Date: 08/10/2022

Relevance: GS-2: Issues relating to the development and management of Social Sector/Services relating to Health, Education, Human Resources.

Key phrases: Apprenticeship, India Skills Report 2022, ITI-trained, skill gap, National Apprenticeship Promotion Scheme, National Apprenticeship Testing Scheme, Ministry of Skill Development and Entrepreneurship, UNDP-SAP partnership project’s, Scheme for Higher Education Youth in Apprenticeship and Skills.

Why in News?

• Globally, apprenticeship has been a successful tool in creating a job-ready workforce. India will do well to promote it.

Context:

• The India Skills Report 2022 reveals that employability across most education streams is in the range of 40-55 per cent.
• Polytechnic and ITI-trained youths suffer a lower employability of 21.42 per cent and 31.3 per cent, respectively.
• In a country that has an unrivalled youth demographic, we need an effective pathway to make a smooth education to livelihood transition. Perhaps, the answer lies in creating millions of apprenticeship opportunities.
• Globally, apprenticeship has been one of the proven successful tools to bridge the skill gap and create a job-ready workforce. According to a report by NETAP-Teamlease Skill University — close to 60 per cent of the employers found that apprenticeships improve productivity (22 per cent) and 76 per cent feel that it helps them address attrition, as well as a 19 per cent reduction in hiring costs.

Apprentices in India:

• In India, the apprenticeship uptake is low, there are only 0.26 million apprentices despite the sustained push and support provided through flagship schemes such as the National Apprenticeship Promotion Schem (NAPS), and National Apprenticeship Testing Scheme (NATS).
• This is minuscule when compared to apprenticeship opportunities the world over — 0.5 million in the UK, 3 million in Germany, 10 million in Japan, and 20 million in China.
• The Apprentices Act, 1961 was enacted to regulate the programme of training of apprentices in the industry by utilizing the facilities available therein for imparting on-the-job training.
• Ministry of Skill Development and Entrepreneurship is the administrative ministry responsible for implementation of the Act.
• The government has brought comprehensive amendments in the Act in 2014 to make it more attractive for both industry and youth. like.
  • Replacing the outdated system of trade wise and unit wise regulation of apprentices with a band of 2.5% to 10% of the total workforce (including contractual workers),
  • Removing stringent clauses like imprisonment & allowing industries to out-source basic training.

Government initiative to promote apprenticeship training in India:

• National Apprenticeship Promotion Scheme:
  • The scheme is implemented from 1st October, 2016 to promote apprenticeship training in the country.
  • State Apprenticeship Advisers (SAAs) and Regional Directorates of Apprenticeship (RDATs) act as implementing agencies in their respective State/Regions.
  • The main objective of the scheme is to promote apprenticeship training and to increase the engagement of apprentices from present 2.3 lakh to 50 lakh cumulatively.
  • The scheme has the following two components.
    • Sharing of 25% of prescribed stipend subject to a maximum of Rs. 1500/- per month per apprentice with the employers. The stipend support would not be given during the basic training period for fresher apprentices.
    • Sharing of basic training cost in respect of apprentices who come directly to apprenticeship training without any formal trade training. Basic training cost will be limited to Rs. 7500/- for a maximum of 500 hours/3 months.
• National Apprenticeship Training Scheme (NATS):
  • This Scheme is the flagship programme of the Ministry of Education for Skilling Indian Youth.
  • It is a one year programme equipping youth with practical knowledge and skills required in their field of work.
  • The NATS provides apprenticeship in emerging areas under 'Production Linked Incentive' (PLI) such as Mobile manufacturing, Medical devices manufacturing, Pharma sector, Electronics/Technology products, Automobile sector etc.
  • The scheme also prepares skilled manpower for connectivity/logistics industry sectors, identified under Gati Shakti.
• National Apprenticeship Mela:
  • The aim is to support the hiring of more than one lakh apprentices and assist employers in tapping the right talent and developing it further with training and providing practical skill sets.
  • Applicants will get a monthly stipend as per the Government standards for developing new skills, an opportunity to earn while they learn.
  • Individuals having a 5th–12th grade pass certificate, a skill training certificate, an ITI Diploma, or a graduate degree were eligible to participate in the PM Apprenticeship Mela.
  • The candidates will get certificates, recognized by National Council for Vocational Education and Training (NCVET), increasing the chances of their employability after the training.
• Scheme for Higher Education Youth in Apprenticeship and Skills:
  • Ministry of Human Resource Development has launched the “Scheme for Higher Education Youth in Apprenticeship and Skills (SHREYAS)”.
  • The objective of scheme is to provide industry apprenticeship opportunities to the general graduates exiting in April 2019 through the National Apprenticeship Promotion Scheme (NAPS)
  • It aims to enhance the employability of Indian youth by providing ‘on the job work exposure’ and earning of stipend.
  • The scheme is for students in degree courses, primarily non-technical, to introduce employable skills into their learning, promote apprenticeship as integral to education.

Measures to promote apprenticeship training in India:

• Compulsory subject in Institution:
  • Introduce apprenticeship as a compulsory component of career guidance and counselling in schools, colleges and vocational institutes.
• Role of MSMEs:
  • Make MSMEs aware that apprenticeship makes business sense: MSMEs’ active participation can shift momentum. Skill ecosystem enablers should reach out to more than one million MSMEs registered on Uddyam platform in a targeted manner to educate, encourage, and support them to hire a few apprentices per year.
• Built strong aggregator networks:
  • Create strong aggregator networks and build the capacity of district-level industry associations and chambers. MSME outreach wouldn’t be successful without the proactive involvement of local industry chambers and associations. Apprenticeship promotion cells should be launched to increase the pool of apprenticeship-ready industries.
• Redefine the scope of placement linkages:
  • Apprenticeship training contracts should be counted as the placement target of the training partners under the skilling scheme’s outcome-linked funding. With the added incentive, training partners would proactively collaborate with local industries to get apprenticeship training started in new enterprises.

Way Forward:

• The younger generation is full of bright and innovative ideas that are vital to the long-term success and sustainability of any industry. Apprenticeships are an excellent way to encourage young people and allow them to learn a wide range of skills in many different environments pertaining to their interests and career choices.
• Apprenticeships offer not only training but also improved job prospects; there are many benefits for companies to invest in them.

Source: The Hindu BL

Mains Question:

Q. How apprenticeship can be a successful tool in creating a job-ready workforce in economy? Suggest measures to promote apprenticeship training in India.