Sunday, July 28, 2013

Skilled Labour & Workforce – Need of the Hour – July 2013

It’s been 66 years since independence. We have seen eras with 4% Hindu rate of growth to 9% of accelerated growth. There have been times when India has been self sufficient despite of throwing multinationals out of India and there have been times, when Indian policy makers have changed rules and have open doors to those multinationals to bring precious foreign currency back in India and give boost to the ailing economy. In all these 66 years what has not happened is inclusive growth.

Definition of Poverty has changed, number and statistics have changed but average Indian still reels under pressure to meet his basic necessities meet. He looks at the government to give him food, and shelter at subsidized rates or free so that he can feed his family and make his ends meet. Various state governments and Central government have tried to provide for his basic necessity of food, earlier through Public distribution system and now through Food Security Bill.
Still average Indian still looks upon government for his sustenance. It means, in case, if government fails, which can be possibility despite of ordinance, then he fails to provide food and shelter to his family and thus he and his family can die due to hunger.
Government is the caretaker of the country and its people; its job is to ensure creating capabilities and creating environment and infrastructure to ensure self sustained people, fending for them. But instead what government is spending is on today’s needs to live rather (Non developmental expenditure) rather than building skillset for future.
In 66 years of independence building 30 technical institutes which have some most fierce entrance examination can surely be counted as success. But what happens to millions of students who enter primary education and don’t have willingness and resources to sit for IIT and other engineering examinations. They all have primary, secondary or higher secondary qualifications but no skill set to earn. As per official data, India’s official population stands at 127 Crores. As per the official estimates 49.80 Crore population is employed, but the employment to those and their family members doesn’t generate enough to provide them with a square meal.
If one looks at it, few reasons can be attributed to it, one is disguised employment, which means person believes that he is working but his work can be done by existing person in the system. In other words to generate employment, government is promoting inefficiency in the system.

Second is intermediation. India has witnessed a robust growth in service sector. Information technology has been one of the largest contributors. Apart from that financial services followed by retailing, marketing follow suit. What has happened that intermediation has become such a large industry in itself that it has employed lacks and lacks of people directly and indirectly, qualified and unqualified. Most of this intermediation doesn’t need any skill set and hence it easily absorbs labour in this sector. But in days of recession and during economic downturn, where economic activity itself comes down and people look for efficiency, intermediation goes down under fastest, hitting the overall growth of the economy further.
Service is surely the need of the hour but creating skillset in labour force could lead a sustainable advantage for the country. Currently unskilled labour force is exported around the world legally and illegally to cater to the needs of various industries including infrastructure and construction. When the need is over, labour is thrown back in the country by changing the policy as it happened in Middle east and again he goes back in the trap of poverty.
Government is collecting education cess to ensure implementation of RTE, similarly if government implements Right to technical education from sixth standard in all schools across India, alteast, labour with some skillset like masionary, carpentry, plumbing or any other art or skill, he can fend for himself and his family, even if he drops out before graduation or higher secondary.
This would lead to more innovation and research in these fields and thus increasing efficiencies for the economy and contributing to GDP growth of the country.