Why in News: India’s vocational training system, despite having over 14,000 ITIs and 25 lakh seats, suffers from low enrolment (48% utilisation), poor industry linkages, and weak employment outcomes.
Introduction
- India’s economic growth and domestic investments demand a future-ready workforce.
- Traditional education remains academic and rote-based, producing graduates who are ill-suited for employability.
- Vocational education and training (VET) is globally proven to enhance productivity, employability, and competitiveness.
- Yet, India’s VET system remains poorly utilised and unattractive.
Current Status of VET in India
- Institutional coverage: 14,000+ Industrial Training Institutes (ITIs) and 25 lakh sanctioned seats.
- Low enrolment: Only ~12 lakh in 2022, with just 48% seat utilisation.
- Placement mismatch: Only 10% employment absorption for those without degree training.
- Comparative performance: Employment rates in Germany, Singapore, Canada (80–90%) vs India (53% for ITI graduates).
- Systemic failure: Lack of pathways from VET to higher education makes it unattractive.
Key Challenges in India’s VET System
1. Low Integration with Formal Education
- Unlike Germany’s dual system combining school education with apprenticeships, India lacks structured pathways.
- Apprenticeships are limited, reducing orientation to the labour market.
2. Weak Academic-Vocational Linkages
- No seamless transition from VET to higher education.
- Creates a “dead-end” perception for students.
3. Perception and Quality Deficit
- VET seen as low-status, inferior to general academic education.
- Absence of regular quality audits, weak teacher training, and lack of employer feedback loops.
4. Funding Dependency
- ITIs depend mainly on government funding.
- Limited autonomy for self-financing and innovation.
5. Mismatch with Industry Demand
- Outdated curriculum, weak alignment with emerging sectors.
- Skill needs of MSMEs and startups remain unmet.
International Best Practices
- Germany: Dual education system with paid apprenticeships alongside schooling.
- Singapore: Pathways from VET to polytechnics and universities; high-quality, industry-linked courses.
- Canada: Government–industry partnerships ensure robust VET employability outcomes.
- Common features: High industry participation, multiple progression routes, strong funding and quality assurance.
Reforms Needed in India’s VET System
1. Improve Perception and Quality
- Regular audits, teacher training, and employer feedback mechanisms.
- Expand initiatives like Singapore’s SkillsFuture Programme for lifelong learning.
2. Enhance Industry Linkages
- Private Training Partner approach to align VET with MSME/startup demands.
- Expand apprenticeship opportunities and financial incentives for employers.
3. Strengthen Institutional Capacity
- Expand training seats and reduce regional disparities.
- Upgrade National Skill Training Institutes with modern curricula.
4. Sustainable Funding Models
- Allow ITIs greater financial autonomy.
- Reduce dependence on government funding; promote industry co-investment.
5. Integrate Academic and Vocational Pathways
- National Credit Framework to enable mobility between VET, higher education, and jobs.
- Remove stigma by offering clear career advancement routes.
Recent Government Initiatives
- PM Internship Scheme: Supports private sector internships with stipends.
- LIFE (Learning in Future Employment) Project: Boosts employability of ITI graduates.
- PLI (Production Linked Incentives): Encourages industry-led skilling by reducing costs.
- CSR Engagement: Companies encouraged to fund skilling initiatives.
- National Credit Framework: Work in progress to integrate VET with higher education mobility.
Conclusion
A robust, employable workforce will not only reduce unemployment but also power Atmanirbhar Bharat and Viksit Bharat.
UPSC Relevance
GS Paper III – Economy, Employment & Skill Development
- Human capital formation and its link with economic productivity.
Mains Practice Question
Q. India’s vocational training system suffers from low utilisation, poor industry linkages, and weak employability outcomes. Critically examine the challenges and suggest reforms to strengthen VET in India, drawing lessons from international best practices.