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Skills for a $5 Trillion Economy

A target of India becoming a $5 trillion economy has been set to be achieved by 2024.

What is the importance of imparting skills?

1. Requisite skilled manpower is needed in various sectors for driving this growth.

2. Half of India’s population is below the age of 25, giving a distinct advantage over other economies.

3. There is a need to convert this population transition into a dividend.

4. The number of those gainfully contributing to economic growth needs to equal the number of those dependent on them.

How to skill people for a $5 trillion economy?


1. Education for all.

2. Expansion of higher education

3. Specific professional courses like architecture, law, medical, engineering, and others.

Skill Development

1. For entry-level jobs in education or employment.

2. Add-skilling-Up-skilling and reskilling those who have been educated and have worked or are working, or those who have worked and out of job to meet the skill requirements of the new jobs or changed jobs.

Why focus on skill development?

1. The working-age population in the country will grow roughly by 97 lakh per year during the coming decade and 42 lakhs per year in the 2030s.

2. According to its projection, if the labor force participation rate (LFPR) would remain at about 60% in the next two decades, about 55-60 lakh jobs will have to be created annually over the next decade.

3. But according to NSSO Report 2011-12, only 2.3% of the total workforce in India had formal sector skill training.

Which are the steps taken?

1. National Skill Development Policy was initiated and the National Skill Development Corporation (NSDC) was established under the Union Ministry of Finance.

2. The National Skill Development Authority (NSDA) and the National Skills Qualification Framework (NSQF) were established.

3. A comprehensive skill development programme has been implemented in the last five years with the setting up of the Ministry for Skill Development and Entrepreneurship (MSDE).

4. Skill India Mission by 2022 has been formulated under National Policy on Skill Development and Entrepreneurship, 2015.

5. Skill India Initiative was launched in 2015

Pradhan Mantri Kaushal Vikas Yojana (PMKVY)

1. It aims to mobilize the youth to take up industry relevant skill training and recognize and certify prior learning.

2. It was launched under Ministry of Skill Development and Entrepreneurship in 2016.

3. More than 3 crore people have been trained under Skill India and 50 lakh candidates under PMKVY.

Pradhan Mantri Kaushal Kendra (PMKK)

1. It was launched in 2015 to set up aspirational model training centers in every district.

National Apprenticeship Promotion Scheme

1. It was initiated in 2016 to promote apprenticeship with provision for basic training and on-the-job training or practical training at the workplace.


1. Skills Acquisition and Knowledge Awareness for Livelihood (SANKALP) is an outcome-oriented programme.

2. It aims to create convergence among all skill-training activities, improve quality of skill development programmes and create industry-led and demand-driven skill training capacity.


1. Skills Strengthening for Industrial Value Enhancement (STRIVE) incentivize ITIs to improve overall performance.

2. It was launched in 2017 to create awareness through industry clusters, integrate and enhance the delivery quality of ITI.


1. It has acted as a catalyst in skill development.

2. It has engaged with private sector partnerships for training and capacity building of at least 50,000 persons over a period of 10 years.

3. It has launched a recognition of prior learning schemes to enable those who are in work to obtain a certificate that serves as a recognition of their skill level.

4. To enable India to be the skill capital of the world, youth are being trained for overseas markets.

5. Agreements with Japan, UAE, and other countries are enabling youth in India to be trained to their skill and language levels for specific jobs in those countries.

Where is the impact seen?

1. Short term training under PMKVY on employment has shown that training and certification have led to a 9 percentage point increase in the proportion of employed individuals.

2. PMKVY training has contributed 15% to the mean monthly income.

3. Certification has been found to have an impact of 9% on the mean monthly income.

4. Assessment of the impact of the recognition of prior learning on income has shown a difference of 19% in the mean monthly income of certified candidates.

5. Universities and colleges are doing add on programs with the Skill Councils to make students work-ready or to do programmes for those in work to upskill them.

The skill ecosystem created can address the needs of those firms who find it difficult to identify the right people to employ.