The National Policy on Skill Development was first formulated in 2009 and it provided the framework for skill development activities in the country. Over the years, changes in the macro environment, and the experience gained through implementation of various skill development programmes in the country have necessitated changes in the policy. Accordingly, the National Skill Development Policy, 2015 was formulated, and it supercedes the Policy of 2009.
To create an ecosystem of empowerment by Skilling on a large Scale at Speed with high Standards and to promote a culture of innovation based entrepreneurship which can generate wealth and employment so as to ensure Sustainable livelihoods for all citizens in the country.
The core objective of the Policy is to empower the individual, by enabling her/him to realize their full potential through a process of lifelong learning where competencies are accumulated via instruments such as credible certifications, credit accumulation and transfer, etc. As individuals grow, the society and nation also benefit from their productivity and growth.This will involve:
The core objective of the entrepreneurship framework is to coordinate and strengthen factors essential for growth of entrepreneurship across the country. This would include:
The policy framework has been developed to accomplish the vision of Skill India by adhering to the above objectives. The framework outlines eleven major paradigms and enablers to achieve these objectives of skilling India:
The entrepreneurship policy framework has been developed to address the objectives mentioned above. Vibrant entrepreneurship requires support from an enabling ecosystem of culture, finance, expertise, infrastructure, skills and business friendly regulation. Many government and nongovernment organizations are playing enabling roles across each of these crucial supporting elements. This policy framework, cognizant of the need for the full ecosystem to be present to unlock entrepreneurial potential, proposes a nine part entrepreneurship strategy:
Ministry of Skill Development and Entrepreneurship (MSDE) has been created to fulfill the vision of a ‘Skilled India’ where human resource development is the primary focus. MSDE will be responsible for coordination with all concerned for evolving an appropriate skill development framework, removal of disconnect between demand for, and supply of, skilled manpower, skill upgradation, building of new skills, innovative thinking and talents for existing and future jobs. MSDE will also play the lead role in ensuring the implementation of the National Policy for Skill development and Entrepreneurship 2015.
Skill development and entrepreneurship are complementary to each other. The key stakeholders include Central Ministries/Departments, State Governments, and industry/employers. There is a need to ensure alignment of the efforts of all stakeholders in skill and entrepreneurship landscape towards a common goal. While, MSDE will coordinate and converge all efforts in this space, the relevant Central Ministries/Departments, State Governments and industry/employers are expected to fulfill the roles and responsibilities pertaining to their domain as laid down in the National Policy for Skill Development and Entrepreneurship.
National Skill Development Fund (NSDF) has been set up by Government of India with the objective of encouraging skill development in the country. A public Trust set up by Government of India is the custodian of the Fund. The Fund acts as a receptacle for all donations, contribution in cash or kind from all contributors (including Government, multilateral organizations, corporations etc) for furtherance of the objectives of the Fund.
To channelize the interest of a plethora of organisations to participate in the mission of Skill India, a strategic vehicle to create a multiplier effect on skilling has been devised. A ‘Resource Optimization for Skilling at Scale Platform’ has been proposed by the Government to act as a demand responsive and flexible vehicle to tackle the issues of skills shortages through skill development, job creation and placement at scale. It will serve as the aggregator vehicle for pooling the funds of multilateral agencies, companies, foundations, NGOs and individuals for skilling interventions by leveraging existing infrastructure and resources. The platform will also be subjected to timely audits to ensure that the contributions are used for the intended purpose.
To attract funds from industry, companies will be encouraged to spend at least 25% of their Corporate Social Responsibility (CSR) funds on skill development initiatives directly or through NSDF. Further, industry should earmark at least 2% of its payroll bill (including for contract labour) for skill development initiatives in their respective sectors. These funds can be channelized for skill development activities either through respective SSCs or through NSDF.
All Government schemes across sectors will be encouraged to apportion a certain percentage (10%) of the scheme budget towards skilling of human resources in local regions in the required sector. These funds could be used for implementation directly or be routed through NSDF. Government may consider other options including cess etc. to raise funds for meeting the requirements of this sector.
End user funding through a basic fee paying model will also be a key medium for funding training activities. However, the Government believes that the inability to pay training costs should not stop any desirous citizen in the country from acquiring any certified skill training. The government will promote grant of scholarships, rewards and Skill Vouchers (SV) for funding of training costs. It will also be ensured that for all government schemes, Direct Benefit Transfer (DBT) will be used as a mechanism for payment disbursement.
A Credit Guarantee Fund for skill development and a ‘National Credit Guarantee Trustee Company’ (NCGTC) has been set up to support the initiative of loans for the purpose of skilling and will be used to leverage credit financing in the skill landscape. It will be further expanded to ensure greater outreach and access to all citizens. Similarly, a Credit Guarantee Fund for Entrepreneurship Development worth Rs. 3000 Crore per year has already been initiated under Prime Minister MUDRA Yojna through NCGTC.