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Written By Kamlesh Vyas The Budget 2024 -25 is an important milestone for the new government as well as for the skill development sector. Over the last few years there have been concerted efforts from the government to make the vocational education and skill development ecosystem more effective across all the key segments like schools, ITIs, private training institutes implementing government schemes, colleges and universities. Pre-vocational and vocational courses have been introduced at schools and the integration of vocational education in higher education is already a strategic initiative. These efforts across the education value chain are aligned with the National Education Policy 2020 guidelines. The skill development and entrepreneurship budget is likely to continue to focus on the last-mile efforts in building skills for employment and self-employment, especially among the youth. On skill development, the Budget is likely to see a continuation of the approach adopted over the last two budgets. Broadly, the focus has been on major centrally implemented schemes like Skill India and on the transfer of funds to states for centrally sponsored schemes under the development head. A few areas are expected to be emphasised. Under the central schemes, the Skill India programme is likely to see an increase from about Rs 2,700 crore allotted for the current year. This may be to emphasise the importance being given to skill development initiatives to enhance employability and self-employment potential of the youth. For the transfers to states for implementing centrally sponsored schemes, SANKALP (Skill Acquisition and Knowledge Awareness for Livelihood promotion) was allotted about Rs 380 crore in the vote on account. The amount is expected to be enhanced. Under the development head, under social services through labour employment and skill development, around Rs 2,800 crore was allocated. This is also likely to be revised upwards. Under the same head, Northeast areas were allocated about Rs 325 crore. This too is likely to be enhanced. The Budget may bring additional focus and funding for new initiatives for ITI improvement, for the delivery of skills training digitally and for the promotion of apprenticeship schemes. There could also be new programmes for skill development in future deep-technology skills like artificial intelligence, electric vehicles, industry 4.0 and chip manufacturing to meet the requirements in the emerging sectors. India is passing through a phase where there continues to be a shortage of skilled manpower across sectors alongside demand for jobs from millions of youth. Globally, in the developed world too, there continues to be demand for skilled manpower in large numbers. There is also intense competition for global talent from other developing and emerging countries such as the Philippines, Mexico, Ireland, Poland, Nigeria and our South Asian neighbours. Targeted skill development has the potential to make our youth employment-ready both within the country and for the international market. The Indian vocational education and skill development ecosystem is large and comprises schools, ITIs, polytechnics, colleges including engineering colleges, universities including skill universities, private training institutes including those implementing government schemes, government training institutes and entrepreneurship development institutes. Also, several ministries like the ones aligned to textiles, construction, rural development, micro, medium and small enterprises and agriculture undertake their own skill development programmes. Further, most states and Union Territories too have their own skill development missions, programmes and initiatives. For India to transform and improve its vocational education and skill development ecosystem, collaboration and convergence is required across various institutions and the efforts across various segments need to be strategically aligned. The skill development initiatives must also be aligned with other national programmes like Make in India, Digital India, etc for synergies. Given India’s scale, where almost a million people seek to join the workforce every month, skill development efforts have to be effective at scale and speed, and skill development for key sectors like IT, banking, financial services and insurance, retail, construction, textiles, manufacturing, agriculture have to be given priority. It is expected that Budget 2024-25 while building on the efforts in the last few years will address some of these key areas so that India’s demographic dividend continues to contribute to the cause of nation building. Kamlesh Vyas is Partner, Deloitte India. None
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