SKILL DEVELOPMENT

INFORMATION PACK

Gujarat CSR Authority

Table of Contents
1. Skills Development Scenario in India 2

1.1. Skill Development- Globalization, competitiveness and the knowledge economy 2

1.1.1. Key statistics-India & other countries-HDI 4

1.2. Schemes and Programmes: National targets 5

2. Gujarat State: Employability scenario 6

2.1. Key Statistics – Gujarat 6

2.2. Schemes and Programmes in the State of Gujarat 9
2.3. Gaps in Skill Development 10

3. CSR- Corporate initiative in Skill development 11

3.1. Programmes by Flagship companies in Gujarat 11

3.2. Programmes by Flagship companies-Other states 12
3.3. Best practices 13

4. Takeaways for Companies 14

4.1. Support from GCSRA 14

5. E- Glossary 14
1. Skills Development Scenario in India
1.1. Skill Development- Globalization, competitiveness and
the knowledge economy
Skill Development is an important indicator of a country’s economic productivity, as it is an enabler of
productivity and employability. In comparison to developed countries, where the percentage of skilled
workforce is between 60% - 90% of the total workforce, India records a low 5% of workforce (20-24 years) with
formal vocational skills.1 The Indian Government has accordingly identified and prioritized skill development
as a critical contributing factor in its growth story with an identified goal to skill 500 million individuals by
2022.2

The Government of India acknowledges that a lot needs to be done to engender more employment
opportunities for the majority of Indians, to enable them to participate in and contribute to India’s growth. A
knowledge economy requires India to develop workers –workers and knowledge technologists both - who are
flexible, analytical and can be the driving force for innovation and growth.

Countries that have had the most rapid increases in educational attainment, as well as sustained economic
growth, have upgraded education sequentially. In a globalized economy, a large pool of skilled workers is a pre-
requisite for attracting foreign direct investment. Developing skilled workers enhances the efficiency and
flexibility of the labour market; skills-related bottlenecks are reduced, and also improves their job mobility. It is
crucial to invest in quality secondary and tertiary education and in vocational education and training (VET) if
India’s economy is to develop and remain competitive in world markets. 3

Few facts and figures

 54% of India’s population is below 25 years of age and over 62% of the population is the working-age
group. Yet, only 4.69% of the Indian population has undergone formal skills training. 4

 93% of India’s workers work in the unorganized sector and acquire skills through informal channels
and lack formal certification. 5

 Recent skill gap reports suggest that over 109 million incremental human resources will be required in
India alone, across 24 key sectors by the year 2022. 6

There is a large population which is unskilled due to unavailability of sufficient infrastructure due to which
they are unable to get decent employment. Moreover, there is a concern of low productivity due to
inadequate skilling. This has resulted in a dismal inclusive growth in the country. 7

1 http://www.skilldevelopment.gov.in/background.html
2 http://economictimes.indiatimes.com/jobs/indias-young-demography-to-drive-growth-500-million-indians-need-to-be-skilled-and-
made-employable/articleshow/msid-31911170,curpg-3.cms?from=mdr
3 http://web.worldbank.org/archive/website01291/WEB/IMAGES/INDIAVOC.
4 http://pib.nic.in/newsite/efeatures.aspx?relid=125040
5 http://pib.nic.in/newsite/PrintRelease.aspx?relid=133233
6 Ibid page 3-4
7 http://planningcommission.gov.in/aboutus/committee/wrkgrp12/wg_skill_develop.pdf
Some key statistics pertaining to employment situations [2009-10] are:

Table 1: Key statistics pertaining to employment situations in India [2009-10]8

Total Labour Force 47.50 Crore

Total Employment 46.55 Crore
Total number of open employment 0.95 Crore
Employment in organized sector 2.81 Crore
Employment in unorganized sector 43.74 Crore
No. of job seekers in Employment 3.88 Crore as on 31/12/2010)
Skilling Bodies in India NSDC,NSDA,DT, MoRD, NCVT, Ministry of skill development &
Entrepreneurship
Source: Report of the working group on skill and training- Planning Commission (2012-17)

Table 2: Projected Employment 2011-179

Year GDP growth Projected employment (in million)

rate Agriculture Industry Services Total
2011-12 9% 229.2 105.0 153.5 487.7
7% 225.4 102.0 149.0 476.4
5% 221.5 99.1 144.6 465.2
2016-17 9% 240.2 126.2 189.5 555.9
7% 232.0 116.8 174.8 523.5
5% 224.0 108.1 161.2 493.3
Source: FICCI Knowledge Paper on Skill Development in India 2012

The National Skill Development Policy 2009 was a turning point in the skill journey as it marked the beginning
of some fundamental changes in the way vocational education is approached. Many important steps such as
setting up Sector Skill Councils and creation of National Occupation Standards, skill gap studies across sectors
and across geographies to understand youth aspiration, National Skills Qualification Framework, etc. have been
subsequently taken up. The National Skill Development Corporation – a PPP venture has also been successfully
engaging private training providers in India’s skilling agenda.10

The government has identified 20 high-growth sectors of industries and services that have the ability to provide
expanded employment. It consists of 10 high-growth sectors on the manufacturing side and an equal number
on the services front. It is necessary to develop proper skill training mechanisms as the skill sets that are
required in the manufacturing and services sector are customized and different from that of agriculture.11

Table 3: Growth in manpower requirement by 2022

Key Sectors Growth in manpower requirement by Human resource requirements across

CAGR 2008 -202212 select sectors till 2022(in million)13
Auto and Auto components 9.8% 35.0
Building and construction 6.2% 33.0
industry
Textile and clothing 4.0% 26.2
Organised Retail 33.8% 17.3
Real Estate services 6.0% 14.0
IT and ITeS 9.2% 5.3
Gems and Jewellery 6.5% 4.7
Leather and Leather goods 7.6% 4.5
BFSI 5.0% 4.3

8 http://planningcommission.gov.in/aboutus/committee/wrkgrp12/wg_skill_develop
9http://www.ey.com/Publication/vwLUAssets/FICCI_skill_report_2012_finalversion/$FILE/FICCI_skill_report_2012_finalversion_low

_resolution.pdf
10 http://ficci.in/spdocument/20405/FICCI-KPMG-Global-Skills-report.pdf
11http://www.ey.com/Publication/vwLUAssets/FICCI_skill_report_2012_finalversion/$FILE/FICCI_skill_report_2012_finalversion_low

_resolution.pdf
12 Ibid pg 7-8
13 http://ficci.in/spdocument/20073/imacs.pdf
 1.1.1. Key statistics-India & other countries-HDI
Table 4: Comparison of Work & Employment Human Development Index (HDI) among countries

Work and Employment-HDI14

Employment Unemployment Labour productivity

Employm Labour Employment Employment Labour Vulner Total Long Youth Youth not Hours
ent to force in in services force with able term in school Output per worked
populatio participa agriculture tertiary emplo or worker per
n ratio tion rate education yment employme week
nt
Country

(% of labour force)

(% of youth labour

(% ages 15–24)
(% ages 15 and

(% ages 15 and

employment)

(2011 PPP $)

(per employed
employment)
(% of total

(% of total
older)

older)

person)
(%)

force)
2013 a 2013 a 1990 b 2012 e 1990 b 2012 e 2007- d 2008- d 2008- d 2008- d 2008- d 2008- d 2005- d 2003- d

2012 2013 2013 2013 2014 2013 2012 2012

India 52.2 54.2 .. 47.2 .. 28.1 .. 80.8 3.6 1.4 10.7 .. 8,821 ..

Bangladesh 67.8 70.8 .. 48.1 14.8 37.4 .. 85.0 e 4.5 .. 8.7 .. 3,457 44.3

Bhutan 70.9 72.5 .. 62.2 .. 29.1 .. 53.1 2.1 .. 9.6 .. 11,438 ..

79.2
Cambodia 82.3 82.5 .. 51.0 .. 30.4 .. 64.1 0.3 .. 0.5 3,849 ..

South
39.2 52.1 .. 4.6 .. 62.7 6.6 10.0 24.7 15.5 51.4 31.4 35,206 ..
Africa
Viet Nam 75.9 77.5 .. 47.4 .. 31.5 .. 62.6 2.0 0.3 6.0 9.3 5,250 ..

14 HDI Report UNDP 2015

1.2. Schemes and Programmes: National targets
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the Pradhan Mantri
Kaushal Vikas Yojana (PMKVY) with an outlay of Rs.12,000 crore to impart skilling to one crore people over the
next four years (2016-2020). 15 PMKVY will impart fresh training to 60 lakh youths and certify skills of 40 lakh
persons acquired non-formally under the Recognition of Prior Learning (RPL). The government has set a target
to provide skill training to about 40 crore people by 2022.16 Some of the flagship schemes of Government of
India on skill development are highlighted in the table below:

Table 5: SD Schemes of the Government of India

Pradhan Mantri Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is the flagship outcome-based skill training
Kaushal Vikash scheme of the new Ministry of Skill Development & Entrepreneurship (MSDE). The objective
Yojna of this skill certification and reward scheme is to enable and mobilize a large number of
Indian youth to take up outcome based skill training and become employable and earn their
livelihood. Under the scheme, monetary reward would be provided to trainees who are
successfully trained, assessed and certified in skill courses run by affiliated training providers
Vocationalisation of The Centrally Sponsored Scheme of Vocationalisation of Secondary Education provides for
Secondary diversification of educational opportunities so as to enhance individual employability, reduce
Education the mismatch between demand and supply of skilled manpower and provides an alternative
for those pursuing higher education
Star Scheme The National Skill Certification and Monetary Reward Scheme, known as STAR (Standard
Training Assessment and Reward),was operational between August 2013 and September
2014.NSDC is the designated implementing agency of the scheme and is working through
various Sector Skill Councils (SSCs), Training Providers (TPs) and independent Assessment
Agencies (AAs)
Craftsmen Training The scheme aims to provide a supply of semi-skilled labour and reduce unemployment among
Scheme the educated youth. The period of training for various trades varies from six months to two
years and the entry qualification varies from 8th to12th class pass, depending on the
requirements of training in different trades. About 70% of the training period is allotted to
practical training and the rest to theoretical training relating to Trade theory, Workshop
Calculation & Science, Engineering Drawing, Social Studies including environmental science
& family welfare.
Women Training A network of institutes, both under Central & State Governments, has been setup to extend
vocational training facilities solely to women which aim at stimulating employment
opportunities among women of various socio-economic levels and different age groups.
Vocational Training is presently being provided in diverse fields such as Electronics
Mechanic, Secretarial Practice, Architectural Draughtsmanship, Hair & Skin Care, Computer
Operator and Programming Assistant, Dress Making, Catering & Hospitality, Interior
Decoration & Designing etc.
Apprenticeship Apprenticeship scheme aims to provide in-house training to employees working in the
scheme company. Training comprises Basic Training and Practical Training followed by
Related Instructions as per prescribed syllabus for each trade.
Modular employable Modular employable skills scheme focuses on the delivery of short-term courses of the
skills scheme National Council for Vocational Training (NCVT) with the objective of providing employment.

15 http://pib.nic.in/newsite/PrintRelease.aspx?relid=147025
16 http://pib.nic.in/newsite/PrintRelease.aspx?relid=123296
2. Gujarat State: Employability
scenario
2.1. Key Statistics – Gujarat
The demographic and social profile of Gujarat presents a unique human resource opportunity for economic
growth through manpower skilling. Priority sectors from a manpower development perspective include Textiles
and Apparel, Chemical and Chemical Products, Auto and Auto Components, Engineering Goods, Port based
industries, Banking and Financial Services, Transportation and Logistics, Retail and IT/ITES. Priority districts
from a manpower development perspective include the cities/towns of Ahmedabad, Vadodara, Surat, Kutch,
Rajkot, Jamnagar, Gandhinagar and Bharuch.17

Keeping in view the current position of the state, along with possible economic growth that could be facilitated
in various sectors through favourable policies, an estimate of the additional increase in incremental manpower
requirement during XII plan (2012-17) and XIII plan (2017-22) periods, would be over 3 million and 2.63
million respectively. Demand Supply gap estimates indicate a need to improve participation rates in semi-
skilled categories along with providing vocational skills to high skilled labour force as well, considering the high
level of employment opportunities in semi-skilled category within the state. 18 Gujarat has a significant
demographic dividend in the near term, with a rising working age population.

 Between 2012 and 2017, an additional 60.51 lakh are expected to enter the working age group
population followed by another 56.67 lakh during 2017-22 (these are Gross numbers, without netting
off retirees).19
 Considering the historical trends in labour participation rates of Gujarat, the state would witness a
gross addition of 35.15 lakh and 32.90 lakh people to its labour force (i.e. portion of the working age
population willing to seek employment and work) during 2012-17 and 2017-22 respectively ).20 Further
accommodating for retirement from the existing pool of labour force, Gujarat is expected to register a
net addition of 20.41 lakh to the labour force during 2012-17, and another 15.83 lakhs during 2017-22.
 Labour force measured from number of people looking for employment in the working age group is
expected to reach 259 million by 2022. 21

Table 6: Key statistics Economic Performance –Gujarat & India

Indicator Gujarat India

GDP in INR Cr (At Current Prices-2012) 6,11,767 83,53,495
Net Domestic Product in INR Cr (At Current Prices-2012) 5,33,390 74,76,764
Per Capita Income in INR(At Current Prices- 2011) 89,668 61,564
Monthly Per Capita Consumer Expenditure in INR (NSS 66th
Round)
Rural 1,065 953
Urban 1,914 1,856
Population in BPL Category (NSS 61st Round) 16.80% 27.50%
Primary Sector
Total Cropped Area(h.a) 4,238 63,196
Net Irrigated Area(h.a) 4,238 63,196
Area Under Horticultural Land(h.a) 1,054 20,875
Total Livestock in 000s 23,515 5,29,698
Fish Production in 000 tonnes(2009-10) 771 7853
Value of Mineral Production in INR Cr(2009-10) 13,701 1,87,717

17 http://www.nsdcindia.org/sites/default/files/files/gujarat-sg-report.pdf
18 Ibid pg 8-10
19 Ibid pg 6-8
20 Ibid pg 6-7
21 Ibid pg 59-60
 Secondary and Manufacturing Sector
Number of Factories(2010-11) 21,282 2,11,660
Output Value in INR Cr(2010-11) 8,06,783 46,85,213
Industrial Employment in Lakhs (2010-11) 19.12 287.10
Services and Tertiary Sector
Number of Scheduled Banks(2012) 5,076 92,960
Total Road Length in km 1,46,630 30,47,783
Total Railway length(2008) 5,328 63,273
Ports 42 199
Source: NSDC Skill Gap report on Gujarat 2012-17, 2017-22

Gujarat has significant regional variations in manpower requirements with the districts of Ahmedabad, Surat,
Vadodara, Rajkot, Kutch, Bhavnagar and Gandhinagar expected to drive the employment growth during 2012-
22. On the other hand, the districts of Dangs, Narmada and Tapi would be expected to have low potential to
absorb trained youth, indicating that these regions could become training ground for skilled manpower to be
placed in industrial clusters of Ahmedabad, Surat and Vadodara.22 Details of district wise incremental
manpower break up along with key sectors accounting for the major employment share are presented in the
table.

Table 7: Incremental Human Resource requirement in Gujarat (2012-22)

Incremental Incremental
Manpower manpower
District Focus Sectors
Requirement requirement
2012-17 2017-22
Ahmedabad 4,03,268 3,44,929 Textile and apparel, chemicals & chemical products, drugs and
pharmaceutical, agro and food
processing,automobiles,engineeering,electronics,IR-
ITES,Hospitality,Banking & Financial services
Surat 3,79,442 3,28,062 Textiles and Apparel, Chemicals & chemical products, Gems &
Jewellery, Drugs and Pharmaceutical, Ports and IT-ITES
Vadodara 2,62,543 2,23,794 Chemicals & Petrochemical, Pharmaceutical, Biotechnology
Rajkot 2,00,565 1,73,261 Engineering and electronics, Textile & apparel, Chemicals
infrastructure
Kutch 1,54,526 1,31,970 Minerals, Port based industries, Marine Chemicals, Engineering,
Infrastructure Projects, Chemicals, Ceramics and Textiles
Valsad 1,34,276 1,14,841 Chemicals, textiles, horticulture and paper industry
Bhavnagar 1,33,884 1,13,537 Diamond cutting& polishing, cement & gypsum, inorganic salt
based and marine chemicals , shipbuilding , ship repair, oxygen,
foundry, re rolling, ceramics, fabrication and food processing
industries
Gandhinagar 1,25,415 1,04,313 Food processing, Electronics, Textiles IT-ITES
Bharuch 1,22,415 1,05,740 Chemicals, Petrochemicals & Pharmaceuticals, Engineering,
Ports & Ship building, Textiles
Kheda 1.09,427 92,949 Agriculture, Mineral based industries, Plastics, Engineering, and
IT-ITES
Mehsana 1,08,073 92,158 Cultivation, Engineering Industry and Food Processing
Banas Kantha 1,03,264 88,783 Food Processing, Tourism, Mineral Based Industries,
Construction Material
Junagadh 1,02,474 89,401 Mineral based cement industry, Fish processing industry,
Agriculture based industry, Power sector
Jamnagar 99,648 85,788 Brass Parts, Petroleum and Petrochemicals, Salt and Ports
Sabar Kantha 94,737 81,790 Agriculture, ceramics, chemicals and milk processing
Panchmahal 85,765 74,370 Tourism, minerals, engineering & automobiles, irrigation
projects, dairy farming

22 http://www.nsdcindia.org/sites/default/files/files/gujarat-sg-report.pdf
 Incremental Incremental
Manpower manpower
District Focus Sectors
Requirement requirement
2012-17 2017-22
Anand 76,021 64,703 Food & Agriculture, Engineering & Auto parts, Chemicals, Port &
Ship, Building, Minerals and Cement
Surendranagar 71,283 60,950 Textiles, Chemicals and Ceramics
Dahod 64,919 56,323 Food products, rubber and plastic products and mineral based
industries
Navsari 61,337 52,061 Food processing, textiles, drugs and pharmaceuticals
Amreli 56,666 48,645 Engineering Goods, Port and ship, building, Mineral processing
and cement
Patan 46,027 39,067 Food processing, paper and pulp and cotton based industry
Porbandar 28,898 23,643 Port ship building, cement industry, mineral based industries
Tapi 28,162 24,077 Agro based industries, Textiles
Narmada 26,332 22,020 Textiles, food & agriculture and chemicals
The Dangs 17,610 15,218 Agri allied activities, wood and wooden products, food processing
Source: District wise skill gap study for the State of Gujarat-NSDC 2012-17, 2017-22)

Table 8: Overall Training Capacity of Gujarat (Targeting to reach 25 lakh per annum by 2017)

Department HOD/Scheme Training Capacity

Labour and Employment Directorate of employment and training(DET) 8,30,841

Rural Development Gujarat Livelihood Promotion Company Limited 55,000
Education Society for creation of opportunity through proficiency in 1,00,000
English(Scope)
Gujarat Knowledge Society(GKS) 50,000
Graduation & Post Graduation 1,67,161
Industries and Mines Commissionerate of Industries,CED,Commisionerate of Cottage 50,000
Industries(Industries responsive –Short Term & Long Term)
Urban Development UMEED(Gujarat Municipal Finance Board ) 1,10,000
Tribal Development D-SAG 7,000
Other Department Miscellaneous short term modular training 10000
Total 13,80,002
Source: Report Gujarat Sector Profile-Vibrant Gujarat -2015

Vocational Education is another stream of higher education in Gujarat that caters to the ever increasing
manpower needs of industrial growth in the state. Public and private polytechnics and vocational training
institutions (ITI s/ ITCs / VTPs) exist in the state which are controlled and supervised by National Council for
Vocational Training (NCVT) and Gujarat Council for Vocational Training (GCVT). The training capacities in
Government institutions still forms major share (73.8 percent) of overall vocational training capacity.23
Vocational training infrastructure in institutions offering accredited courses under NCVT/GCVT is presented in
the table below:

Table 9: Vocational training institutions in Gujarat

Category of Institutions Training Capacity

ITIs 1,01,973
ITCs 14,864
VTPs 21,269
All Vocational Training Institutions 1,38,106
Source: District wise skill gap study for the State of Gujarat-NSDC 2012-17, 2017-22)

23 http://www.nsdcindia.org/sites/default/files/files/gujarat-sg-report.pdf
2.2. Schemes and Programmes in the State of Gujarat
Gujarat Skill Development Mission

The objective of the mission is to create an overarching integrated framework for action for skill development
and to act as apex body for monitoring, coordination, convergence and providing overall policy direction for
skill development activities in Gujarat.

Table 10: SD Programmes and schemes in Gujarat

Programmes/ Schemes Present Scenario

under DGET
Kaushlaya Vardhan With a goal of providing employment to the youth, Government of Gujarat started
Kendra(KVK) imparting skill development training to youth through village cluster training centre’s in
villages. 500 KVK has been established in four phases 11.71 lakh trainees have been trained.
eMPower scheme Through this scheme government is providing training related to computer and
information technology to youth. 7, 26, 724 have been registered till date. 6, 05, 249 have
been trained under this scheme
Public Private Partnership Under this scheme upgradation of Government ITIs is being undertaken through Public
Private Partnership
Source: Vibrant Gujarat Skill Ecosystem 2015 (Gujarat Sector Profile)

The state has significant scheme training opportunities through its present set of Government schemes. During
the five year period 2012-17, the major schemes have a potential to train nearly 19 lakh people with SJSRY, SDI-
MES and Agricultural training program accounting for a major share of the same. Details of
scheme/department wise training targets are presented in the table below:

Table 11: Key Schemes with Training mandate and capacity

Key Schemes with Training Estimated Potential Training

Mandate Capacity in Gujarat (2012-17)
SJSRY 3,75,000
SDI-MES 3,00,000
M/O Agriculture 2,50,000
SGSY 2,00,000
Using Construction Cess 1,90,000
ISDS – Textiles 1,15,000
Others 1,10,000
D/O IT 5,0,000
SCA under TSP - M/o Tribal Affairs 30,000
Hunar Se Rozgar 25,000
CSR Funds from Central PSUs 25,000
Credit Scheme 1,05,000
Source: District wise skill gap study for the State of Gujarat-NSDC 2012-17, 2017-22)

Table 12: Vocational training capacity of Directorate of Employment & Training

Type of Institute Number of Institute Training

Capacity / No.
Scheme: Craftsmen Training (CTS) No./Units of Trainees
Industrial Training Government 282 1,30,772
Institute(ITI’s) Grant In Aid 113 13,844
Self-Financed 384 26,715
Number of Establishments Scheme: Apprentice Training Scheme(ATS) 8,547 52,510
Kaushlaya Vardhan Kaushlaya Vardhan Kendra(KVK) 500 33,00,00
Kendra(KVK)
 Type of Institute Number of Institute Training
Capacity / No.
Scheme: Craftsmen Training (CTS) No./Units of Trainees
Govt. & Private Govt. & Private Institutions 625 77,000
Institutions- Vocational
Training
eMPower eMPower 716 2,00,000
Source: Vibrant Gujarat Skill Ecosystem 2015 (Gujarat Sector Profile)

2.3. Gaps in Skill Development

An assessment of the studies and gaps were conducted through a review of reports available in the public
domain. The gaps existing in the skill development sector is highlighted in the table below:

Table 13: Existing Gaps in skill development

Gap Areas Problem description

Mismatch in demand and Supply Demand-Supply gap estimates indicates a need to improve participation rates in
supply semi-skilled categories along with providing vocational skills to high skilled and minimally
skilled labour force to ensure adequate considering the high level of employment
opportunities in semi-skilled category within the state
Existing training Assessment of existing training infrastructure in comparison to human resource demand
infrastructure over XII Plan period, indicates significant capacity expansion requirement for semi-skilled
category through vocational education.
Skilling considering local Issue of low employability of graduates has to be addressed through suitable up skilling
industrial requirements considering local industrial requirements in order to ensure availability of industry ready
manpower.
Entrepreneurship Undertaking suitable measures to promote entrepreneurship among skilled workers
considering the surplus scenario in the segment.
Industry participation and In order to make the skill development system relevant and driven by labour market
Setting up of Sector Skills signals, it is necessary to increase participation of industries through Sector Skill Councils.
Council Functions of SSCs include identification of skill gaps, preparation of Skill Development
plans and establishment of well-structured sector specific Labour Market Information
System to assist planning and delivery of training.
Shortage of quality trainers There is an urgent need for improving the quality and size of trainer resource. Skill up-
gradation of trainers, their quality assurance, and improvement of their status in society
are important to improve quality of training.

Table 14: Gaps between demand and net supply

Period Demand for Gross Addition Gross Addition Net Addition Gap between
Human Resource to Working Age to Labour to Labour Demand &
due to new jobs Population- Force – Supply Force Supply Net Supply
created (Lakhs) Supply (Lakhs) (Lakhs) (Lakhs) (Lakhs)
2012-17 30.95 60.51 35.15 20.41 10.54
2017-22 26.34 56.67 32.90 15.83 10.51
Source: District wise skill gap study for the State of Gujarat-NSDC 2012-17, 2017-22)

The shortage of skilled labour across many industries is emerging as a significant and complex challenge to
India's growth and future. It is widely acknowledged that knowledge and skill of people are critical to sustain
development, economic and social activity for a developing society. Given the current high-paced growth and
dynamic investment climate in India, the demand for knowledge workers with high levels of technical and soft
skills would be on the rise.
3. CSR- Corporate initiative in Skill
development
3.1. Programmes by Flagship companies in Gujarat

Table 15: Programmes by Flagship companies in Skill sector in the State of Gujarat

Companies Programmes

Ambuja Cement ACF’s Skills and Entrepreneurship Development Institute is a unique intervention program
Foundation providing demand based courses from location-specific industries and students. The
initiative goes a long way in creating sustainable sources of income for locals. The centre runs
courses in Fitter, Electrical & Welder Trades in ITI mode & Industrial Electrician, Turning,
Fabrication, Mason and Bed Side Attendant Training.24

Deepak Public Health Training Institute (PHTI): Deepak Foundation has an MoU with the
Foundation Department of Health and Family Welfare to impart skills training to grassroots health
functionaries and build their capacities. With this goal in mind, a state-of-the-art Public
Health Training Institute (PHTI) was established in 2011 that is being utilized for conducting
trainings and capacity building sessions of functionaries in livelihood and healthcare sector.
With an emphasis on practical and innovative training mechanism, the Foundation has
become a well-known training institute imparting training in multiple sectors.25

Adani Foundation Adani Skill Development Centre: Adani Foundation has set up the “Adani Skill Development
Centre” (ASDC) and supports various Industrial Training Institutes (ITIs) in Gujarat to
impart technical training to the youth of the region. In Mundra, considering the future
manpower requirements at the Mundra port and other ancillary industries coming up in the
Kutch region, the Foundation has conducted training courses for English speaking, Light
Motor Vehicle (LMV), Heavy Motor Vehicle (HMV), Automobile repairing and so on. 26
L&T The vocational training institute of L&T (in Ahmedabad) provides skill based training in
masonry, agro mechanics, electricals, fabrication, welding, and housekeeping. Various
diploma courses are also conducted by L&T Institute of technology for the children of their
employees. L&T has developed training modules in local language for imparting skill sets in
construction.27

Essar Foundation Essar Foundation helps young people achieve their aspirations by enabling them to acquire
skills and encouraging them to start their own enterprises, become self-sufficient and
sustainable by providing training in self-employment and supporting entrepreneurship.28

NIIT NIIT Yuva Jyoti Limited (NYJL) – a joint venture of NIIT and NSDC, NYJL has trained
aspiring students under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), across three
sectors – Telecom, Retail & IT in Gujarat and other states. It is also participating in the
country’s flagship welfare schemes like Deen Dayal Upadhyaya Grameen Kaushalya Yojana
(DDU-GKY) and National Urban Livelihoods Mission (NULM). The skill development
initiatives of NIIT span across India, in states like Bihar, Gujarat, Kerala, Uttar Pradesh and
Maharashtra.29

24 http://www.ambujacementfoundation.org/focus_areas/sedi.html
25 http://www.deepakfoundation.org/
26 http://www.adanifoundation.org/focus-area/initiatives?contentid=vocational
27 http://www.lntecc.com/HOMEPAGE/CSTI/index.htm
28 http://www.essar.com/section.aspx?cont_id=dGEXBR//MHc=
29 http://businesswireindia.com/news/news-details/niit-congratulates-government-1st-anniversary-skill-india/49392
3.2. Programmes by Flagship companies-Other states
Table 16: Programmes by Companies in Other states

Companies Programmes
Dr Reddy’s LABS programme: Dr Reddy’s Foundation pioneered the Livelihood Advancement
Foundation Business School (LABS) program in this country to help young people, both in urban and
rural settings, to learn skills that will help them to get gainful employment. This program
targets youth – including disabled youngsters – between 18-30 years of age, who were
forced to miss out on formal education. More than 290,000 young marginalized youth
across the country graduated with specialized skills and are economically independent.30
HUL Project Shakti: HUL provides training on basic accounting, selling skills, health & hygiene
and relevant IT skills to Shakti entrepreneurs and equips them with smart phones which
have been enabled with a mini Enterprise Resource Package (ERP) which helps them to
run their business efficiently and further augment their income. Project Shakti provides
livelihood-enhancing opportunities to nearly 70,000 Shakti Entrepreneurs who distribute
our productions in more than 162,000 villages and reach over four million rural
households. There are 48,000 Shaktimaans across India.31

The Indian Hotels Indian Hotels Company (IHCL) AND its subsidiaries collectively known as the ‘Taj Group
Company (IHCL) of Hotels’ set up its first hospitality skills training centre in Khulthabad, Maharashtra, in
association with the non-profit Pratham. The centre offers basic training in hotel industry
processes, including food production, housekeeping, and food and beverage services.
IHCL currently runs 36 such centres in less developed regions of India, such as Kalimpong
in the northeast and Chhattisgarh in central India. About 9,000 youth have graduated
through these programmes, and about 97 percent of them have found jobs in the
hospitality industry. The company has also joined hands with Tata Steel to set up similar
centres at Kolabera near Jamshedpur and at Berhampur, Odisha, and with Tata Chemicals
for a centre at Mithapur in Gujarat.32

Tata Chemicals The vocational training program of Tata chemicals is implemented by TCSRD at its three
locations. Beauty parlour, computer skills, typing, mobile repairing, stitching and sewing,
electrical, motor rewinding, carpentry, photography, desktop publishing are some of the
courses which are being conducted by TCSRD. Additionally, farm-based training
programmes such as pond management, agricultural development services, seed
production, dairy farming, food processing, are also provided for the primary sector etc.

Lupin Foundation Multi Skill training Center: The foundation is focusing on skill enhancement among rural
youth and women to enable them find meaningful livelihood either through self-
employment or wage employment. The objective of the project is to provide skill training
to BPL youths and artisans of the six districts of Rajasthan i.e. Bharatpur, Dholpur,
Karauli, Sawai Madhopur, Dausa & Alwar and to equip rural youths with marketable skill
to enhance their capacity to secure employment in the organized sector or setup micro–
enterprises for self-employment with adequate income generation. The Lupin Foundation
has setup several Multi-Skill training Centre. The Foundation is helping potential
entrepreneur in establishing units’ right from identification of trade to formulation of
project, submission of proposal to banks with soft skills like negotiation, communication
and development of interpersonal skills.33

30 http://drreddysfoundation.org/youth/
31 https://www.hul.co.in/sustainable-living/case-studies/enhancing-livelihoods-through-project-shakti.html
32 http://www.tata.com/sustainability/articlesinside/Life-skills-for-India
33 http://www.lupinfoundation.in/rural-industry
 Companies Programmes
Maruti Suzuki Safe Driving & Road Safety: As a part of its CSR initiatives, Maruti Suzuki has taken
significant steps in the areas of road safety, skill development and community
development. Inspired by the success of IDTR Loni, the company has established another
one in South Delhi. It has trained over 700,000 people in safe driving through them, out
of which 100,000 underprivileged people have been trained free of cost. Presently IDTR
initiatives are operational at 6 locations in 4 states - Delhi (2 institutes), Haryana (2
Institutes), Gujarat and Uttarakhand. In partnership with its dealers, Maruti Suzuki has
created Maruti Driving Schools in urban neighbourhoods to enable middle class families
to learn car driving. To widen the impact of Maruti Driving School, MSIL also sponsors
training of underprivileged youth who aspire to be drivers.34 Recently, MSIL has initiated
a training programme targeted at tribal youth in the State (refer below for details).

3.3. Best practices

Table 17: Few noteworthy CSR practices in Gujarat in the Skill Development

Companies Programmes
Deepak Foundation Public Health Training Institute (PHTI) was established by Deepak Foundation
in 2011-12 based on the emerging needs on completion of large scale
intervention research project. PHTI is driven with an overall objective of
building capacities of grassroots health functionaries and developing evidence
based models of efficient human resource management. Deepak Foundation, in
partnership with the Department of Health & Family Welfare, Gandhinagar
plays crucial role in conducting trainings of ASHAs in the districts of Chhota
Udaipur, Vadodara, Narmada and Sabarkantha .The Foundation utilizes
interactive methods such as participatory discussions, role play, evaluation,
demonstrations, case presentations and film shows to impart effective
trainings. 35

Maruti Suzuki Setting up GUJRATI

In a landmark move the company signed an MoU with the Government of
Gujarat, to set up, manage and run The Gujarat Regional Automobile Training
Institute (to be referred as GUJRATI) at Gajadara village of Waghodia taluka in
Vadodara district. It is the first of its kind initiative in the country. The institute
will not only provide driving training to tribal youth, it will also offer
automobile technical training to them and help their employability.36

34 http://www.livemint.com/Companies/TaxKOLfGwdjWszMaOYvvSO/CSR-spending-Making-the-roads-safer.html
35 http://www.deepakfoundation.org/
36 http://www.karmayog.org/csr501to1000/csr501to1000_20997.htm
4. Takeaways for Companies
 Companies can invest in different thematic areas to address the gaps within the skill sector for the most
backward regions or in regions of Gujarat where communities require support. They are welcome to
reach out to GCSRA for further support to engage in partnerships either in the form of direct CSR
project implementation or as technical assistance provider to organisations who plan to work in the
specific sector.

 Companies can take support from GCSRA in training, capacity building on the CSR policy, governance
and the various CSR value chain activities

 If required and deemed impactful, companies can contribute in joint venture projects with other
companies on state priorities based on HDI

 The GCSRA partnership enables companies to develop networks with Government, civil society / NGOs
and other relevant stakeholders for knowledge sharing, advocacy, sharing of best practices and
challenges to support future strategic directions for CSR activities

 Effective investment in CSR by Companies will help in taking credit for creation of social wealth in the
local community through the following:
 By bringing their project development, planning & execution skills
 By bringing out-of-the box approaches to long standing social problems
 By designing projects with focus on “value for money”

 CSR activities with high impact are best image building exercise for Companies. Effective CSR Planning
will help:
 Improve the visibility of the Company
 Resolve conflict with local community
 Improve branding of the Company
 Bring better credibility with any new business partners

4.1. Support from GCSRA

Gujarat CSR Authority was established through Government of Gujarat, Industries & Mines Department
Resolution dated 19-12-2014. The aim of setting up Gujarat CSR Authority was to -
 Develop a framework for CSR activities in the State
 Identify the best practices in on-going CSR activities
 Assist mid-sized and smaller Companies in effective implementation of their CSR strategy
 Develop into an active umbrella body for advocacy

GCSRA is a Society is headed by Hon. Chief Minister of Gujarat as the Chairperson of GCSRA and the Authority
headed by a highly experienced, retired IAS office; with a high-ranking serving administrative officer in an
executive role.

Functions of GCSRA include - bringing in adequate clarity in new CSR regime, facilitating optimal utilisation of
CSR funds, coordinating, monitoring & implementing various CSR activities in Gujarat, creating a web portal to
highlight and facilitate CSR activities in the State, channelizing CSR funds as per HDI based sectoral priorities
& also in 50 most backward talukas, creation of a CSR fund by receiving contribution from various companies
and address policy and implementation issues. In line with the above, the following support is available from
GCSRA for companies who are implementing or planning to implement CSR activities in the State.
Support available from GCSRA for companies:

1. Development of CSR Strategy & Annual Plan

 Consultations and specific support on CSR strategy and project planning to the companies, with
similar sectoral status papers (on the priority sectors) to be uploaded on the GCSRA website
2. Development of CSR plan linked with EIA proposals
 Survey & needs assessment of area(s) for guiding the development of a need-based CSR plan
 Implementation of CSR plan in the area
3. Support for creating a dedicated CSR team
 Assistance and support in recruitment of quality personnel and their capacity building
 Developing systems for CSR project administration
4. Development of innovative project ideas for project investments as per States priority areas
5. Development of sector specific funds meant to-
 Provide an effective mechanism to the small & mid-size Companies to implement small but
impactful CSR programmes either jointly or alone
 Under the same, Companies can either directly implement their programmes as part of the fund or
contribute to the specific fund. Large Companies having year-end unspent CSR fund can also
deposit the amount with any Fund with specific instruction
6. Other implementation related assistance
 Identification of credible implementers - implementing agencies getting scrutinized through a
structured due diligence process, for facilitating their selection
 Assistance in developing Detailed Project Reports
 Registration of individual company’s CSR plans on Authority’s website and linking it with a query
builder software for obtaining information of other companies involved in similar projects
 Organising regional consultations and seminars for better understanding and networking
 Developing App based monitoring and project management software
 Review, monitoring and evaluation of the projects, including documentation support

GCSRA will ensure provision of full credit, visibility and publicity for the interventions of the
funding company.
5. E- Glossary
1. Comparison of Work & Employment Human Development Index (HDI) among countries
: (UNDP HDI report 2015)
i. Notes to Table 4

a. Modelled ILO estimates

b. Data refer to 1990 or the most recent year available

d. Data refer to the most recent year available

e. Refers to a year between 2003 and the earliest year in the column heading.

ii. Definitions for Table 4

Employment to population ratio: Percentage of the population ages 15 and older that is
employed.

Labour force participation rate: Percentage of a country's working-age population that

engages actively in the labour market, either by working or looking for work. It provides an
indication of the relative size of the supply of labour available to engage in the production of
goods and services.

Employment in agriculture: Share of total employment that is employed in agriculture.

Employment in services: Share of total employment that is employed in services.

Labour force with tertiary education: Percentage of the labour force that has attained the
tertiary level of education that is levels 5, 5A, 5B and 6 of the International Standard
Classification of Education.

Vulnerable employment: Percentage of employed people engaged as unpaid family workers

and own-account workers.

Unemployment rate: Percentage of the labour force population ages 15 and older that is not
in paid employment or self-employed but is available for work and has taken steps to seek paid
employment or self-employment.

Youth unemployment rate: Percentage of the labour force population ages 15–24 that is
not in paid employment or self-employed but is available for work and has taken steps to seek
paid employment or self-employment.

Youth not in school or employment: Percentage of young people ages 15–24 who are not
in employment or in education or training.

Output per worker: Output per unit of labour input, expressed as GDP per person engaged,
in 2005 international dollars using purchasing power parity rates.

Hours worked per week: The number of hours that employed people (wage and salaried
workers as well as self-employed workers) work per week.