Agency – Ministry of Skill Development & Entrepreneurship through the National Skill Development Corporation (NSDC) + training partners.
  2. Primary Focus – First time entrants to the labour market (mainly dropouts from Class 10 & 12). Will be a paid training regime.
  3. Workforce will cater to – Flagship programs like Make in India, Digital India, National Solar Mission and Swach Bharat Abhiyan.
  4. A Demand aggregator platform is also being launched.
PIB

What’s wrong with Skill India and how to fix it?

  1. While outlays on skill development have been increasing, outcomes lag far behind.
  2. Most skill dev. programs offer a crash course module training to rural migrants which lasts 2-3 months. Industry has no stake in this process.
  3. Employers see very little value-addition in such training, and essentially view training companies as manpower sourcing agencies.
  4. In Germany – employers fund the bulk of the programme’s cost through a paid apprenticeship-based model.


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