Lok Sabha Question No. 946 (UNSTARRED), answered on 2016-03-02
Subject: Skill Gap Report
Ministry: SKILL DEVELOPMENT AND ENTREPRENEURSHIP
Asked by: BOORA NARSAIAH GOUD

## GOVERNMENT OF INDIA

## MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP

## LOK SABHA

## UNSTARRED QUESTION NO. 946

## TO BE ANSWERED ON 02.03.2016

## SKILL GAP REPORT

## QUESTION

## 946. DR. BOORA NARSAIAH GOUD:

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

- (a) whether  as  per  the  Skill  Gap  Report,  the  country  needs  119  million  more skilled workers by 2022 and if so, the details thereof;
- (b) whether any assessment has been made about the skill requirements;
- (c) if so, the details of skilled workforce required, sector-wise and State-wise;
- (d) the difference between earlier estimates and the new estimates and the plan of action to bridge the gap between demand and supply;
- (e) the amount that is required for providing skill training to the workforce; and
- (f) the manner in which the Government is planning to pool the resources in the light of low budgetary support?

## ANSWER

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

- (a) to (d) As per National Skill Development Corporation (NSDC) 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-I. However,  after  removal  of  duplication  in  retail  sector  the  net  incremental  human resource requirement during 2013-2022 comes to 109.73 million.
- (e)  &  (f)    The  National  Policy  for  Skill  Development  and  Entrepreneurship,  2015 defines  strategy  for  meeting   resources  for  skill  development  which  inter  alia includes:
- (i)         National  Skill  Development  Fund  for  donations  /  contribution  from contributors  including  Government,  multilateral  organizations,  corporation  etc. for furtherance of the objectives of skill development.
- (ii)       Channelization the interest of a plethora of organizations to participate in the  mission  of  Skill  India  through  Resource  Optimization  for  Skilling  at  Scale Platform.
- (iii)      To encourage companies to spend at least 25% of their Corporate Social Responsibility funds on skill development initiatives.
- (iv)      To encourage all government schemes to apportion a certain percentage of the scheme budget towards skilling of human resources.
- (v)    End user funding through a basic fee paying model
- (vi)      Credit  Guarantee  Fund  for  Skill  Development  to  support  loans  for  the purpose of skilling so as to leverage credit financing in the skill landscape.

Break Up of Incremental Requirement across Sectors

| S.No.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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