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FICCI Survey on Emerging Skill Shortages in the Indian Industry

Presentation for National Conference on Skill Building through Public Private Partnership 5-6 October 2007. FICCI Survey on Emerging Skill Shortages in the Indian Industry . By Mr Rajan Kohli , Deputy Secretary General, FICCI . Content Context

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FICCI Survey on Emerging Skill Shortages in the Indian Industry

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  1. Presentation for National Conference on Skill Building through Public Private Partnership 5-6 October 2007 FICCI Survey on Emerging Skill Shortages in the Indian Industry By Mr Rajan Kohli , Deputy Secretary General, FICCI

  2. Content • Context • FICCI Survey on Emerging skill shortages in the Indian Industry • Skill Shortages : Analysis of Some Major Sectors • Surveys of ITI’s • Suggestions

  3. Context • Employment Scenario in India(62nd Round of NSSO) • An irony : On One Hand there is vast unemployment/underemployment, on the other there is Manpower shortage in Industry at different levels.

  4. FICCI SURVEY ON EMERGING SKILL SHORTAGES IN INDUSTRY • To get an impressionistic picture of the trades and professions, across different industries, where the demand supply gaps are huge and rising, FICCI conducted a quick survey. • Based on the feedback received from individual companies as well as industry associations FICCI has identified 20 sectors, which deserve immediate attention in terms of promoting skill development and meeting industry requirement.

  5. Emerging skill shortages in the Indian industry Analysis of some major sectors BIOTECHNOLOGY SKILL GAP AREAS : Scientists & Researchers : 80% Shortage Production staff: 18% Shortage Legal and Regulatory experts: 22% • Industry Comments • Companies have reported that on an average they have to spend Rs 2- 6 lacs per person per year on the training of candidates possessing Masters Degree in Biotechnology, Organic Chemistry / Biology. • According to industry representatives the government should put a lot of emphasis on increasing qualified professionals (particularly doctorates) in the following areas – molecular biology, biochemistry, biotechnology, assay development – biology, medicinal chemistry, analytical chemistry, synthetic organic chemistry.

  6. FOOD PROCESSING SKILL GAP AREAS : a) Trades: Refrigeration mechanics,Refrigeration plant operators, Electricians, Fitters : 65% b) Professions: Production managers or supervisors,R&D, Product development technologists to assist in designing, Researching & developing new food products, Food engineers, Food safety and quality assurance, Food microbiologists, Quality assurance scientists,Risk management professionals, Supply chain, Regulatory and legal experts,Technical support : Shortage to the tune of almost 60-70% • INDUSTRY COMMENTS/SUGGESTIONS • Shortage of certificate holders and persons trained in short term courses. • Poor infrastructure at existing organizations like FPTC, ITIs, NCDC, NABARD etc., needs to be strengthened • No specialized institutes for R&D and for imparting specialized skills. E.g.. Food Grain Milling

  7. HEALTH SKILL GAP AREAS : a) Doctors : No in 2005 – 592,215 , Addition to the pool every year 22,000, Projected demand in 2012 : 1,200,000 b) Nurses: No in 2005 – 929,826, Projected Demand in 2012 –1,109,826 c) Paramedics, Radiographers, Physiotherapists, Radio-physicists, ECG technicians, OT technicians and Audiometrists INDUSTRY COMMENTS/SUGGESTIONS Large Skill Gaps expected in next 5 years : Basic cardiac life support, advanced cardiac life support and advanced trauma life support Skill Gaps expected in Paramedic areas : Radiographers, physiotherapists, radiophysicists, ECG technicians, OT technicians and audiometrists

  8. EDUCATION SKILL GAP AREAS: Faculty (particularly engineering and management), Non – teaching positions, Library staff, Technical staff INDUSTRY COMMENTS/SUGGESTIONS Central universities : Acute shortage of faculty : Especially in disciplines like engineering, management, economics, computer science and IT: 25% to 40%. Even the non-teaching positions are difficult to fill. Private Universities : Acute shortage of faculty members in disciplines like engineering, management, computer science, electronics & communications, etc. The shortage of faculty members in the aforementioned fields ranges from 33% to 75%.

  9. TEXTILES • SKILL GAP AREAS : • Trades : Sewing machine operators, Cutters,Testers, sorters, samplers,Packaging and filling machine operators, Textile machine bleaching and dyeing machine operators,Pressers • Professions : Textile engineers (machinery design), Production engineers, Extruding and forming machine setters, Fashion designers, CAD designers, Management professionals, Retail sales professionals INDUSTRY COMMENTS/SUGGESTIONS About one million new jobs would be created in the textiles sector over the next few years with a projected investment of over 90,000 crore.

  10. BANKING AND FINANCE SKILL GAP AREAS : Risk management professionals, IT – professionals, security management, delivery channel, Forex / Treasury management professionals, Credit operations professionals, Insurance professionals, Financial analysts, Wealth managers INDUSTRY COMMENTS/SUGGESTIONS Responses received from companies from the banking and finance sector show that in the year 2006 companies faced an acute shortage in several professional categories Risk managers – Shortage to the extent of 90% IT professionals – Shortage to the extent of 65% Treasury managers –Shortage to the extent of 50% Credit operations professionals –Shortage to the extent of 75% Financial analysts – Shortage to the extent of 80% Wealth managers – Shortage to the extent of 80% Economic and Planning analysts – Shortage to the extent of 80%

  11. RETAIL SKILL GAP AREAS : Customer care and sales executives, Category / line / floor managers, Merchandisers, Visual merchandisers,Store managers INDUSTRY COMMENTS/SUGGESTIONS : Responses received from companies from the sector show that in the year 2006 companies faced shortage in the following professional categories – Operations / shop floor executives – Shortage to the extent of 20% Visual merchandisers – Shortage to the extent of 50% Purchase managers / Merchandisers – Shortage to the extent of 30%

  12. WHY SKILL SHORTAGES : • Old syllabi being taught and continuing for last many years-No takers for these skills in outdated courses • Mismatch between skill produced by training institutions and skills required by Industry due to poor industry linkages. • Vocational training institutions are not adequate in number to train the new entrants to the labour market. Against 12.8 million, new entrants every year there is an institutional capacity to train only 3 million.

  13. While on one hand, the level of educational attainment of the existing work force is very low, on the other hand the educated without professional skills constitute 69% of the total unemployed. • Not enough employment market surveys, counselling services, and employment exchanges working on old patterns discharging merely referral functions • Training institutions are not well equipped in terms of faculty and training infrastructure.

  14. FICCI Survey of ITIs • Context : FICCI did a survey of 100 ITIs to determine whether they are equipped to cater to the vocational training needs of India • Survey Findings: About 35% of ITIs reported under utilisation of seats • Basic industrial trades offered by these ITIs had no market demand • Trades offered by participating ITIs varied between 2- 38 as against 110 government approved trades • 82% of ITIs had placement services

  15. FICCI Survey of ITIs Contd.. • Non availability of Numerically Controlled (NC) & Computerized Numerically Controlled machines (CNC) - a serious deficiency • Inadequate supplies of raw material- only 6% of expenses allocated • Shortage of staff- 89% ITIs had staff strength less than the sanctioned strength • 70% of ITIs did not have allocated budget for staff training & development • 28% of the ITIs reported no industry interface • 32% ITIs reported lack of appropriate supervision

  16. FICCI Survey of ITIs Contd.. Average Allocation of Budget by the ITIs

  17. What can be done : FICCI’s Suggestions • Public Private partnership scheme to revamp ITI’s should start at the earliest, removing all glitches, including finalization of MoU’s. • The State Government should inform the partner industry about the ITI’s allocated at the earliest possible. In this context, we have heard only from the Government of Maharashtra. • Skill- Building initiative to be given industry status. • NCVT to be restructured with setting up State arms. • Industry’s role as short term or long term skill provider needs to be recognized and the process should be incentivised.

  18. FICCI’s Suggestions contd. • Skill certification should be broad based, identifying the role of the private sector. • Short term or modular skill courses to be given priority keeping in view the size of the country and the number of people working in the informal sector. • A separate directorate under Ministry of Labour should be created to promote short-term modular courses.

  19. THANK YOU !!

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