Lok Sabha Question No. 2000 (UNSTARRED), answered on 2016-03-09
Subject: Sectoral Skill Gaps
Ministry: SKILL DEVELOPMENT AND ENTREPRENEURSHIP
Asked by: JAYADEV GALLA

## GOVERNMENT OF INDIA MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP

## LOK SABHA

## UNSTARRED QUESTION NO. 2000 TO BE ANSWERED ON 09.03.2016

## SECTORAL SKILL GAPS

## 2000.  SHRI JAYADEV GALLA:

## Will  the  Minister  of  SKILL  DEVELOPMENT  AND  ENTREPRENEURSHIP be pleased to state:

- (a) whether the Government has tried to find out sectoral skill gaps in the country and if so, the details thereof;
- (b) whether  the  Government  has  made  any  study  about  the  human  skill requirements in various countries; and
- (c) if so, the details thereof?

## ANSWER

## MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP (SHRI RAJIV PRATAP RUDY)

- (a) National  Skill  Development  Corporation  (NSDC)  under  Ministry  of  Skill Development and Entrepreneurship (MSDE) is building research base in the skills domain  and  has  commissioned  several  district  level  and  sector  level  skill  gap studies.  As  per  NSDC's  Sector  Specific  reports  on  Human  Resource  and  Skill Requirements in the 24 Sectors, India had an employment base of 461.1 million in 2013 which is expected to increase to 581 million by 2022.  Thus, about 120 million people would be added to the workforce who need fresh skilling in these sectors.  In addition,  there  is  a  need  for  constant  upskilling  and  re-alignment  of  existing workforce.   A list of 24 sectors covered is at Annexure . However, after removal of duplication in retail sector the net incremental human resource requirement during 2013-2022 comes to 109.73 million
- (b) & (c) National Skill Development Corporation (NSDC) commissioned a study on  overseas  skill  requirements  in  order  to  prepare  Indian  youth  for  employment opportunities  overseas.  The  study  covers  20  key  countries  including  7  GCC countries,  Australia,  Malesia,  Canada  etc.  focusing  on  four  major  sectors  namely manufacturing, construction, wholesale & retail and healthcare.   As per the report largest increase in job creation by 2020 is expected in the Asian emerging markets, with  jobs  in  Singapore  and  Malaysia  increasing  by  100%  and  22%  respectively. Bahrain and Saudi Arabia are expected to create more jobs by 2020 compared to the other GCC countries. Construction in Saudi Arabia is expected to grow on the back of plans to overcome the housing shortage and efforts to develop the transport network.

## Annexure

Break Up of Incremental Requirement Across Sectors

| S.No        | Sector                                      |   Employment Base in 2013 (million) |   Projected Employment by 2022 (million) | Incremental Human Resource Requirement (2013-2022)   |
|-------------|---------------------------------------------|-------------------------------------|------------------------------------------|------------------------------------------------------|
| 1           | Auto and Auto Components                    |                               10.98 |                                    14.88 | 3.9                                                  |
| 2           | Beauty and Wellness                         |                                4.21 |                                    14.27 | 10.06                                                |
| 3           | Food Processing                             |                                6.98 |                                    11.38 | 4.4                                                  |
| 4           | Media and Entertainment                     |                                0.4  |                                     1.3  | 0.9                                                  |
| 5           | Handlooms and Handicrafts                   |                               11.65 |                                    17.79 | 6.14                                                 |
| 6           | Leather and Leather Goods                   |                                3.09 |                                     6.81 | 3.72                                                 |
| 7           | Domestic Help                               |                                6    |                                    10.88 | 4.88                                                 |
| 8           | Gems and Jewellery                          |                                4.64 |                                     8.23 | 3.59                                                 |
| 9           | Telecommunication                           |                                2.08 |                                     4.16 | 2.08                                                 |
| 10          | Tourism, Hospitality & Travel               |                                6.96 |                                    13.44 | 6.48                                                 |
| 11          | Furniture and Furnishing                    |                                4.11 |                                    11.29 | 7.18                                                 |
| 12          | Building, Construction and Real Estate      |                               45.42 |                                    76.55 | 31.13                                                |
| 13          | IT and ITES                                 |                                2.96 |                                     5.12 | 2.16                                                 |
| 14          | Construction Material and Building Hardware |                                8.3  |                                    11    | 2.7                                                  |
| 15          | Textile and Clothing                        |                               15.23 |                                    21.54 | 6.31                                                 |
| 16          | Healthcare                                  |                                3.59 |                                     7.39 | 3.8                                                  |
| 17          | Security                                    |                                7    |                                    11.83 | 4.83                                                 |
| 18          | Agriculture                                 |                              240.4  |                                   215.6  | (24.8)                                               |
| 19          | Education/ skill development                |                               13.02 |                                    17.31 | 4.29                                                 |
| 20          | Transportation and Logistics                |                               16.74 |                                    28.4  | 11.66                                                |
| 21          | Electronic and IT Hardware                  |                                4.33 |                                     8.94 | 4.61                                                 |
| 22          | Pharma and Life Sciences                    |                                1.86 |                                     3.58 | 1.72                                                 |
| 23          | BFSI                                        |                                2.55 |                                     4.25 | 1.7                                                  |
| 24          | Retail                                      |                               38.6  |                                    55.95 | 17.35                                                |
| Grand Total | Grand Total                                 |                              461.1  |                                   581.89 | 120.79                                               |

Note: After adjusting double counting in retail segment in larger sectors, the net  incremental  Human  Resource  Requirement  during  2013-22  comes  to 109.73 million.

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