higher productivity activities and facilitate investment in new industries. involving workers and the private sector was a main feature of this approach. zambia can learn a lot from some of these countries. effective training systems in conjunction with the private sector should facilitate demand - driven training in sectors and locations with high job growth potential, avoiding bottlenecks and improving employability. bis central bankers ’ speeches expanding accessibility to quality training is a powerful instrument for empowerment and inclusion of the youth and disadvantaged groups : women, rural dwellers and persons with disabilities. in some cases, apprenticeships in the informal economy can offer many young people an opportunity to learn a trade and enter the world of work. skills development is a necessary response to the challenge of youth unemployment. effective programmes should involve packages of training - cum - labour - market - services. these should include : providing advisory services and career guidance, vocational counselling, job - search assistance and job placement, as well as access to different types of training, including combinations of learning and earning through apprenticeships or subsidized employment in return for on - the - job training. successful entrepreneurship programmes should also involve providing basic business skills and linking would - be entrepreneurs to mentoring, finance and market opportunities. these integrated approaches are needed to assist young people in their transition from school to work and to tackle the multiple constraints they face on the labour market. the need for effective certification cannot be overemphasised. in conclusion, skills development can make a critical contribution to youth employment promotion and income generation through msmes. coordinated policies linking education, skills formation, and employment are required. well - designed active labour market policies linked with technical and vocational education, on - the - job training and apprenticeships – both formal and informal – are essential for skills development, employment and entrepreneurship and can help alleviate unemployment and underemployment. connecting training providers and employers can be especially effective at sector and local levels. further, involving the private sector is essential to employment creation. furthermore, special attention should be paid to supporting msmes as the most dynamic sources of employment. financial institutions should provide easy access to funds to reduce cost of doing business. the multiple drivers of informality should be tackled through integrated policy packages that promote a gradual transition to formal activities. ladies and gentlemen, this is the challenge i give all stakeholders that are involved in skills development, youth empowerment and development of msmes. thank you. bis central bankers ’ speeches

s s mundra : bankers & sme borrowers - the emerging mantras keynote address by mr s s mundra, deputy governor of the reserve bank of india, at the 3rd bankers borrowers business summit, organized by the associated chambers of commerce and industry of india ( assocham ), new delhi, 16 june 2017. * * * dignitaries on the dais ; distinguished colleagues from the banking fraternity ; members of assocham ; representatives from the print and electronic media ; ladies and gentlemen! at the outset, i would like to compliment assocham for the effort in bringing the bankers and the borrowers together on a common platform to enable discussions on various issues of relevance to the msme sector. with changing times new trends are emerging in every sphere and at this juncture the theme of “ 10 emerging mantras ” for the msmes is extremely topical. 2. the role of micro, small and medium enterprises ( msmes ) in the economic and social development of the country can hardly be over - emphasized. about one - third of the country ’ s gdp is contributed by more than 50 million msmes in the country. it is expected that by 2020, india will have the largest job - ready youth population in the world. however, before i get into specifics on the theme of the summit, let me first present the big picture on why msme sector needs our support. 3. first and foremost reason is that with big manufacturing companies increasingly automating their operations and process flow, the number of jobs in these industries is going to decline. a recent research based on world bank data has predicted that the proportion of jobs threatened in india by automation could be around 69 per cent! that is a huge number. since msmes are capable of generating plenty of jobs in segments like hospitality, apparel manufacturing, food processing and so on, it is time for the policy makers as well lenders to focus on them. in this context, there would also be a need for change in our perception about jobs. work created in the formal sector alone does not constitute job. even if entrepreneurship is promoted that also is equivalent to creation of a job. hence, the public policy should focus on how much more work is created rather than how many jobs in the formal sector. 4. the motivation for the bankers to lend to the msme segment would probably come from relatively poor return on their advances to the large corporates. still another push emanates from recent regulatory guidelines restricting banks ’