Skill Development

"Indian Textile and Clothing (Apparel) industry is the second largest manufacturer in the world with an estimated export value of ~ US$ 31 billion and domestic consumption of ~ US$ 58 billion for the year 2011-12. The sector contributes to about 6% of the US$ 1.7 trillion Indian economy. It also provides employment to ~35 million persons directly & ~55 million persons indirectly. India is among the very few countries which have presence across the entire supply chain, from natural and synthetic fibres right up to finished goods manufacturing. It has presence in organised mill sector as well as decentralised sectors like handloom, power loom, silk, etc.

The industry has grown from US $ 57 billion in 2006 at a CAGR of 11.3%. Garments (Apparel) constitute an estimated 68% of the domestic market, followed by technical textiles (24%), and home textiles (7%). In 2011 global trade in textiles and apparel was around US$ 705 billion. This was approximately 4% of the total global trade of all commodities estimated at ~ US$ 15 trillion. During the period 2000 to 2010 the textile and apparel trade has grown at a modest CAGR of 6.4% per annum. Further, the Global Textile and Apparel, or T&A, trade is expected to grow to USD 1 trillion by 2020."

The liberalization of the Indian industry saw significant growth in the Indian Automotive Industry. Today, the Indian Automotive Industry is a significant contributor to the Indian economy, contributing nearly 5% to the country’s GDP and about 17-18% to the kitty of indirect taxes to the Government, while investment outlay stood over Rs. 83,500 crore in 2008-09. With its wide penetration and strong influence on the country’s economic and industrial development, the auto sector is indeed one of the major drivers of our economy. Moreover, economic liberalization coupled with its technological, cost and manpower advantage have made India one of the prime business destination for many global automotive players.

With its strong influence on the country’s economic and industrial development it is indeed one of the major drivers of our economy. Moreover, economic liberalization coupled with its technological, cost and manpower advantage have made India one of the prime business destination for many global automotive players. The sector has moderate direct employment and significant indirect employment; it is estimated that the sector provides direct and indirect employment to over 13 million people.

Today, the Beauty and Wellness sector has gained prominence in India and displayed consistent and remarkable growth, making it a potentially significant contributor to economic growth and a leading employer creating millions of employment opportunities across the breadth of the country. The reason for this phenomenal growth is the rising consumerism, globalization and changing lifestyles of Indian consumers as well as increasing rate of wellness tourism. As per the report by Global Hospitality Consultant HVS, India was listed as one of the top 20 Spa countries worldwide. Combining the benefits of Rejuvenation & Alternate Therapy services along with holiday packages has become increasingly popular. Moreover, Ayurveda , MedSpa, Natural and Resort based Spa rejuvenation centers are estimated to contribute over 30 percent of the total income in the tourism industry. Yoga and meditation courses have also attracted the attention of the tourists and travelers. India is currently the 10th fastest growing market globally in Beauty & Wellness sector and the industry is poised to reach a size of INR 875,000 crores by the year 2014.

The rapid growth in beauty and wellness industry along with the entry of giant organized players both nationally and globally, has led to huge demand for trained personnel. However, there is a huge deficit in the availability of skilled and trained personnel. This talent deficit poses extreme threat to the growth and expansion of the whole beauty and wellness industry. In the Beauty and Wellness industry, only 20% to 30% of the total market share is controlled by the organized players. The rest of the market is unorganized and fragmented with the presence of small and regional players. Developing skilled and trained personnel is thus a daunting task at hand for both businesses and for the government.

The various skill development solutions, initiated by employers, are confined to meeting their own current requirements and lack the scope and scale to tackle the challenges of catering for the expansion of the sector. In order to address this dilemma, a national level initiative with the partnership of the government, employers and other important stakeholders to create and lead a skill development initiative for the beauty and wellness industry has been envisaged.

Beauty and Wellness Skill Development Council (BWSSC) established to ensure the generation of skilled manpower in the sector, create career paths in roles existing within the unorganized and organized segments of the Beauty and Wellness industry and ensure active participation of the different stakeholders i.e. Industry, Academia and learners to ensure a holistic development of skilled manpower.

According to estimates of the International Monetary Fund (IMF), global GDP is expected to decelerate from 5.0 per cent in 2007 to 4.1 per cent in 2008 and further to 3.9 per cent in 20091.In the face of slowing down of the global economy in 2007-08, India and China remained the main drivers of global growth backed by strong productivity gains and progressive integration into the global economy. The Indian banking sector is growing at a fast pace, outperforming the Indian economy with a CAGR of 7% from 2000 to 2008. The total assets of the scheduled commercial banks has increased by 25% from Rs. 3,459,946 crore in 2007 to Rs. 4,326,469 crore during 2008, while the deposits collected by the banks during the same period has increased by 23%. According to the sources of Economist Intelligence of India, deposits as a percentage of GDP is expected to grow from the estimate of 62.5% in 2004 to 82.7% during 2013, at the same time, the total financial assets as a percentage of GDP are expected to grow from 365.8% to 563.1% during the same period. According to a study conducted by FICCI, the penetration of banking services stands at 35% in India, which is much lesser than other countries. Thus, with the background of lower penetration level when compared to other developing/developed nations, India has a significant potential for improvement given the vibrant economy.

Banking & Financial system of the country plays a substantial role in promoting the long term growth of the economy. The major segments of the Industry are Banking, Insurance and Mutual Funds. Banking and Insurance sector contributed 6% of GDP during the year ended 2008. Sector’s contribution to GDP during the period 2001 to 2008 has grown at a CAGR of 11.5% in real terms.

Construction investment accounts for nearly 52.4% of the Gross Fixed Capital Formation. Investments in construction have a positive domino effect on supplier industries, thereby contributing immensely to economic development. Construction materials and equipment sector accounts for approximately 8.6% of India’s GDP and accounts for nearly two-third of the total construction costs on an average. The share of construction materials in project costs ranges from 40-60% and the corresponding cost for construction equipment ranges from 5 to 25%. Construction component comprises nearly 60-80% of project cost of infrastructure projects like roads, housing etc. In projects like power plants, industrial plants, etc. the share, though lower, is critical. Construction materials and equipment sector comprises of various sub-industries such as:

Since most of the materials are either manufactured locally, in cottage or small scale industry, data available for quantifying the exact nature of linkages with construction is not very accurate. On the other hand, linkages of products such as paints and petro-products would again be difficult due to their stronger linkages with other sectors. Whereas in case of cement and steel, almost 100% of cement production is consumed in construction and about 40 - 60% of steel production goes into construction. Thus in this report we will focus on only three major categories of construction material and equipment industry, i.e. cement, steel, and construction equipment.

Electronics sector in India presents unique opportunities and challenges. It has been growing rapidly over the last couple of years and is expected to reach US$ 400 billion by 2020. Among several challenges, shortage of skilled manpower has been identified as one of the most critical constraints that the sector is confronting with. Electronics Industry in India presents unique opportunities and challenges. The electronic industry in India has grown from the production of Rs.328 billion to Rs.947 billion in the year 2009 at a CAGR of 16.4%. The Indian ESDM sector has 8 verticals, namely Consumer Electronics, IT Hardware, Telecommunications Equipment, Electronics Components, Strategic Electronics, Automotive, Medical & Healthcare and Industrial Electronics. Consumer Electronics & Telecom Equipment are the largest segments with about 27% share in total production.

As the sector presents a large opportunity with increasing thrust on higher value addition in manufacturing and product development, the employment in the ESDM industry is estimated to grow phenomenally. It is estimated that the sector employed about 0.9 million in the year 2008 which is estimated to increase to over 4 million by 2022. This would translate to an incremental human resource requirement of about 3.2 million.

While there is a huge need and demand for skilled workforce, there are neither national occupational standards nor any mechanism to streamline and standardize education / skill development for Electronics Profession in the country. As a result, there is an inconsistency in the competency level, affecting efficiency, productivity and delivery of goods & services.

The size of the global Gems and Jewelry industry was estimated at US $ 146 billion at retail prices in 2005, and is estimated to have recorded US $ 170 billion in sales in 2008. The industry has grown at an average Compounded Annual Growth Rate (CAGR) of 5.2% since 2000. India is one of the eight key world markets, the others being the USA, UK, Middle East, Turkey, Japan, Italy and China. India is the also the largest consumer of gold in the world, and is estimated to hold nearly 16,000 tonnes of gold, accounting for nearly 12-15% of the world’s cumulative ‘aboveground’ gold stocks. India is also the largest diamond cutting and polishing center in the world. While a predominant portion of gold jewelry manufactured in India is for domestic consumption, a significant portion of rough, uncut diamonds processed in the form of either polished diamonds or finished diamond jewelry is exported. The manufacturing and processing of Gems and Jewelry is distributed across several countries in the world (i.e., the African continent dominates the mining space of diamonds whereas India is the dominant player in diamond processing). Apart from being a major market, India primarily forms a part of the polishing and jewelry manufacturing part of the industry’s value chain in addition to increasing traction in the organized retail of jewelry. The domestic demand for gold jewelry was estimated at Rs. 550 billion in 2007, accounting for an estimated 80% of the Indian jewelry market of Rs. 690 billion; the balance comprised of diamond jewelry (Rs. 115 billion), and other fabricated jewelry (Rs. 25 billion).

The industry is characterized by highly unorganized trade, labour intensive operations, working capital and raw material intensiveness, price volatility of gold and export orientation. Though India plays a dominant role in the Gems and Jewelry industry in terms of processing and consumption, its role in the mining of gold and diamond is minimal. India imports gold and rough diamonds along with other precious metals. The Gems and Jewelry industry also plays a key role in the Indian economy, and commands a high percentage of the exports from the country. In 2008, Gems and Jewelry exports accounted for about 12% of India’s total exports. The growth of exports between 2002-03 and 2007-08 was about 14% amounting to Rs. 837 billion in 2008.

As per the United Nations Development Programme (UNDP) Global Human Development Report (HDR) 2007, in spite of the absolute value of the Human Development Index (HDI) for India improving from 0.577 in 2000 to 0.611 in 2004 and further to 0.619 in 2005, the relative ranking of India has not changed much. India ranks at 128 among the countries with medium human development out of 177 countries of the world as against 126 in the previous year. India ranks 4th in the pharmaceutical sector by volume and 8th in terms of its value. However we are yet to achieve a lot in terms of our health indices. Expenditure on social sectors as a proportion of total expenditure, after decreasing from 20.4% in 2002-03 to 19.5% in 2003-04, increased steadily to 22.3% in 2006-07 and 22.5% in 2007-082. The Health Infrastructure in the country now includes:

266 medical colleges, 268 Colleges for BDS courses and 104 colleges conduct MDS courses with total admission of 30,290, 20,080 and 2,069 respectively during 2007-08; 1,597 Institutions for General Nurse Midwives with admission capacity of 59,138; 461 colleges for Pharmacy (diploma) with an intake capacity of 27,735 during 2006-07; 9,923 hospitals having 4,80,306 beds; 1,44,988 Sub Centers, 22,669 Primary Health Centers and 3,910 Community Health Centers as on March 2006; 21,351 & 3,203 Ayurveda, Yoga & Naturopathy, Unani, Siddha and Homoeopathy (AYUSH) dispensaries & hospitals during 2007; 903 Government licensed blood banks, 358 voluntary blood banks, 666 Private hospital blood banks; and, 483 other private commercial centers as of 2007.

Some of the important initiatives undertaken by the Government to address the requirements of healthcare include: the National Rural Health Mission (NRHM), funding for support mechanisms of Accredited Social Health Activist (ASHA) for every village, strengthening of primary health infrastructure and improving service delivery, implementation of the state-based surveillance program. the country, i.e. the Integrated Disease Surveillance Project (IDSP), focusing on AYUSH, family planning program for achieving Millennium Development Goals, etc. For the users of healthcare services, the choice is increasing and the ability to afford the best is rising. Consumers are migrating from the single doctor nursing homes to a more organized hospital delivery format, analogous to the retail sector. There are benchmarks and brands of multi-locational providers across industry. Owing to information explosion, the Indian healthcare consumer is engaging in ‘comparison shopping’ - looking at quality healthcare not only in urban but also the rural areas and tier II cities.

"The steel sector in India is more than a century old, and contributes significantly to the economic development of the country due to rising demand by sectors such as infrastructure, construction, automobiles and a host of manufacturing and processing industries .Consumption of steel is an important determinant of the socio-economic development of the country. India is the fourth largest producer of crude steel and third largest consumer of steel. India is the largest producer of Direct Reduced Iron (DRI) in the world. Around 0.5 million nos. of employees are engaged in Iron and Steel Industry. This is likely to go upto 1.5 million nos. (Direct) by 2030, when the installed capacity reaches at 300 mt. from the current level of 104 mt "

NASSCOM the premier Trade Body and Chamber of Commerce for the IT-ITeS industry has launched a new initiative to scale quality capacity and increase the groundswell of talent for this industry.

NASSCOM has set up the IT-ITES Sector Skills Council NASSCOM (SSC NASSCOM) under the aegis of the National Skills Development Corporation (NSDC). SSC NASSCOM an integral part of NASSCOM is recognised as the Skills Standards setting body under GOI.

The key objective of SSC NASSCOM is to scale quality capacity, to have a ready deployable talent pool (certified Job Ready) with the least amount of intervention from industry. To start with, our focus will be on jobs at the Entry level.

In this endeavour, unique Job Roles / Qualification Packs at Entry; Middle and Leadership levels have been identified which require different levels of educational qualifications.

Life Sciences Sector Skill Development Council majorly deals in Pharmaceuticals, Biotechnology & Clinical Reaserch LSSSDC is a not for profit organisation, registered under the Societies Act, 1860. As a National level organization, in partnership with various stakeholders groups, it will serve to address the skill shortfalls in the Life Sciences Sector in India. It’s aim, over a 10 year period, will be to map all job roles in the Sector (estimated 100), enlist 339 Training Organisations, train over 39,000 Trainers and certify approx. 3.4 mn skilled workers in this Sector.

Logistics Skills council: CII along with National Skill Development Corporation, would set up a Logistics Sector Skill council to address these issues through a structured skill development program with the following objectives. 1. Increase the Awareness, 2. Create an Investing Environment, 3. Formulate a Skill development Solution, 4. To be the authoritative voice on Skill Development, Through this initiative, over 40 lakh logistics workers are to be trained and certified by the SSC in the next ten years.

The Media & Entertainment Industry is projected to grow to INR 1457 billion by 2016. Therefore it becomes imperative to have skilled workforce catering to the growing needs of the industry across various subsectors in terms of quality and quantity. MESC would ensure generation of adequately skilled workforce which is industry ready and employable.

The Indian retail market has been ranked the second most attractive emerging market for investment after Vietnam. The Indian retail industry is estimated to be worth Rs 13-14 lakh crore in FY 2008 .The Indian retail sector is highly fragmented in nature. The penetration of Organized Retail in the Indian market is much below the levels in other countries. Organized/Modern retailing refers to trading activities undertaken by licensed retailers and includes formats such as hypermarkets and supermarkets, and retail chains.

Organized Retail, valued at Rs 96,500 crore in 2008, accounts for around 5% of the total retail market. Organized Retail has been growing at an impressive rate of 35% to 40% Y-O-Y in the last few years compared to 9-10% growth in the overall retail industry. Traditional/unorganized retailing contributes to about 95% of total retail revenues. Traditional/unorganized retailing which involves the local kirana shops, paan /beedi shops, hand cart and pavement vendors, etc. continues to be the backbone of the Indian retail industry. India has one of the highest densities of shops per population with 1.5 crore4 small retail outlets in India (14 shops per 1,000 people).

The SKSDC was formed in March 2011 as a Section 25 Company (Not for Profit). These include G4S, Tops Security, Checkmate Services, Bombay Intelligence Security India, ISS SDB, SLV Security Services, SSMS, Premier Shield, Securitas India, Trig Guardforce, SAI, KSS and an Agency representing smaller companies. It is also represented by members from NSDC, CAPSI, CII, FICCI and Army Welfare Placement Organisation (AWPO) amongst others. It aims to transform the PSS from an unorganised industry to an organised one by taking initiatives on developing the driving forces of knowledge and skills to address the interests of all stakeholders of the industry.

India is the second largest & fastest growing telecom market in the world with telephone subscribers 892.02 million at the end of February, 2013. The share of urban subscribers is 61.87% whereas share of rural subscribers is 38.92% in the month of February 2013. The overall Tele-density in India reached to 72.90% at the end of February, 2013. Of the various telecom services, majority of the growth has been driven by Wireless segment. Mobile operators in the wireless segment have alone contributed to 2.4% of India’s GDP for FY’12, and have generated an estimated 2.3 million jobs The subscriber base has grown at 25% CAGR from FY’08 to FY’12, and the revenues for the same period have grown at a CAGR of 11%. India is the fastest growing mobile phone market in the world. The booming telecom industry has been attracting large amount of investments in the country.

Tourism & Hospitality is one of the most attractive industry in the country as it generates quick employment and entrepreneurial opportunities and contributes substantially to the growth of our economy and the expansion of its Gross Domestic Product (GDP). The spurt in domestic tourism and steady growth in international tourist arrivals continues to highlight the role of Travel and Tourism industry as an important driver of growth in India’s growth story.

With a sustainable 9.5% contribution to the global GDP, Travel and Tourism is not only outpacing the wider economy but also growing faster than the significant sectors such as finance and business services, transport and manufacturing. (WTTC, 2014). It has the potential to be the single largest provider of employment where nearly 1 out of every 11 jobs in the world being supported by this industry. Tourism also greatly contributes to the earning of foreign exchange for the country and also has the distinction of being the lowest in the outflow of dollars i.e. only 10% pegged against its net earnings.