Context:

• The Prime Minister’s Independence Day address (August 15) highlighted reforms for demand-driven growth, recalibration of GST, and the need to boost productivity through education and skill development.
• India faces challenges of low-skilled workforce, despite a large demographic advantage, making vocational education critical for employability and productivity.

India’s Current VET Landscape:

• Institutional strength: Over 14,000 Industrial Training Institutes (ITIs) and 25 lakh sanctioned seats.
• Low utilisation: Actual enrolment was only around 12 lakh in 2022, implying just 48% seat utilisation.
• Low employment outcomes:
  • In 2018, the employment rate among ITI graduates was 63%.
  • Countries with robust VET systems such as Germany, Singapore, and Canada reported employment rates ranging between 80 and 90%.
  • These statistics point to a VET system that is both ineffective and unattractive for the Indian youth.
• Formally trained workforce: Just 4% in India, compared to much higher figures abroad.

Challenges in India’s VET System:

• Late integration in education system:
  • VET in India introduced post high-school education.
  • This has not only shortened the period available for hands-on training before the youth enter the job market, but also does not allow for orientation towards employable skills.
• Lack of academic progression: No defined pathways from VET to higher education in India. No credit transfers between systems.
• Poor perception and quality issues:
  • Outdated, industry-misaligned curricula in India.
  • Over one-third of ITI instructor posts are vacant due to limited training capacity at National Skill Training Institutes (NSTIs).
  • Weak quality monitoring, with irregular ITI grading and no feedback systems.
• Weak public–private partnerships (PPPs):
  • In India, the engagement of employers in the private sector is limited, ITIs depend heavily on government funding, MSMEs (which drive local job creation) have low engagement with ITIs due to capacity constraints.
  • Sector Skill Councils, which play a key role in integrating training with industry needs, lack state-level presence in India.

Learning from International Best Practices:

• Integration in education system: In Germany, VET is integrated at the upper secondary level through a dual system, combining school education with paid apprenticeships.
• Academic progression: Singapore ensures progression from VET to universities, offering VET either as technical education (at the post-secondary level) or via polytechnics (at the tertiary level) through dual vocational tracks.
• Perception and quality:
  • Singapore has industry-led curriculum design, high instructor quality, regular audits and a mechanism that seeks constant feedback from employers and trainees.
  • Singapore also has a Skill Future Programme, where the government offers subsidies to upskill throughout one’s career.
• Public–private partnerships (PPPs): In Germany, Singapore, and Canada, governments fund VET institutions, while employers pay for apprenticeships, share training costs, and also help design curricula. 

Reforms Needed in India:

• Early integration of VET: Implement National Education Policy (NEP) 2020 recommendations for VET at school level.
• Pathways to higher education: Fast-track National Credit Framework for academic progression and credit transfers.
• Improve quality and relevance:
  • Align training with local industry demand.
  • Expand NSTIs, recruit instructors, strengthen ITI grading.
  • Collect trainee feedback for continuous improvement.
• Strengthen PPPs:
  • Scale up Private Training Partner
  • Involve MSMEs, CSR funding for skilling.
• Increase funding:
  • India spends 3% of the education budget on VET vs. 10–13% in Germany or Singapore or Canada.
  • Need performance-linked public funding and revenue autonomy for ITIs.

Recent Government Schemes:

• Employment Linked Incentive (ELI) scheme:
  • ELI Part A offers up to Rs 15,000 for first-time EPFO-registered workers.
  • Part B gives employers Rs 3,000 a month for every new hire.
  • Both ELI schemes push formalisation of jobs but have no skilling components.
• PM Internship Scheme: It aims to provide one-year placements to youth in top companies, but lacks pathways to permanent jobs.
• ITI Upgradation Scheme: It focuses on modernising 1,000 government ITIs in partnership with industry, but not necessarily the quality of training.

Way Forward:

• Current initiatives are piecemeal and insufficient.
• Need systemic overhaul to:
  • Make VET attractive and effective.
  • Link it with formal employment and upward mobility.
• Transforming VET into a pathway to quality jobs, which is vital for realising Viksit Bharat.

Conclusion:

• A future-ready India must transform its vocational education system into a dynamic, industry-linked, and aspirational pathway that equips youth with globally competitive skills.
• Such an overhaul will not only enhance employability and productivity but also act as a cornerstone for achieving the vision of Viksit Bharat @2047.