National Skills Development Corporation - India
National Skills Development Corporation
India faces a daunting challenge: by 2022, the country will see a manufacturing skills gap of nearly 90 million workers – almost twice the current figure – and some 500 million workers across all skilled sectors. India’s National Skills Development Corporation (NSDC),71 a non-profit company, aims to help solve this problem. Over the next 10 years, the NSDC aspires to create 150 million skilled labourers across 21 sectors that meet or exceed international standards. A main thrust of the NSDC’s mission resides in the promotion of skill development through the funding – either through loans or equity – of large, quality, for-profit vocational training institutions, programmes that are proposed by way of private (both for profit and not for profit) sector initiative. It is truly a demand-led model, designed to develop and supply the talent needed by the private sector to grow.
Formed in the 2008-2009 budget year, the NSDC is driven by the private sector, which maintains control of 51% of the partnership and holds eight of the 13 seats on the board. The National Skill Development Fund, which enables the NSDC’s financing operations, is a government-owned trust and is run by professional fund managers. Initial funding for the NSDC was 10 billion rupees (US$ 185 million). Current funding stands at 25 billion rupees (US$ 462 million).
Hands-on training for students on repairing security systems.
To date, the NSDC is working with 37 active partners and has contributed billions of rupees in the formation of hundreds of permanent and mobile training centres across India. About 266,000 workers have received training in these centres thus far, of whom about three quarters have secured placement in the sectors covered by the NSDC.
Beyond funding, the NSDC plays an advocacy role in skills development throughout India. The organization also helps shape the training curricula.
Representative Best Practices
To address the skills gap and prepare Indian workers to fulfil the future needs of employers, the NSDC plays three key roles.
- Developing the market: The NSDC identifies critical skill groups, designs models for skill development and proactively encourages large-scale participation by private players in skill development.
- Making the market: The NSDC benefits its selected private sector initiatives through several vehicles – primarily loans, equity, grants and tax breaks. NSDC’s longer-term objective is to support training programmes that are based on self-sufficient business models – diminishing the roles of outright grants.
- Supporting the market: The NSDC and partner industry organizations work jointly in establishing standards in accreditation systems. The NSDC actively seeks to shape the curricula of training programmes and other development activities. It also sets forth quality criteria in faculty, technology platforms and student placement mechanisms.
Making an Impact
Centum WorkSkills: A goal of 12 million trained
With 160 million rupees (US$ 3 million) provided by the NSDC, Bharti, India’s largest telecom service provider, established Centum WorkSkills India. Founded in late 2010, the mandate of Centum WorkSkills is to train some 12 million workers at 383 centres across 11 states by 2022, with a near-term goal of 100,000 workers by the end of 2013. These centres will remediate skills gaps in the automobile, organized retail, telecommunications, healthcare and construction industries. Centum WorkSkills operates on a hub and spoke model, with one franchisee per state. Enrolment revenue, grants, student fees, placement fees and franchising fees ensure the sustainability of the business model.72