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== Impact of the Vocational Training on Indian Economy ==

== Introduction == Indian economic growth is globally recognized. Over the last 3 decades, India has claimed to have done remarkably. The development of per capita income, slightly higher than 1% before the 1980s, increased to 4% per annum.

India's economic growth rate at the beginning of the 21st century was among the 10 highest in the developing world, and now it is 5th largest economy in the world. India achieved an average growth of 8% from 2001-2002 to 2005-2006. 2001-2002 to 2005-2006 was globally known as the period of  [https://blog.forumias.com/the-issue-of-jobless-growth-in-india/#:~:text=category%20in%20China.-,What%20are%20the%20reasons%20behind%20India's%20Jobless%20Growth%3F,failed%20to%20happen%20in%20India. 'jobless growth].' It is claimed that there will be an increase in the number of people looking for a job in India every year.

Employers requiring skilled workers and the employment-seeking population face issues, which puts India in a unique position. The expectation is that the Indian Manufacturing sector would require a labor force of 20 million, necessitating the training of 1.5 million technicians yearly. A labor/skill shortage for industry survey by FICCI(Federation of Indian Chambers of Commerce) found that 90% of companies face a labor shortage. 89% of companies said that the demand for the product is not met due to labor shortages in the market. India did not see an economic boom in the manufacturing sector, and providing jobs to unskilled and semi-skilled populations became difficult. The problem is aggravated due to a lack of skill development programs to bridge the labor demand and supply gap.

== Importance == The continuous evolution of education has created a demand for vocational training in India. Vocational training develops real-time practical skills that help youths thrive and secure employment. Vocational training also refines skills for career development.

Help in Career Development
Vocation training provides a platform to gain practical knowledge and work experience. It does not require time for academic explorations.

Refining Skills
Vocational training implies learning to deal with field-related responsibilities instead of spending time on theory aspects, improving the skills of the vocational trainee.

Improve Social Connection
On-site training and getting involved in activities on the job lead to developing connections at the workplace with like-minded people and others as well.

Economically Beneficial
The lower tuition fees of vocational schools as compared to conventional education also lays the first stone toward the right future. Vocational courses generate immense experience and employment opportunities.

Challenges to Implement VET in India

 * There is a traditional and cultural bias against non-white collar jobs.
 * The skill development program and the organization's policies face divergence.
 * State-level lack of a delivery mechanism to work toward the VET(Vocational Education and Training)
 * Vocational and higher education programs have very limited mobility.
 * The formal apprenticeship programs are poor. Also, there is a low level of taking up the programs.
 * The vocational courses provided by private firms are not recognized.
 * It is said that a lack of flexibility develops the need for acceptance of the private vocational course.

Initiatives by Government
After the National Skills Development Policy in 2009, there have been increased initiatives by the Indian government. The government created National Skills Coordination Board, the National Skill Development Corporation, and National Skills Qualification Framework. There was a commitment made by the Minister of Finance to inject Rs.1000 crore into the system structure.

Sector Skills Councils was made under NSDC, aiming to involve industry in training and labor force growth, set occupational standards, and accredit qualification. The creation of NSQF includes academic, vocational, and technical qualifications. It aims to facilitate the recognition of prior learning and improvement between the levels and types of education.

Schemes by Government

 * In 2014, the National Skill Certification and Monetary Reward Scheme provided monetary incentives on average of Rs.10,000 for completing certain training programs. The target of the scheme was to upskill one million young people.
 * In 2015, the Pradhan Mantri Kaushal Vikas Yojana scheme was launched to provide skills to 2.4 million people. Out of the 2.4 million people, a million were registered under the Recognition of Prior Learning Framework.
 * The Modular Employable Skills scheme focused on providing short-term training in high-demand sectors and industries. The training fees incurred under the scheme are refunded on completion of the certification. Also, female candidates from backward castes are given discounts to encourage participation.

Impact of VET on Economy
The Institute of Applied Manpower Research argued that 291 million additional workers are required in 2022-2023. The government attempted to increase the VET in the country to upskill 500 million workers to reduce the gap.

There has been evidence concerning vocational education and training's effect on youth unemployment In India. A recent study found that 11% of 15-29 years old who had received vocational education and training are unemployed. This trend is slowly reversing but still exists.

Another study from the International Labor Organization shows that apprenticeships have the potential to contribute to the economy. It said that small businesses found the increased earnings associated with training outweighed the associated cost.

The NPSD recognized the informal sector's potential as a significant part of the economy.

Construction Sector
Construction is one of the most affected sectors by vocational training. The number of skilled workers required is 80 million. The Ministry of Labor mandated that 20% of Cess collected from the Building and Other Construction Workers Act will be invested in skilled labor activities.