In a bid to motivate young Indians to undergo skill development workshops & career building training sessions, the Indian government is planning to issue skill vouchers or skill wallets that will make these cheaper. It is reported that the skill vouchers will be usable at any of the recognized skill providers and redeemed once the course is over. The value of the vouchers will vary for different courses.

In 2015, Prime Minister Narendra Modi launched the Skill India Mission to make India the ‘skill capital’ of the world. The aim is to impart skills training to 400 million people by 2022 through flagship schemes like Pradhan Mantri Rojgar Protsahan Yojana, Deen Dayal Upadhyaya Grameen Kaushalya Yojana and National Apprenticeship Promotion Scheme. Under this initiative, only 25 million people have been imparted skill training so far under various schemes of the ministry.

In the current system, trainers and employers are subsidized directly to impart skills training and apprenticeship. This allowed several training institutes to report incorrect data regarding the number of people they train without any pressures to improve quality. The move to shift from subsidy-based system to incentive-based system will boost the Skill India mission and stay in line with the government’s plan to increase the quality of our workforce.

It has been reported that most of these vouchers will be 100 per cent redeemable and will help the youth with training in sectors where the salary is generally not enough for the youth to spend on any sort of training. However, in areas like fashion designing and personal care, where the earnings are much better, the vouchers will only be partly redeemable and the trainees will have to bear a proportion of the total cost. The government is currently planning the intricacies of vouchers for major sectors.

The initiative will also ensure that training institutes start offering additional courses in to attract students. The move comes at the right time as global research indicates that India’s workforce has less than five per cent workers with formal skills. In South Korea, Japan and Germany, the figure is much better at 96 per cent, 80 per cent and 75 per cent respectively.

Source: Economic Times

The Ministry of Skill Development and Entrepreneurship (MSDE) believes that in the last 4 four years enough consolidation and up-gradation has occurred under the Skill India Mission. However, they also feel that it is time to experiment with a fresh model that can address the challenges and limitations of the previous model and make the program inspirational for young Indians. The annual report of the Ministry of Skill Development and Entrepreneurship (MSDE) reveals that 68 per cent of the workforce in the UK and 52 per cent in the US are formally skilled.

The first few months of 2019 have been filled with notable schemes and programs that were launched by the Modi government which aim to address issues revolving around the Indian economy. While the Skill India Mission is only one of these, the government will have to ensure that the implementation and use of Skill vouchers proves to be beneficial in the coming years as India’s unemployment level has increased significantly despite of the high rate of economic growth that it has experienced in the last 5 years.

Sources: ET, NDTV, HRKatha

Image Credits: Development-news, ET

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