Lok Sabha Question No. 4001 (UNSTARRED), answered on 2016-08-10
Subject: FDI in Skill Sector
Ministry: SKILL DEVELOPMENT AND ENTREPRENEURSHIP
Asked by: BRIJBHUSHAN SHARAN SINGH

## GOVERNMENT OF INDIA MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP

## LOK SABHA

## UNSTARRED QUESTION NO. 4001 TO BE ANSWERED ON 10.08.2016

## FDI IN SKILL SECTOR

## QUESTION

## †4001. SHRI BRIJBHUSHAN SHARAN SINGH:

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

- (a) whether  the  Foreign  Direct  Investment  (FDI)  is  likely  to  render  unskilled  labour jobless since the multinational companies are likely to engage only skilled labour and if so, the details thereof;
- (b) whether  the  Government  has  sufficient  resources  to  make  the  unskilled  labour skilled;
- (c) if  not,  the manner in which the Government is likely to raise the resources for the purpose;
- (d) whether  the  Government  has  any  scheme  to  liberalise  FDI  policy  in  view  of employment scenario; and
- (e) if so, the details thereof?

## ANSWER

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

(a), (d) & (e) There  is  no  evidence  to  support  the  assumption  that  the  Foreign  Direct Investment (FDI) would render unskilled labour since the multinational companies are likely to engage  skilled labour. FDI inflows serve to augment domestic capital and promote employment  generation  across  sectors.  Further,  such  investments  in  various  sectors  bring international best practices and latest technologies leading to economic growth in the country. The  government  has  undertaken  various  measures  including  'Start-up  India'  and  'make  in India'. 'Start-up India' aims at fostering entrepreneurship and promoting innovation by creating an  ecosystem  that  is  conducive  for  growth  of  Start-ups.  The  objective  is  that  India  must become a nation of job creators instead of being a nation of job seekers. Further, the Make in India  initiative  of  the  country  has  caught  the  attention  of  global  investors  and  investment inflows  have  increased  substantially.  All  these  measures  are  designed  to  make  India  into  a global manufacturing hub, resulting in more employment generation and overall growth of the economy.

(b) to (c) In  order  to  align  the  Pradhan  Mantri  Kaushal  Vikas  Yojana  (PMKVY)  to complement all other Missions of  the  Government like Make  in  India, Digital  India,  Swachh Bharat  and  Smart  Cities  and  also  to  scale  up  the  skilling  across  the  Country,  the  Union Cabinet in its meeting held on 13 th July, 2016 has approved the modification and continuation of  the  Pradhan  Mantri  Kaushal Vikas  Yojana  (PMKVY) as Skill Development Component of umbrella PMKVY to skill one crore people over the four years (2016-2020) with an outlay of Rs.  12,000  crore.  The  Ministry  of  Skill  Development  and  Entrepreneurship  (MSDE)  also envisaged World Bank assistance for its projects namely 'Skills Training for Industrial Value Enhancement  (STRIVE)'  and  'Skill  India  Mission  Operation  (SIMO)'  to  implement  the objectives of National Skill Development Mission (NSDM), including providing access to skill training  opportunities  to  the  disadvantaged  sections  and  cater  to  the  skill  requirements  in relevant manufacturing sectors.

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