Technical Assistance Consultants Report

Project Number: 45179-001

September 2016

India: Skills Development for Inclusive Growth

Overview
(Financed by the Asian Development Bank)

Prepared by Ernst & Young India

For Ministry of Skill Development and Entrepreneurship

National Skill Development Corporation

This consultants report does not necessarily reflect the views of ADB or the Government concerned, and
ADB and the Government cannot be held liable for its contents.
Skills Development
for Inclusive Growth
Overview
Skills Development
for Inclusive Growth
Overview
Contents

Abbreviations iv

Background 1

Approach and Methodology 3

Executive Summary of the Volumes 5

A. Development of Qualification Packs and National Occupational Standards 5
B. Quality Assurance 6
C. PublicPrivate Partnership for Sustainable Projects in Skills 10
D. Gender and Social Inclusion Strategies for Skill Development by Sector Skills Councils 11
E. Monitoring and Evaluation 11
F. Labour Market Information System 13

Way Forward 15

iii
 Abbreviations

ADB Asian Development Bank

CSDCI Construction Skill Development Council of India
HSSC Healthcare Sector Skill Council
IPSN International Professional Standards Network
LMIS Labour Market Information System
M&E monitoring and evaluation
MRA mutual recognition agreement
MSDE Ministry of Skill Development and Entrepreneurship
NOS National Occupational Standards
NSDC National Skill Development Corporation
QP Qualification Pack
RPL recognition of prior learning
SSC sector skills council
SSDM state skill development mission
TA technical assistance

iv
Background

I
ndia stands at a historical juncture, with the potential to reap rich economic benefits in the next few decades.
With a population of around 1.4 billion, the country is expected to become one of the most populous nations
by 2025. The countrys population pyramid is expected to bulge across the working age group (1564) over
the next decade, increasing the working-age population to just under 900 million by 2022.

The demographic boom period in India is in contrast with the ageing phenomenon globally, which will create
a skilled manpower shortage of about 56.7 million by 2022. With the rising global trend of outsourcing
work, India has the opportunity to become a global reservoir of skilled manpower, accounting for 28% of the
graduate talent pool among 28 of the worlds lowest-cost economies.

Skill development and entrepreneurship efforts across the country have been highly fragmented so far. As
opposed to developed countries, where the percentage of skilled workforce is between 60% and 90% of the
total workforce, India records a low 5% of the workforce (2024 years) with formal vocational skills. There is a
need for speedy reorganisation of the ecosystem of skill development and entrepreneurship promotion in the
country to suit the needs of the industry and enable decent quality of life to its population.

For this purpose, the Ministry of Skill Development and Entrepreneurship (MSDE) was created in November 2014 to
coordinate the efforts of skill development and entrepreneurship efforts across the country, remove the disconnect
between demand and supply of skilled manpower, build vocational and technical training frameworks, upgrade skills,
and develop new skills and innovative thinking not only for existing jobs but also jobs that are to be created.

The MSDE works to achieve the following four outcomes:

(i) Ensure that youth graduating from formal education are employable with job-specific skills job or
self-employment-oriented skills.
(ii) Ensure that people stuck in low-income jobs and in the informal sector can access growth
opportunities through up-skilling or re-skilling and recognition of prior learning (RPL).
(iii) Improve the supply and quality of the workforce for industry, contributing to increased productivity.
(iv) Make skilling aspirational for youth.

To achieve these outcomes, a framework built on five central pillars was conceived by MSDE: (i) create a pipeline
of skilled people, (ii) correct supply for demand, (iii) certify global and common standards, (iv) connect supply with
demand, and (v) catalyze entrepreneurship. These five pillars will be supported by cross-cutting enabling measures.

In July 2015, the MSDE launched the National Policy for Skill Development and Entrepreneurship, 2015 where
the government has set a target of training 40.2 crore people by 2022. At a national level under the new
government regime, the Prime Minister has envisaged key flagship schemes for the development of the nation
namely, Digital India, Make in India, Swachh Bharat Abhiyaan, Jan Dhan Yojana, and Smart Cities. These
schemes will serve as key employment drivers for skilling in India.
1
2 Skills Development for Inclusive GrowthOverview

The Asian Development Bank (ADB) through a technical assistance (TA 8010: Skills Development for Inclusive
Growth) sought to support Indias skilling initiative by reinforcing and building the capacity of sector skills councils
(SSCs) in the country. The project aimed to assist the National Skill Development Corporation (NSDC) in setting the
national agenda in skills development and to lay the foundation for future skills recognition processes.

The Department of Economic Affairs under the Ministry of Finance was the executing agency for this TA until October
2014. The newly established Ministry of Skill Development and Entrepreneurship (MSDE) became the executing
agency with effect from November 2014. The National Skill Development Corporation (NSDC) was the implementing
agency. A consulting team from Ernst & Young-India (EY) worked in close coordination with the NSDC, Construction
Skill Development Council of India (CSDCI), Healthcare Sector Skill Council (HSSC), and the Assam and Kerala state
skill development missions (SSDMs) in preparing the manuals produced by the project for the Government of India.

The technical assistance consisted of the following:

(i) identifying and analysing the core elements that are critical for the scale-up and sustainability of SSCs
and providing a road map for each;
(ii) providing capacity building tools to SSCs by codifying, developing, and refining processes for improved
quality assurance; and
(iii) creating a platform for sharing of lessons and building of linkages between key stakeholders (SSCs and
states).

Two SSCs (health and construction) and two SSDMs (Assam and Kerala) were identified under this TA as
pilots. However the findings, recommendations, and capacity building tools emanating from this TA have
relevance and can be applied, with some level of customisation, to all SSCs and SSDMs.

The figure below highlights the key themes under this technical assistance.

Figure: Supporting Indias Skilling Initiative

Social Marketing
Industry Engagement
PublicPrivate Partnership
SSCs
Self-Sustainability
Standards Gender Inclusion
QP Manual Equity
QP Creation
International Monitoring and Evaluation
Recognition
Optimization
Products
Accreditation of TPs SSC Association
Accreditation of Aggregation
Assessment Bodies
LMIS

SSDM Handbook
Integration
SSDMs Diagnostic Study
Current State

LMIS = Labour Market Information System, QP = qualification pack, SSC = sector skills council, SSDM = state skill development mission,
TP = training provider.
Source: Ministry of Skill Development and Entrepreneurship.
Approach and Methodology

T
he initial terms of reference for this assignment was prepared in 2014 by ADB in consultation with NSDC.
During the TA project implementation, the SSCs evolved and several changes took place in Indias skill
development ecosystem. Thus the TA project was refined and refocused through a consultative process
involving NSDC, SSCs, and ADB. A structured approach was followed to deliver the following:

(i) recommend and update the protocols for development of National Occupational Standards (NOS);
(ii) identify policies and guidelines for products and services of SSCs;
(iii) increase the understanding of industry leaders about the importance of SSCs and the value of a skilled
workforce; and
(iv) develop a guide for NSDC training partners on gender inclusiveness strategies to increase the participation
of women in sectors such as construction, where traditionally Indian women do not engage.

In addition, an awareness campaign targeting industry champions and a toolkit for presenting to industry
is expected to be developed by NSDC as a result of skills learned from this TA project. The campaigns,
specifically social marketing campaigns, will start with the construction sector followed by the healthcare
sector, the former for its being the largest employer in India; the second for its relevance not only to the
targeted workers but for the larger population that is need of quality healthcare services.1

The following products were developed under this TA project and are presented in a series of volumes on
skills development in India as carried out by NSDC. All the volumes in this series complement each other and
should be used as a whole package. The volumes cover quality assurance for training providers, assessment
bodies, assessors, and assessment practices.

(i) Standards
(a) Manual for the Development of Qualification Packs and National Occupational Standards
(b) QPNOS for Radiation Therapy Technologist
(c) QPNOS for Central Sterilization Department Technician and Senior CSD
(d) QPNOS Writers Course
(e) QPNOS for Junior Surveyor
(f) QPNOS for Junior Charge Hand

(ii) Quality Assurance

(a) Quality Assurance Guidelines for the Self-Evaluation Manual for the Accreditation of Training
Institutes with the Healthcare Sector Skill Council
1 E&Y is proposing four awareness raising materials: Social Marketing Strategy for the Construction Skill Development Council of India, Social Marketing Strategy
for the Healthcare Sector Skill Council, accompanying toolkits for the CSDCI and HSSC reports, and career counselling and social awareness guides for the
Qualification Packs of CSDCI and HSSC.

3
4 Skills Development for Inclusive GrowthOverview

(b) Healthcare Sector Skill Council Accreditation of Training Institutions: Auditors Guide
(c) Quality Assurance Guidelines for the Affiliation of Assessment Bodies with the Construction Skill
Development Council of India
(d) Quality Assurance Guidelines for the Registration of Assessors with the Construction Skill
Development Council of India
(e) Review of International Recognition Options and Arrangements for QP-NOS
(f) Sector Skills Council Association Framework

(iii) State Diagnostic and Road Map

(a) Diagnostic and Road Map for Skill Development in Assam
(b) Diagnostic and Road Map for Skill Development in Kerala
(c) Handbook for State Skill Development Missions

(iv) SSCSSDM Linkage

(a) Developed capacity of SSDMs in Assam and Kerala and established linkages with HSSC and
CSDCI

(v) PublicPrivate Partnership

(a) Study of best practices and models of financing of skill development initiatives

(vi) Gender and Social Inclusion

(a) Gender and social inclusion strategy for skill development in India

(vii) Monitoring and Evaluation

(a) M&E framework for SSDMs
(b) Review of SSC M&E framework

(viii) Labour Market Information System (LMIS)

(a) Review of LMIS
(b) LMIS manual
Executive Summary of the Volumes

A. Development of Qualification Packs and National

Occupational Standards
Volume 1: Manual for Developing National Occupational Standards and Qualification Packs

This is the first manual to establish protocols for creating NOS and QPs and define the process of validation
and approval. It supports SSCs in their quality assurance of the QPs and NOS developed, and the NSDC in its
quality control and endorsement processes.

The manual provides SSCs with detailed, step-by-step guidance in the NOS development process using the
current Indian model, but aligned to international best practices and benchmarks such as those of Australia,
Bangladesh, New Zealand, Singapore, Scotland, South Africa, and the United Kingdom.

The manual will provide valuable guidance to

(i) developers who may be contracted by SSCs;

(ii) SSCs to support their quality assurance of QPs and NOS developed;
(iii) the NSDC, in its support of quality control and endorsement processes; and
(iv) policy makers.

This manual covers the entire cycle of QP NOS development, namely:

(i) research and analysis of sector and occupation needs;

(ii) functional analysis and other development methodologies;
(iii) identification of existing NOS;
(iv) development of NOS;
(v) approval of NOS;
(vi) maintenance of relevance and currency of NOS; and
(vii) research and analysis of sector and occupation needs and NOS.

Across these stages, the manual prescribes proactive stakeholder engagement and industry validation and
assessment. It also recommends a robust approach to sector functional analysis, and tools to accredit NOS
developers and develop a cadre of skilled NOS writers.

5
6 Skills Development for Inclusive GrowthOverview

Qualification Packs for the Construction and Healthcare Sector Skill Councils

Two new QPs were developed for the HSSC and CSDCI based on a replicable process. For the HSSC, the two
QPs are for Radiation Therapy Technologist and Central Sterilization Department Technician. In preparing the
QP for Radiation Therapy Technologist, compliance with licencing requirements from the regulator (Atomic
Energy Regulatory Board) were factored ina first for any QP in India. For the CSDCI, two QPs for Land
Surveyor and Road Layerer were prepared.

B. Quality Assurance
The key quality assurance (QA) processes for SSCs were developed in agreement with NSDC, HSSC, and
CSDCI. The components were as follows:

(i) Review QA processes for HSSC affiliate training providers to support consistency in quality processes
and outcomes.
(ii) Review QA processes for CSDCI assessment bodies to support consistency in quality processes and
outcomes.
(iii) Review international recognition options and requirements for NOS and QPs.
(iv) Establish a framework for establishing an SSC association.

The work underpins the importance of strong national approaches to quality and assessment to assure
consistency of learning outcomes.

Volume 2: Overview of Quality Assurance Guidelines for Accreditation of Training Institutions

and Affiliation of Assessment Bodies

A new Self-Evaluation Manual was initiated by the HSSC to assist training partners with the process of self-
evaluation. This guide will reduce load on SSCs by guiding the selection of the auditor and the composition of
the site visit team; and by having the auditor design and prepare for site visits based on the application form
and the self-evaluation report.

The standards and criteria are mapped to the Quality Management in Transnational Education with Respect to
ISO 29990. Thus the process follows ISO standards.

The manual will also help training partners because it is an important tool to identity opportunities for
improvement on a continuous basis.

Volume 3: Healthcare Sector Skill CouncilAuditors Guide on Quality Standards for

Accreditation of Training Institutions

The accreditation process has eight steps that form a quality cycle of planning, implementation, evaluation,
and review. This mirrors the European Quality Assurance Reference Framework for model for vocational
education and training, and has the following steps:

(i) Step 1 Application process

(ii) Step 2 Collecting the evidence
(iii) Step 3 Site visit
 Executive Summary of the Volumes 7

(iv) Step 4 Recognition and accreditation

(v) Step 5 Monitoring and improvement phase
(vi) Step 6 Review phase
(vii) Step 7 Addition to scope
(viii) Step 8 Adding an additional skill centre or training site

This Auditors Guide helps improve the quality of training providers, and in line with contemporary models of
accreditation, training institutions that have a lower risk rating can expect a lower level of quality assurance
intervention by the HSSC.

The Auditors Manual

(i) recommends a detailed, step-by-step evaluation process and provides detailed templates of
assessment forms comprising of standards, criteria, and subcriteria;
(ii) provides a conclusion against each quality standard to summarise the audit outcomes; and
(iii) notes any strengths and opportunities for improvement in relation to the quality standards.

Volume 4: Quality Assurance Guidelines for the Affiliation of Assessment Bodies with the
Construction Skill Development Council of India

This manual is completely redesigned to support organisations preparing to become a CSDCI-affiliated

Assessment Body, or re-registering as an Assessment Body with the CSDCI. It focuses on a series of key themes
that should be part of any Assessment Bodys processes to assure quality competency-based assessments.

The manual may also be used as a learning resource in assessor training programs. It can also help create an
additional revenue stream for CSDCI and other SSCs through licensing and endorsement fee or training on
assessment tools.

This manual is also designed for individuals seeking to become registered, or re-registered, as an Assessor with
CSDCI. Assessors associated with the Assessment Body must read this manual and prepare their information
for registration. The manuals unique feature is that for the first time, sections are designed for important
themes such as

(i) the process for registration of Assessors,

(ii) the criteria for becoming a registered Assessor,
(iii) understanding competency-based assessment,
(iv) the process for competency based assessment,
(v) validation of assessment, and
(vi) the development of assessment tools.

The manual may also be used as a learning resource in Assessor training programs.

Volume 5: Review of International Recognition Options and Arrangements for National

Occupational Standards and Qualification Packs

There are several approaches to mutual recognition being piloted around the world. This review of
international recognition options for NOS and QPs examines a number of these so that the NSDC can
identify strategies that may be useful to pursue in seeking such recognition. The review provides an overview
8 Skills Development for Inclusive GrowthOverview

of the different pilots and initiatives including qualification frameworks, the European Credit System for
Vocational Education and Training, the United Arab Emirates and Kuwait Skills Certification Pilot, and the
International Professional Standards Network.

The recommendations provide two sets of specific activities for NSDC and SSCs, both for the near term and
the long term.

(i) Near-Term Activities

Near-term activities are for quick gains and lessons for an eventual deeper engagement for international
recognition.

(a) Mutual recognition agreements with the ASEAN Economic Community on tourism-related
job roles

Strategic actions on the free flow of skilled labour outlined in the AEC Blueprint include
facilitating visa approvals and employment passes, mutual recognition agreements (MRAs)
for major professional services, core concordance of services skills and qualifications, and
enhancing cooperation among ASEAN universities to increase regional mobility for students
and staff.
The lead for this initiative may be taken by Indias Tourism and Hospitality SSC based on their
QPs, and examination of the MRAs created by ASEAN countries in these QPs.
There are 32 job titles covered under this MRA, ranging from housekeeping, front office, food
and beverage services, and food production for hotel division; to travel agencies and tour
operator for a travel division.

(b) Alignment with the International Professional Standards Network

The International Professional Standards Network (IPSN) is made up of standards-setting
bodies recognised by government and industry from member countries. The intention is that
the IPSN will be open to all industry sectors that are part of the vocational education sector.
The initial industry sectors actively engaging and building their benchmarks are the beauty
and hairdressing sectors. An international hairdressing certification has been developed and
agreed to by the network.
Current member countries of IPSN include Australia; Canada; Hong Kong, China; Japan; and
New Zealand. There is an opportunity for Indian workers in each of these countries.
For India to participate in the IPSN, initial engagement can commence with the Beauty and
Wellness SSC.
Tourism and Hospitality SSC, and Sports SSC may subsequently explore aligning their
standards with IPSN.
The engagement will serve two purposes. It will allow workers to achieve international
standards and work abroad; second, this would serve to improve Indias standards in these
sectors.

(c) Current Engagement Models

Transnational standards with Australia in sectors including retail, telecommunications,
agriculture, and mining, under the aegis of Australian International Education Conference
are under consideration to provide international recognition to Indian Standards, which may
be progressed.
 Executive Summary of the Volumes 9

Transnational standards in Healthcare and Security sectors, with funding from the UK India
Education Research Initiative are also under consideration and may be progressed to provide
international recognition to Indian Standards.
The Government of the State of Kuwait and the United Arab Emirates under the Abu Dhabi
Dialogue are undertaking a pilot project on skills recognition and certification, which aims to
support the skills development and recognition of migrant workers. CSDCI and the Ministry of
Labour and Employment have been invited to participate.

(ii) Long-Term Activities

Long-term activities are planned interventions impacting workforce movement at the macro level. Long-term
activities are critical for international recognition of Indian Standards. Long term refers to impact, but the
activities need to commence immediately. Some activity on this may have already begun, with reports in the
press about the Ministry of Foreign Affairs and Ministry of Skills looking at certifying the skills of all workers
going abroad. Suggested steps are as follows:

(a) Create a Transnational Standards Integration Team at NSDC, with the role of strategising and
executing transnational standards with partner nations.

(b) Develop a Strategy for Engagement of India with Partner Nations for Transnational Standards,
the starting point of which is to identify nations and job roles that have deficiencies today, or are
likely to have deficiencies tomorrow. Typical examples would be:
shortage of key trades like plumbers, etc. in Germany;
skill shortage in agriculture, manufacturing, and services in the European Union; shortage of
hospitality staff in Switzerland; and
shortage of manufacturing, construction, and service staff in Malaysia.

(c) Execute this strategy by signing memoranda of understanding between the Ministry of Skills
and respective ministries in corresponding nations. In the European Union, enter into an a
memorandum of understanding with the relevant European Commission team to align the
European Qualifications Framework to Indias National Skills Qualifications Framework. Drive a
time-bound approach to ensuring creation of transnational standards with relevant SSCs, as well
as pilot test workforce migration, based on these standards and certification.

Sector Skill Association Framework

A Sector Skill Council Association is proposed to be a collective voice of all SSCs in the ecosystem. By working
together as a strong alliance, SSCs will position themselves for increased impact. Also, skills can be mapped
across the economy, thereby facilitating mobility and redeployment across sectors.

The manual suggests the organisation structure and funding modalities for an SSC Association. It also
highlights the proposed roles and responsibilities for an SSC Association, which include, among others

(i) acting as a collective voice of SSCs to promote a consistent message to industry and lobby
government as a whole;
(ii) promoting understanding of the role of SSCs within the skills ecosystem of the country;
(iii) promoting the SSC brand, its objectives, and outcomes to key stakeholders of the country;
(iv) coordinating policy positions and strategic work on skills with stakeholders across the country;
10 Skills Development for Inclusive GrowthOverview

(v) helping build the performance capability of SSCs to ensure that they continue to work effectively on
the employer driven skills agenda;
(vi) providing advice and support for the establishment and effective operation of the national technical
and vocational education and training system;
(vii) working as a knowledge sharing platform; and
(viii) identifying and undertaking agreed national and cross-SSC industry priorities and research in key
areas requiring joint approaches

C. PublicPrivate Partnership for Sustainable Projects in Skills

Some broad recommendations for publicprivate partnership in skill development for India by the year 2022
are as follows:

(i) Policy LevelThese features can be introduced or augmented to bring together a systematic policy
decision at the national and state levels to meet the training target of 500 million by 2022.
(ii) Sector Skills CouncilsCertain measures to enhance the financial sustainability of SSCs have been
recommended as the SSCs are required to move away from government funding and reduce their
dependence on state financial support.
(iii) State LevelReplicable financial guidelines for capacity building over location and economic sector
by providing access and outreach.

The key recommendations for SSCs are as follows:

(i) Government Funding

(a) NSDC continues to financially support SSCs, but only in the first lifecycle (35 years), and on a
case-to-case basis.
(b) Cater in particular to large-scale capacity building of SSCs to meet the needs of the industry or
ecosystem.
(c) A mix of grant and loan can be firmed up in due course after individual consultations.

(ii) Augmentation of Internal Funding Opportunities by SSCs

(a) Assessment and certification feesexpand the base of job roles.
(b) Membership feesattract more members through value-added services.
(c) Research and consultancy, demand and supply analysis, employment trends, curriculum and
content, selling.
(d) Thematic marketingmeetings and conferences, job fairs, webinars, etc.
(e) Skills registryonline training sessions, library, aptitude tests, advertisements.

(iii) Augmentation of External Resources by SSCs

(a) Support through industry tie-ups by conducting NOS workshops, curriculum development,
training of instructors.
(b) Usage of CSR funds.
(c) Other funds specific to sectors, like Building and Other Construction Workers Welfare Cess Funds.
 Executive Summary of the Volumes 11

D. Gender and Social Inclusion Strategies for Skill Development

by Sector Skills Councils
Two sectoral gender and social inclusion strategies, one each for healthcare and construction, were
developed, highlighting the successes and lessons learned from the TA project. A partner guide for NSDC will
be developed to suggest gender inclusiveness for the training partners.

The gender inclusion strategies for skill development by the SSCs consist of the following recommendations.

(i) Pretraining
(a) Greater interaction among training providers from the construction sector
(b) Collaboration across organisations to help in developing new career paths
(c) Exploration of new areas for skill development for women
(d) Career guidance especially aimed at girls and their families

(ii) During Training

(a) Review all processesfrom identification of trainees, imparting training, assessments, to
placementsbased on a gender perspective, to see what reasonable accommodations can be made
(b) Develop assessment formats that are able to test knowledge where written skills are not required
(c) Employ women trainers to the highest extent possible

(iii) Posttraining
(a) Implement mandatory policies, especially those related to the security of women
(b) Network among womens groups to impart training in nontraditional areas, and among those
working with domestic workers and the industry
(c) Develop e-learning opportunities for women
(d) Review all processes related to NOS development, quality assurance, data collection, and
monitoring and evaluation from a gender perspective
(e) Provide visibility to success stories
(f) Improve stakeholder management by SSCs

E. Monitoring and Evaluation

The skill development landscape needs the following enhancements:

(i) increased focus on quality, i.e., the need for a skill development quality framework for SSCs, training
providers, and assessment agencies;
(ii) addition of indicators for measuring performance of SSCs;
(iii) increased access to the state skill development missions tool for SSCs and their affiliates;
(iv) introduction of a feedback and/or complaint redressal mechanism; and
(v) introduction of risk-based regulation of training providers.

The skill M&E framework at the state level should have the following objectives:

(i) track the implementation of skill development initiatives and establish whether the national
objectives have been achieved;
(ii) provide regular, timely, and reliable reports on the effectiveness of states, missions, and training
institutes on skill development;
12 Skills Development for Inclusive GrowthOverview

(iii) build a system for reporting on skill development at both central government and lower devolved
levels (mainly the state level);
(iv) provide timely and reliable feedback on skill development for budgeting purposes; and
(v) assist in identifying programmatic, geographic, and financial gaps in the national response to skill
development.

There are various stakeholders who need to be monitored by the SSDMs. Depending on the structure and
functions of the SSDMs, the performance of the following entities needs to be monitored by SSDMs:

(i) private training providers who are working with the SSDMs, state departments, government agencies,
and partner agencies (on complete government funding or publicprivate partnership mode);
(ii) government training providers working under different central and state schemes; and
(iii) state departments, government agencies, and partner agencies that are implementing various
schemes with skill development components (either on their own or with support of SSDMs).

Some key suggestions for the review of M&E system in SSCs are as follows.

(i) Quality Focus

As India aims to mainstream skill development reforms, there is a need for a national approach to quality that
builds on aligning existing quality approaches of different authorities, which will assist in the implementation
of skill development reforms. SSCs pioneer quality assurance in skill systems, as they are responsible for
setting competency standards and assessment based on those standards.

A Skill Development Quality Framework is recommended at two levels, i.e., the level where SSCs operate,
and at the training provider and assessment agencies level, which can be used to assess the adeptness of skill
development activities.

As SSCs mature and their role in the skill development landscape becomes more structured and nuanced, the
indicators used to track the performance of SSCs may include the qualitative aspects of the activities as well.
Some indicators (illustrative) that may be added are as follows:

(i) percentage of NOS with complete industry approval (for example, with workforce > 50 workers);
(ii) percentage of NOS with 75% or 50% industry approval;
(iii) annual review of the SSCs NOS development methodology;
(iv) percentage of grievance solved aired by students, assessment agencies, and training providers;
(v) number of trainings of trainers conducted; and
(vi) review of internal process of monitoring by SSC of assessment agencies (occasional).

This will help the SSCs monitor their affiliated partners affectively, directly through the SDMS tool.

Alternatively, NSDC, as the key overarching body for the SSCs, may want to issue general guidelines for SSCs
to help them streamline and structure their internal M&E practices between stakeholders. The templates for
M&E may be customised by each SSC according to their needs, as long as the processes and protocols for
ensuring quality and achievement of targets are standardized.
 Executive Summary of the Volumes 13

(ii) Wider access to SDMS tool for M&E by SSCs and their affiliates

Sector skills councils may be given additional access to data, specifically data on training providers (targets,
achievements, courses etc.) so that the SSC can better engage with training providers and ensure that the
targets are achieved. This shall also help in ensuring better achievement of overall targets for training providers.

Financial parameters like advance assessment fees deposited, etc. may be made available to the SSCs through
the SDMS tool in order to help the SSCs save time and effort in initiating assessments.

In order to ensure that the M&E practices are done in a more accurate and efficient manner, where all key
stakeholders are aware of the M&E practices and facilities for data analysis and management available
through the SDMS tool, comprehensive capacity building initiatives may be taken by NSDC to train SSC
personnel in the following:

(i) accurate reporting of data to NSDC,

(ii) usage of SDMS tool in the most effective and efficient manner for both uploading and downloading
information,
(iii) analysing the data available to SSCs through SDMS tool, and
(iv) internal M&E practices and guidelines for SSCs (to monitor SSCs).

The SSC M&E policy needs to provide a system including the following:

(i) system for lodging complaints,

(ii) redressal hierarchy,
(iii) timelines for addressing various issues, and
(iv) automatic alert after passing of deadlines

(iii) Risk-based regulation of training providers

The SSCs currently accredit or affiliate training institutions through a combination of desk review of
documents, and site inspections of facilities and equipment. With the increase in trainees and training
providers, it may prove efficient to move to a risk-based assessment and regulation of training providers.
The process of self-evaluation is central to the maintenance of quality and the pursuit of excellence. It has
become firmly established as the basis on which planning improvements and public reporting on standards
and quality are founded. Self-evaluation is complementary to external inspection.

A new model that incorporates self-evaluation steps and risk-based evaluations may be undertaken by SSCs
rather than assessment of each training partner. This step may have the potential to make the system of
accreditation more efficient and risk-proof by engaging with quality training providers.

F. Labour Market Information System

HSSC and CSDCI have set up their basic market information systems. Similarly, Kerala Skill Programs, KASE,
and ASAP have set up their own market information system. NSDC has set up the SDMS. There is a need
to consolidate these systems such that they work seamlessly with each other; provide scope for adding new
fields, and present data as required (this may be scalable). An architecture has been suggested for SSC LMIS,
after discussion with SSCs.
14 Skills Development for Inclusive GrowthOverview

There is a need to have an overall LMIS in India. Input data points need to be standardised, and this TA has
proposed a set of suggested data points. As the integrity of input data is important, it is recommended that
this data is sourced from reliable sources.

It is recommended that a series of workshops be held at the level of NSDC and NSDA for all states and SSCs,
with other LMIS stakeholders, to arrive at a common understanding of LMIS. This workshop can cover the
following aspects:

(i) What is an LMIS?

(ii) What does LMIS set-up involve?
(iii) What are leading practises from other countries?
(iv) What are the functionalities of a common system?
(v) What are the prerequisites in terms of data and processes?
Way Forward

A
s India gears to achieve its ambitious skilling targets, SSCs will need to achieve scale, speed, and
sustainability as they will be playing a critical role in this process. SSCs need capacity building support
with respect to resource mobilisation and optimisation, marketing and brand building, quality
assurance of training partners and assessment bodies, and building linkages and partnerships with state skills
missions and international sector bodies.

More than half of the states surveyed under this ADB-supported project rated themselves low on partnering
with central organisations such as NSDC and SSCs for quality-related priorities such as course accreditation
and monitoring of programs. The responses also depicted more scope in building synergy with national
agencies for improving processes such as mobilisation of candidates; providing post-training services such as
placement, career guidance and counselling, tracking, etc.; and monitoring of skill development programmes.

The project assisted NSDC in creating relevant capacity building frameworks and tools to enable SSCs to
achieve the above objectives and engage with the SSDMs. In the same vein, the TA created a framework
for synergising the efforts of the SSDMs with the NSDC and SSCs by building linkages and platforms for
sharing knowledge.

A strong linkage should be created between SSCs and SSDMs. In order to achieve a high level of integration
in the efforts of SSCs and SSDMs, an integrated project management unit should be set up at NSDC. The
project management unit will assist in building the capacity of SSCs and SSDMs in achieving their objectives
and leveraging their synergies. The project management unit will facilitate benefits and outcomes through
implementation and monitoring support to SSCs and SSDMs.

Following are the benefits and outcomes for SSCs:

(i) Improve quality assurance of key processes such as adherence to standards for NOS creation,
accreditation of training partners, and registration of assessment bodies, leading to improved quality
of training delivery, assessment, and certification.
(ii) Create internationally recognised standards or attain international recognition of standards for
specific job roles through enhanced collaboration with international agencies.
(iii) Achieve financial sustainability with better resource mobilisation and multiple options for fund
augmentation.
(iv) Improve training outcomes through effective quality-based monitoring of SSCs, including training
providers and assessors.
(v) Develop a comprehensive LMIS that addresses information needs of all stakeholders in the skills
ecosystem.

15
16 Skills Development for Inclusive GrowthOverview

(vi) Improve linkages and alignment with SSDMs.

Following are the benefits and outcomes for SSDMs:

(i) Optimise the SSDM model based on the experience of leading SSDMs.
(ii) Standardise assessment of sector skill gaps.
(iii) Build effective publicprivate partnerships with training providers and employers.
(iv) Institute quality-based monitoring including training of providers and assessors.
(v) Develop a comprehensive LMIS that addresses information needs of all stakeholders in the skills
ecosystem.
(vi) Improve linkages and align with NSDC and SSCs.