Vocational Education in India

Why in News?

Recently, there is a huge decrease in skilled workforce in India due our traditional academic and rote-based education system.

What is vocational Education and training?

• Vocational Education and Training (VET) – It is a training that provides the specific, hands-on skills and knowledge needed for a particular job or trade, preparing students for direct entry into the workforce or self-employment
• Examples – Industrial Training Institutions (ITI), polytechnics, and privately run training institutes are categorized as vocational training.
• High schools under government initiatives such as Skill India, PMKVY, and Samagra Shiksha Abhiyan also do the same.
• Difference

What is the status of VET in India?

• Skilled workforce in India – Only 4% of India’s workforce is formally trained.
• Institutional coverage of VET system – It is extensive with over 14,000 Industrial Training Institutes (ITIs) and 25 lakh sanctioned seats.
• Actual enrolment – It was only around 12 lakh in 2022, implying just 48% seat utilization.
• Low employment rates – Our VET system struggles with not only low uptake but also modest employment rates for those who undergo training.
  • For instance, in 2018, the employment rate among ITI graduates was 63%, whereas countries with robust VET systems such as Germany, Singapore, and Canada reported employment rates ranging between 80 and 90%.

• Schemes – Indian government has introduced many schemes that reflect an increased focus on employment outcomes.
• Employment Linked Incentive (ELI) scheme – ELI Part A offers up to Rs 15,000 for first-time EPFO-registered workers,
  • Revised ELI, 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.
• The Prime Minister Internship Scheme – It aims to provide one-year placements to youth in top companies, but lacks pathways to permanent jobs.
• The ITI Upgradation Scheme – It focuses on modernising 1,000 government ITIs in partnership with industry, but not necessarily the quality of training.

What are the challenges faced by India’s VET system?

• Stage of integration of VET – In India, VET is a late addition offered after high-school education.
• This shortens the period available for hands-on training before the youth enter the job market, and also does not allow for orientation towards employable skills.
• Countries that introduce VET earlier in the schooling system show a stronger association with better labour market outcomes.
  • For example, In Germany, VET is integrated at the upper secondary level through a dual system, combining school education with paid apprenticeships.
• Absence of a defined pathway – India offers no formal academic progression from VET to mainstream higher education, nor does our education system offer credit transfers between systems.
  • For instance, Singapore offers VET either as technical education at the post-secondary level or via polytechnics at the tertiary level through dual vocational tracks, but has defined pathways from VET to traditional university education.
• This reduces the uptake of VET by many who wish to keep the option of traditional, academic education viable.
• Perception and quality of VET in India – In India, many courses are outdated and misaligned with industry needs.
• Singapore has industry led curriculum design, high instructor quality, regular audits and a mechanism that seeks constant feedback from employers and trainees.
  • For example, Singapore also has a Skill Future Programme, where the government offers subsidies to upskill throughout one’s career.
• Staff vacancy – Over one-third of ITI instructor posts are vacant due to limited training capacity at National Skill Training Institutes.
• Weak monitoring – Quality monitoring is weak, with irregular ITI grading and no feedback systems.
• Less private sector involvement – In India, the engagement of employers in the private sector is limited, if not absent.
  • For example, In Germany, Singapore, and Canada, governments fund VET institutions, while employers pay for apprenticeships, share training costs, and also help design curricula.
• Medium and Small Scale Enterprises drive local job creation, but have low engagement with ITIs due to capacity constraints.
• Lack of funds – ITIs depend heavily on government funding, with minimal private sector investment in infrastructure and training apparatus.
  • For instance, India allocates around 3 per cent of total education expenditure to VET, compared to 10-13 per cent in countries like Germany, Singapore, and Canada.
• Inefficient Sector Skill Councils – Sector skill council play a key role in integrating training with industry needs, but lack state-level presence.

What can be done to overhaul India’s VET programme?

• Integrate VET into early schooling – The National Education Policy (NEP), 2020 recommends such integration, but progress has been slow.
• Fast track reforms – Implementing the National Credit Framework that defines clear progression pathways and aims to have a board for nationally recognised certifications.
• Improve training quality – Align VET courses with local industry demand through regular market assessments.
• Expand recruitment – Enlarge the NSTIs and fast-track instructor recruitment to address capacity gaps, and strengthen ITI grading by incorporating trainee feedback.
• Partnerships – Scale models like the Private Training Partner approach by leveraging public infrastructure and private expertise.
• Utilize CSR – Involve MSMEs, and strategically use CSR funding to boost industry relevance.
• Increase public spending – Ensure the financial viability of institutions by linking public funding to their performance and granting them autonomy to generate their own revenue.

What lies ahead?

• Overhauling of the skill development system could transform the level of productivity and employability of our workforce.
• Such a renovation is crucial for making vocational training a pathway to jobs an essential step towards a Viksit Bharat.

Reference

The India Express| Vocational Education in India