KJA Recommendation on Karnataka Skill Plan

KJA RECOMMENDATION
KARNATAKA SKILL DEVELOPMENT PLAN
PREPARED BY KJA TASK TEAM
Karnataka Jnana Aayoga

(Karnataka Knowledge Commission)
Government of Karnataka
September 2017
(PREPARED BY KJA TASK TEAM)
(RECOMMENDATION SUBMITTED BY KJA)
September
KARNATAKA SKILL
DEVELOPMENT PLAN 2017

Published by:
Room No. 432, 433, 438 and 439
4th Floor, Vikasa Soudha
Dr. B. R. Ambedkar Veedhi
Bengaluru – 560 001
e-mail:admnkkc@gmail.com
www.karnataka.gov.in/jnanaayoga
K Kasturirangan,
Chairman, KJA
MESSAGE
Skill is the ability of any individual to carry out a task with high-level of performance
and repeatability – basically it develops with foundations of good education which
stimulates thinking and is developed with external training and orientation that brings
performance. Skill Development means developing, mostly newer or better skill sets to
add value for the work one does and achieve success and performance in the sphere
of an individual, an organization, in society, in governance or for the nation, at large.
General-skills and domain-specific skills are becoming critical in the career of
individuals and for workplace success. Nowadays, in a fast changing economic and
technological world that Karnataka is in, individuals will need a broad range of skills
to contribute to the economy and for their own success in life – stagnated skills and
learning is becoming a big hinderance in societal development. Different types of
skills - workforce skills, life skills, people skills, social skills, soft skills, hard skills etc. are
becoming more and more important for the people of the state of Karnataka.
KJA recognised the importance of skill development – especially in the un-organised

sector of the economy as also in the organised sector. Karnataka is on a high
economic growth path with a younger demographic advantage. Employment and
job will be the key focus for the state in the coming years – so will be developing a
culture of quality and excellence in our people’s work – be they farmers, teachers,
service providers, self-employed professionals, engineers, medical experts, scientists,
lawyers, governance professionals etc. It will be impinging on each individual to be
skilled in some field so that his economic success, thereby the state’s economic
success, can be ensured. It is imperative that organised sectors would develop sound
programmes for skill development for their work-force BUT it is also imperative on
government to address to the needs of the skilling for un-organised sector. Therefore,
a combined strategy is called for.
KJA constituted a Task team for working out a comprehensive skill development plan
for the state and brought together a set of experts onto the platform of KJA. I am
happy that the KJA Task Team on Skill Development Plan – led Mr. Manish Sabharwal,
Mr. Mohandas Pai and Ms. Neeti Sharma, with other experts as Members, has
prepared a comprehensive action plan. The KJA, in its 7th Meeting, considered the
report and has now finalised the KJA Recommendation on Karnataka Skill
Development Plan – focusing on a wide range of issues of skill needs for future and
how the un-organised and organised sectors would have to develop best practices
of skill development for the future needs of the state. Focus on vocational education
has also been emphasised. Career Centres will be the way forward for state and
industry to engage with candidates for jobs. Private sector involvement and
sponsorship is important for skill development – so will be the tremendous push that
Government would have to provide. This KJA Recommendation outlines a roadmap
by which Karnataka could engage in skill development activities and be in vanguard
of creating a vibrant high-skill society.
I use this opportunity to recall and appreciate the active participation of Dr Mukund
Rao, Member Secretary of KJA in the deliberations and also in coordinating for
formalising this KJA Recommendation. I would also like to positively acknowledge the
role of KJA Members – they have provided collective wisdom and direction to the
Task Team and, with unique inputs, have guided in the development of this
Recommendation. Without hesitation I can say that it is their collective efforts that one
more Recommendation from KJA is being submitted to Government of Karnataka –
this time on Skill Development. KJA is also grateful to Dr. Subhash Chandra Khuntia,
Chief Secretary, GoK; Mr. Sanjiv Kumar, ACS of Department for Skill Development,
Entrepreneurship and Livelihood and other senior officers of the Department for Skill
Development, Entrepreneurship and Livelihood for their support and help.
On behalf of the KJA, it gives me great pleasure to formally submit the KJA
Recommendation on Karnataka Skill Development Plan to Government of Karnataka
– I am sure that Government will make best efforts to implement this strategy.
FOREWORD
Government of Karnataka (GOK) has constituted Karnataka Jnana Aayoga (KJA) for
policy definition and recommending knowledge interventions/ideations for various
problems of governance and of society. KJA is mainly a recommendatory body –
generating various recommendations by closely working with the departments and
also taking cognizance of societal needs. KJA activities are mainly “proof-of-
concept” and are “anchored” with one or more departments of GOK – so that
executive implementation can get effectively coordinated by relevant departments
of GOK. Till date, KJA has submitted 10 recommendations on key topics to the GOK.
Skill Development was an important area of debate and discussion amongst KJA
Members. In 2015, the Aayoga decided to undertake a strategy development for
state skill development in a comprehensive manner. It was agreed that an expert
team be constituted for the purpose of developing a skill development plan - focusing
on efforts required from the state to address skill development in a variety of sectors
and involve education, employment, professional development and other in-service
skills.
Karnataka has recognized that knowledge and skill are the driving forces for sustained
growth of economy and social development in the state – the state has established
a new Department for Skill Development, Entrepreneurship and Livelihood directly
under the supervision of the Hon’ble Chief Minister. There is realisation and awareness
of the demand and need of skilled manpower in a number of sectors and also that
large scale skill development is an imminent imperative for the development of the
state – both in the un-organsied and organised economy. Karnataka needs to
prepare itself for higher and better levels of skills so that it can adapt more effectively
to the future challenges and opportunities of bringing development and prosperity to
the state in an effective and sustained manner.
A comprehensive skill development plan requires fundamental education reforms

across primary, secondary and higher education and innovations in
vocational/supplementary skill development. A large thrust to training and orientation
is also imperative for large sections of society. It is also essential that skill is seen as a
basic life-fundamental and is recognized as a changing constant in a span of time for
individuals/citizens, for society, for organisations, for the state and nation, at large. Skill
development plan must involve, apart from the prime role of GOK, role of private
sector, non-profit and for-profit initiatives with the goal of building up-scale models
that will bring many beneficial results. Life skill learning should start from school s in the
education system; professional skills would get developed with higher education and
training; performance skills would be essential with training and orientation. Thus,
individuals, in their life-time, would have to constantly develop skills - in areas other
than their basic education for a progressive and performance oriented career.
Society would have to adopt to changing skill needs and adapt to re-training,
industrial training etc. Governance skills are also needed to be improved to be able
to deal with government activities in future. Thus, a plethora of changing skill patterns
would emerge and the state has to constantly strategise and develop policies to
cater to these changes and demands of society.
As part of an overall process of skill development in the state, the KJA

Recommendation on Skill Development Plan has identified the need to re-define
employment exchanges into career guidance centres and bring in focus on careers
rather “jobs”; establishing a Skill/Vocational University that will enable skill
development leading to certification/degree and standardisation; corporate
involvement in skill development by allowing industry championship for skill
development in different sectors; a major thrust to apprenticeship in private sector
and government – especially bringing parity in best practices for apprenticeship and
engaging large number of government interns in the youth and developing a Skill
Department have been recommended. These recommendations have been
suggested based on an analysis of the status of overall developmental needs and
employment needs – both in the organised and un-organised sectors.
I would like to express my gratitude and thanks to the Task Team-Skill Development
Members and to the 2 Co-Chairs – Mr. Manish Sabharwal and Mr. Mohandas Pai and
to Ms. Neeti Sharma, Member-Secretary of the team for their excellent contributions
and leadership in preparing this report. I would like to thank all KJA Members – who
guided this activity through various deliberations. Ms. Nandhini from KJA Secretariat
has undertaken all the nitty-gritty coordination, research and drafting – her
contributions have been immense.
On behalf of KJA, I would like to thank Dr. Kasturirangan, Chairman, KJA – who
provides the key leadership to KJA, The Task Team was in constant discussion with Dr.
Kasturirangan – who provided innumerable suggestions and ideations for making the
strategy comprehensive and practical – considering a holistic approach of
education, skill development and employment. Grateful thanks to Dr. Kasturirangan
for his guidance, mentoring and overall steering of KJA activities and for guiding the
Skill Development Plan activity.
On behalf of KJA, I would like to place on record and acknowledge, with gratitude
and thanks to Chief Secretary, GOK; Additional Chief Secretary of Department for Skill
Development, Entrepreneurship and Livelihood and other officials of Skills Department
– all of whom have been supportive and provided valuable inputs to shape the KJA
Plan.
On behalf of the KJA, it is a matter of great pleasure for me that KJA Recommendation
on Karnataka Skill Development Plan is now submitted to GOK for further
implementation action.
(Mukund Kadursrinivas Rao)

Member Secretary – KJA
mukund.k.rao@gmail.com
October 13, 2017
KJA RECOMMENDATION
PREFACE
An unprecedented situation calls for unprecedented solution. Six decades of Indian
economic policy has stunted the growth of the formal employment sector which
constitutes only 20% of the labour force. The rest of 80% in the informal sector is outside
the ambit of formal training. The informal sector lives in graded levels of economic
disadvantage – all in spite of increase in GDP. Serious economic, regional, social, and
gender disparities in education, health and income levels are indicators of low human
development. Mass education with increased enrolment in professional education
has not addressed the problems of unemployment and employability of the
graduates. The Vocational Skilling system has a requirement to create policies,
processes and services to facilitate holistic societal development and harmony.
Karnataka State renowned for entrepreneurial spirit, accounts for significant portion
of the industrial investment and production at national level. The State has also
become the Technology and Start-up capital of the country. The state recognizes the
criticality of skill training and continuous skill upgrade amidst globalized competition
and, encourages educational institutions to take up quantitative and qualitative
measures for capacity building.
The report on Karnataka Skill Development Plan is a culmination of series of meetings

and brainstorming sessions with several experts from Academia, Industry and
Government. The report sets the context for Karnataka State, current skills
development scenario and its challenges. The report presents several strategies and
policy recommendations that would enable the state to overcome its challenges in
skill building.
The recommendations submitted here aim to provide systemic and scalable solutions
to the State that would attempt to cover the difficult trinity of cost, quality and scale.
The policy recommendations call for a paradigm shift in Karnataka’s vocational
skilling system to empower the aspiring youth as well as all other key stakeholders and
ensure them a better future.
We are thankful to all the Members of the Skills Task Team for their contribution and
keen interest as well as the team of Karnataka Jnana Aayoga for having facilitated
the work of the Skills Task Team
Mr. Mohandas Pai Mr. Manish Sabharwal

Co-Chair, TT-SKILL DEVELOPMENT Co-Chair, TT-SKILL DEVELOPMENT
KJA RECOMMENDATION
KJA RECOMMENDATION
KJA TASK TEAM – KARNATAKA SKILL DEVELOPMENT PLAN
(http://www.karnataka.gov.in/jnanaayoga/Pages/TGKSDP.aspx)
Co-Chairs of KARNATAKA SKILL DEVELOPMENT PLAN

• Mr. Manish Sabharwal, Member, KJA
• Mr. Mohandas Pai. T.V. Member, KJA
Member Secretary of KARNATAKA SKILL DEVELOPMENT PLAN

• Mrs. Neeti Sharma, Senior Vice-President and Co-Founder, TeamLease
Services, Bengaluru
Members of KARNATAKA SKILL DEVELOPMENT PLAN

• Mrs. Shukla Bose, Member, KJA
• Dr. Sunney Tharappa, Member, KJA
• Mr. Dilip Chenoy, Former, CEO and MD, NSDC, New Delhi
• Mr. Balachandar Nataraja, Group Director - HR, Cafe Coffee Day,
Bengaluru
• Mr. John Yates, CEO, Manipal City & Guilds, Bengaluru
• Mr. Raj Narayan, Chief HR Officer, Titan Company
• Dr. Mukund K. Rao, Member Secretary, KJA
• Additional Chief Secretary to Government, Department of Labour, GoK
• Principal Secretary to Government, Department of Higher Education, GoK
• Principal Secretary to Government, Department of Primary and Secondary
Education, GoK
Convenors of KARNATAKA SKILL DEVELOPMENT PLAN

• Ms. Nandhini R, Research Associate, KJA Secretariat (Present)
• Dr. Mrs. B.S. Padmavathi, Sr. Research Associate, KJA Secretariat (Formerly)
Research Associate of KARNATAKA SKILL DEVELOPMENT PLAN

• Mr. Animesh Pati – RA, KJA (Formerly)
• Ms. Rachana Lankapalli – RA, KJA (Formerly)
KJA Secretariat Support

• Mr. Ashok Kumar, Admn/Finance Executive, KJA Secretariat
• Mr. Ravi, DEO, KJA Secretariat
• Ms. Vinutha, KJA Secretariat
• Mr. Roshan, Fin Asst, KJA Secretariat
KJA RECOMMENDATION
KJA RECOMMENDATION
ACKNOWLEDGEMENTS
KJA has had numerous consultations and discussions with a wide range of experts and
officials of GOK. Grateful thanks to the following senior officers of GOK:
• Shri. Subhash Chandra Khuntia, IAS, Chief Secretary, Government of Karnataka –

who has provided the leadership of the bureaucracy to KJA and, specifically,
valuable guidance and direction to the Karnataka Skill Development Plan Task
Team.
• Shri. Sanjeev Kumar, IAS, Principal Secretary to Government, Department for Skill
Development, Entrepreneurship and Livelihood, Government of Karnataka (and
Shri. P.B. Ramamurthy, IAS, Additional Chief Secretary, Labour) for the valuable
feedbacks and ideas on sections involving labour skill and guidance to the KSDP
Task Team.
• Shri. Jawaid Akhtar, IAS, Additional Chief Secretary, Higher Education has been
extremely supportive in a pragmatic manner and has helped in the development
of ideations and the strategies for KSDP.
• Shri. Ajay Seth, IAS, (present) & Shri. Rajkumar Khatri, IAS, (former) Principal
Secretary to Government, Primary and Secondary Education for their contributions
and support to the Task Team for improving the infrastructure of Skill development
state vide.
• Shri. S.V. Ranganath, Vice Chairman, Karnataka State Higher Education,
Representatives from NSDC, Vocational Education; – for their invaluable inputs to
the Task Team to provide the best for the students in vocational education.
• Shri. Sameer Shukla, IAS, Commissioner Employment & Training for critically
evaluating the report and providing valuable inputs for finalizing it.
KJA gratefully acknowledges the support of the officials of the Departments of Skills,
Labour, Higher Education, Primary and Secondary Education; under Government of
Karnataka for participating in the numerous discussions and sharing their data in
preparing this report.
KJA expresses its gratitude to the large number of expert delegates who participated
in the important discussions that were conducted by the research group and KJA
thanks the various government agencies, industries and academia who participated.
KJA appreciates and acknowledges the remarkable contributions made by the Skill
Development Task Team and especially the 2 Co-Chairs – Mr. Manish Sabharwal and
Mr. Mohandas Pai. T.V for their enormous contribution, insightful suggestions and for
providing leadership in finalizing this Report.
KJA Members have been the “fulcrum” in defining and shaping the various activities
of KJA – in this case the KSDP Report. The KJA Members have had numerous meetings
KJA RECOMMENDATION
and brain storming sessions in bringing out this comprehensive report. Grateful thanks
to all the KJA Members.
KJA Secretariat provided the back-end research support and coordination support –
a team of youngsters that brought in vital energy in “sewing up” multiple elements
and helping the KSDP TT in all its meetings, record-keeping and in finalising the report.
--------------------------------------------X--------------------------------------------
KJA RECOMMENDATION
CONTENTS
MESSAGE
FOREWORD
PREFACE
KJA TASK TEAM – KARNATAKA SKILL DEVELOPMENT PLAN
ACKNOWLEDGEMENTS
EXECUTIVE SUMMARY ......................................................................................................... 1
1. INTRODUCTION ............................................................................................................. 3
1.1 SOCIO – ECONOMIC STATUS OF KARNATAKA ............................................... 3
1.2 GLOBAL TRENDS IN SKILL DEVELOPMENT ......................................................... 6
1.2.1 SKILL DEVELOPMENT IN AUSTRALIA .................................................................. 7
1.2.2 SKILL DEVELOPMENT IN GERMANY .................................................................. 8
1.2.3 SKILL DEVELOPMENT IN BRAZIL.......................................................................... 9
1.3 NATIONAL TRENDS IN SKILL DEVELOPMENT ................................................... 11
1.3.1 DEMOGRAPHIC DIVIDEND.............................................................................. 11
1.3.2 MARKET REQUIREMENT .................................................................................... 12
1.3.3 CURRENT STATUS OF VOCATIONAL TRAINING INFRASTRUCTURE ............... 13
1.3.4 ELEVENTH PLAN STRATEGIES............................................................................ 15
2. SKILL DEVELOPMENT IN INDIA .................................................................................... 17
3. SKILL GAP IN KARNATAKA ......................................................................................... 21
3.1 STATE’S VOCATIONAL EDUCATION AND SKILL DEVELOPMENT ..................... 21
3.2 DEMOGRAPHIC DIVIDEND ............................................................................. 23
3.3 STATE LEVEL INITIATIVE .................................................................................... 24
3.4 VOCATIONAL EDUCATION IN KARNATAKA .................................................. 25
3.4.1 TRAINING OF TRAINERS .................................................................................... 27
4. SECTORWISE SKILL GAP ANAYLSIS ............................................................................. 31
4.1 BANKING, FINANCIAL SERVICES AND INSURANCE SECTOR ......................... 32
4.1.1 BANKING AND INSURANCE SECTOR IN KARNATAKA................................... 32
4.1.2 NON-BANKING FINANCIAL COMPANY ......................................................... 36
4.1.3 MUTUAL FUNDS ................................................................................................. 37

KJA RECOMMENDATION
4.2 CONSTRUCTION SECTOR ................................................................................ 37
4.2.1 GROWTH RATE OF CONSTRUCTION INDUSTRY IN INDIA .............................. 37
4.2.2 EMPLOYMENT IN THE SECTOR ......................................................................... 39
4.2.3 PRESENT LABOUR SUPPLY ................................................................................ 40
4.2.4 PROJECTED LABOUR DEMAND ...................................................................... 41
4.3 TEXTILE AND GARMENTS SECTOR ................................................................... 42
4.3.1 INTRODUCTION................................................................................................. 42
4.3.2 EMPLOYMENT IN TEXTILE SECTOR ................................................................... 45
4.4 MEDIA AND ENTERTAINMENT INDUSTRY ........................................................ 46
4.4.1 INTRODUCTION................................................................................................. 46
4.4.2 FILM AND TELEVISION....................................................................................... 47
4.4.3 ANIMATION VFX AND GAMING ..................................................................... 47
4.4.4 SKILL GAP .......................................................................................................... 48
4.5 AGRICUTURE ................................................................................................... 48
4.5.1 AGRICULTURE PROFILE OF THE STATE ............................................................. 48
4.5.2 WORK FORCE IN AGRICULTURE: .................................................................... 49
4.5.3 ALLIED SECTORS ............................................................................................... 50
4.5.4 SKILL GAP .......................................................................................................... 52
4.6 TOURISM AND HOSPITALITY ............................................................................ 53
4.6.1 EMPLOYMENT IN TOURISM SECTOR................................................................ 54
4.7 HEALTHCARE ................................................................................................... 55
4.7.1 INTRODUCTION................................................................................................. 55
4.7.2 EMPLOYMENT IN HEALTHCARE SECTOR ........................................................ 56
4.7.3 PROJECTED LABOUR DEMAND ...................................................................... 56
4.7.4 SKILL GAP .......................................................................................................... 57
4.8 IT AND ITES ...................................................................................................... 57
4.8.1 PROJECTED GROWTH OF EMPLOYMENT....................................................... 58
4.8.2 DEMAND DRIVERS OF THE SECTOR ................................................................ 59
4.9 THE UNORGANIZED SECTOR ........................................................................... 60
4.9.1 TEXTILE SECTOR ................................................................................................. 61

KJA RECOMMENDATION
4.9.2 TOURISM SECTOR ............................................................................................. 62
4.9.3 THE FURNITURE AND FURNISHING INDUSTRY .................................................. 62
4.9.4 CONSTRUCTION AND REAL ESTATE ................................................................ 62
4.9.5 DOMESTIC WORKERS ....................................................................................... 63
4.9.6 WELLNESS SECTOR (SALON AND SPA) ........................................................... 63
4.9.7 SECURITY GUARDS ........................................................................................... 64
4.9.8 HANDICRAFTS ................................................................................................... 64
4.9.9 AGARBATTI MAKING ........................................................................................ 64
5. RECOMMENDATIONS ................................................................................................. 67
5.1 AIMS AND OBJECTIVES OF THE SKILL POLICY ................................................ 67
5.2 POLICY INTERVENTIONS FOR PROMOTING SKILLS AMONG YOUTH ............. 69
5.2.1 INFORMATION, AWARENESS AND MOBILISATION ........................................ 70
5.2.2 ASPIRATIONS AMONG YOUTH ........................................................................ 71
5.2.3 STANDARD CURRICULA AND COURSES ........................................................ 72
5.3 POLICY INTERVENTIONS FOR SKILL TRAINING................................................ 72
5.3.1 TRAINING INFRASTRUCTURE ............................................................................ 72
5.3.2 IMPROVING QUALITY OF TRAINING AND CAPACITY OF TEACHERS .......... 73
5.3.3 CAREER GUIDANCE AND PLACEMENT SUPPORT SERVICES ........................ 74
5.3.4 OVERSEAS EMPLOYMENT ................................................................................ 74
5.3.5 APPRENTICESHIP PROGRAMME ..................................................................... 74
5.3.6 VOCATIONAL TRAINING FOR SCHOOL DROPOUTS ..................................... 75
5.4 ENTREPRENEURSHIP DEVELOPMENT AND LIVELIHOOD PROMOTION POLICIES

......................................................................................................................... 75
5.4.1 SKILLS FOR ENTREPRENEURSHIP DEVELOPMENT ............................................ 76
5.4.2 LIVELIHOOD PROMOTION POLLICIES ............................................................. 76
5.4.3 CLUSTER DEVELOPMENT .................................................................................. 77
5.5 MATCHING ...................................................................................................... 78
5.5.1 REVAMP EMPLOYMENT EXCHANGES TO CAREER CENTERS ....................... 78
5.5.2 OBJECTIVE OF THE CAREER CENTERS ............................................................ 78
5.5.3 STRUCTURE ........................................................................................................ 79

KJA RECOMMENDATION
5.5.4 LABOUR LAW AMENDMENTS .......................................................................... 82
5.6 REPAIR ............................................................................................................. 87
5.6.1 STRENGTHEN SKILLS DEPARTMENT .................................................................. 87
5.6.2 IDENTIFY CORPORATE CHAMPIONS .............................................................. 88
5.6.3 STATE LEVEL SKILLS DEVELOPMENT PROGRAM ............................................. 92
5.6.4 CREATE A STATE APPRENTICESHIP CORPORATION ...................................... 93
5.6.5 FOCUSSED SKILLS DEVELOPMENT PROGRAMS FOR THE UNORGANIZED

SECTOR .............................................................................................................. 94
5.7 PREPARE .......................................................................................................... 94
5.7.1 SET UP VOCATIONAL UNIVERSITY THAT PROVIDES A QUALIFICATION

CORRIDOR FOR ITIS/ POLYTECHNICS ETC. WITH ROADMAP TO UNIVERSITY
DEGREE.............................................................................................................. 94
5.7.2 VOCATIONAL SKILLS AS AN ALTERNATE TO LANGUAGES/ VOCATIONAL

SKILLS AT SCHOOL LEVEL ................................................................................. 96
5.7.3 ENGLISH LANGUAGE AT SCHOOLS ................................................................ 97
5.7.4 CAPACITY BUILDING OF SCHOOLS / UNIVERSITY / VOCATIONAL SKILLS

TEACHERS .......................................................................................................... 98
5.8 INITIATION ....................................................................................................... 99
5.8.1 PHASE 1 INITIATION (THE NEXT TWO YEARS – TILL 2019) ............................... 99
ANNEXURE - 1: VOCATIONAL SKILLS UNIVERSITY .......................................................... 101
INTRODUCTION ............................................................................................................. 102
EVOLUTION OF DIFFERENT TYPES OF UNIVERSITIES IN INDIA ..................................... 103
CLASSIFICATION OF UNIVERSITIES ............................................................................... 106
CONTEMPORARY SKILL DEVELOPMENT ISSUES IN INDIA........................................... 106
COMPREHENSIVE SKILL EDUCATION: NEED FOR NEW VARIETY OF TERTIARY

EDUCATIONAL INSTITUTIONS ........................................................................................ 111
HIGHER EDUCATIONAL SYSTEM IN AN UNPRECEDENTED SITUATION ...................... 117
VOCATIONAL UNIVERSITY SYSTEM – A NECESSITY OF THE GLOBALIZED WORLD .. 120
SKILLS UNIVERSITY- A SUPPORTIVE SYSTEM FOR SKILL DEVELOPMENT EFFORTS OF

STATE GOVERNMENT .................................................................................................... 123
SKILLS UNIVERSITY - ORGANIZATIONAL ASPECTS ....................................................... 123

KJA RECOMMENDATION
THE SKILLS UNIVERSITY – SOME FEATURES ................................................................... 127
RATIONALE FOR TWO-YEAR TENURE FOR ASSOCIATE DEGREE PROGRAMMES .... 131
STRATEGY FOR CURRICULUM DESIGN USING CREDIT ASSIGNMENT AND

MODULARIZATION ........................................................................................................ 132
METHODOLOGY FOR CURRICULUM IMPLEMENTATION ........................................... 143
ANNEXURE- 2: GO on KARNATAKA JNANA AAYOGA (KJA) .................................... 151
LIST OF FIGURES AND TABLES
TABLE 1-1 GSDP AND SECTORAL SHARE OF GSDP ..................................................................................................... 3

TABLE 1-2 EDUCATION INFRASTRUCTURE IN KARNATAKA ............................................................................................. 4
TABLE 1-3 GROSS ENROLMENT RATIO OF VARIOUS EDUCATION LEVELS IN KARNATAKA....................................................... 4
TABLE 1-4 DROPOUT RATE OF VARIOUS EDUCATION LEVELS IN KARNATAKA ..................................................................... 4
TABLE 1-5 CRUDE BIRTH RATE (1995-2015) ............................................................................................................ 5
FIGURE 1-1 LEVELS OF BRAZILIAN VOCATIONAL SYSTEM.............................................................................................. 10
TABLE 1-6 BEST PRACTICES OF SKILL DEVELOPMENT IN OTHER COUNTRIES.................................................................... 11
FIGURE 1-2 PROJECTION OF WORKING AGE GROUP FOR 2020..................................................................................... 12
FIGURE 3-1 SECTOR-WISE CONTRIBUTION TO GDP .................................................................................................... 21
TABLE 3-1 SECTOR-WISE CONTRIBUTION TO GSDP AND EMPLOYMENT ........................................................................ 21
TABLE 3-2 SECTOR WISE PROJECTION OF PER CAPITA INCOME .................................................................................... 22
TABLE 3-3 PROJECTED SECTOR-WISE CONTRIBUTION TO GSDP AND EMPLOYMENT ........................................................ 23
FIGURE 3-2 GDP – AT CONSTANT (2004-05) PRICES ................................................................................................ 23
TABLE 3-4 TRAINING INSTITUTES STATUS ................................................................................................................ 25
TABLE 4-1 CURRENT EMPLOYMENT IN SEGMENTS OF BFSI INDUSTRY ........................................................................... 33
TABLE 4-2 PROJECTED LABOUR DEMAND FOR BANKING SECTOR ................................................................................. 34
FIGURE 4-1 PROJECTED LABOUR DEMAND FOR BANKING SECTOR ................................................................................. 34
TABLE 4-3 PROJECTED LABOUR DEMAND FOR INSURANCE SECTOR ............................................................................... 35
FIGURE 4-2 PROJECTED LABOUR DEMAND ................................................................................................................ 35
TABLE 4-4 NON-BANKING FINANCIAL COMPANIES IN KARNATAKA ............................................................................... 36
TABLE 4-5 KEY POINTS OF CONSTRUCTION INDUSTRY ................................................................................................ 38
FIGURE 4-3 EMPLOYMENT STRUCTURE IN CONSTRUCTION SECTOR ................................................................................ 40
FIGURE 4-4 NUMBER OF CONSTRUCTION WORKERS REGISTERED .................................................................................. 41
FIGURE 4-5 EMPLOYMENT OPPORTUNITIES IN REAL ESTATE SECTOR .............................................................................. 41
TABLE 4-6 PROJECTED DEMAND FOR CONSTRUCTION WORKERS ................................................................................. 42
FIGURE 4-6 PROJECTED LABOUR DEMAND FOR CONSTRUCTION WORKERS ..................................................................... 42
TABLE 4-7 READY GARMENTS AND TEXTILE IN KARNATAKA ......................................................................................... 43
TABLE 4-8 EXPORT PERFORMANCE OF KARNATAKA STATE .......................................................................................... 43
FIGURE 4-7 VALUE OF CHAIN OF TEXTILE INDUSTRY .................................................................................................... 44
KJA RECOMMENDATION
TABLE 4-9 HANDLOOM WEAVERS AND LOOMS IN KARNATAKA ................................................................................... 45
TABLE 4-10 INCREMENTAL DEMAND FOR LABOUR IN TEXTILE INDUSTRY ......................................................................... 46
TABLE 4-11 AGRICULTURE WORKFORCE IN KARNATAKA .............................................................................................. 49
TABLE 4-12 WORKFORCE ENGAGED IN AGRICULTURE.................................................................................................. 50
TABLE 4-13 FISHERIES CAPACITY & WORK FORCE ...................................................................................................... 51
TABLE 4-14 HORTICULTURE BUDGET ALLOCATION ...................................................................................................... 51
TABLE 4-15 EMPLOYMENT IN SERICULTURE ............................................................................................................... 52
TABLE 4-16 REVENUE REALIZED BY TOURISM ............................................................................................................. 53
TABLE 4-17 NUMBER OF TOURIST ARRIVALS IN KARNATAKA ......................................................................................... 54
TABLE 4-18 EMPLOYMENT IN TOURISM SECTOR ......................................................................................................... 54
TABLE 4-19 HEALTH INFRASTRUCTURE IN KARNATAKA................................................................................................. 55
TABLE 4-20 MANPOWER REQUIRED IN HOSPITAL ....................................................................................................... 56
TABLE 4-21 INCREMENTAL DEMAND FOR MAN- POWER IN HEALTH SECTOR ................................................................... 57
TABLE 4-22 PERFORMANCE OF INFORMATION AND COMMUNICATION TECHNOLOGY SECTOR ............................................. 58
TABLE 4-23 OVERALL TURNOVER OF IT- SECTOR ........................................................................................................ 58
TABLE 4-24 EMPLOYMENT GENERATED BY THE IT SECTOR ........................................................................................... 59
TABLE 4-25 SHARE OF LABOUR INPUT IN UNORGANISED SECTOR ................................................................................... 60
FIGURE 5-1 ECOSYSTEM ........................................................................................................................................ 81
FIGURE 5-2 CAREER CENTRE WORK FLOW ................................................................................................................ 81
TABLE 5-1 SALARY DEDUCTION ............................................................................................................................. 84
TABLE 5-2 POTENTIAL CHAMPION EMPLOYERS......................................................................................................... 90
FIGURE A-1 CLASSIFICATION OF UNIVERSITIES BASED ON TYPE OF OWNERSHIP .............................................................. 106
FIGURE A-2 CLASSIFICATION OF UNIVERSITIES BASED ON DOMAINS OFFERED ................................................................ 106
TABLE A - 1 CONTRASTING THE DESIRABLE ATTRIBUTES WITH THE CHARACTERISTICS OF SPECIFIED INSTITUTIONS ................. 115
FIGURE A-3 ORGANIZATIONAL CHART OF SKILLS UNIVERSITY ...................................................................................... 125
FIGURE A-4 ORGANIZATIONAL CHART OF THE UNITS REPORTING TO PROVOST ............................................................... 126
FIGURE A-5 ORGANIZATIONAL CHART OF THE CAMPUS ADMINISTRATION UNIT.............................................................. 126
FIGURE A-6 ORGANIZATIONAL CHART OF THE CAMPUS ACADEMIC UNIT (ONLY A FEW DOMAINS SHOWN)........................... 127
FIGURE A-7 ORGANIZATIONAL CHART OF COMMUNITY COLLEGES ............................................................................... 127
TABLE A - 2 TEMPLATE FOR SEMESTER-WISE DOMAIN SPECIFIC PROGRAMME STRUCTURE ............................................... 134
FIGURE A-8 REPRESENTATION OF GENERAL MODULARIZATION ................................................................................... 135
FIGURE A-9 REPRESENTATION OF BLOCK MODULARIZATION ....................................................................................... 136
FIGURE A-10 REPRESENTATION OF FRAGMENTAL MODULARIZATION .............................................................................. 137
FIGURE A-11 REPRESENTATION OF BRANCHING MODULARIZATION ................................................................................ 138
FIGURE A-12 CURRICULUM SPREAD ......................................................................................................................... 141
TABLE A - 3 INSTRUCTIONAL TIME FOR ASSOCIATE DEGREE......................................................................................... 142
TABLE A - 4 CATEGORIES OF FACULTY REQUIRED ...................................................................................................... 143
TABLE A - 5 PROPOSED PROGRAM-WISE FEE STRUCTURE ........................................................................................... 146
TABLE A - 6 AN ESTIMATE ON PROGRAM-WISE STUDENT ENROLMENT ......................................................................... 147
KJA RECOMMENDATION
EXECUTIVE SUMMARY
We are all aware of the demographic dividend that India is set to experience over
the next twenty years. A predominant section of the population will be young and
shall be seeking employment. To make the most of this phenomenon, every individual
has to be equipped in such a manner that they can earn their livelihood and thereby
contribute towards the economy. It is for this reason that immediate attention must be
given to skill development. To ensure successful skilling of the nation, it is important that
efforts are made at the State level. Understanding this need, Karnataka envisions
building a strong framework that will provide a wide range of skilling programs and this
“Report on Karnataka Skill Development Plan” provides guidance and policy
recommendations to build such a framework. Karnataka has already established itself
in the field of Information Technology and Biotechnology and therefore it has a natural
advantage of having a strong formal sector to lead skill development initiatives. It
cannot just develop initiatives for skilling but also pave the way for the rest of the
country to follow its lead.
It was envisioned that the report will be a comprehensive document that analyses
every aspect of vocational education to ensure that the best of best is provided to
the students in Karnataka. The report explores skill development programs of other
countries and of India to identify their best practices. The report also contains a
detailed study on some important sectors in Karnataka. The growth and labour pattern
of each of these sectors have been studied to estimate future projections. The
potential demand for labour in a sector will help in identifying which sectors need
attention. Based on interactions with professionals in these sectors, a set of skill gap
has been identified. Using this, a focused skilling program can be implemented at the
State level. In addition to training, the report also addresses the issue of employment.
The recommendation takes into account both these factors.
Vocational education should be introduced in the schools at secondary level as it is

an age at which children are old enough to identify what interests them and what
doesn’t. At present vocational education courses are limited in number. Many
mainstream schools do not provide vocational courses which leads to inaccessibility
and to an extent lack of awareness. In addition to this, the vocational curriculum has
failed to attract academically successful professionals, though they are in grave need
of job skills. The stigma that the vocational education and training courses are mainly
meant for academically less proficient people has greatly contributed to this notion.
It is imperative that an image building exercise be undertaken for vocational
education and skill development. Vocational Courses need to be designed for all
levels above class 8. This ensures that students have the freedom to switch over from
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general education at any time. It was strongly felt that there needs to be a two-way
movement between general education and vocational education. Students, who
have opted for vocational education at PUC level, do not have the option to return
to general education. This barrier needs to be removed.
The heart of any course lies in its content. The curriculum of all vocational courses must
be up-to-date and made relevant. They must be in tandem with the demand of the
sector and modelled along the lines of global markets. Students must be trained in
such a manner that they can be absorbed in both domestic and global markets.
The Government should undertake a targeted approach towards expanding skill

development infrastructure across the state. To achieve success in this ambitious
skilling mission, it is recommended that following initiatives be undertaken:
• Establishing Career Centres: These centres will be equipped with state of the
art infrastructure, propose to conduct training and offer jobs to local youth.
They will also provide counseling services to job seekers to improve their
employability. The Centre would also help job seekers in job matching services.
• State Skill Department: The newly formed Skills Department should be the nodal
agency for all vocational skilling in the state. This is to ensure that skill
development gets adequate focus. The department should manage the
state’s skill budget, fund apprenticeship programs and channelize entry level
employment through this department.
• Corporate Championship Program: Under this program a company
collaborates with the government to provide training and employment to a pre
– decided number of people. The government will fund other logistic related
expenses. This program will enable Government to bridge the skill gap by
funding training projects that are on par with global standards, and ensure
placement, retention and career progression.
• State Apprenticeship Program: The number of apprentices in India is far less
than that in Japan, Germany and China. To increase the number of
apprentices to a significant level in the State, it is proposed to set up Karnataka
Apprenticeship Corporation. This would be the nodal agency facilitating
apprenticeship program between and among all the stakeholders, including
the central agencies.
• State Level Skill Development Program: The State level skill development
program named Karnataka YuvaKaushalya Program (KYKP) will provide
vocational skills to the identified target groups, which among others include
women, marginalised class and unemployed youth on mission mode basis.
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1. INTRODUCTION
1.1 SOCIO – ECONOMIC STATUS OF KARNATAKA
Karnataka has displayed a consistent increase in its human development index in the
past three decades. Although the state rank within the country fell from a position of
6 in 1981 to 10 in 2011, one must not immediately attribute such a fall to poor
education and health as per capita GDP plays a significant role in the same. The per
capita income of the state for the year 2014-15 was Rs 1,01,594. The per capita income
increased more than fourfold from 2000-01 when it was only Rs 18,344. The same trend
can be observed with the State Gross Domestic Product too. The table below
compares Income figures for the years 2000-01 and 2014-15. The values are at current
prices.
Table 1-1 GSDP and Sectoral Share of GSDP
GSDP and Sectoral Share of GSDP

Income Levels (at current Prices) 2000-01 2014-15 CAGR
State Income (in Rs. Cr) 96348 702131 15.24%
Primary Sector 31473 128518 10.57%
Secondary Sector 18684 158679 16.51%
Tertiary Sector 46191 414934 16.98%
Per Capita 18344 101594 13.01%
Data Source: Economic Survey of Karnataka 2014-15
In addition to having a continuous revenue stream, a person must have access to

proper education and health services. It is for this reason that the Government lays
great stress on providing these facilities to its citizens. These services are provided to
enable people improve their conditions in life. The State of Karnataka has been
providing these services to its people. It has a wide network of schools and hospitals
that cater to the needs of its people.
Karnataka has been performing very well in the Education sector. The state’s
achievement in education has been quite remarkable, and it is moving towards
universal literacy at a steady pace. The literacy rate increased from 56.04 per cent in
1991 to 75.40 per cent in 2011, with the female literacy rate increasing more swiftly
than the male literacy rate. Overall, the gender disparity in literacy is also declining.
The decline is not very stark in rural areas as the literacy rate for women continues to
be below 60 per cent. The Table 1.2 gives an overview of Education infrastructure in
the state:

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Table 1-2 Education Infrastructure in Karnataka
Education Infrastructure in Karnataka

Type of School No. of Schools Enrolment
Lower Primary School 26374 5,264,365
Higher Primary School 29862 3,224,388
Higher Secondary 15043 1,482,199
PUC 4688 1,145,834
The Gross Enrolment Ratios for lower levels of schooling have recorded high figures for
the year 2014-151.The table 1.3 clearly indicates that GER of higher secondary level
remains low.
Table 1-3 Gross Enrolment Ratio of various education levels in Karnataka
Gross Enrolment Ratio of various education levels in Karnataka

Higher
Elementary Secondary Secondary
Primary Level Upper Primary Level Level Level Level
2013-14 100.96 91.81 97.49 77.49 18.39
2014-15 101.86 93.18 98.59 81.8 32.96
Data Source: School Education in India; National University of Educational Planning and
Administration
Table 1-4 Dropout rate of various Education Levels in Karnataka
Dropout rate of various Education Levels in Karnataka

Primary Level Upper Primary Level Secondary Level Grade XI to XII
2012-13 2.97 5.05 39.92 15.33
2013-14 2.32 2.51 27.57 -
Data Source: School Education in India; National University of Educational Planning and Administration
The dropout rate fell from 2.97% in 2012-13 to 2.32% in 2013-14 at Primary Level. The
Dropout rate in Upper primary fell by half in the same time period. “Karnataka has
taken steps to recruit women teachers, whose numbers went up to 54 per cent in 2003-
04. It is seen that from 2005 the number of female teachers continue to be more than
50%, with 2014-15 recording 59.4% (Planning, Programme Monitoring & Statistics
1 “The Gross Enrolment Ratio (GER) and Net Enrolment Ratio (NER) in lower primary are 102.36 and 93.56 respectively in 2013-14. At higher
primary stage the GER and NER is 90.47 and 81.78 in 2013-14. At the secondary level the GER and NER are 75.99 and 55.33 respectively in
2013-14” (Economic Survey of Karnataka 2013-2014).

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Department 2014-15)2. The state is taking efforts to achieve high literacy levels by
ensuring that there are schools within travelling distances and that all schools have
adequate infrastructure facilities.
With regard to healthcare, the state has hospitals at various levels to cater to medical
needs of the population. There are 32 District Hospitals, 146 sub-divisional hospitals and
29 Autonomous & Teaching Hospitals in the State. The primary health infrastructure in
rural areas has fulfilled the norms required under the “minimum needs programme” at
the aggregate level. There are 9264 Sub centres, 2233 Primary health centres (PHC),
193 community health centres (CHC) and, 146 Taluk hospitals catering to the health
needs of the rural population3. NRHM has indicated that there is a shortage of Sub
centres and CHCs vis-a-vis the population. List of shortfalls in various categories have
been covered below:
Table 1-5 Crude Birth Rate (1995-2015)
Crude Birth Rate (1995-2015)

Year Crude Birth Rate4 Year Crude Birth Rate
1995 24.1 2006 20.1
1996 23 2007 19.9
1997 22.7 2008 19.8
1998 22 2009 19.5
1999 22.3 2010 19.2
2000 22 2011 18.8
2001 22.2 2012 18.5
2002 22.1 2013 18.3
2003 21.8 2014 18.0
2004 20.9 2015 17.8
2005 20.6 2016 17.5
The current population of Karnataka is 6.52 crores5. The fertility rate of Karnataka is
1.96. It is below replacement rate of 2.1. The fertility rate of Karnataka is below that of
2 Data Source – District Information System of Education; “Elementary Education in India: Trends (2005-2015)”; 27th August 2015
3 Ministry of Health, Rural Health Statistics in India (2014), Number of sub divisional hospital and district hospital & mobile medical units
functioning as on 31st March 2014; Number of Community Health Centres during five year plans as on 31st March 2014 Number of sub
centres during five year plans as on 31st March 2014 Number of primary health centres during five year plans as on 31st March 2014 [Data
Set]. https://nrhm-mis.nic.in/SitePages/Home.aspx
4 Ministry of Health and Family Welfare, Department of Health and Family Welfare, Family Welfare Statistics, State wise Crude Birth Rate
(CBR) of India from 1971 to 2012 [Data Set] https://nrhm-mis.nic.in/Publications.asp...

5 The population figure of the current year is estimated based on past census figures.
6 Census of India, Sample Registration System 2012

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India at 2.4. In addition to this, the birth rate has been gradually decreasing over the
past two decades. The State has been declining in population and this has important
implications on schools and healthcare provision. This means Karnataka has to reorient
its strategy to cater to needs of people coming into the working age group, provide
skills training and also prepare for issues when this large population retires. Some of the
issues to be addressed are:
• The large population of youth will age after some decades, and the demand
for health facilities will therefore increase. Adequate measures need to be
taken to ensure that this demand will be met.
• The number of babies born every year in absolute number is gradually
decreasing; therefore, the need for elementary schools will also fall. It is time
that the Government focuses on the quality over the quantity of these schools
to ensure that the future generations benefit from quality elementary
education.
• Due to the demographic dividend, over the next twenty years, number of
people in the age group of 15 and above is going to rise. Therefore, there would
be a rise in demand for higher education. The Government must ensure that
there is adequate physical and soft infrastructure to cater to the increased
demand.
• There is a need to revisit our education curriculum at all levels to ensure that it
is relevant for the current century. With rapid technological progress, it is
important that the present and future generations are equipped to manage
and adapt to changes in technology.
1.2 GLOBAL TRENDS IN SKILL DEVELOPMENT

The concept of development that dominated the past century has been broadened
by scholars to include a holistic and humanistic approach to development. At the turn
of the last century, providing education facilities for citizens was considered a fiscal
expenditure. Today it is seen as an investment in human capital. It is an attempt to
enable individuals to tap into their potential and optimize their productivity. Therefore,
the key to economic growth lies in the talent, know-how, skills and capabilities of its
people – its human capital. Investing in this and innovating for education and
employment is critical to both public and private interests.
Moreover, ‘high levels of global unemployment and the rapidly changing nature of
work indicate a growing labour-market crisis, threatening livelihoods and
exacerbating inequality and social tensions’ World Economic Forum 2015). Global
unemployment rate is at 11.7% which is higher than that of the pre-recession rate
(International Labour Organization 2015). In 2015, according to the ILO, 201 million
people around the world are unemployed and these numbers are predicted to
increase to 212 million by 2019. The report credits the rise in unemployment to the slow

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growth of global economy. Industry is also reporting difficulties in finding talent and
many positions remain vacant, which indicate that there is a growing mismatch
between demand and supply of skills.
Technical and vocational education and training (TVET) is steadily emerging as a

winner in the ‘race to the top’ of global debates and government priorities for
education and national development agendas (Marope, Chakroun and K.P.Holmes
2015). TVET consists of formal, non-formal and informal learning for working in industries.
The courses are designed for specific job profiles. Individuals learn know-how and skills
from basic to advanced levels across a wide range of institutional and work settings
and in diverse socio-economic contexts. This will equip them to enter job markets and
to upgrade their skills to climb up the ladder. UNESCO states that skill development is
imperative for poverty reduction, economic recovery and sustainable development.
As India is also trying to address the skilling issues to optimize its demographic dividend;
our attention towards policy on skill development has increased.
Both developed and developing nations are realizing that the situation of
unemployment can be effectively addressed through quality education and
appropriate skilling. Skilled labour would also lead to higher production. This has
resulted in countries giving more attention to skill development. In this regard, many
countries have come out with national policies on skill development aimed at bridging
skill gaps. For the purpose of this report, skill development policies adopted by
Australia and Germany are explored as their models of skill development are well
recognized across the globe. Additionally, skill development policy of Brazil is looked
into as it is a developing nation like India with a similar economic environment.
1.2.1 SKILL DEVELOPMENT IN AUSTRALIA
Vocational Education and Training (VET) forms an integral part of the Australian
education system and is designed to deliver workplace specific skills and knowledge-
based competencies. VET is a sophisticated system governed by interconnected
government and independent bodies functioning within, a strict National Skills
Framework of Qualifications defined by Industry Training Packages and explicit quality
delivery standards of the Australia Quality Training Framework (AQTF). The national VET
system is informed by industry and is client-focused to deliver flexible, relevant and
responsive education and training.
Australia has a separate regulatory body for vocational education and training (VET)
known as the Australian Skill Quality Authority. This body supervises training providers,
known as Registered Training Organisations (RTOs), and monitors their compliance
with the VET Quality Framework or the Australian Qualifications Training Framework

KJA RECOMMENDATION
(AQTF) through audits (iVET, 2014). National Skills Standards Councils support the
regulatory framework for vocational education by advising ministers on the
development, maintenance and implementation of the national standards for
regulation of VET.
The Apprenticeships model has been a mechanism for skills development in Australia
for over a century. Thereafter, Traineeships were introduced as an extension of the
Australian Apprenticeship model with the aim of acting as a ‘stepping stone’ into
primary labour market jobs in order to improve and increase broad based work-
related training. The target group for traineeships are those who had left school before
completing year-12 and in the longer term is to assist others such as those returning to
the workforce, especially women. It was also hoped that by extending the Australian
Apprenticeship model to a wider range of occupations the gender imbalance in the
training model at the time could be corrected to some extent.
Traineeship in health services, community services, aged care and child care, has
contributed enormously to the professionalization of these industries and improvement
in both quality and consistency of service delivery. The improvement of occupational
qualification through traineeship pathways continues to contribute to higher quality
transferable skills across the economy."
1.2.2 SKILL DEVELOPMENT IN GERMANY
In the German education system students commence vocational training upon

completion of high school (age 15-Table 1.6 says 13 years) and the courses span two
to three years. ‘Learning by doing’ is the cornerstone of this system as it combines
hands-on practical exposure with theoretical study. It is a dual system in which a
balanced curriculum of structured training in a company is accompanied by part-
time classroom tuition in vocational and general subjects. Through this mechanism,
students graduate with a university degree and substantial work experience in their
field of interest. The apprenticeship offers 350 occupations covering diverse
fields. Because apprenticeships are such a good route into skilled jobs, many students
who have completed upper secondary school also start with an apprenticeship, even
if they have the credentials to enter university. In order to make the model feasible,
Germany relies on government funding for the schools whereas corporate institutions
provide skill training and job experience.
Regulation and partnership are two principles that make this system successful.
Representatives of the federal state, individual states, employers and employees work
together through consensus to develop curricula, provide training, and carry out
assessment, certification and quality assurance. Also, mutual trust and long-term

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commitment to human resource development have enabled the dual system to

deliver skill sets that meet employers’ requirements while guaranteeing employees
sufficient skills to change jobs and move up the career ladder.
Germany’s economy is described as ‘high skills equilibrium.’ A broad industrial base,

with a large number of small and medium-sized companies involved in export-
oriented activities, requires a highly skilled workforce. Accordingly, companies see
apprenticeships as a vital investment to guarantee their long-term competitiveness.
Training Institutions are at the centre of this model. These institutions have to be aware
of changing needs of the industry and mould their curriculum accordingly. Only then
is the success of such a model is guaranteed. The contribution of trainers is also crucial.
It is through them that the students gain hands-on experience. Therefore, having
experienced trainers who have industry exposure is imperative for this model. It is
important to note that Germany has high economic growth and an aging population;
it is in this context the country maintains low unemployment rates. The first step towards
replicating such a model in India is to develop strong links between the Government
and industry.
1.2.3 SKILL DEVELOPMENT IN BRAZIL
The average monthly income of Brazilians has increased in the past decade7.
Although rise in income can be attributed to growth of the economy, the strategic
investments that prepared young people for jobs and entrepreneurship played a
significant role, especially when associated with an increased focus on the most
vulnerable. A big part of this success is linked to the technical and vocational
education training (TVET) system, which has a flagship federal education and training
program (PRONATEC) and a training arm (Sistema-S).
Since 2011, Brazil has invested significantly in TVET through its flagship program,
PRONATEC. Government spending on skills development increased significantly with
the creation and expansion of PRONATEC. The program offered 8.8 million training
slots between 2011 and 2014, including both the secondary students enrolled in TVET
and 5 million new slots for vocational training of the existing workforce (Ministry of
Education, Brazil). Importantly, PRONATEC has focused on reaching the poor and
disadvantaged populations, with around 40 percent of the slots filled by
7 ‘Brazil Real Average Monthly Income’; Trading Economics (No reference details-publication, year)

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CadastroÚnico registrants (Brazil, Ministry of Social Development and Fight against

Hunger 2013).
1.2.3.1 STRUCTURE OF VOCATIONAL EDUCATION AND TRAINING IN BRAZIL
Initial and Continued

(FIC) Concomitant
el us
Lev neo
y a
An
mul t
Si
High School Level Simultaneous
Levels Technical Integrated
No
tS
Un im
iv e u lt
r si ty an
Le eo
vel us
Technological Sequential
Figure 1-1 Levels Of Brazilian Vocational System
LEVELS OF BRAZILIAN VOCATIONAL SYSTEM8
1. Initial or Continued formation courses (FIC courses): Anyone can enroll in this
type of program. In particular, 89.5% of FIC courses are offered by the S-System,
while the other 10.15% are the responsibility of federal and states’ technical
networks. These courses are typically short-term courses and don't grant any
educational level degree (secondary or tertiary) but focus on practical
knowledge for very specific careers such as butcher, hair-dresser, waitress,
receptionist, among others.
2. Technical Courses: Technical Courses provide professional training to students
enrolled in secondary school and secondary school graduates. These courses
operate in three modalities:
a. Integrated - Offered to students who want to attend simultaneously
Vocational and General Education courses at the same institution.
b. Concomitant - Offered to those students enrolled in a General Education
course elsewhere but also want to enroll in a technical course in another
institution.
c. Sequential - Offered only to those who complete secondary school.
d. Technological Courses: Technological courses are equivalent to tertiary
level courses. These programs are only available to secondary school
graduates and grant a diploma that is equivalent to a university degree.
8Fundação Getulio Vargas(FGV); Vocational Education and Training in Brazil; Knowledge Sharing Forum on Development
Experiences: Comparative Experiences of Korea and LAC (YoP)
KJA Recommendation 10 | P a g e
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Table 1-6 Best Practices of Skill Development in Other Countries
Best Practices of Skill Development in Other Countries

Australia Direct Intervention by the Government
A separate oversight agency to supervise all training institutes - ASQA
ASQA is vested with powers to suspend registration of training
institutions in the event of non- compliance with national skill
framework.
Germany Dual System for Vocational Education and Training
Entry age for Vocation Education in Germany is 10 as compared to 13
in India
Curriculum is designed based on inputs from all stake holders
Training Teachers
VET provides vertical and horizontal mobility for progressively gaining
further qualifications which would in turn inspire parents and students
to treat the vocational pass outs in a dignified manner.
Brazil Various entry levels for Vocational Training.
Implementing various types of courses whose eligibility ranges from
having any level of education to university level
1.3 NATIONAL TRENDS IN SKILL DEVELOPMENT

India experienced a paradigm shift in terms of economic development as a result of
liberalization and globalization. It transformed from being a predominantly agrarian
economy to a tertiary-sector driven economy. The global economy, which was
industry intense till the 1990s, gradually grew into a knowledge-based economy. The
demand for knowledge and skill based work force has increased tremendously since
then. A study by Goldman Sachs has projected that India will have a surplus of 47
million people in the working age, giving the country a competitive edge in labour
costs, which will be sustainable up to 2050 (Asia Times, May 5, 2006, on-line edition).
The study has further reported that by 2020 the US will be short of 17 million people of
working age, China 10 million, Japan 9 million and Russia 6 million. This situation
coupled with the demographic dividend will create a natural demand for Indian
labour force in the following decades.
1.3.1 DEMOGRAPHIC DIVIDEND
The Demographic Dividend that India is set to experience for the next 25 years is a
unique window of opportunity. While India’s workforce (age 15-59) starts expanding,
other major economies of the world will be entering the ageing economy
phenomenon (superannuation population outnumbering the working force). This
would result in a global shortage of approximately 56.5 million skilled workforces by
2020(FICCI. Details). Contrary to this global phenomenon India will have
approximately 47 million surplus workforces (Figure 1.2). It is also important to note that,
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of the total workforce 28% will be graduates, which is high among the 28 lowest cost
economies of the world (11 FYP, Planning Commission of India). This would compel
many economies to look to India for workforce.
India will be able to optimize this opportunity only when the workforce possesses
necessary knowledge and appropriate skills to attract the domestic and global
markets. Failing which, economists say India might lose this opportunity, thus resulting
in a “demographic nightmare” (Eleventh Five Year Plan, Vol I, pg. 91)
Projection of Working Age Group for 2020

(in millions)
Labour-Surplus Labour Scarcity
47
17 19
10 9
3 5 3 3 3 4 6 5 5
2 2 2 1 0.5
Figure 1-2 Projection of Working Age Group for 2020

Source-US Census Bureau. BCG.2002-2003
1.3.2 MARKET REQUIREMENT
National and global economies are increasingly becoming knowledge driven and skill
based. Since the early 1990s secondary and tertiary sectors have been absorbing
huge manpower equipped with appropriate skills. Another noticeable trend is the
growing demand for manpower with education beyond vocational skills. In fact, most
employers look for individuals with the ability to communicate, solve problems and
undertake teamwork, and not students trained in narrow vocational skills solely (Skill
Development in India-The Vocational Education and Training System, World Bank
2007).
There are nearly 20 Ministries and Departments involved in vocational education and
skill training. Vocational Education refers to vocational courses offered in schools for
Grades (class) 11 and 12 under a centrally sponsored scheme termed
‘Vocationalization of Secondary Education.’ The Vocational Education Programme in
India started in 1976-77 under the programme of Vocationalization of Higher
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Secondary Education in general education institutions. Vocational education falls

under the purview of the Ministry of Human Resources and Development (MHRD). The
All-India Council for Vocational Education (AICVE), under MHRD, is responsible for
planning, guiding and coordinating the program at the national level. At the state
level, State Councils for Vocational Education (SCVE) perform similar functions.
Vocational Training Programmes fall outside the formal schooling system. These are
institution-based training programmes which have varying entry requirements as well
as course durations. There is a predominance of practical over theoretical teaching
in these courses. Central and State Governments share responsibility for vocational
training. At the Central level, National Council for Vocational Training (NCVT) advises
the Central Government on vocational training. The Central Apprenticeship Council
and the National Council of Vocational Training operate as advisory institutions. The
NCVT is responsible for awarding National Trade Certificates; prescribing training
standards; arranging trade tests and developing standards for National Trade
Certificates; recognizing training institutions for the purpose of issuing National Trade
Certificates and laying down conditions for such recognition. Administrative
responsibility is held by the Directorate General of Employment and Training (DGET),
located within the MoLE. ITIs and ITCs operate under the guidance of DGET. At the
State level, State Vocational Training Institutes are being established to implement skill
training plans for the Government.
1.3.3 CURRENT STATUS OF VOCATIONAL TRAINING

INFRASTRUCTURE
There are 1244 polytechnics under the aegis of the Ministry of Human Resource and
Development with a capacity of over 2.95 lakh. There are about 9583 schools offering
about 150 educational courses of two years duration in broad areas of agriculture,
business and commerce, engineering and technology, health and paramedical
services, home science and science and technology at +2 stage covering about 1
million students.
But none of these Ministries are imparting skills in sectors where there is high demand
for skilled workforce. This has resulted in great mismatch between demand and supply.
Besides, the total training capacity of these Ministries and Departments is far below
the market requirement. The training offered by private organisations is also too small
and most of them do not adhere to quality norms. Therefore, it is critical for Central
and State Governments to re-structure and orient the existing system to accomplish
the set target. In this direction, the following issues need immediate attention by both
levels of the Government.
KJA RECOMMENDATION
1.3.3.1 MISMATCH BETWEEN DEMAND AND SUPPLY
There is a very glaring mismatch between market demand and skills attained by our
students. The Working Group on National Vocational Training System in its report has
also brought out this point. The report states that the skills imparted by NVTS do not
match with the skills required by the contemporary world of work. The system caters
mainly to needs of traditional manufacturing sector which represents less than 10% of
the total workforce. This mismatch is impacting the modern technology-driven industry
and service sectors to a great extent. Employers of these sectors have expressed that
students with vocational diplomas/certificates lack practical knowledge and need
on-the-job training to enable their skill levels to match needs. This mismatch will
continue to grow if we fail to cater to the demands of knowledge-based and
technology-driven manufacturing and services sectors.
Besides the mismatch there is a non-existence of certain courses. Vision of the National
Skill Development Initiative in India report, produced by Ministry of Labour in 2009,
stated that there is a high demand for skilled workforce in sub-sectors like construction,
ITES, consumer and retail, financial etc., but none of the Ministries offer skill
development courses in these sub-sectors. This trend, if unchecked, could also result
in jobless growth, wherein the sectoral growth and contribution continues to grow at
rapid rate without concurrent rise in the employment rate.
1.3.3.2 INFLEXIBLE AND OBSOLETE CURRICULUM
Inflexible and obsolete curriculum has largely contributed to the demand and supply
mismatch. Vocational courses have remained extremely conventional and non-
responsive to changing market needs. Even among the ITI graduates, the percentage
of unemployed ITI pass-outs in 2001 was 61.16% (this % is for Karnataka only). Majority
of employed ITI pass-outs were working in trade they had not been trained in.
The deficiency of vocational education and training is strongly felt among the
employers too. A survey conducted by Federation of Indian Chambers of Commerce
and Industry (FICCI) on the quality and relevance of vocational/technical training
from an industrial perspective in 2001, confirmed the deficiencies. The survey which
was conducted among 55 enterprises found that 87 % felt that institutions should have
greater exposure to industrial practices; over 43 % felt that academic institutions were
not aligned to the needs of the industry and close to 60 % entrepreneurs said that
institutions were not geared up to meet challenges of the global economy (World
Bank Report,2007, pg.29).
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1.3.3.3 TRAINING CAPACITY OF EXISTING INSTITUTIONS/CENTRES -

INSUFFICIENT
Capacity of the existing vocational education and skill development system is 3.1
million per annum. Across India, every year 12.8 million people enter the workforce
and 80 % of these new entrants have no opportunity for skill training. Data by NSS 68th
Round results show that among persons of age group 15-29 years, only about 2.4% are
reported to have received formal vocational training and another 8.6% reported to
have received non-formal vocational training, indicating that very few young
employees enter the world of work with any kind of formal vocational training. Under
the massive skill development programme the Union Government has set a target of
training 500 million persons by 2022. Quality of the existing vocational education and
training system is also a matter of great concern. Measures must be taken to have
adequate infrastructure, competent faculty members, financial and administrative
autonomy and industry exposure.
1.3.4 ELEVENTH PLAN STRATEGIES
Taking cognizance of the criticality of issues, Government of India constituted the

National Council on Skill Development in July 2008. Subsequently the Ministry of Labour
and Employment drafted a National Policy on Skill Development in February 2009 with
the objective of creating a workforce empowered with improved skills, knowledge
and internationally recognized qualifications to gain access to decent employment
and ensure India’s competitiveness in the dynamic Global Labour market.
Salient features of the Policy are:
1. Demand-driven system guided by labour market signals, thereby reducing skills

mismatch.
2. Expansion of outreach using established as well as innovative approaches.
3. National Vocational Qualifications Framework which will inter-alia include
opportunities for horizontal and vertical mobility between general and
technical education, recognition and certification of competencies
irrespective of mode of learning.
4. System to deliver ‘competencies’ in line with nationally and internationally
recognized standards.
5. Focus on new emerging occupations.
6. Focus on pre-employment training and lifelong learning.
7. Equity consideration, adequate participation of women, disabled persons and
disadvantaged groups including economically backward groups and
minorities-enhancing their access to training; improving employability and
increasing employment opportunities.
8. Stress on research, planning and monitoring.
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9. Involvement of social partners-responsibility for management and financing of

the system would be shared with all stakeholders and provide greater space
for Public-Private Partnership.
10. Promoting excellence
11. Use of modern training technologies including distance learning, e-learning,
web-based learning etc.
12. Skill upgradation of trainers, their quality assurances and improvement of status
(planning commission.nic.in/reports)
Based on this Policy, the National Vocational Education Qualifications and

Certification Framework system was established. NVEQCF is designed to provide
‘opportunities to students and the current workforce alike to pursue their learning
pathways whether they are planning to begin a career or looking for change in their
field of work or trying to upgrade their skills and knowledge without age-bar or
constraints in changing from academics to technical/vocational education streams
and vice-versa, from as low formal qualification as class VIII (or even lower after taking
bridge courses and or recognition of prior learning) for attaining desired levels of the
highest degree through modular flexible approach’ (National Project Implementation
Unit).
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2. SKILL DEVELOPMENT IN INDIA

The NDA then launched the National Skill Development Mission officially on 15th July
2015.The need for skilled human resource as a prerequisite for overall development in
general and for livelihood in particular, has been identified by developmental experts
at the start of the new millennium. This is evident from the 'Demographic Dividend'
versus 'Demographic Disaster' debate. Past Governments had also recognized the
importance of skilling India and hence incorporated the National Skill Development
Corporation (NSDC) in 2008. But a fresh impetus in response to this need has been
provided by the current government by bringing Skill Development to the forefront of
all development agendas.
Various new measures have been adopted as well as previous policies revamped for
rapid skill development of Indian youth. The mission aims to achieve a target of 500
million skilled labours in India by 2022. Of this 500 million, National Skill Development
Corporation (NSDC) will train 150 million; Ministry of Labour will train 100 million, MHRD
50 million and the rest 200 million shall be trained by 21 ministries, departments and
various other organisations. This is the same target which the National Policy on Skill
Development, 2009 aimed to achieve by 2022, but now a dedicated ministry has
been created for overseeing this namely, the Ministry of Skill Development and
Entrepreneurship (MSDE). Earlier skill development was pursued by different ministries
within their respective domains. For example, the Ministry of Labour or Ministry of
Minorities and Backward Classes would run skill development programs for labourers
and backward classes respectively. Similarly, the Ministry of Micro, Small and Medium
Enterprises was working around entrepreneurship development. Now MSDE is
mandated to gradually take over all skill development and entrepreneurial efforts in
the country.
NSDC is the nodal body of MSDE responsible for implementation of skill development
programs across India. NSDC has identified 31 different skill sectors in which training is
provided. Depending upon the nature of skill sector, there are various courses aligned
with industry standards ranging from beginner to expert level. As the curricula of these
training programmes are decided by respective Sector Skill Councils (SSCs), which
comprise of industry experts, such training is expected to be very useful for direct
employment in such industries. NSDC, itself being a Public-Private Partnership based
body, lay greater importance on the involvement of private partners at various stages
of skill development. For example, there are approximately 250 private training
partners, for-profit and not-for profit both, with the ever-expanding network of 2500+
fixed or mobile training centres in over 350 districts of India. Another private element
KJA RECOMMENDATION
in the skill ecosystem of NSDC is SSCs which plays a vital role in bridging the gap
between what the industry wants and what the skilling curriculum ought to be.
Prior to the NSDC, skill development was mainly led by the network of Polytechnics,
Industrial Training Institutes (ITIs) and Industrial Training Centres (ITCs). it is are
government owned and ITCs are their private counterpart. These institutions are mostly
responsible for technical education in India at semi-rural and semi-urban levels as they
provide diploma in technical education between duration of few months up to 3
years. Students passing out of these institutions are required to work in the industry for
a year or two, in order to appear for the certification exam conducted by National
Council of Vocational Training (NCVT). NCVT certificate is mandatory for jobs in
reputed companies in relevant industries.
NSDC has launched Pradhan Mantri Kaushal VikasYojna (PMKVY) which aims to
incentivize students for getting enrolled and completing skill training in any of the
identified 29 sectors. Other than PMKVY, NSDC has launched a dedicated skill
development program, named UDAAN, for the state of Jammu and Kashmir. Apart
from these comprehensive efforts for skill development, various other supportive
measures have been taken. The recent announcement of introducing Indian Skill
Development Services (ISDS) as a group ‘A’ service of the technical cadre of the MSDE
is a welcome step. Similarly signing of MoU between Ministry of Defence (MoD) and
MSDE regarding skill development of ex-servicemen is another productive effort. The
National Action Plan for Skill Training of Persons with Disabilities was launched in New
Delhi in March 2015. The National Action Plan is a partnership between
the MSDE and Department of Empowerment of Persons with Disability for skilling 2.5
million Persons with Disability (PwD) over seven years between 2015 and 2022. There
are various state level skill development missions running in parallel, especially in states
with non-NDA government. For example, the UP government is running its Uttar
Pradesh Skill Development Mission (UPSDM). Similarly, many private universities are also
running their own skill development and certification programs. For example, CV
Raman University is running its own training courses in partnership with AISECT, training
partner in the states of Madhya Pradesh and Chhattisgarh. Ministry of Rural
Development (MoRD) is running Deen Dayal Upadhyaya Grameen Kaushalya Yojna
(DDU-GKY) as part of the National Rural Livelihood Mission (NRLM). It aims to skill poor
rural youth ranging between the ages of 15 to 35 years. It leverages upon poor
households notified under various government schemes such as MGNREGA, Rashtriya
Swastha Bima Yojna (RSBY), Antyodaya Ann Yojna (AAY), BPL PDS card holders, NRLM-
SHG and others.
A skill mission with very ambitious targets in a limited span of time as well as multiplicity
of skill development efforts is prone to complexities during on-ground implementation
KJA RECOMMENDATION
and identification of genuine beneficiaries of these efforts. Still, persistent and

coherent efforts from all stakeholders and proper guidance from political leadership
can bring a huge positive impact on the skill development landscape of India which
in turn can lead to improvements in other developmental indicators of people in India.
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KJA RECOMMENDATION
KJA RECOMMENDATION
3. SKILL GAP IN KARNATAKA

3.1 STATE’S VOCATIONAL EDUCATION AND SKILL
DEVELOPMENT
Karnataka is one among few states that benefited largely from the paradigm shift of
India economy. By 1990-91 the service sector’s contribution to GSDP was a little over
that of Agriculture and completely overtook it by 2000-01 (Table 3.1). It can be noted
that by 2013-14, the service sector was driving a major part of the state’s economy.
Sector-wise Contribution to GDP (in percentage)

60
50
40 Primary Sector
30 Secondary Sector
20 Tertiary Sector
10
0
1960-61 1970-71 1980-81 1990-91 2000-01 2013-14
Figure 3-1 Sector-wise Contribution to GDP

Data Source: (Planning, Programme Monitoring & Statistics Department 2014-15)
Karnataka’s growth reflected the national and global trend with some hiccups. The
employment rate and distribution did not correspond to the growth and contribution
of service sector. The table below gives a glimpse of this trend.
Table 3-1 Sector-wise Contribution to GSDP and Employment
Sector-wise Contribution to GSDP and Employment

Secto 1993-94 (50th 1999-2000 (55th 2004-05 (61st 2009-10 (66th 2014-15
rs Round) Round) Round) Round)
GSDP Employ GSDP Employ GSDP Emplo GSDP Employ GSDP Emplo
ment ment yment ment yment
Agric
36.0% 65.7% 29% 62.4% 18.7% 60.8% 16.2% 57.3% 16.11% 52.2%
ulture
Indus
26.0% 14.8% 28% 15.1% 30.3% 15.4% 29.1% 17.6% 28.36% 19.9%
try
Servi
38.0% 19.4% 43% 22.5% 51.0% 23.8% 54.7% 25.1% 55.2% 28.0%
ce
Source: 50th, 55th, 61st, 66th and 68th round of National Sample Surveys on Employment and
Unemployment Situation in India and various Economic Surveys of Karnataka
KJA RECOMMENDATION
The industrial sector has been more or less consistent both in terms of employment rate
and contribution to GSDP. Disturbing figures come from agriculture and service
sectors. Agricultural contribution has declined sharply from 36 per cent in 1993 to 16.11
per cent in 2014-15 with comparatively lesser decrease in employment rate. In the
service sector employment rate has slightly gone up by 17 % in 2014-15 over that of
1993-94, but the contribution to GSDP has increased from 38 % in 1993-94 to 55 % in
2014-15.
Table 3-2 Sector wise Projection of Per Capita Income
Sector wise Projection of Per Capita Income9(INR)

Sectors 2010 -11 2012-13 2015-16 2017-18 2019-20 2021-22
Agriculture 18,859.29 25,224.71 39,811.49 47,088.01 55,786.66 75,367.41
Industry 93,710.26 1,15,823.28 1,41,298.30 1,71,339.02 2,08,141.67 2,53,682.01
Service 1,22,363.60 1,77,631.68 2,54,479.77 3,10,288.43 3,78,859.41 4,63,933.29
A projection of sectoral shares of employment and GSDP (table 3.4) based on the
current growth reveals an alarming trend in States economic development. By 2022,
although the population depending on Agriculture would reduce by 7 % from the
current percentage, a little less than half of the working population in the State will still
be engaged in this sector. But the contribution from Agricultural sector to GSDP will
gradually decline and will reach to 17% by 2022. This means a large section of
population will continue to be secluded from the benefits of economic progress that
has been projected for the State. This is also indicated by the projected per-capita
incomes. In 2022, a person engaged in services sector would earn 6 times more than
a person engaged in Agriculture. The same would be true for Industry, where a person
would earn 3 times more than that of agriculture.
9GSDP and Employment percentages have been calculated based on inputs from Industry Experts. The GSDP for Agriculture
had been increased to 8% and that of Industry and Services at 14%. Agriculture’s contribution to employment is assumed to
be reducing at 1% each year which is then assumed to be absorbed by the Industry and Services at ratio 45:55
KJA RECOMMENDATION
Table 3-3 Projected Sector-wise Contribution to GSDP and Employment
Projected Sector-wise Contribution to GSDP and Employment

2014-15 2017-18 2021-2022
Sectors GSDP Emp GSDP Emp GSDP Emp
Agriculture 18% 52.2% 16.98% 49.2% 17.04% 45.2%
Industry 27% 19.9% 23.94% 21.2% 22.79% 23.0%
Service 55% 28.0% 59.08% 29.6% 60.17% 31.8%
To avoid escalation of disparity, in terms of sectoral growth and benefits to population,

the workforce which is currently dependent on Agriculture and new entrants to the
workforce should be empowered with skills to proliferate to non-agricultural sectors of
economy, in particular the high-growth sectors. Concurrently the State should also
identify sectors and sub-sectors which have prospects of high growth in the State. This
mapping should be essentially based on regional requirements.
800000
700000
600000
500000
400000
300000
200000
100000
0
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
SRE FRE AE
GDP – AT CONSTANT (2004-05) PRICES
GSDP (in Rs. Crore) Linear ( GSDP (in Rs. Crore))
Figure 3-2 GDP – At Constant (2004-05) Prices
3.2 DEMOGRAPHIC DIVIDEND

Karnataka again reflects the national trend in terms of demographic dividend. The
working population of the State is projected to increase by 0.77 crore (3.58 crore to
4.35 crore) between 2006 and 2026, which means an average of 4 lakh new workers
would join the work force each year up to 2026 (unlike national trends the State will
experience the aging economy phenomenon). But the 2008 enrolment of youths
reaching 18 years, for skill development courses in State is abysmally low at 8 %
(Karnataka Vision2020 Document pg.24). Enrolment for general education, except
KJA RECOMMENDATION
primary schooling, in the State is also unsatisfactory. As per 2011 census for every 1000
people 116 people have a diploma, degree or certification. As a result, large
segments of population in the State possess no formal degree or skill training.
3.3 STATE LEVEL INITIATIVE

Policy changes initiated by the Central Government have laid the foundation for the
State government to make necessary interventions in the sphere of vocational
education and skill development. Accordingly, the State Government has initiated
several measures in this direction and one such critical step is setting up of the Skill
Development Corporation in 2008 to expand vocational education and training in the
State.
Concurrently many initiatives were proposed by the Planning Department, GOK in its
Vision for Karnataka 2020. The Vision Document, speaking for inclusive growth to
eliminate regional disparities and thus poverty, had proposed for the following
initiatives from the State Government.
1. Universalisation of secondary education and introduction of skill development

courses within the secondary schooling curriculum. Schools will be equipped
with requisite resources to impart skill training.
2. Setting up of new polytechnics, ITIs and vocational education institutes and
augmenting the capacity of existing institutes.
3. Alignment of vocational education curriculum with the requirements of the
State’s industries.
4. Exploring possibilities of partnering with private agencies for ITI’s, polytechnics
and vocational training centres as per the guidelines set by the National Skill
Development Mission.
5. Mapping of emerging growth sectors, new employment opportunities and skill
deficit in collaboration with private and community organizations.
6. Government to facilitate active industry participation in course design and
resource mobilizations.
7. State will also set-up a Council for Vocational Education and Research for
regional mapping of demand and supply of available and projected skills and
aligning training institutes to area specific industry and services clusters.
8. State to ensure that all its key departments explicitly focus on the various
dimensions of employment-creation of new employment, mapping of skill
deficit, training etc., while formulating respective schemes and plans.
9. Institute scholarship to compensate losses in income during, training for needy
students who take up skill development courses at the secondary and post-
secondary levels Students from farming communities to be encouraged to
undergo vocational training.
KJA RECOMMENDATION
10. Necessary steps would be taken to align States skill development programs with
the objectives of Government of India’s Skill Development Initiative Scheme
which is based on Modular Employable Skills.
3.4 VOCATIONAL EDUCATION IN KARNATAKA

The Department of Employment and Training (DET) is mandated with the task of
Vocational Education and Skill Development in Karnataka. The department imparts
Institutional training through a network of over 1700 Industrial Training Institutions [ITI’s]
located across the state. These ITI’s are either affiliated to the National Board- National
Council for Vocational Training[NCVT] or to the State Board viz., State Council for
Vocational Training[SCVT]. In all there are 258 Government, 196 Private Aided and
1323 Private [unaided] Industrial Training Institute in Karnataka having a seating
capacity of 2.00 lakh.
Table 3-4 Training Institutes Status
Training Institutes Status

No. of ITI’s
Category NCVT SCVT Total
Government 142 116 258
Private[Aided] 196 - 196
Private[Unaided] 1155 168 1323
Total 1493 284 1777
DET runs various training schemes such as Craftsmen Training Scheme (CTS),
Apprenticeship Training Scheme (ATS), Modular Employable Skills (MES) and Special
Training Scheme (SPL – TRG). The National Skills Qualification Framework, a Quality cum
competency based Frame work itself has identified 10 levels and four competency
levels. ITI Courses of DET comes under the Level III and IV of NSQF.
Craftsman Training [CTS] is being provided to the youth with the objective to prepare
semi-skilled workers for the industry. Under this scheme training is being imparted in 46
trades required by the Industry and the market in the State of Karnataka such as Fitter,
Electrician, Plumber, Driver cum mechanic, Mechanic Refrigeration and Air-
conditioning etc to name a few. The Course durations range from 1 to 2 years.
A student who has undergone this Skill Training has to appear for Examinations
[Semester Scheme] conducted by National Council for Vocational Training [NCVT]
and on successful completion is awarded National Trade Certificate [NTC]. Under
SCVT currently only one exam is conducted at the end of course and the successful
student is awarded a State Trade Certificate [STC].
KJA RECOMMENDATION
Admission Criteria for CTS - Minimum Qualification:
For 1 Year Trade Course: Minimum 8th Pass [10th Fail - online application purposes]
For 2 year Trade Course: Minimum10th Pass Apprenticeship Training Scheme [ATS]:
Recognising the fact that training imparted in institutions [ITI’s] alone is not sufficient
for acquisition of Skills and that it needs to be supplemented by training in the actual
workplace, DET implements the ATS. Towards nurturing trained manpower the
department implements the Apprentices Act, 1961 in the State Government
Undertakings / Departments and Private Establishments in the State. The Government
of India has identified and designated 93 Engineering, 60 Non Engineering trades in
the Country, out of which 82 trades have been implemented in Karnataka. Some of
the popular trades are Turner, Fitter, Machinist, Electrician, Electronics, Lab Asst.
Steward etc. Currently over 4232 establishments in the state have been covered under
this scheme and over 39,610 seats [revised now upwards to 43,000] have been
allocated for trade apprentices out of which 24,992 seats have been utilised.
Admission Criteria for Trade Apprentices: Minimum Qualification
10th Pass or ITI Pass-out [NTC or STC holder]
Term: The full-term Apprenticeship course is of 3 years duration and on this 100% rebate
is provided on the number of years of training had under NCVT trades/courses and
50% rebate for those under SCVT.
At the end of the Apprenticeship course an apprentice is allowed to appear for

Apprenticeship Exams and on successful completion is awarded a National
Apprentice Certificate [NAC]. The N.A.C. holders will be eligible for appointment as
skilled Craftsmen in the Industries and appropriate subordinate posts in Govt.
Departments or to take up Self-Employment much in the same way as the ITI trained
Craftsmen.
Modular Employable Skills (MES) Scheme: DET implements MES Scheme under the Skill
Development Initiative imparting Modular Employable Skills for school dropouts,
existing workers, ITI graduates, etc., to improve their employability. In Karnataka, about
800 Vocational Training Providers (VTP) are actively implementing 500 courses under
68 various sectors. About 2 Lakhs trainees have been trained since 2012 in the State.
Special Training Scheme (SPL – TRG): Apart from the above institutional and statutory
vocational training schemes, the Department is conducting many special training
programmes in ITI’s with the objective of improving quality of industrial production and
promoting self-employment among the youth. Some of these programs are:
a. Motor Driving Training Scheme (MDTS)
KJA RECOMMENDATION
b. Advanced Vocational Training System (AVTS)

c. Hi- Tech Training Program which includes Computer Aided Drafting, Computer
Maintenance etc
d. Training Programs specifically designed for Tribals
Under the Vocational Training Improvement Programme, 36 Government ITI’s have

been upgraded into Centres of Excellence. 76 Government ITI’s are being
developed/upgraded under a PPP (Public-Private-Partnership) mode with Industry tie-
ups, where in Industry Partners such as M/s. Toyota Motors, JK tyres, Borukha Power
Corporation, Taj Group, ACC Cements, Ultra tech Cements, Madras Cements,
Heidelberg Cements, Renuka Sugars, Kennametal etc head the Institutional
Management Committees (IMC)set up in these ITI’s. IMC for each ITI is constituted
asSociety offering functional autonomy and entrusted with the responsibility of
managing the affairs of the ITI. They are delegated with sufficient powers to decide
on running of these ITIs, Curriculum development, starting of new trades, courses,
training of trainers, Industrial visits, Placements etc.
DET has several Industry Partners supporting Government ITIs under CSR. M/s. Bosch Ltd
runs bridge program in 25 ITI’s, M/s. Toyota Ltd (10 ITIs), M/s. Maruti Suzuki (5), many
more industry partners such as Tata Motors(2), Seimens(3), Volvo, (2), HAL(2), NTPC.
With GAIL Gas Limited, a Subsidiary of GAIL India, DET runs a safety and Technical
Training for Skill upgradation of plumbers/ Fitters to work in City Gas Distribution Industry.
A tie up with Asian Paints Ltd is on to start Colour Academy in 4 ITI’s to begin with.
One Government ITI at Hosur, oldest (established in 1952 and biggest ITI (25 Trades,
1800 trainees) is being upgraded into a Model ITI with GOI and Industry Support with
M/s. Bosch Ltd as Industry lead Partner with 16 other Industries in partnership.
3.4.1 TRAINING OF TRAINERS
To improve the quality of vocational education in the state, it is important that trainers
deliver the content properly. The trainers must also be up-to-date with changes in the
industry. In order to cater to the growing demand for quality trainers and to imbibe
world class training techniques and to enhance the trainer’s capacities, the state
government has set up 3 staff training institutes. State Training and Research Centre
(STARC) at Malavalli provides training to the Technical and Non-Technical personnel
of the Employment and Training Department, and the Technical Staff of Aided /
Private Industrial Training Institutes. In addition to this, there is an Institute of Training the
Trainers (IOTTs) with 1000 seating capacity and Bharat
RatnaMokshagondamVisvervaraya National Training Facility for Skills for All
(BMVNTFSA) Training Institute at his birthplace in Chikkaballpur district with seating
KJA RECOMMENDATION
capacity of 2700 for Training Master Trainers in Skill Development in association with
PSU’s like ONGC and GAIL.
DET is taking steps to improve the quality of ITI’s by subscribing to ISO registration.
Government ITI Gadag and Government ITI Belgaum (W) covered under PPP Scheme
have already been awarded ISO Certification ISO 9001:2015. Another 8 Government
ITIs are likely to get this certification shortly. ITI Hunsur has been awarded ISO 29990:
2010 certification (with ISO 9001:2015), a quality benchmark for training institutions. The
department has embarked on a mission to make ITI’s in each district to be ISO 29990
compliant. They have set up a system to rate ITI’s as a feedback mechanism.
Under the DET, two Special Purpose Vehicles have been set up to impart Modular/
short term skill Training Programmes viz., the Karnataka Vocational Training and Skill
Development Corporation (KVTSDC) and Karnataka German Multi Skill Development
Corporation (KGMSDC). There are 206 training institutes in the state that are registered
to NSDC.
KVTSDC established in the year 2008 as a company to impart vocational training skills
to enhance the employability and to provide the placement to implement objectives
of the state government on training policy and to co-ordinate vocational training in
the State. The Corporation conducts short term Vocational Courses through ITIs or
though Associated Training Providers (ATP) registered/ empanelled with them. The aim
is to train 1 million youth and provide placement to 15 lakh youth by the end of 2020.
Job Fairs (mega udyogmelas) are held to provide a platform for Job seekers and Job
givers.
Karnataka German Multi Skill Development Centre(KGMSDC) is a society promoted

by Government of India and Government of Karnataka with technical support of
German International Services(GIZ-IS). DET manages the programme on behalf of
Government of Karnataka. The primary mission of the Training Centres is to conduct a
broad based multidisciplinary programme in various Industrial Technical Fields,
directed towards the development of skills and trades and to become a world class
training centres that represents specialized trade training programs in alignment with
the Industry requirements across the globe. There are five Karnataka German
Technical Training institute in Karnataka. They are established in Bengaluru, Gulbarga,
Belgaum, Hubli and Mangalore. These Training Centres have total capacity of 3000
Students. The centres have also recorded 100% placements.
Besides DET, Skill Training is being imparted by several other Departments, Boards and
Corporations in the State.
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Higher Education Department:
Department of Technical Education: There are 313 Polytechnics- 81 Government, 44

Private-aided and 188 Private-Unaided Polytechnics having in all an intake capacity
of 1,00,000 in the State imparting Technical Education. Besides there are 207
Engineering Colleges, 10 Government, 10 Private- Aided, and 187 Private- unaided
Engineering colleges having intake capacity of 1,00,000.
Department of Collegiate Education has about 1600 Colleges imparting Graduate

and Post Graduate Courses and imparts Skill Training under the STARC programme.
Skilling Training at Higher Levels is also being imparted at the University Level. The
Visvesvaraya Technical University has set up a Skill Development Institute facility at
Dandeli.
Rural Development Department: Skill programmes being run are:
Rajiv Gandhi Chaitanya Yojane (RGCY): State Government Program “Rajiv Gandhi
Chaitanya Yojane” to provide skill training, loan, self-employment and placement
opportunities for 2 lakhs rural unemployed youth benefitting 40-50 youth per Gram
Panchayat.
Rural Self Employment Training Institutes (RSETIs)
RSETI’s is the nodal agency for providing training to rural youths on self-employment
on different trades. In Karnataka State, 33 RUDSETI / RSETIs have been established in
29 districts with well-established infrastructure and Human resource through which
training on 112 different trades are imparted to the selected candidates.
DeenDayalUpadyayaGrameenaKoushalyaYojane (DDU GKY)
Deen Dayal Upadhaya Grameena Koushalya Yojana (DDUGKY) is placement-linked

skill development program initiated in Karnataka state from October 2014 by
Karnataka State Rural Livelihood Promotion Society, which is integral part of National
Rural Livelihood Mission (NRLM). Karnataka in the FY 2013-14 and FY 2014-2015 had
sent 43 proposals. Out of the 43 proposals, 31 proposals for 1, 18,173 candidates have
been approved by Empowered Committee of MORD for a project cost of Rs. 405.67
crores and the same is under Implementation.
DDUGKY a skill programme of MORD earlier known as Aajeevika Skills (Renamed and
notification has been circulated dated on 24.02.2015) envisages providing jobs after
training by training partners. Skill Development and Placement is part of NRLM.
KJA RECOMMENDATION
The Ministry of Rural Development (MoRD), GOI, has restructured one of its key rural
development programs, the Swarna Jayanthi Gram Swarozgar Yojana (SGSY),
through establishment of the National Rural Livelihood Mission (NRLM) with a clear
objective of rural poverty reduction through creation and strengthening institutional
platforms of the rural poor.
The Department of Municipal Administration is implementing the Urban Livelihood

Mission programme on same lines.
The other Departments implementing skill programmes include the Department of

Industries and Commerce, Social welfare Department, Department for development
of Backward Classes, Department for Minorities Development etc.
While the State Government has been working towards skilling beneficiaries through
various schemes and departments, there are various challenges in ensuring that the
right programs are delivered at the quality and scale that is expected out of these
programs. The State has been facing challenges such as availability of Subject Matter
Expertise, Speed of monitoring, Use of technology products for end to end
implementation of the programs, Distributed nature of the programs, Awareness and
Signaling Value of these programs to the beneficiaries and last but not the least timely
disbursements of funds to PPP partners and other agencies.
--------------------------------X--------------------------------
KJA RECOMMENDATION
4. SECTORWISE SKILL GAP ANAYLSIS

To better understand needs of the skill gap that exists in the state, the team undertook
an in-depth study of selected sectors within the State. Sectors were selected based
on their contribution to the State’s GDP and the proportion of total workforce it
employs. Following is the list of selected sectors10:
1. BFSI
2. Construction
3. Textiles and Garments
4. Media & Entertainment
5. Agriculture
6. Tourism and Hospitality
7. Health Care
8. IT & ITES
Additionally, sectors such as Aerospace, E-Commerce and Energy are picking up in

Karnataka. We have not conducted an in-depth study of these for lack of availability
of data. Nevertheless, the contribution that these sectors will make in terms of
employment shall be significant in the coming years, thus they require a special
mention in this report.
Aerospace Sector: Aerospace Industry has significant presence in Karnataka. The

presence of Hindustan Aeronautics Limited (HAL) in the city has spearheaded the
growth of this sector in the state. In addition to HAL, there are other private sectors
undertakings like BEML, BHEL, GTRE, NAL, DRDO, ADA, ADE and ISRO are based out in
Karnataka. Even as India aims to emerge as a global player in manufacturing
aerospace components and as a ‘Maintenance, Repair Overhaul’ destination,
Karnataka will lead the way. The State has 65% of the country’s investment in the
sector11. Efforts are being made by the State government to facilitate this growth. The
Sector Skill Council for aerospace sector has also been established in Bangalore itself.
The sector attracted an investment of Rs.3,784 crores as part of Invest Karnataka 2015.
Energy Sector: The Energy Sector is gaining lot of prominence, especially the
renewable energy. The central government plans to expand the installed capacity of
renewable energy to175GW by 2022. In Invest Karnataka 2016, the energy sector
garnered the highest investment valued at over Rs.1,00,000crore. Most of these
10Based on analysis of Economic Surveyof Karnataka (2014-15) and NSDC Report for Karnataka.
11Urs, Anil Karnataka pitches for Investment in aerospace, Business Line; February 18, 2015.
(http://www.thehindubusinessline.com/economy/logistics/karnataka-pitches-for-investments-in-aerospace/article6908576.ece)
KJA RECOMMENDATION
projects were in the renewable energy sector particularly in waste energy, solar
energy and wind projects. Such an investment in the sector would generate significant
employment. Skilled plant design and site engineering jobs, highly skilled jobs in
business development and jobs for performance data monitoring will be created
when this promised investment will be realised in the state.
4.1 BANKING, FINANCIAL SERVICES AND INSURANCE SECTOR

The Banking and Financial system of the country plays a substantial role in promoting
long term growth of the economy. The BFSI sector comprises of Banking, Insurance
and Mutual Funds. The Government is also taking measures to revitalize the growth of
this economy. Macro-economic indicators such as inflation, debt to GDP ratio have
been good this financial year. In addition, RBI’s new measures may go a long way in
helping restructure the domestic banking industry (India Brand Equity Foundation
2015).
The Insurance industry of India consists of 53 insurance companies of which 24 are in

the life-insurance business and 29 are non-life insurers. India's life insurance sector is the
biggest in the world with about 360 million policies which are expected to increase at
a compound annual growth rate (CAGR) of 12-15 per cent over the next five years.
The insurance industry plans to hike penetration levels to five per cent by 2020. The
general insurance business in India is currently at Rs 78,000 crore (US$ 11.7 billion)
premium per annum for industry and is growing at a healthy rate of 17 per cent (India
Brand Equity Foundation 2015).
The Insurance Sector across the nation employs more the 22 lakh individual agents
and 689 corporate agents (IRDA 2011-14). The number of employees in non-life
insurance industry was 1,02,172 in 2013-14. There are a number of agents as well as
intermediaries servicing this sector. As on 31.3.2014, there are 5,16,764 agents and
13,325 persons working with various other intermediaries as well as insurance bodies
(General Insurance Council 2013-14)
4.1.1 BANKING AND INSURANCE SECTOR IN KARNATAKA
At the state level, the Banking and Insurance sector has grown at a rate of 10 percent
in the past financial year. This sector contributed 5.9% to the state’s GDP. Karnataka
also ranked nine amongst other states in India for financial penetration12. Together
12CrisilInclusix Index-2014
KJA RECOMMENDATION
these segments employ around 2 lakhs individuals. Most of the labour employed in
these sectors is skilled, with a requirement of being atleast a graduate.
Table 4-1 Current Employment in Segments of BFSI Industry
Current Employment in Segments of BFSI Industry

Banking 87,659
Insurance 115207.06
4.1.1.1 BANKING SECTOR IN KARNATAKA

Karnataka has 7361 Scheduled commercial banks. In 2014-15, the state recorded
deposits worth Rs.1,74,38,022 crores and credit of Rs.1,60,01,171crores13. Banking
business is predominantly contributed by seven commercial banks constituting almost
three-fourths of the banking business. Currently, twenty six public sector banks, sixteen
private commercial banks and three regional rural banks are operating in the State.
Activities of Banks can be classified into three major headings. They are
1. Sales and Marketing

2. Operations
3. Support Functions
Almost 55-60% of the work force is engaged in operations. Work force employed in
operations would include all people working in branch offices and engaging with
customers. The responsibility to generate new business and promoting products is
taken care of by the sales and marketing division. To facilitate smoother functioning
of banks support staff are employed including those hired for areas like Human
Resources, IT, Audits etc14
13 Data Source: State-wise Number of Reporting Offices, Aggregate Deposit and Gross bank Credit of Scheduled Commercial Banks (SCBs);
Reserve Bank of India.
14 The percentage of segment-wise breakup taken from the NSDC Report titled “Human Resources and Skill Requirement in the Banking,
Financial Services and Insurance Sector (2022)
KJA RECOMMENDATION
4.1.1.2 PROJECTED LABOUR DEMAND FOR BANKING SECTOR

Table 4-2 Projected Labour Demand for Banking Sector
Projected Labour Demand for Banking Sector (In Thousand)

Year Officers Clerks Sub Total
Ordinates
2015 45,552 34,952 12,048 92,551
2018 55,298 40,574 11,989 107,862
2020 61,796 44,323 11,950 118,069
2022 68,294 48,072 11,911 128,276
2025 78,041 53,695 11,853 143,588
2028 87,787 59,317 11,794 158,899
2030 94,285 63,066 11,755 169,106
180000
TOTAL
160000
140000
120000
No of Employees
Officers
(K)
100000
80000
Clerks (K)
60000
40000
20000
Sub
0 Ordinate
2015 2020 2025 2030 s (K)
Projected Labour Demand for Banking Sector
Figure 4-1 Projected Labour Demand for Banking Sector
We correlated the projection data with GDP, Population and Industrial Indices to
identify if there are relations between each of these. It has been observed that there
is a positive correlation with population but there is no correlation between GSDP and
Employee numbers.
4.1.1.3 INSURANCE SECTOR IN KARNATAKA
At the State level, number of offices of Insurance sector jumped from 492 in 2012-13 to
612 in 2013-2014with GDP at Rs.5, 698 crores (General Insurance Council 2013-14).
Insurance penetration at the state level is 0.96 %. Almost 45% of Insurers are from the
motor sector, followed by Health at 30% and Property at 10%
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Various activities in the value chain of Insurance are:
1. Product Development
2. Marketing
3. Administration
4. Asset Management
5. Claims Management
Product development and pricing is done by a set of highly skilled individuals who are
mostly Actuary. They constitute 1% of the total workforce employed in this sector. Most
of the managerial positions require persons possessing a Master’s in Business
Administration (MBA) or is a Chartered Accountant. Mid-level jobs such as those
having to do with claims management and sales absorb skilled labour such as
graduates.
4.1.1.4 PROJECTED LABOUR DEMAND FOR INSURANCE SECTOR (2015-2030)

Table 4-3 Projected labour demand for Insurance Sector
Projected labour demand for Insurance Sector (2015-2030) In Thousand

Year Emp no. (Karnataka)
Private (K) LIC (K) TOTAL
2015 69,210 85,065 154,276
2018 76,832 87,199 164,031
2020 81,913 88,622 170,535
2022 86,994 90,044 177,039
2025 94,616 92,178 186,794
2028 102,238 94,312 196,549
2030 107,319 95,734 203,053
120000
Projected Labour Demand
No of Employeesin thousand
100000
80000
60000 Private (K)
40000 LIC (K)
20000
0
2015 2020 2025 2030
Figure 4-2 Projected Labour Demand
KJA RECOMMENDATION
We also correlated projection data with GDP, Population to identify if there are
relations between each of these. There is a positive correlation between projected
population and employee numbers while there is a negative correlation between
GSDP (at constant price) and Employee numbers.
4.1.1.5 SKILL GAP15

• Actuary: There is a shortage in terms of numbers.
• Agent: Lack of knowledge about the sector and details of products. The
Selection criterion for becoming an agent is weak.
• Sales and Marketing: Lack of knowledge about the sector and details of
products.
• Claims Management: Inability to verify whether claims are legitimate. (eg: False
claims, Insurance policies in the name of deceased)
4.1.2 NON-BANKING FINANCIAL COMPANY
A Non-Banking Financial Company (NBFC) is a company registered under the

Companies Act of 1956, engaged in the business of loans and advances, acquisition
of shares/stocks/bonds/debentures/securities issued by Government or local
authorities or other marketable securities of like nature, leasing, hire-purchase,
insurance business and chit business. A non-banking institution which is a company
and has principal business of receiving deposits under any scheme or arrangement in
one lump-sum or in installments by way of contributions or in any other manner, is also
a non-banking financial company (Residuary non-banking company). It is mandatory
for all NBFC’s to register with the RBI. There is a significant number of NBFCs present in
the state.
Table 4-4 Non-Banking Financial Companies in Karnataka
Non-Banking Financial Companies in Karnataka

Types of NBFC No. of companies registered in
Karnataka16
Asset Finance Companies 12

Core Investment Companies 4
NBFC not accepting deposits 139
NBFC accepting deposits 6
NBFC- MFI 11
15 Based on Interview with Persons employed in Insurance Sector

16 Data Source: RBI
KJA RECOMMENDATION
4.1.2.1 SKILL GAP IN NBFCS17
• Senior Sales Executive: Inability to differentiate between banking and NBFC

products, as in, when conveyed to consumers
• Junior Sales Executive: In NBFCs, documentation is important. Most sales
executives are not aware as to why companies require specific documents ie
Limited understanding of the sector.
• Communication Skills
4.1.3 MUTUAL FUNDS
The mutual fund industry in India was started in 1963 with the formation of Unit Trust of
India, at the initiative of the Government of India and Reserve Bank of India. Assets
managed by the Indian mutual fund industry have grown from Rs. 10.70 trillion in
October 2014 to Rs. 13.29 trillion in October 2015. That represents a 24% growth in assets
over October 2014(Association of Mutual Funds in India 2015).
4.1.3.1 SKILL GAP IN MUTUAL FUNDS18

Figures for the number of people employed in this segment are currently unavailable
in India. But as the segment has shown tremendous growth in the past year, it was
important to highlight the same. Investor behaviour in India has been changing
gradually; this has had a marked rise in investments in mutual funds. Therefore,
plugging the skill gap at this stage would give a boost to its growth. ‘Nearly everyone
employed in this sector does not have adequate knowledge about the sector and
also of its products at the sales level. Most Advisors19are unable to communicate
details about products. People tend to invest more in Insurance than on Funds owing
to this knowledge gap’
4.2 CONSTRUCTION SECTOR

4.2.1 GROWTH RATE OF CONSTRUCTION INDUSTRY IN INDIA
India is on the verge of witnessing a sustained growth in infrastructure build up. The
construction industry has been witness to a strong growth wave powered by large
spends on housing, road, ports, water supply, and rail transport and airport
17 Based on Interaction with Person employed in aregistered NBFC

18 Based on Interactionswith Persons employed in Investment Banking Firm
19Person who interact with consumers and guide them through their investment plan.
KJA RECOMMENDATION
development. Over 35 million people are employed in the construction industry,

making it the second-largest employer in India.
The construction sector was expected to grow at 5.7% for 2014-2015 in Karnataka. It
contributed to about 8.8 percent of the GDP (Economic Survey of Karantaka 2014-
2015). This sector is a major employment driver, next only to agriculture. This is because
of the chain of backward and forward linkages that the sector has with other sectors
of the economy. About 250 ancillary industries such as cement, steel, brick, and timber
and building material are dependent on the construction industry. A unit increase in
expenditure in this sector has a multiplier effect and the capacity to generate income
can be as high as five times.
Table 4-5 Key points of Construction Industry
Key Points
The past few years have been witnessing a substantial increase in the
Supply number of contractors and builders, especially in the housing and
road construction segment.
Demand exceeds supply by a large margin. Demand for quality
Demand infrastructure construction is mainly emanating from the housing,
transportation and urban development segments.
Low, for road and housing construction. However, high working
Barriers to entry capital requirements can create growth problems for companies
with weak financial muscle.
Low. Due to rapid increase in the number of contractors and
Bargaining power
construction service providers, margins have been stagnant despite
of suppliers strong growth in volumes.
Bargaining power Low. The country still lacks adequate infrastructure facilities and
of customers citizens have to pay for using public services.
Very high across segments like road construction, housing and urban
Competition infrastructure development. Relatively less in airport and port
development.
The State Government is undertaking various projects in the construction sector such
as the proposal to set up the Hubli-Ankola railway line which will connect the
hinterland to the coast, in addition to the Hassan-Mangalore railway line. It has been
proposed to develop minor Airports at Gulbarga, Shimoga, Bijapur, Bellary and Hassan
thereby providing air connectivity across the State. The State also has two Air Force
flying stations, one at Bidar and the other at Belgaum. Logistics parks are also being
developed for planned and systematic handling of goods in and around major cities.
The current Metro Project for Bangalore will generate considerable employment.
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4.2.2 EMPLOYMENT IN THE SECTOR
4.2.2.1 EMPLOYMENT STRUCTURE
Construction is a vast field that needs professionals with different specializations. There
are several lower level employees who are required to carry out construction-based
diverse activities in numerous ways. There are skilled workers who are not required to
possess mandatory academic back ground but need specific experience in
particular construction–oriented fields. The job profiles at this level range from a
general mason to a skilled apprentice. Figure 5.1gives an overview of the various job
profiles within this sector. Workers at these levels are often hired on a daily basis.
KJA RECOMMENDATION
Figure 4-3 Employment structure in Construction Sector
4.2.3 PRESENT LABOUR SUPPLY
The Construction Workers Welfare Board maintains a registry of construction workers.

As registration is not mandatory, the figures do not represent the actual working
KJA RECOMMENDATION
population in the sector but are an indicative of the same. Therefore, for the purpose
of the report, we are assuming the workforce to be equal to the number of persons
employed in the sector. Karnataka ranks 7th among Indian states for workers
registered with the board.
Figure 4-4 Number of Construction Workers Registered
As per CREDAI’s Research, Employment generated by the construction sector is

expected to rise in the next ten years.
Figure 4-5 Employment Opportunities in Real Estate Sector
4.2.4 PROJECTED LABOUR DEMAND
We have taken the number of workers registered with the construction welfare board
of Karnataka as a proxy for the total number of employees in this sector. There is no
data available for the total number of people working in the construction sector. The
table below estimated the number of people required by the construction sector for
each year to follow. A graphical depiction of the same, displays an increasing trend.
KJA RECOMMENDATION
Presently, Construction sector employs 9.6% of the total workforce in Karnataka

(Karnataka Industrial Policy (2014-19)). This amounts to 36,60,646 persons.
Table 4-6 Projected Demand for Construction Workers
Projected Demand for Construction Workers (2015 – 2030)

Year Male Female Total
2012 1,50,236 43,865 1,94,101
2016 1,47,532 51,953 1,99,485
2018 1,55,325 72,733 2,28,058
2020 1,58,623 85,435 2,44,058
2022 1,61,882 97,993 2,59,874
2025 1,68,466 1,19,894 2,88,359
2028 1,74,768 1,41,290 3,16,059
2030 1,78,877 1,55,389 3,34,267
Projected Labour Demand for Construction Workers

4,00,000
3,50,000
3,00,000
2,50,000 Male
2,00,000
Female
1,50,000
Total
1,00,000
50,000
0
2012 2016 2020 2024 2028
Figure 4-6 Projected Labour Demand for Construction Workers
4.3 TEXTILE AND GARMENTS SECTOR

4.3.1 INTRODUCTION
Textile Sector holds a significant place in Karnataka’s Industrial Setup. Although it

contributes only 0.50 per cent to the GDP of the State, it is one of those sectors which
KJA RECOMMENDATION
have employed more than five lakhs persons in the State20. The vast pool of skilled and
unskilled workers, availability of labour at low costs, strong base for production of raw
materials characterize the textile industry in Karnataka.
The textile industry is vertically-integrated across the value chain and extends from
fibre to fabric to garments. At the same time, it is a highly-fragmented sector, and
comprises small-scale, non-integrated spinning, weaving, processing and cloth
manufacturing enterprises. The entire industry can be broken down to three segments:
• Production of yarn
• Production of fabric
• Manufacturing of garments
Table 4-7 Ready Garments and Textile in Karnataka
Ready Garments and Textile in Karnataka

Ready Garments Textile
Year
Factories Employees Factories Employees
2011 961 339,196 287 37,543
2012 987 393,768 323 36,163
2013 984 391,082 315 43,688
2014 951 322,216 1061 84,036
2015 859 379,492 191 22,302
Source: Karnataka at a Glance various years
“The textiles sector occupies second position in the State in terms of value of exports,
next only to electronics and computer software. The State exports readymade
garments to countries such as the US, the UK, Italy, Germany, Western Europe, Hong
Kong, Turkey, Canada and Australia21”.
Table 4-8 Export Performance of Karnataka State
Export Performance of Karnataka State (In Rs. Crore)

Sr. No. Commodity 2010-11 2011-12 2012-13 2013-14 2014-15
1 Ready Made Garments 6866 8143 7670 4100 4300
2 Silk Products 678 673 654 558 660
3 Wool and Woolen Products 91 129 150 120 155
Source: Department of Commerce and Industries, GoK, Annual Report -2014-15
20Urs, Anil. (25 January 2016) Karnataka pitches for investments in textiles. Business Line. Retrieved from
http://www.thehindubusinessline.com/news/national/karnataka-pitches-for-investments-in-textiles/article8151885.ece
21Urs, Anil. (25 January 2016) Karnataka pitches for investments in textiles. Business Line.Retrieved from
http://www.thehindubusinessline.com/news/national/karnataka-pitches-for-investments-in-textiles/article8151885.ece
KJA RECOMMENDATION
The State is home to 70 large and medium textile companies and more than 50,000
small units operate under the micro, small and medium (MSME) categories. In 2013-14,
cotton was cultivated in 6.54 lakhs hectares of land in Karnataka. Production of raw
material within the state gives the textile sector additional advantage. Apart from
cotton, the state produces silk. The Karnataka silk is a brand in itself.
The Department of Textiles realized that for the sector to grow furthermore, proper
policy intervention is required. So, in great foresight the department formulated the
state’s textile policies namely, NuthanJavaliNeethi. The current textile policy is from
2013-18. This policy was preceded by SuvarnaVastraNeethi 2008-2013. The policy aims
to attract investments of Rs,10,000 crores to the sector and generate employment for
5 lakhs people.
Figure 4-7 Value of Chain of Textile Industry
4.3.1.1 POWER LOOM
The spinning sector in the state was quite strong at one point in time through the
cooperative spinning sector mills arrangement. Over the years the segment witnessed
various difficulties and the mills had to either shut down or work under various
constraints. Government is taking measures to strengthen the spinning segment. The
power loom sector would be supported and strengthened in order to modernize
production technologies, such that they are able to supply good quality fabrics in the
required quantum. Handloom sector in Karnataka has been able to create some
strong geographical indicators especially in silk sarees and traditional handloom
sarees and dress material. However, due to the low levels of modernization, availability
KJA RECOMMENDATION
of credit in required quantum and marketability of products, handlooms sector would

need to be supported in enhancing viability through the new policy.
4.3.1.2 MANUFACTURING OF GARMENTS:
Karnataka has a very strong presence in the garments segment. Garmenting sector
has witnessed a growth in investments in the State and has not seen any slowdown.
Capacity in garmenting has gone up drastically. There are approximately 6500 units
(Large, Medium, and Small) at organized and unorganized levels with presence in 20
districts across the State. Garment Sector has the potential to employ more number
of people.
It is in the garment sector that maximum value addition takes place. The garment
sector is highly labour intensive. During the last policy period, it has been experienced
that everyone lakh investment in the garment sector creates 2-3
jobs(NuthanaJavaliNeethi (2013-2018)). The garment units of Bangalore are producing
primarily, woven fabric based fashion garments. There are about 15,000 mediums to
big units in Bangalore and number of small units in and around Bangalore and Bellary.
Since this sector has potential to create new employment opportunities, forthcoming
policy will continue to welcome investments in readymade garment sector
4.3.2 EMPLOYMENT IN TEXTILE SECTOR
4.3.2.1 CURRENT EMPLOYMENT

The table below gives a snapshot of handloom weavers and looms in Karnataka as
per the 2009-10 handloom censuses.
Table 4-9 Handloom Weavers and Looms in Karnataka
Handloom Weavers and Looms in Karnataka

Particular Rural Urban Total
Total Weaver Households 33,854 3,826 37,680
Weaver Population 121,688 12,650 134,338
Weaving Workforce 69,686 7,163 76,849
Looms 35,662 4,826 40,486
Per Capita Income of weaver household 24,840 25,405 24,897
Source: Handloom Census; Government of India – (2009-10)
4.3.2.2 PROJECTED EMPLOYMENT

As per the textile policy 2014-2019, the sector is expected to generate employment
for 5 lakh persons. The table below gives the incremental demand for labour each
year;
KJA RECOMMENDATION
Table 4-10 Incremental Demand for Labour in Textile Industry
Incremental Demand for Labour in Textile Industry (Investment in Rs. Crore)

2013-14 2014-15 2015-16 2016-17 2017-18 2021-22(E)
Year
Em
/Sector Inv Emp Inv Inv Emp Inv Emp Inv Emp Inv Emp
p
Handloo 1,0
2 1,000 2 2 1,000 2 1,000 2 1,000 2 1000
m 00
Power 7,5 12,50 12,50
50 5,000 75 125 125 125 12,500 340 22,000
loom 00 0 0
Spinning 200 2,600 375 500 475 6,500 475 6,500 475 6,500 605 1,280
Processin
50 350 100 900 210 1,575 220 1,575 210 1,575 422 3,070
g
60, 100,0 100,0 220
Garments 500 40,000 750 1250 1250 1250 100,000 176,000
000 00 00 0
Technical 1,7
200 1,500 250 400 2,800 425 3,000 425 3,000 715 4,890
textile 00
76, 124,3 124,5 428
TOTAL 1002 50,450 1552 2462 2497 2487 124,575 208,240
100 00 75 4
As the investment in Handloom segment was constant from 2013-2018, we have assumed the same for
estimated years also.
4.4 MEDIA AND ENTERTAINMENT INDUSTRY

4.4.1 INTRODUCTION
The media and entertainment industry has grown exponentially in the past decade.
Nation-wise, the Industry is worth 1026 billion rupees and is expected to grow at a rate
of 15.5% in 4 years (FICCI & KPMG 2015). Media and Entertainment Industry consists of
the following segments:
1. Television
2. Print
3. Films
4. Radio
5. Music
6. Animation
7. Gaming Advertising – Internet and Outdoor
The industry currently employs approximately 4 lakh people and is expected to

employ 6.5 lakhs by 2017(NSDC report 2015). According to the industry expert
Karnataka contributes about 8% of the total employment. Therefore, the current
employment for media and entertainment sector in Karnataka is about 32,000,
following the same assumptions the employment would then grow at 52,000. Major
part of this work force is employed with the Television and Films section. Across India,
35% of the total workforce is engaged with the film industry. Most of them are
contractual labourers.
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4.4.2 FILM AND TELEVISION
The Kannada film Industry, also known as the Sandalwood industry released 118
movies in 2014. The first government institute in India to start technical courses related
to films was established in 1941. In September 1996, two specialized courses
Cinematography and Sound & Television were created and a new Institute,
Government Film and Television Institute was started at Hesaraghatta, under the World
Bank-Assisted, Project for Technician Development in India.
4.4.3 ANIMATION VFX AND GAMING
In Animation and VFX, the spike in outsourcing activities has created demand for
professionals such as character designers, key-frame animators, modellers, layout
artists etc. There is significant demand for animation as it is being used in varied spaces
like education, advertising, movies, games etc. This segment needs a highly skilled
workforce with creative mindsets and technical expertise. This segment has seen
tremendous growth at the state level. International Organizations such as Dreamwork
Studios and Rockstar games now have offices in Bangalore. In addition to this,
Karnataka has indigenous companies that work in Animation such as Xentrix. The State
has also released an AVGC policy to give a boost to the sector.
Number of employees at each of these firms ranges from 300 to 45022. There is demand
for animation artists and tech artists in the field. There is a supply constraint for
appropriately skilled individuals. All firms in the industry have plans to expand their
work. This would generate employment in this sector over the next few years. Also, the
Indian market for animation and VFX is currently at a nascent stage, but it is picking
up gradually. As the demand for such content rises in local markets, demand for
labour will also increase.
Internet penetration in India has also improved lately and so as the use of smart
phones. There is also a global rise in the use of smart phones; which has created a
demand for skilled professionals such as app developers, software testers and
programmers.
The advertising industry has also grown tremendously. E-commerce is contributing to

this recent growth. This had resulted in demand for workforce in media
planning/buying, advertisement development and copy writing.
22 “Emerging Trends in Animation Gaming Visual Effects’; BangaloreITE.biz Conference; December 2015.
KJA RECOMMENDATION
In addition to all the projections of growth, it is important to note that the sector’s
growth primarily depends on economic outlook. Industries such as film and television
are largely driven by consumer demand and their purchasing power.
4.4.4 SKILL GAP23
• Lack of talent is a challenge for this industry especially in case of print media.
• Lack of exposure among students regarding designing, animation as a career
choice.
• There is no shortage in number of educational institutions (for animation) in
terms of demand for and supply of seats, but the quality of training is not on par
with industry demands.
• Many production houses in films, television, animation and news in both print
and broadcasting have in-house training Institutes. There also exists lack of well-
qualified trainers. There is a need to ‘train the trainers’.
• As there is an absence of a vibrant training atmosphere in India, we are not
able to cope with the continuous up-gradation of technology in this sector. It is
crucial to address this issue, in order to develop this space so that there is easier
access to quality training.
• There prevails general skepticism for the industry among the youth because of
the poor remuneration and widespread use of freelancers. A way to deal with
this might be to introduce media and entertainment industries courses in
mainstream ITI’s.
4.5 AGRICUTURE
4.5.1 AGRICULTURE PROFILE OF THE STATE
Karnataka is India's eighth largest state in geographical area covering 1.92 lakhs sq
km of which 1.23 lakh sq km of land is cultivated. As per the population of Census 2011,
agriculture supports 13.74 million workers, of which 23.61 per cent are cultivators and
25.67 per cent agricultural workers. The agricultural sector of Karnataka is
characterized by vast steppes of drought-prone regions and sporadic patches of
irrigated area. Thus, a large portion of agricultural land in the state is exposed to the
vagaries of monsoon with severe agro-climatic and resource constraints. Agriculture
currently employs more than 60 per cent of Karnataka's workforce24.
23 Based on the Panel Discussion on “Emerging Trends in Animation Gaming Visual Effects’; BangaloreITE.biz Conference; December 2015.
24 Agriculture Profile of Karnataka State; Institute of Social and Economic Change, Bengaluru(YoP)
KJA RECOMMENDATION
Agriculture in Karnataka is heavily dependent on the Southwest monsoon as only 26.5

per cent of the sown area (30,900 km2) is under irrigation. “Karnataka ranks 5th in India,
in terms of total area under horticulture and 8th in terms of total horticultural
production accounting for 5.6 per cent of national production. It is the largest
producer of coffee and cocoa in the country and the second largest in production
of flowers and grapes. It is also the third largest producer of plantation crops in India
accounting for 11.6 per cent of the national production and fourth largest producer
of spices, accounting for 8.6 per cent of the national production and 5th largest
producer of fruits in the country” (Tirlapur, Patil and Navalaur 2015). Karnataka is a
major silk producing state in the country25. It has a coastline of 320km and yields an
annual marine production of 425000 MT with 276 varieties of fishes. Karnataka also
leads in the export of silk with an approximate share of 25% of the total Indian export
market.
Agriculture plays an important role in the overall growth of Karnataka’s economy

despite its minimal share in the State Domestic Product. This sector is currently growing
at a rate of 14.3% (Economic Survey of Karnataka 2014-15).
4.5.2 WORK FORCE IN AGRICULTURE:
The latest census figures provide a picture of the employment pattern in the
agriculture sector of Karnataka. Given below are the figures, relating to people
employed in agriculture, based on the 2011 census.
Table 4-11 Agriculture Workforce in Karnataka
Agriculture Workforce (Main Workers) in Karnataka

As per 2011 Census
Cultivators Agricultural Labourers
Karnataka Person Male Female Person Male Female
Total 6,038,309 4,568,505 1,469,804 5,119,921 2,609,098 2,510,823
Rural 582,4702 4,394,613 1,430,089 4,795,763 2,415,657 2,380,106
Urban 213,607 1,73,892 39,715 324,158 193,441 130,717
25 State-wise Silk Production During 2013-14 & 2014-15; Annual Report of Central Silk Board, Ministry of Textiles, Government of India
KJA RECOMMENDATION
Table 4-12 Workforce Engaged in Agriculture
Workforce Engaged in Agriculture26

Year Persons Engaged in Agriculture
2010 -11 3,91,06,451.52
2011-12 3,41,84,068.08
2012-13 3,40,02,372.70
2013-14 3,38,10,129.86
2014-15 3,36,07,095.43
2015-16 3,33,93,020.72
2016-17 3,31,67,652.36
2017-18 3,29,30,732.28
2018-19 3,26,81,997.58
2019-20 3,24,21,180.46
2020-21 3,21,48,008.19
2021-22 3,18,10,373.16
4.5.3 ALLIED SECTORS
4.5.3.1 PISCICULTURE (FISHERIES)

Karnataka State has 320 Km long coast line along with 27000 Sq. km continental shelf
area, 5.65 lakhs hectares of various inland water resources and has vast scope for
fisheries development. The brackish water area of 8000 hectares also provides good
scope for shrimp/fish culture. There are about 9.61 lakhs fishermen in the state of which
3.28 lakhs fishermen are in marine and 6.33 lakhs fishermen are in inland who are
involved in various fisheries activities. During the year 2013-14, the total fish production
of the state is 5.55 lakhs tones which contributed to 5.8% of the national fish production.
Both marine and inland fishing is practiced in Karnataka. There are various schemes
implemented by the State government to boost the fisheries sector. The Department
of Fisheries manages this sector. The fishes are an important source of export revenue
for the State.
26These values have been calculated using the percentage figures of person employed in Agriculture (Various NSSO rounds).
For the projection it is assumed that employment in agriculture is reducing by 1% each year.
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Table 4-13 Fisheries Capacity & Work Force
Fisheries Capacity & Work Force

Families involved in
Ice Plants Cold Storage Fisheries
Fish Catch (in Capacity
tonnes) Capacity (In
Year No. (in tonne) No. tonne) Full time Parttime
2010-11 526580 220 3170 41 3350 180,024 131,970
2011-12 546436.668 230 3363 52 3190 180,024 137,743
2012-13 168241.44 230 3363 53 3190 180,024 137,743
2013-14 197954 263 5624.6 49 2924.5 180,024 137,743
2014-15
4.5.3.2 ANIMAL HUSBANDRY

The share of Animal Husbandry in Gross State Domestic Product (GSDP) of Agriculture
and Allied activities was 20.51% during 2013-14. The share of Karnataka in all India
livestock and poultry population was 5.41% and 7.33%, respectively. The density of
livestock in the State was estimated at 151.21 per sq.km and 47468 per lakh human
population. In addition to poultry farms; Cattle, Buffaloes, Sheep, Goat and Pigs are
reared in Karnataka.
4.5.3.3 HORTICULTURE
Karnataka has seen significant growth in this segment. In many dry areas of the state,
horticulture crops are being grown. “Horticulture crops cover an area of 18.35 lakh
Hectares and the annual production is 149.59 Metric Tons. The average Productivity of
Horticultural crops in the state is 8.15 Metric Tons per Hectare. The annual value of
Horticultural products produced in the state is Rs.29741.00 crores and constitutes 40%
of the total income from entire agriculture sector. The share of Horticultural produce
to total GSDP of the state is 10%.” (Planning, Programme Monitoring & Statistics
Department 2014-15). Budget allocation for horticulture also doubled from 2013-14
and 2014-15.
Table 4-14 Horticulture Budget Allocation
Horticulture Budget Allocation

Allocation 2012-13 2013-14 2014-15
Plan 43,493.64 53,377.34 1,12,204.71
Non Plan 6805.04 8612.10 9781.39
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4.5.3.4 SERICULTURE
Karnataka is the largest producer of Silk in the Country. As sericulture is a labour

intensive activity, it generates a lot of employment. The area under mulberry
cultivation in the state was about 88879 hectares at the end of December 2014. The
value of total silk produced in 2014-15 was Rs. 2522.41 crores.
Table 4-15 Employment in Sericulture
Employment in Sericulture
Category Unit 2011-12 2012-13 2013-14 2014-15
Area under mulberry ‘000 hectares 70.96 74.13 80.87 88.4
‘000 Metric
Production of cocoons 55.96 49.44 61.41 68.75
tonnes
Quantum of cocoons ‘000 Metric
55.03 48.95 45.99 -
marketed tonnes
‘000 Metric
Raw Silk production 7.79 8.21 8.57 9.64
tonnes
Employment in Sericulture Lakh 9.22 9.63 10.51
4.5.4 SKILL GAP
Based on interviews with persons involved with the Agriculture sector, it can be
understood that one cannot make a list of skill gaps within the sector. Since the sector
is extremely vast and diverse, the skills required for each segment of it is different. There
is the basic difference in skills required for cultivation and for other allied sectors such
as sericulture and fisheries.
It is recommended that, for the growth of the Agriculture Sector along with the
increase in Productivity of farmers, the department conduct independent study to
understand the demand and supply of manpower across all levels. Along with
providing skills to farmers in areas of technology usage, agro-sales, product usage etc.
This skill requirement needs a detailed mapping and thereon a skill plan should be
developed.
A general trend seen across this sector in Karnataka is the extent of dependency on
migrated labour. There has been noted an influx of labour from Assam and West
Bengal. Suppose a labourer from Assam is employed at coffee plantations in
Karnataka, he/she may not be aware about cultivation of coffee or exposed to it
earlier. This leads to a significant skill gap. Another problem that exists especially in rural
areas is labour retention. Most youth do not want to work as labourers. Also, landless
labourers prefer to find menial job in the service sector rather than working in the
agriculture sector. Due to lack of availability of labourers, small and marginal farmers
KJA RECOMMENDATION
are growing crops that require less work like Ragi or Eucalyptus. As a result, they earn
less than optimal revenue.
Governments, both at the State and national level have created an elaborate
mechanism to ensure better growth for farmers. It is the beneficiaries who are unable
to access it and make the best use of these facilities
4.6 TOURISM AND HOSPITALITY

The Karnataka is ranked as the fifth most popular state in the country for tourism27. It is
home to 507 of the 3600 centrally protected monuments in India, the largest number
after Uttar Pradesh.28The State Directorate of Archaeology and Museums protects an
additional 752 monuments and another 25,000 monuments are yet to receive
protection29.The state is home to many sites of historical importance like Hampi and
Badami. Some of them have been recognized as UNESCO world heritage sites. In
addition to this the state is home to many beautiful beaches along its 320 Km long
coast from Karwar to Mangalore. Forest cover in south of Karnataka is home to
Bandipur Wildlife Sactuary, Nagarhole National Park and many more. The rich
biodiversity of Karnataka adds to its beauty. Apart from Coorg, which is a well-known
hill station of the state, there are a number of unexplored hill stations situated mostly
in Chikmangalur and Kodagu districts.
Table 4-16 Revenue realized by Tourism
Revenue realized by Tourism (in Rs. Lakh)

Name of Organization 2010-11 2011-12 2012-13 2013-14 2015-16
Directorate of Tourism 119.7 35.61 89.21 101.63 1045
Jungle Lodge and
3298.74 4268.21 4093.72 4524.16 3907.68
Resorts
Karnataka Tourism
Development 5240 6256 6684 6583.74 6811
Corporation
TOTAL 8658.44 10559.82 10866.93 11209.53 11763.7
Source: Economic Survey of Karnataka 2014-15
27Andhra Pradesh top tourist destination: Tourism Ministry - Financial Express Archived February 21, 2014 at the Wayback Machine
28"Alphabetical list of Monuments", Protected Monuments, Archaeological Survey of India.Archived from the original on 2013-08-08.
Retrieved 13 June 2007
29Correspondent (6 January 2007). "Plan to conserve heritage monuments, museums". The Hindu (Chennai, India: The Hindu). Archived from
the original on 2013-07-24.Retrieved 13 June 2007.
KJA RECOMMENDATION
Developing tourism will have a multiplier effect through the Economy. Apart from
generating revenue for the State including considerable foreign exchange, it will
create employment and generate local wealth which will boost the economy at
large. Clear indication for the growth of the sector lies in the volume of tourists arriving.
If demand to visit a tourist spots increases, only then will the infrastructural setup in that
area improve. It is also important to note that tourism gives a boost to the rural
economy as most tourists’ spots are located in such regions.
Table 4-17 Number of Tourist Arrivals in Karnataka
Number of Tourist Arrivals in Karnataka

Indian Foreigners Total CAGR (total)
2011 84,107,390 574,005 84,681,395
2012 94,052,729 595,359 94,648,088 11.8%
2013 98,010,140 636,378 98,646,518 4.2%
2014 118,283,220 561,870 118,845,090 20.5%
Source: Department of Tourism, GOK
4.6.1 EMPLOYMENT IN TOURISM SECTOR
Department of Tourism, GoK has already released its Vision document which outlines
the Government’s plans for this sector. The report stresses on improving current tourist
locations and developing some potential location by investing in infrastructure. This in
return is to generate employment. This Sector currently contributes to about 14.8 per
cent of the GSDP of Karnataka. Currently tourism sector contributes to 5% of the total
employment. It is expected that it will increase to more than 10% by 2024.
Table 4-18 Employment in Tourism Sector
Employment in Tourism Sector

Year Employment As a percentage to working population of Karnataka
2012 18,60,000 5%
2015 34,87,500 9%
2020 62,00,000 15%
To achieve these ambitious targets, tourism development needs support with

adequate human resources. Proper Vocational Training Courses is required to be
provided to all persons who are interested in working in either tourism or hospitality. In
addition to training them in general skills pertaining to the hospitality industry, it is
important to equip them with general understanding about the State also.
KJA RECOMMENDATION
4.7 HEALTHCARE
4.7.1 INTRODUCTION
Health care is one the major sectors of spending in the Indian economy and is also
the country’s principal contributor for employment generation. The Government of
Karnataka has given significant attention to the health sector during the past few
years. Provision of quality health care to people is an essential component of the
health strategy adopted by the State. A brief on the network of health infrastructure
has already been mentioned in the report. Based on population figures and rural
health statistics, NRHM has given figures on the shortage of number of hospitals in the
state (see table below).
Table 4-19 Health Infrastructure in Karnataka
Health Infrastructure in Karnataka

Particulars Required In position shortfall
Sub-centre 9,063 8,871 192
Primary Health Centre 1,445 2,310 *
Community Health Centre 361 180 181
Health Worker (Female)/ANM at Sub Centres & 11,181 11,434 *
PHCs
Health Worker (Male) at Sub Centres 8,871 3,148 5723
Health Assistant (Female)/LHV at PHCs 2,310 1,036 1274
Health Assistant (Male) at PHCs 2,310 823 1487
Doctor at PHCs 2,310 2,089 221
Obstetricians &Gynecologists at CHCs 180 175 5
Pediatricians at CHCs 180 95 85
Total specialists at CHCs 720 495 225
Radiographers at CHCs 180 172 8
Pharmacist at PHCs & CHCs 2,490 2,417 73
Laboratory Technicians at PHCs & CHCs 2,490 1,058 1432
Nursing Staff at PHCs & CHCs 3,570 4,978 *
Epidemiological transition coupled with IT supported health care practices is

attracting Indian and foreign patients to Bangalore owing to effectiveness in treating
chronic and lifestyle diseases. The healthcare sector’s revenues in Karnataka are
projected to shoot up to US$ 30 billion by 2020 from the current US$5 billion odd – the
biggest contributor to this growth will be Bangalore. For better and effective
management of global standard hospitals and healthcare facilities, Karnataka will
KJA RECOMMENDATION
witness a spurt in demand for hospital management professionals according to India’s

leading healthcare management & research institute, IIHMR Bangalore30.
4.7.2 EMPLOYMENT IN HEALTHCARE SECTOR
According to Report of the Steering Committee on Health for the 12th Five Year Plan
of the Planning Commission, India has 19 health workers (doctors – 6, nurses &
midwives – 13) per 10,000 people in India. The World Health Organisation (WHO)
stipulates a minimum ratio of 1:1,000.. Additionally, there are 7.9 lakh AYUSH
practitioners registered in the country (approximately 6.5 per 10,000)
AYUSH has also prescribed norms for the number of medical and non-medical
personnel required in a district hospital. For the purpose of this study we shall take these
figures as a norm for all hospitals. A hospital of 100 beds is to generate employment
for 105 medical and non-medical staff. In addition to this, another 12 jobs are created
at the administrative level.
Manpower requirement increases with the number of beds, but is not a linear. The
table below gives the minimum essential manpower required for a functional District
Hospital of different bed strengths as indicated.
Table 4-20 Manpower Required in Hospital
Manpower Required in Hospital - Medical and Non Medical

Cadre 100 Beds 200 Beds 300 Beds 400 Beds 500 Beds
Doctors 29 34 50 58 68
Staff Nurse 45 90 135 180 225
Para-medicals 31 42 66 81 100
Administrative Staff 12 15 21 26 29
Total Strength 117 181 272 345 402
4.7.3 PROJECTED LABOUR DEMAND
The World Health Organization stipulates that for every 1000 persons 3.5 beds are
needed. Based on the population projection till 2030, we have estimated the
manpower requirement for this sector. For the sake of simplicity, we have used
guidelines for 100-bed hospitals to calculate manpower requirement.
30Techspirit;”Private health care industry in Karnataka to grow to $ 30 billion by 2020”; dated 13 March, 2015 -
http://techspirit.in/private-health-care-industry-karnataka-grow-30-billion-2020/
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Table 4-21 Incremental Demand for Man- Power in Health Sector
Incremental Demand for Man- Power in Health Sector

Administ
No. of No. of Staff Para- rative
Population Beds Hospit Nurse Medical Staff Doctors
added Neede al (100 Require Staff Require Require
Year each year d beds) d Required d d TOTAL
2016 65,220,744 228,273 2,283 1,02,723 70,765 27,393 66,199 497,636
2017 850,277 2,976 30 1,339 923 357 863 3,482
2018 861,362 3,015 30 1,357 935 362 874 3,528
2019 872,592 3,054 31 1,374 947 366 886 3,573
2020 883,967 3,094 31 1,392 959 371 897 3,619
2021 895,492 3,134 31 1,410 972 376 909 3,667
2022 792,498 2,774 28 1,248 860 333 804 3,245
2023 801,524 2,805 28 1,262 870 337 814 3,283
2024 810,653 2,837 28 1,277 880 340 823 3,320
2025 819,885 2,870 29 1,291 890 344 832 3,357
2026 829,223 2,902 29 1,306 900 348 842 3,396
2027 838,667 2,935 29 1,321 910 352 851 3,434
2028 848,219 2,969 30 1,336 920 356 861 3,473
2029 857,879 3,003 30 1,351 931 360 871 3,513
2030 867,649 3,037 30 1,367 941 364 881 3,553
# 2016 is taken as base year
4.7.4 SKILL GAP
1. Medical Specialists
• Lapses in conducting medical and other audits
• Difficulty in coordinating activities between departments
• Difficulty in using computers
2. Consultant Doctors
• Inadequate skills in working as a team
• Insufficient knowledge of hospital infections
• Limited knowledge of disaster management protocol
3. Ward Attendant
• Limited knowledge of implications of bio-medical waste
• Lack of cleanliness and hygiene management
• Carelessness in observing safety norms
4.8 IT AND ITES

The IT and ITES Sector has grown exponentially over the past 15 years. Karnataka leads
in the information technology sector in India and its capital Bangalore is now known
as the Silicon Valley of India. Karnataka is the IT hub of India and home to the fourth
largest technology cluster in the world. ‘Karnataka has 47 IT/ITeS SEZs, three software
technology parks and dedicated IT investment regions. The exports of IT and
KJA RECOMMENDATION
electronic products from the state reached US$ 32.19 billion in 2014-15. Exports of IT
and electronic products accounted for 40 per cent share in India's IT and electronic
products exports and 62 per cent share in Karnataka’s overall exports as of 2014-
’15(India Brand Equity Foundation 2015).
The table below gives broad overview of the IT sector within the state.
Table 4-22 Performance of Information and Communication Technology Sector
Performance of Information and Communication Technology Sector

Particulars Unit 2013-14 2014-15 (upto Dec 2014)
IT Units No. 2425 2560
IT Exports Rs. in Crores 1,80,000 1,76,610
No. of Employees No. in Lakh 9.5 10
Source : Department of ITBT
The major segment of this industry encompasses IT services, BPO, Engineering Services,
R&D and Products. The state accounts for about 40per cent share in India’s electronic
and software products exports. The sector added US$ 17 billion of revenue last year
(NASSCOM). The table below gives a list of overall turnover of the industry and its
segments. The e-Commerce segment is driving rapid growth of domestic IT-BPM;
attracting unprecedented levels of global interest and funding. Nationwide, the
sector is growing at the rate of 13%.
Table 4-23 Overall Turnover of IT- Sector
Overall Turnover of IT- Sector

Category Turnover (in US$ Billion)31
IT Sector 130
IT Services >68
BPM >26
E Commerce >18
Hardware 14
ER&D, Product Development 14
Software Products 6
4.8.1 PROJECTED GROWTH OF EMPLOYMENT
According to the Department of IT, BT and S&T current employment in this sector for
Karnataka is at approximately 10 lakh persons. At present growth rate, the IT sector is
expected to absorb 2 lakh persons every year. Such a rise in demand requires a new
approach to the industry, one that embraces innovation, nurtures a superior talent
31 Data Source: NASSCOM
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pool, manages security and risks, and meets regulatory and policy demands.
Recognizing the required change has the potential to increase employment in the IT/
BPO sector from the current 8 lakh to 20 lakh by 2020.
Table 4-24 Employment Generated by the IT Sector
Employment Generated by the IT Sector (2015-2030)

2015 2020 2025 2030
10 lakh 20 lakh 30 lakh 40 lakh
4.8.2 DEMAND DRIVERS OF THE SECTOR
There are several global megatrends that are reshaping the IT/ BPO space. Changes
in healthcare, education, banking, retail, environment, energy and mobility are
reshaping markets. Based on these trends, the total addressable market for IT and BPO
is likely to grow from US$ 500 Billion to US$ 1.5 Trillion by 2020. India’s contribution in this
can grow from the current $100 Billion to US$ 300 Billion.
Of this, Karnataka’s contribution to IT/ BPO exports has been US$ 26 Billion. Karnataka
can improve its contribution in the IT/ BPO sector and help maintain India’s position as
a dominant global player by recognizing that 80% of future growth will come from
non-traditional sectors, new customers and newer geographies. For example, clinical
solutions in healthcare, environment and climate change solutions around
sustainability and mobile applications alone will contribute to around US$200 Billion.
IT and BPO sectors have been critical to growth in ancillary industries such as
education and training, transport, construction and security. This industry has been
responsible for creating new employment and offering employees an opportunity to
share in wealth creations through stock options (a remarkable trend triggered by IT
that has had a deep and lasting indirect impact on entrepreneurship). The industry
has also led the way with diversity, employing more women and persons with
disabilities than possibly any other industry. Karnataka’s IT and ITeS successes have
attracted international attention not only for the economic change it has brought
about, but also for the social change it has triggered. This trend must be maintained
and enhanced in the coming decade. There are several global megatrends that are
reshaping this IT/ ITeS space.
The change calls for a new approach to the industry one that embraces innovation,
nurtures a superior talent pool, manages security and risk, meets regulatory and policy
demands. The continued focus on IT/ ITeS will ensure accelerated growth of the
economy, will fast-track the development of new centers of growth in the state, add
to employment, and fuel innovation. Bangalore’s brand as a global IT centre must be
enhanced with the new parameters that are coming into play such as productivity,
KJA RECOMMENDATION
infrastructure, quality of life, social equity and environmental sustainability that

indicate the city’s potential to continue to attract global talent and provide the
environment for renewed growth.
4.9 THE UNORGANIZED SECTOR

The term ‘unorganized worker’ is defined in India under Section 2(m) of the
Unorganized Workers Social Security Act, 2008. An unorganised worker is a home-
based worker or a self-employed worker or a wage worker in the unorganized sector
and includes a worker in the organized sector who is not covered by any of the Acts
pertaining to welfare Schemes as mentioned in Schedule-II of Unorganized Workers
Social Security Act, 2008
Unorganised workforce drives almost every segment of the economy – Agriculture,

Manufacturing and Services. The sector wise contribution of unorganised sector, for all
India level has been illustrated in the table below:
Table 4-25 Share of Labour Input in unorganised Sector
Share of Labour Input in unorganised Sector (%)2004-05

Tabulation category/ Description Share of Unorganised
Sector
1 Agriculture and Forestry 99.9
2 Fishing 98.7
3 Mining 64.4
4 Manufacturing 87.7
5 Electricity, Gas and Water Supply 12.4
6 Construction 92.4
7 Wholesale and Retails Trade 98.3
8 Hotel and Restaurant 96.7
9 Transport, Storage and 82.2
Communication
10 Financial Intermediation 32.4
11 Real Estate, renting and business 81.4
activities
12 Public Administration 2.6
13 Education 37.9
14 Health and Social work 55.1
15 Other community, social and 92.5
Personal Services
16 Private households with employed 100
persons
17 Extra territorial Organisation and 87.8
Bodies.
TOTAL 93
Source: Report for the Committee on the Unorganised Sector Statistics.
National Statistics Commission, Government of India. (2012 February)
;Pg 25-26
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Although the data presented in the above table is for the year 2004-05, it provides the
indicative picture of the ground level scenario. Due to insufficient data such a table
for Karnataka could not be constructed.
However, we are aware that 3/4ths of 2.44 crore workers in Karnataka are estimated
to be in the unorganized sector. Most of the workers agricultural and workers in the
sub3sectors of non-manufacturing such as shops, establishments & trade,
construction, real estate& business activities and hotels & restaurants are in the
unorganised sector.
Agriculture and allied sectors hosts the most amount of unorganized labour. Since the
sector has been exclusively studied as a separate chapter we shall not be dealing
with it in this chapter. Some of the sectors in Karnataka that host huge portions of
unorganized labour have been discussed below. The sectors have been identified
based on the reports of the National Skill Development Council for the state. Given
the very nature of the sector in discussion – Unorganised, very little data exists.
4.9.1 TEXTILE SECTOR
One of the biggest sector in Karnataka in terms of both output and people employed
is the textile sector. A significant share of people employed in the sector fall in the
unorganised category. Most of the weavers both of cotton and silk fall under
unorganised category of labour.
Weaving is a skill by itself which is learnt on the job for those employed in the sector. It
is also passed down from generation to generation in families. A better understanding
of fabrics and designing will enable individuals engaged in the sector to better target
their customer groups and thereby earn greater income. Traditional fabrics can to put
in newer designs to attract new customers. With the advent on online retails suppliers
can access bigger markets. To optimise this situation skilling is needed in designing and
use of ICT.
Although the Garment industry itself is much organised the labour employed in the
industry continue to be unorganised. Most individuals in the sectors are engaged in
Stitching. This stitching is mechanised so they are essentially tailors. There is a shortage
of seat for courses on “dress making” and fashion designing in ITI’s. This can be
expanded. Skilling should also involve information dissemination of the sector at large
and quality related aspects so that the aspiring entrepreneurs are well acquainted
with this sector.
KJA RECOMMENDATION
4.9.2 TOURISM SECTOR
Presence of historical sites and sites of natural beauty has rendered Karnataka’s
tourism sector an inherent advantage. Most of the job profile in the tourism sector like
guides, cab drivers, and travel operators can be categorised as unorganised sector.
These are semi-skilled jobs with huge potential.
Skilling must be provided to individuals in trade specific skill. A combination of skill can
also be designed to cater to the ground level needs of the sector. Training for guides
especially for historical sites would be greatly beneficial. Training people in language
to be guides for foreign travellers will further boost the tourism sector. In addition to
providing short term courses or/and certification in hospitality would give support to
small hotels.
4.9.3 THE FURNITURE AND FURNISHING INDUSTRY
The industry is mostly concentrated in and around urban pockets like Bengaluru.
Retails companies have entered the industry but it continues to be dominated by
small time firms. Skilling can involve not just carpentry but also entrepreneurship related
classes which can act as a guide for individuals to set up their own enterprises and
become self-employed. Most of such firms presently fall in unorganised category. This
must be bought under organised sector.
Trade specific skill like designing must be included in addition to inventory

management and storage skills.
4.9.4 CONSTRUCTION AND REAL ESTATE
All unskilled and semi skilled labour engaged in construction sector is unorganised.
Various trades like Plumber, Electrician, Mason, Painter etc are hired on contractual
basis in the sector. Each of this skills learnt by individuals on job. Standardisation of the
skill must take place so that these individuals can be certified for the same. This will
enable them to set up their own businesses exclusively providing these services. India
must adopt an international standard thus enabling them to apply for jobs in the other
nations for any of these trades.
Unskilled labourers in the construction industry are the helper who eventually picks up
a trade. Construction sector requires In-situ skilling. Since the entire sector is
unorganised. Institutionalised skilling is difficult to implement. Therefore, it is
recommended that certification should be focused.
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4.9.5 DOMESTIC WORKERS
Domestic workers have become an indispensable part of Indian household. “National

Sample Survey Organisation (2009-10) data posts the number of domestic workers in
India at 2.52 million, up from 1.62 million in 1999-2000”32. But NGO’s working in the
sector has said the numbers are much higher than the official estimates. Domestic
workers are further categorised based on the job they do like:
4.9.5.1 HOUSEHOLD CLEANING
This includes washing utensils, sweeping, mopping etc.
4.9.5.2 COOKING
Many households with adult working member are now employing cooks. They are
expected to cook basic dishes. A short duration skilling programme for those already
employed in such job profiles can be conducted and certificate for the same can be
provided. A linkage from this job profile to the hospitality sector can also be
established so there is scope for people to grow professionally.
4.9.5.3 CHILD CARE AND ELDERLY CARE
The demand for this job profile is increasing rapidly. Many individuals do not have the
capabilities to fill these roles. A separate job profile must be created for Caregivers
and specialised training with some basic medical related information can be
provided to aspiring Care givers. Certified individuals can then be linked to agencies
which bridge the demand and supply.
4.9.6 WELLNESS SECTOR (SALON AND SPA)
Rise in income levels has enabled people to spend on luxuries like availing services in
a salon or a spa. In urban pockets demand for beauticians, hair stylists, masseuse is
increasing. In addition to retails chain of salons, many independent salons are also
part of the supply side. These independent salons are mostly unorganised. There is also
freelance service provided in this sector.
32Amrita Nayak Dutta (2013, December 26) Domestic help workforce in India exists without governmental or societal
support. DNA.Retrieved from http://www.dnaindia.com/india/report-domestic-help-workforce-in-india-exists-without-
government-or-societal-support-1940646.
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In addition to trade related skills, communication and languages can also to taught
in wellness sector related courses.
4.9.7 SECURITY GUARDS
Every enterprise is availing service of private security. It is a semi-skilled job whose

demand is greatly increasing in the past decade. Most people employed in these jobs
do not have any prior experience and are not trained for the job.
Skilling programme have to be offered to security guards. They must be trained in

disaster management protocols, regarding basic criminal and civil law and
communication skills.
4.9.8 HANDICRAFTS
Karnataka is home to some beautiful handicrafts some of which are registered as

geographical indicators. Paintings, ivory carving, sandalwood crafts, Mysore silk etc.,
are some of the many interesting crafts seen in Karnataka. Moreover, metal work of
Udupi is also renowned for their intricate craftsmanship.
Most of the handicrafts are taught through apprenticeship method. Institutionalising

skilling of handicraft would not yield much benefit. Rather the existing apprenticeship
mode of teaching must be recognised. Steps should be taken to bridge the gap
between demand and supply of the handicrafts. Little modification in design can
make various handicrafts of Karnataka appealing and thus creating a new demand.
Therefore, offering courses in designing would be helpful. In addition, training in
marketing and business would enable artisans to use new avenues of retailing like the
online platforms.
4.9.9 AGARBATTI MAKING
The Mysore region in Karnataka is known for their Agarbatti (incense) particularly
made of the sandalwood, which the region is known for. Agarbatti manufacturing is
highly labour intensive sector characterised by low capital requirements and simple
technology. The entire process of rolling agarbattis is catered by the unorganised
sector33 There is not much that can be done in terms of skilling in the sector but
33NiranjankumarNivedita.(2014, October 21) Your Agarbatti’s Dark Side. Indian Express. Retrieved from
http://www.newindianexpress.com/cities/bengaluru/Your-Agarbattis-Dark-Side/2014/10/21/article2486925.ece
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mechanism to deal with occupational illness associated with industry has to be

identified or addressed.
The Unorganised sector is a highly fragmented and most employment is done on a

one on one engagement with the employer, hence the respective industry should
take initiative in training them. Currently “on the job training” is the most preferred
mode of training for the sector and this will continue to exist. Policies pertaining to
skilling in the unorganised should be designed in such a manner that existing practices
are incorporated into it. A complete overhaul in terms of strategy would not yield
much return as implementation of such a radically different policy may be hard. A
phased-out implementation will provide space for both the skilling agency and
industry to get adjusted to it.
--------------------------------X--------------------------------
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5. RECOMMENDATIONS
Way Forward
The Central Government has formulated the national policy framework to guide State
Governments to draw State specific plans with respect to vocational education and
skill development. The State Planning Department has also identified lacunae existing
in vocational education and skill development system. Taking into account the
strategies proposed by the Central Government and suggestions made by the State
Planning Commission, the following initiatives could be taken up by concerned
departments.
5.1 AIMS AND OBJECTIVES OF THE SKILL POLICY

Karnataka government aims to set up a framework that is inclusive as well as learner
and labour market centric in its approach to impart skills.
Vision
Internationally acceptable skilling for all to reap the maximum possible demographic
dividend for rapid balanced sectoral growth and inclusive development with decent
employment opportunities for all.
Goal
The goal of the skill development policy is to recommend ways to provide skills
incrementally to persons who include youth emerging from the formal education as
well as those who yearn to achieve sustainable livelihood either through wage
employment or self- employment options in a year.
Mission
Empower all individuals through improved skills, knowledge, nationally and

internationally recognized qualifications to gain access to decent employment
and ensure State’s competitiveness in the global market.
Aims
The aim of the policy on skill development in Karnataka is to:
• Design and implement skill development, entrepreneurship and livelihood

activities on mission mode basis converging all the schemes and programmes
concerned under skill development, entrepreneurship and livelihood
department;
• Achieve the economic and social integration of target groups by enabling
them to acquire employment relevant skills;
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• Standardise curriculum in line with quality parameters and market demand,

and improve certification norms for improving employability and free
movement of the workforce;
• Set cross sectoral and internationally acceptable standards of skilling with
sound quality assurance and qualification framework;
• Ensure speedy provision of qualitative skills to harness the demographic
dividend and meet the industry needs;
• Strengthen the quality as well as to ensure the long-term sustainability of the skill
development infrastructure – both in the government and private sector; and,
• To provide skills to strengthen livelihoods and promote entrepreneurship
with increased emphasis on innovation, and providing adequate support and
conducive environment to them.
Objectives
In order to achieve the above aims, the skill development policy of Karnataka
government has formulated the following objectives.
1. To provide information to youth, entrepreneurs and workers in the unorganised

sector on employable skills and institutions providing such skills, mobilise them
for acquiring skills, and to undertake innovative measures to make skill
acquisition aspirational for youth.
2. Make vocational training aspirational to both youth and employers so that
youth perceive vocational training as career choice and employers, realising
the productivity potential of skills, offer remunerative employment to skilled
workers.
3. To standardise the curriculum in line with quality parameters and market
demand, and to improve certification norms to promote quality, employability
as well as facilitate free movement of workers.
4. To strengthen and enhance the capacity of training infrastructure and trainers
at all levels to provide quality and relevant training.
5. To ensure equitable and easy access to skill training programmes to every
needy person in the state.
6. To ensure vocational training to those completing school education,
unorganised sector workers and lowly paid workers to enable them to improve
their employability and access to growth opportunities by skilling, re-skilling and
up-skilling.
7. To facilitate mobility between vocational and general education by alignment
of degrees with National Skill Qualifying Framework.
8. To provide suitable skills for improving entrepreneurship and promoting
livelihood security.
9. To provide an institutional base and set up Labour Market Information System
(LMIS) which enables the potential workforce to articulate, represent and
secure their interests for wage employment and self-employment options, and
to use this information in the preparation of curriculum for skill training;
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10. To achieve convergence of existing state and non-state initiatives, provide

clarity of roles of all the stakeholders in the ecosystem, including the
government so that they all can contribute to the achievement of goals
relating to skill development for wage and self-employment based on their
comparative advantage.
11. To achieve improved supply and quality of the workforce for industry,
contributing to increased productivity.
12. To provide services on career guidance and placement, and facilitate
overseas employment of skilled persons.
5.2 POLICY INTERVENTIONS FOR PROMOTING SKILLS

AMONG YOUTH
Any marketable skill, acquired through formal or certified informal means, to perform
a job or a certain task competently is considered as skill. Skills are both generic4 and
domain5. The former is to be imparted as part of general education, while the latter
will specifically be addressed by the policy. For skill development, the Department will
undertake the functions of providing awareness on marketable skills and institutions
providing such skills, monitoring the government and private vocational education
courses and informal training programmes, standardising the curricula, improving
certification norms, setting up of NSQF, providing placement services, improving
overseas job opportunities and so on.
Entrepreneurship is defined as the capacity and willingness to develop, organize and

manage a business venture along with any of its risks in order to make a profit. The
most obvious example of entrepreneurship is the starting of new business. The main
function of the department is empowerment of entrepreneurs through skills. It needs
to be noted that skills required for a person to become entrepreneur are different as
compared to a person taking up paid job after obtaining skills. If a person is to become
successful entrepreneur, she/he should be provided with support such as credit,
expertise, infrastructure, skills and official environment conducive to the business. The
department, however, focuses mainly on skills and to some extent linking
entrepreneurs with banks and so on.
Livelihood, which is a means of making a living, encompasses people’s capabilities,

assets, income and activities required to secure the necessities of life. A livelihood is
sustainable when it enables people to cope with and recover from shocks and stresses
(such as natural disasters and economic or social upheavals) and enhance their well-
being and that of future generations without undermining the natural environment or
resource base. The activities to be undertaken to promote livelihoods are, in addition
to providing skills, organisation and mobilisation of youth into Self-Help Groups initiating
measures towards their financial inclusion, facilitating marketing linkages and so on.
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Policy interventions aimed at improving the eco-system of skill development for the
target group in Karnataka are discussed below:
5.2.1 INFORMATION, AWARENESS AND MOBILISATION
• Awareness on the role of skills in the nation building will be created among
parents, teachers and other stakeholders in the society to develop pro-skilling
environment in the state. Messages conveying that each job (small or big,
formal or informal) is to be respected as it directly or indirectly contributes to
national economy will be spread through newspapers, mass media and posters
on buses and trains. Information Education and Communication strategy
along with modules and tools in Kannada will be developed and transmitted
from time to time for effective communication to public in general and youth
in particular.
• Awareness programmes for parents will focus on choices available to their
children in terms of sectors, modules and training providers with better career
opportunities.
• Information and awareness on advantages of skills, returns to skill education,
marketable skills in the technical and non-technical trades and institutions
providing courses on such skills will be provided to students completing
secondary and higher secondary education, school drop outs, unorganised
workers.
• Appropriate programmes will be formulated so that the youth can articulate
and represent their interests and will aspire for vocational education.
• The state government will create web portal for youth interested to go for skill
training. Mobile technology will be used for better social networking,
better engagement and collaboration with the prospective candidates.
• Institutional arrangement will be made for those in secondary and higher
secondary schools to spend a couple of days in an innovative experience
programmes on campuses of ITIs, Polytechnics, industries, specialised training
facilities and others discovering the relevance of vocational education to
themselves. This will focus on hands-on experience in manufacturing, office
and service skills required in the real world.
• Gram panchayats and urban local bodies will provide information on
skill opportunities as well as mobilise the youth through Self-Help Groups and
other community based organisations. These local bodies will also identify and
enroll youth interested in obtaining skills and facilitate the connection between
the youth interested in obtaining skills and institutions providing employable
skills. The existing data base such as Socio-Economic Caste Census (SEC),
20146, will be utilised for identification and mobilisation of youth.
• Local bodies and civil society organisations will be involved to provide
counselling and guidance to youth not only for creating aspirations and but
also to reduce the attrition rates during the training. Skill missions at the grama
panchayat, taluk and district levels will work as multipliers and facilitate
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counselling and guidance to the youth about various skilling programmes and
opportunities.
• Appropriate steps will be initiated to involve industries in the assessment and
provision of information on marketable skills on regular basis.
5.2.2 ASPIRATIONS AMONG YOUTH
• Vocational education is equated with blue-collar low status jobs.

Consequently, status is given more importance as compared to income
prospects that skill education provides. In addition, the structure of vocational
education in India does not give an option to students to pursue general
education possibilities at a future date. This lowers the likelihood of youth
aspiring for vocational education.
• Youth also lack information on job opportunities available for specific types of
training. Weak labour market links between vocational education providers
and employers undermine the willingness of students to incur the resources for
vocational education.
• High quality vocational education options will be made available to students.
In addition, a premium in wages for skilled workers who have gone through
formal vocational education courses will be institutionalized in collaboration
with the industry. Minimum wages will be upwardly revised to make vocational
education aspirational for the youth as well as the industry. Vocational
education will be recast as a profession, with skills that need periodic upgrading
and that command the respect as any professional.
• For any vocational course (one semester or above), an equivalence to general
education will be notified.
• Pathways between vocational education and general higher education will
be created. The state government will initiate necessary reforms in the
education system at the middle and secondary school levels and in technical
training in phased manner to achieve seamless integration of vocational
education into the formal education system. Exposure to different skill streams
to map the skills through aptitude tests and make choices will be introduced.
The assessment and certification bodies will support the Boards of School
Education to carry out reforms.
• Efforts to integrate skill education with general education will be made for
making vocational education as continuous and lifelong learning, so that
young people will aspire for vocational education and skill training
programmes.
• Government will make efforts to bring skill training at par with general
education system. Courses offered under skill development will have both
theoretical and practical framework so that workers have complete
knowledge. This will help them to seek the same promotional and pay
packages as normal jobs offered in private and public sector.
• Initiatives will be taken up to introduce skilling as a subject at college and
university levels by starting courses such as Bachelor of Vocational Studies to
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enable the students to have trans-disciplinary vertical mobility into those

courses where the entry qualification is bachelor degree. Such a course, as
decided by the UGC, will have multiple points of entry/ exist and appropriate
content of general education along with skills relating to a profession.
• Those youth who have gone to private schools performed well academically
and whose parents are relatively well educated are likely to assign low status
to vocational education. Customised awareness campaigns directed at this
group will be undertaken to address the negative perception associated with
vocational education.
5.2.3 STANDARD CURRICULA AND COURSES
Karnataka Skill Development Authority will be set up to standardise the curricula and
courses in line with market demand and quality parameters. If curricula are already
available, these will be adapted or adjusted according to the market demand, and
needs and preferences of trainees.
5.3 POLICY INTERVENTIONS FOR SKILL TRAINING

5.3.1 TRAINING INFRASTRUCTURE
• The quality of infrastructure within the existing ITIs, Polytechnics and other such
institutions will be improved and the existing infrastructure will be put into good
use for delivering training to large number of youth.
• The government will standardise and institutionalise private sector capacity
by increasing the number and mix of skill training courses through means like
public- private partnership, equity, grant and loan support from the
Government of India. Private sector and CSR initiatives in skill training will also
be encouraged.
• Industries will be encouraged to earmark funds for periodic skilling and up-
skilling of personnel employed in the industry by utilising the space and
infrastructure available in the government ITIs and polytechnics.
• Efforts will also be made to encourage industries to start training centres.
• Space available in community centres, schools, youth hostels, polytechnics or
shop floors of industries will be utilised for practical training.
• Community Schools and e-learning platform will be created to address the
issue of scaling up and capacity. Civil society organisations will be encouraged
to set up community schools. In so far as e-learning platform is concerned,
some proportion of curriculum of vocational education, mostly theory part, will
be delivered through the internet.
• In order to reduce gender disparity, basic workshop subjects such as metal
work, woodwork, technical drawing, and basic electricity will be made
compulsory for both girls and boys.
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5.3.2 IMPROVING QUALITY OF TRAINING AND CAPACITY OF TEACHERS
• In line with the central government policy on the quality assurance framework,
the state government will develop the quality criteria and align the same with
the National policy at later point in time when it is finalised. The quality
framework will set minimum standards and provide guidance for effective,
valid, reliable, fair and transparent assessment in the context of NSQF. This
would also facilitate certification and thereby improve status of skills training.
Guidelines for accreditation of training providers based on training capabilities,
infrastructure, and availability of trainers, ties with industry, etc., will be notified.
• To promote accountability among ITIs and assess their performance, ratings
based on their outcome linked parameters will be applied.
• Industry will be encouraged to actively participate in designing curricula and
standards for skill training courses, depute their industry members as faculty,
make shop floor available for practical training and institutionalise paid
apprenticeship. Workplace training will be promoted as part of overall skill
curriculum aligned to NSQF and embedded in appropriate credit framework.
• For effective skill development, the link between demand for skills by employers
and supply of quality skills is crucial. The government will provide incentives to
those industries which are successful in establishing such a link.
Preparing curriculum which is in sync with emerging market demands and aligned to
latest NSQF. Qualification packs will be recommended by the sector mentor
committees. The latest teaching aids will be promoted to disseminate quality training
on a large scale. The curriculum will be revised once in every three years to
accommodate the changes in the market, and in consultation with the industry.
The policy visualises skilled and certified teachers so as to provide qualitative skills to
students in Karnataka.
• A separate course for the teachers of vocational education, along the lines of
B.Ed. will be started.
• Training and retraining program will be organised for the teachers of ITIs and
Polytechnics so that they are updated on the current curriculum which have
demand in labour market. A focused and restructured teachers training
programme will cover certification, continuous skills up gradation, performance
monitoring, rewards and recognition.
• Teachers will also be encouraged to spend sometime in the industry so that
they are able to learn the technological advances made in the industry. ITIs
and Polytechnics will be encouraged to appoint those working in the industry
as part-time teachers and guest speakers from time to time.
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5.3.3 CAREER GUIDANCE AND PLACEMENT SUPPORT SERVICES
• Employment Exchange and Career Guidance Bureau will be set up for

improving the employability of skilled youth.
• A strategy on career guidance and placement support services will be in
place. A booklet on career opportunities will be periodically brought out to
help skilled youth to obtain jobs.
• Industries will be encouraged to provide in-house training and made
accountable for their placement.
• The focus will be on providing employable skills. Most of the jobs require
knowledge of English language, basic IT and financial literacy. Effort will be
made to prepare required module and integrate these courses along with life
skills and soft skills to youth.
• The focus of the policy will be on placements since the most critical outcome
of skill training is employment, wage or self-employment. Handholding,
placement and post- placement support are critical. Employment tracking of
individuals for at least one year post skill training will be made mandatory under
all skill programmes.
• The Labour Management Information System will be set up to pool data from
industries (both big and small) to assess the demand from time to time. With the
help of these data, skilled workers will be placed accordingly.
5.3.4 OVERSEAS EMPLOYMENT
• Karnataka government will set up Overseas Employment Cell to tap the

potential for overseas employment opportunities for skilled persons.
• In order to promote overseas employment, the government will make efforts to
ensure that the curriculam of vocational education and content of skill training
match international standards.
• Skilled workers interested in taking up overseas employment will be provided
support in bridging the existing skills with those required, information on socio-
economic conditions in the destination country, support to send their
remittances to their families and so on.
5.3.5 APPRENTICESHIP PROGRAMME
• Apprenticeships will not only accelerate skill development but also help to
tackle the problem of unemployability of youth. Apprenticeship programmes
all over the world have gained from increased productivity. Those completing
an apprenticeship earned more than an average college graduate.
• Despite this, the apprenticeship programme in the state is still at the nascent
stage
• (Annex 8) because the Apprenticeship Act of 1961 and amendments in 1973,
1986 and
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1997 were prescriptive and did not work. This means that the employability of the
skilled youth has declined as the industries could not employ youth having only
bookish knowledge.
• Following amendments to the Act made in 2014, which create an

enabling environment, the policy document visualises to make employers
volunteers in the apprenticeship programmes and make customized
programmes.
• Annually, 350,000 youth will be provided apprenticeship training.
• Efforts will be made to include more industries such as telecom, insurance,
banking and finance, information technology, and civil aviation and retail
trade.
• Industries having more than 40 workers will have to provide mandatory
apprenticeship training to 2.5 to 10% of its staff.
5.3.6 VOCATIONAL TRAINING FOR SCHOOL DROPOUTS
• The vocational training will be organised through various private Skill

Development Centers (SDC) or Vocational Training Providers (VTPs). The policy
visualises that SDCs or VTPs will be promoted by: i) NGOs; ii) Private Engineering/
Polytechnic/ ITI colleges; iii) Corporate houses directly or through CSR;
iv) Public Sector Undertakings; v) Religious trusts or organisations; and, vi)
Private skill experts.
• The above may be helpful to boys as they may be more forthcoming in
attending training by SDCs or VTPs. For girls, de-centralised training
arrangement will be made.
• The policy will promote training capacity by identifying at least one SDC or VTP
in each of 176 taluks in Karnataka for imparting training in the identified trades.
• The policy visualises strong interface between DET and SDCs/VTPs wherein the
former arranges to provide the necessary support to the latter in (i) making the
standard curricula and courseware available to all at all the time, (ii)
developing and using monitoring tools, (iii) arrange for capacity development
of SDC/VTP trainers so as to improve the quality of delivery, and (iv) assessment
of certification of the trainees.
• DET, GoK, will assess skills imparted and award certificates to those trained by
SDCs or VTPs for their career advancements in line with NSQF equivalent
certification7
5.4 ENTREPRENEURSHIP DEVELOPMENT AND LIVELIHOOD

PROMOTION POLICIES
Policies to provide skills for entrepreneurship and livelihood require different focus and
strategy, and hence, these are separately discussed below.
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5.4.1 SKILLS FOR ENTREPRENEURSHIP DEVELOPMENT
Policies for successful entrepreneurship development among youth are below.
• Efforts will be made to identify potential and early stage entrepreneurs from
among those attending formal skilling courses as well as others. In order to
educate and equip them, entrepreneurship education curricula will be
developed by learning from the available education content.
• The Department will provide entrepreneurship curriculum to aspiring
entrepreneurs with the help of ICT. Tracking of those learning through web-
based teaching of entrepreneurship training will be done to monitor and
include those belonging to socially and economically marginalised groups.
These groups will be prioritized in the provision of training inputs.
• Colleges and universities, both public and private will be encouraged to start
entrepreneurship courses.
• Web and mobile based platforms will be created for the students and budding
entrepreneurs to connect with the ecosystem of entrepreneurship. Such a
platform will be helpful not only to find opportunities for skill training but also for
other services such as credit.
• Karnataka government will encourage the creation of new incubators and
scaling up of the existing incubators through appropriate support.
• State-wide network of Entrepreneurship Hubs (E-Hubs) will be set up to provide
guidance and extend support to entrepreneurs such as delivery of services as
part of the state programme on entrepreneurship and other resources.
• The government will undertake steps to rationalise business procedures and
regulations to improve ease of doing business. The Government will constitute
a committee to arrive at the procedures and regulations.
• Access to institutional finance is key for the success of business. The government
will initiate steps to ensure the flow of adequate and timely credit to budding
entrepreneurs by strengthening coordination between entrepreneurs and
banks/ other financial institutions.
5.4.2 LIVELIHOOD PROMOTION POLLICIES
• The identified vocational training programs can be organised by involving

private vocational training providers, NGOs, religious and charitable
organisations and by the industry through CSR initiatives. Mobile training
services will also be used wherever it is necessary.
• Policies to increase in training capacity will be implemented by identifying
adequate training providers to all the villages and localities in Karnataka for
imparting training or re-skilling or up-skilling in the identified trades. The
government also visualises the use of mobile training services and Leaning
Network approaches for improving the training capacity.
• The government will make the standard curricula and courseware and monitor
the training providers. It will also assess the process of certification of the trainee.
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• The government will adopt mobile training service approach because such
an approach: i) makes vocational education and training available where the
trainees work and live; ii) is suitable particularly for target groups in remote rural
areas; iii) makes it possible to organise in terms of time and place so as to
best suit the needs and constraints of the target group in the informal sector;
iv) can offer both formal and non-formal and further training courses; and, v)
benefits women, girls and other disadvantaged groups as they do not have to
travel and incur transaction costs.
• LearnNet approach8 will be adopted, where it is required, as it empowers the
disadvantaged people. In order to minimise barriers as a result of distance or
social restrictions, it will be applied where people live and work such as worksite
of construction workers.
Government will introduce measures to impart green skills for sustaining the livelihoods
of workers in the unorganised sector so that they can work their way out of poverty
and contribute to greener planet.
• The government will introduce the Recognition of Prior Learning (RPL) for
unorganised workers for strengthening and certifying their skill base. Checklists
for various trades in consultation with industry will be prepared. The government
will pre- assess competencies based on checklists and provide both theoretical
and practical training sessions. The government will facilitate formal recognition
of skills/ competencies acquired through non-formal and informal channels
among workers in the unorganised sector by institutionalising this and giving
wide publicity. Policies to include women and those belonging to
disadvantaged groups will be introduced.
• The efforts of training providers in the skill development initiatives will be
recognised and mentorship support through NSDC to scale and create
sustainable models for skill development for Green jobs (agriculture/allied
horticulture, renewable energy, recycling, eco- tourism etc.), Grey job (informal
manufacturing and services), and local trades especially will be promoted.
5.4.3 CLUSTER DEVELOPMENT
• Many youths in Karnataka have been deriving livelihood in agriculture,

livestock, small manufacturing including handicraft activities. However, they do
not receive sustainable livelihood.
• In view of this, the government will take up vocational cluster for the
development of agriculture, livestock, handicrafts and arts to secure the
livelihoods of the poor. The vocational cluster will be a regional entity bringing
together the public and private training providers active in such field to meet
the skill needs of the cluster.
• The policy visualises the provision or upgradation of skills for the workers in such
a cluster. The skill provision will focus on improving the productive capacity of
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the workers, modernisation of their activities, modernising the market, linking

them with outside markets including overseas markets.
• Pilot projects will be initiated on the above for learning and scaling up.
5.5 MATCHING
5.5.1 REVAMP EMPLOYMENT EXCHANGES TO CAREER CENTERS
The objective of setting-up Career Centres across the state with world class
technology and processes is to address the employability gap and to extend
employment opportunities to the local youth. Skills development training will be
provided as a mechanism to develop the right set of skills required by the industry.
These centres will be equipped with state of the art infrastructure and propose to
conduct training and offer jobs to local youth. Following would be the main functions
of the Centres:
• Assess the job seekers on their current competencies and identify the skill gap
• Counselling
• Provide Employability Training/Capacity building of job seekers
• Certification support
• Placements assistance
• Demand Generation (how would the centre influence demand generation?)
– The centre will go to various industries and generate open positions for
employment, in other words generate demand for job openings
• Back-end Support
5.5.2 OBJECTIVE OF THE CAREER CENTERS
The primary objective of the Centre is to provide employability solutions to a wide

range of job seekers. The target group would include:
• Commerce, Science and Art Graduates

• School drop-outs
• 10th / 12th pass students
• Skills upgradation of workers employed in various industries
• ITI Tradesmen.
• Job Seekers seeking certification for their skills acquired informally
• Fresh Graduates
• Workers and ITI graduates seeking skill up-gradation
• Early school drop-outs and unemployed
To improve job seekers’ employability skills, the Centre will provide Assessment and
Counselling solutions which would enable job seekers to understand their current
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capabilities and gaps and accordingly provide training and apprenticeship to

address the gap. The Centre would also help the job seekers in job matching services.
In the long-run the Centre can be used as a platform for bridging the gap between
government and industries. The Centre can be a single point of window at the district
level to provide information on local industries and their manpower requirements.
Local industries can make use of the Centre to reach out to/to interact with local
youth/job seekers.
5.5.3 STRUCTURE
The Centre can be set up on Private-Public Partnership mode with a CEO from industry
with industry background. An Advisory Board with industry experts and government
officials as members can be constituted for efficient service delivery and sustenance.
5.5.3.1 RESPONSIBILITIES OF GOVERNMENT OF KARNATAKA:

1. Infrastructure, provided and owned by the Government
a. Interiors - uplift to the Employment Centre requirements
b. Electrical as defined
c. Electronic Equipment, Computers, AC’s, Printer, LCD Screens
d. Furniture
2. Branding Support
3. Operations Support
4. Management fees to Private Partner to cover Operating Expenses of the
Employment Centre
5.5.3.2 RESPONSIBILITIES OF PRIVATE PARTNER:

1. People, Processes, Technology, Business Expertise
2. Manage day to day operations and be responsible for overall functioning of
the center
3. Deliver desired output for;
a. Registrations
b. Assessments
c. Counselling
d. Training
e. Placements
f. Demand Generation)
5.5.3.3 KEY FEATURES OF THE EMPLOYMENT CENTER:

• Identify the industry demand and generate awareness amongst organizations
and job seekers about the Career Center.
• Demand driven short term training courses decided in consultation with
Industry.
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• Optimum utilization of upgraded infrastructure to make training cost effective.

• Flexible delivery mechanism (part time, weekends, full time, onsite/ offsite) to
suit needs of various target groups.
• Different levels of programmes to meet demands of various target groups.
• Testing & certification of skills.
• Forecasting of emerging areas of employment at micro level.
• Development of instructional material for training.
• Assist in the training of trainers.
• Making available the training & testing facilities.
• Development of assessment standards.
• Monitoring and Quality assurance.
• Job placements.
5.5.3.4 TARGET GROUP
• Job Seekers seeking certification for their skills acquired informally

• Fresh Graduates
• Workers and ITI graduates seeking skill up-gradation
• Early school drop-outs and unemployed
5.5.3.5 PROPOSED OUTPUT: (COVERED IN KEY FEATURES)

Job seekers would be trained and their skills tested, upgraded and certified. Modules
for employable skills as per Industry and Labour market demands would be identified
and course curriculum developed.
• Identification of Employable Skill sets for a region based on the study of labour
market in consultation with Industry
• Development of training modules corresponding to skill sets identified
• Organizing Modules into Course Matrix indicating vertical and horizontal
mobility
• Development of detailed curriculum
• Vetting by representatives of Industry, training providers & trade experts
• Inviting comments from Employers/ Employees Organizations, State
Governments, etc.
• Assist in the training of trainers.
• Making available the training & testing facilities.
• Development of assessment standards.
• Monitoring and Quality assurance.
• Assistance in placements.
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5.5.3.6 ECOSYSTEM
Assessment
Mobilization
& Counseling
Registration
Ecosystem
Skill
Employment
Development
Certification
Figure 5-1 EcoSystem
5.5.3.7 CAREER CENTER WORKFLOW
Figure 5-2 Career Centre Work Flow
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5.5.4 LABOUR LAW AMENDMENTS
India’s labour laws make employment contracts perpetual. This means that once you
hire somebody you can’t get rid of them even if you can’t afford them, don’t need
them or they don’t perform. How many of us would buy a house we can’t sell or sign
a lease we can’t end? Employers respond to this asymmetric contract by exploding
informality and contract employment. Labour laws also encourage the capital
substitution and sub-scale enterprises; employment in private sector manufacturing
with more than 10 employees has stagnated for 20 years. 80% of our textile output
comes from firms with less than 10 employees while 85% of China’s output comes from
firms with more than 50 employees. RanaHasan of ADB compared 19 manufacturing
sectors and showed that capital stock per worker in India is consistently higher than
China. But the biggest challenge now is that 100% of net job creation since 1991 has
happened informally. Informal employment - the slavery of the 21st century – is a child
of our labour laws.
There are three tenets for any sustainable labour law reform agenda-
i. It does lead to a final destination of no or weak labour laws

ii. It does not take on all labour laws at the same time, and
iii. Recognizes that one size does not fit all.
The first is important because the demand for reform is not about exploiting workers
driven by what Renaissance physician Paracelsus said; the dose makes the poison.
Anything powerful enough to help has the power to hurt and today these laws hurt
those they masquerade to protect. Most employers agree that there should be non-
negotiable labour laws around health and safety, sustainable employee benefits,
minimum wages, and leave/ timing; they want fewer laws with better enforcement.
The second tenet highlights the difference between a list of ingredients and a recipe.
A recipe details proportions, sequencing, and timing. The agenda should pick and
choose battles because laws written over 100 years cannot be changed in 1 year.
The third tenet is important because there is no such thing as India’s labour market;
our diverse geography of work means that what works for Bengaluru is inappropriate
for Kanpur.
5.5.4.1 PHASES ON REFORMING AN AGENDA
Any reform agenda must have five phases.
1. Definition/Plumbing
2. Benefits Regime
3. Trade Unions
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4. Decentralization
5. Fixing the employment contract
5.5.4.1.1 DEFINITIONS/PLUMBING
This phase is the lowest hanging fruit and must cluster laws and rationalize definitions
e.g. wages are defined differently in the Payment of Wages Act 1936, the Minimum
Wages Act 1948, the Bonus Act 1965, the Gratuity Act 1972, the Provident Fund Act
1952, the ESI Act 1948, the Workmen’s Compensation Act 1923 and the Industrial
Disputes Act 1947. Instead of 44 Central laws and multiple state laws we should aim to
cluster all these laws into five or six thematic areas. This reorganization should also
cover the inspection regime; currently the ability of inspectors to continuously target
specific companies is a large source of corruption and pain for small and medium
entrepreneurs.
5.5.4.1.2 BENEFITS REGIME

The notion that money deducted from employee salaries and paid to EPFO or ESI
belongs to those organizations deserves Motilal Nehru’s quip to the Chief of the Indian
Army in 1925 “What do you mean by Indianising the Indian army? The army is ours.
What we want is to get rid of the Europeans in the Indian army!” Only a fool would
argue that employee salaries do not belong to individual employees. Yet today 50
million dormant accounts at EPFO – 50% of their total accounts – is money left by
employees frustrated with EPFO’s incompetence, corruption or inefficiency. EPFO is
also the world’s most expensive government securities mutual fund. ESI has India’s
worst health insurance claims ratio (it only pays 49% of contributions as benefits) and
does not offer decent care, despite having idle financial investments to the tune of
28,000 crore. Yet our labour laws mandate low-wage employees to suffer a 49%
difference between chitthiwaali salary (gross) and haathwaali salary (take-home) for
mandatory enrolment in programs with poor value-for-money, poor service and
humiliation:
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Table 5-1 Salary Deduction
Salary Deduction
GROSS Rs 5500 RS 55,000
SALARY
Employer Employees’ Monthly Employer Employees’ Monthly
(% cost) (% cost) Total (%) (% cost) (% cost) Total (%)
DEDUCTIONS
Provident 3.67 12 15.67
Fund
PF Expenses 1.61 1.61
EPS 8.33 8.33
ESI 4.75 1.75 6.50
Professional 3.18 3.18 3.18 3.18
Tax
Labour 0.36 0.36 0.72 0.72 0.36 0.72
Welfare
Statutory 8.33 8.33
Bonus
Gratuity 4.81 4.81 4.81 4.81
TOTAL (%) 49.18% 8.71%
NET SALARY Rs 2,795 Rs 53,830
But 100% of India’s net employment in the last 25 years has happened informally
because most employers have moved to a cost-to-company salary model where
benefits are not over and above salary but reduce take-home salary. Giving
employee’s three choices in how their salary is paid – they may choose to continue
with the status quo – would involve:
Choice 1-Paying the 12% EPFO employee contribution
The 12% employee contribution is an unaffordable salary deferment by low wage

employees who cannot live on their 48% of their gross salary. Employees should have
three options; opt out of this contribution at joining, pay it into their individual National
Pension Scheme (NPS) account as done by new civil servants, or continue paying to
EPFO.
Choice 2- Paying the 12% employer contribution to EPS or NPS
The Employee Pension Scheme (EPS) is bankrupt – a deficit of Rs 50,000 crore is being
balanced by brutally and slyly reducing benefits. Employees must be allowed to
choose between EPS or diverting their employer contribution to EPFO as payment to
their NPS individual account.
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Choice 3-Paying their health premium to ESI or an Insurance company
Employees should be given an option to pay their monthly health insurance premium
to ESI or purchase a plan from any IRDA regulated health insurance company. The
Insurance industry would gladly create the IT infrastructure to ensure that these policies
are seamlessly portable when an employee moves from one company to another.
The huge difference between gross wages and take-home salary is justified today in
the name of encouraging long term savings and protecting employees from their own
selves or their “myopia”. Keeping aside the argument that this is politically patronizing,
it is arithmetically impossible for the payroll confiscation rate to be higher than savings
rate. Data suggests that people with annual incomes of Rs 75,000 have saving rates
that are close to zero; the various laws that mandate 49% deduction breed informality.
We also need a revamp of our benefits regime because the employment contract
has changed from a lifetime relationship to a short taxicab transaction and this shift
needs backpack benefits which are easily portable with employer changes. Higher
take-home pay also has implications for our ambitious skill agenda; 50% of India’s
workers are in forced subsistence self-employment and we need more formal wage
employment. Additionally, the work of Nobel Laureate Gary Becker suggests that
individual investments in human capital are highly linked to take-home pay. EPFO and
ESI do not have clients but hostages; India’s demographic dividend desperately
needs this to end.
5.5.4.1.3 TRADE UNIONS

Indian trade unions played a very important part in the independent movement but
lately they have not been able to focus on greater good. This needs trade union
reform because the narrow self-interest of a vocal but organized minority is not
national interest. Most trade union leaders see entrepreneurs as myopic vampires who
can’t focus beyond their nose, view employees as an expense and don’t care for
anything other than profit. This silly stereotype does recognize that shareholders don’t
pay salaries or create jobs but customers do. India’s trade unions have imposed the
most regressive taxation in the world under which a small group of labour market
“insiders” (10% of the labour force) impose costs on the unorganized majority. But
Indian trade unions face an existential crisis because traditional issues - provident fund
rates, dearness allowance, lifetime employment, one grade one pay, etc. - are hardly
inspiring for a younger workforce that cares about employability, performance linked
salary differentiation and portfolio careers. In fact, the issues, challenges and
aspirations of organized and unorganized labour are contradictory. Pending a wide-
ranging review of our labour laws, we must immediately review provisions of the Trade
Union Act to restrict leadership to company employees; the politicization of union
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activity is driven by leaders often disinterested in worker welfare and only interested in
building constituencies or campaign finance.)
5.5.4.1.4 DECENTRALIZATION
The legislative balance between the central and state governments has been
debated for long but the political economy suggests that labour laws should
increasingly be given to state. In 1919 the Montagu Chelmsford reforms introduced
Diarchy under which the British Crown retained important subjects like defence,
communications, foreign affairs, finance, justice, and police but transferred light
weight subjects like sanitation, libraries, veterinary, fisheries, agriculture, weights and
measures, and forests to Indian elected ministers. The continued insult and racism in
these allocations sowed the seeds for provincial autonomy in 1935 and
Independence in 1947. After independence, the delicate balance struck by the
constitution between state and central governments was disrupted. But getting skills
and jobs for the 10 lakh kids who will join the labour force every month for the next 20
years needs moving labour laws from the concurrent list to the state list of the
constitution. There is no such thing as India or Karnataka’s labour market; the dynamics
of matching, repair and prepare are different for Bengaluru, Mysuru, Gulbarga,
Hassan and Hospet. There are many reasons for making labour laws a state subject. It
will create accountability; It will allow nuancing and sequencing between philosophy
(employment contracts that balance leverage between employers and employees)
and plumbing (definitions, benefits, etc.). It will allow for an integrated 3E (education,
employment and employability) strategy that focuses on plumbing rather than poetry
because states already control most delivery systems (Schools, Colleges, Employment
Exchanges, Inspectors, and ITI’s). Chief Ministers have stronger incentives in tackling
the status quo that chooses an organized but vocal minority over the unorganized
majority.
5.5.4.1.5 FIXING THE EMPLOYMENT CONTRACT

This is the last phase of labour reform and should not be attempted in the next two
years till there is considerable progress on the other stuff. But at some point, we will
have to confront labour flexibility because making employment contracts marriage
without divorce leads to massive informality. It also does not recognize the reality that
employment has shifted from a lifetime contract to a taxicab relationship that is short
and sweet; the average kids will have at least four jobs before he or she is 35.
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5.6 REPAIR
5.6.1 STRENGTHEN SKILLS DEPARTMENT
Karnataka was the first state to set up a State Skill Mission– Karnataka Vocational
Training & Skill Development Corporation (KVTSDC) with a target of imparting skills and
employment to 10 lakh youth over years from inception. While the corporation
initiated various activities, it has not been able to achieve its objective of imparting
skills and employment to 10 lakh youth. The department needs to be strengthened
and looked at new pairs of eyes.
The recently set up Skills Department set-up under the leadership of honourable CM
and Chief Secretary should also include Principal Secretaries of departments
concerned with skill training such as RDPR, Department of Social Welfare, Higher
Education Department, Department of Youth Empowerment and Sports etc. as
members.
The State Skills Department’s aim should be to increase the capacity & capability of
the State to deliver quality skill training and professional knowledge to the youth to
enhance their employability and thereby bridge the skill deficit with a view to meet
the growing demand for skilled manpower. The department should focus on few key
areas:
i. Skill Budgets – Skill Development budget in Karnataka has been allocated

across various ministries. The entire budget should be brought under the Skill
Corporation umbrella such that there is better monitoring, controlling and co-
ordination for all skills activities in the State.
ii. Funding Apprenticeship programs – Funding for only skill development
programs has not worked for the corporation. There is a need to initiate funding
for apprentices programs through the corporation. Apprentices can be
trainees trained through empaneled VTPs or other training partners as well as
any other student trained through ITIs, Polytechnic, Diploma, Graduate and
Post-Graduate institutes and industry.
iii. Industry connects – The department should be a consolidating point for all
manpower requirements across industries within the State. A long term
roadmap should be developed keeping the industry requirements in mind and
thereon a Skilling Plan should be made and executed. The department would
be required to map labour intensive industries as well as availability of labour
and enable effective matching of supply and demand. Skilling required basis
the gap should be funded through the skills department.
iv. Reach / Scale – It is recommended that the department have co-coordinating
/ zonal offices across the State (North, South, East and West). This will ensure
larger reach, effective monitoring and faster scale of the corporation.
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v. Governance – The MD/ CEO of the department should be hired from the
industry (e.g. NSDC). A state level committee should be formed to review the
various skill development programs every 3 months. This committee should
have additional representation from industry bodies like FKCCI, FICCI,
ASSOCHAM and CII. Transparency is key to executing any plan and the
department needs to identify ways to keep the operations of the corporation
transparent. All information about the programs conducted through the
corporation should be updated on the corporation website.
vi. Training/Delivery-The department would undertake training of trainers to impart
new knowledge and to enhance quality of delivery. National and international
skilling trends/techniques would be imparted to ToT. A mechanism would be
set up to ensure that the new knowledge is transferred to learners.
vii. Contemporary training modules/schemes- Periodic skill requirement analysis
across the sector-agriculture, industry and service- should be undertaken and
based on the findings, training modules must be developed. Experiences from
countries such as Germany, Switzerland and Singapore to be considered by
the department
5.6.2 IDENTIFY CORPORATE CHAMPIONS
A skill development program can serve its purpose only when it is catering to the
demand. This demand is never constant. All Skill development initiatives must attempt
to be on par with the industry and possibly predict the changes in the skills market. For
this purpose, the industry has to work closely with Government. “Champion Employer”
is one such program that facilitates such collaboration between the Industry and the
Government. Under the program a company collaborates with the government to
provide training and thereafter employment to a stipulated number of people. The
government will fund logistic related expenses. “Champion Employer” as a scheme
has been successfully implemented by the Ministry of Rural Development under its
Deen Dayal Upadhyay Grameen Kaushalya Vikas Yojana. The rationale behind this is
to promote inclusive growth, by developing skills and productive capacity of the rural
youth from poor families.
There are several challenges that are preventing India’s youth from competing in the
modern market, such as lack of formal education and marketable skills. The
government can bridge this gap by funding training projects that are on par with
global standards, and ensure placement, retention and career progression.
5.6.2.1 ROLE OF THE GOVERNMENT

The aim of this program is to provide training to the youth of the State so that they will
become employable. As an equal partner in the program government will have to
play a prominent role. Responsibilities that the government will have to undertake are:
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5.6.2.2 FUNDING
In this frame work it is envisioned that the government will provided financial support
to placement linked skilling projects. Funding components include support for training
costs, boarding and lodging (residential programmes), transportation costs, post-
placement support costs, career progression and retention support costs.
5.6.2.3 PREPARATION OF GUIDELINES

Government will have to prepare a set of comprehensive guidelines for establishment
of a training centre. All such guidelines must be made in such a manner that they are
easy to comprehend and follow. Also, there must be a clear format for all the
permission that the industry would have to take to become a champion employer
The Government can also have a point to contact who can communicate and assist
a company through these processes. The Target and Objective must be clearly
specified at time of beginning collaboration. Industry would also be better prepared
when goals are specified.
5.6.2.4 ROLE OF THE INDUSTRY

The Industry on the other hand will execute this training program. They will develop the
training programme based on their area of expertise. The skilling will be done in such
a manner that trainee will be employed at the end of the training program. The trainee
will also be paid a stipend through the training period which will be funded by the
government. The industry will have to develop their own training space and engage
trainers for this purpose. The guidelines or the manner in which the training is supposed
to be undertaken will be given by the Government. The concerned company will also
have to undergo an audit to ensure that all guidelines mentioned by the government
are adhered to.
All training programs have to be demand based and must lead to placement. The
youth have to absorb in the labour market with some basic skill set. This skill along with
work experience must help them grow up the ladder in the job market. The trade
specific skills are required to follow the curriculum and norms prescribed by specified
national agencies such as the National Council for Vocational Training and Sector
Skills Councils. In addition to the trade specific skills, training must be provided in soft
skills, functional English and ICT.
5.6.2.5 CONTENT FOR THE TRAINING PROGRAMME

Some common skills like communication, English etc remain same across a set of
courses. A standardized content can be developed across training providers. This will
reduce the time consumed in developing content that are foundational and
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common across the sectors. Company could use the standardized format and
develop only trade/sector specific content. The content developed by the company
should then be assessed and approved by the respective sector skill council.
To assess the training program, the government can carry out inspection of the
training facilities and also evaluate the training process. It must be noted that
inspection should be carried out by person who has knowledge of the concerned
sector. For example, a person with expertise in retail cannot assess the training facility
for hospitality sector.
5.6.2.6 CREATING A BRAND FOR CHAMPION EMPLOYER

It is also important to ensure that the tag of “Champion Employer” must be given to a
select few. Only when it is available to a select few, will the novelty of being a
champion employer appeal a company.
5.6.2.7 CERTIFICATE PROGRAM
After undertaking the training given by a company for a selected skill and after
working for a period of 1 year, the trainee could be given a certificate for the same.
This certificate could be equated to a level within the Educational framework. It would
also incentive the trainee to remain in the job for a period of at least one year. Having
invested in the training program it is the interest of the government and industry to
ensure that a trainee remains in the job he/she has been placed in, at least for a
minimum time period.
To initiate this program, the Task Team has identified potential Champion Employer for
the important industries within Karnataka. Given below is list of the sectors along with
the Potential Company:
Table 5-2 Potential Champion Employers
Potential Champion Employers

SECTOR COMPANY
Auto and Auto Component / Auto Servicing Bosch
Construction Jindal Steel
BFSI Canara Bank, JP Morgan
Media and Entertainment Wizcraft, Times of India,
Mining
Delivery Service Flipkart and Amazon
Hospitality CCD; VasudevAdiga;
Aircraft Serving HAL
Drivers (Transport) OLA
Security GMR
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CASE STUDY on CAFÉ COFFEE DAY as CHAMPION EMPLOYER with Ministry of Rural
Development (MORD)
• Industry Partnerships is key to the success of the DDU GKY program. Employers
have been involved in providing placement opportunities, helping develop the
content, training of trainers. DDU GKY has taken a step further by providing for
special partnership programs that support Industry to collaborate with the
program to meet its own internal HR and talent requirements. These include:
A Champion Employer Policy whereby organizations that need 5000+
people per annum can tie up with DDU-GKY.
A Captive Employer Scheme in which an entity that can provide 500 or
more captive jobs annually in own or subsidiary agencies/ companies. The
last two years can also tie-up with and gain from DDU-GKY’s experience
and training programs.
• The benefits to the employer include funding support for mobilization, training
and hiring of skilled candidates. Currently unskilled candidates are typically
being sourced either through walk-ins or through support of agencies and then
trained by companies at their cost. This scheme would help in getting skilled
candidates at lower costs
• The benefit to the Government Ministries is that they are able to provide
confirmed employment opportunities to the skilled candidates and thereby
achieve their skilling targets.
Café Coffee Day Experience with DDU GKY
• Café Coffee Day was one of the earliest Champion Employer Partners of DDU
GKY. The company has secured an overall national level mandate to train
20,000 persons annually for 5 years to be employed in the café outlets across
the country.
• The company has so far established 7 training centres in Karnataka, Bihar,
Odisha and Kerala to train 6800 youth in these states in the first year. The
company has so far trained 300 candidates and around 600 students are
undergoing training in these centers.
• The 3-month training curriculum is provided by the Learning & Development
team of Café Coffee Day and includes two months of training in the training
centers and one month on-the-job training in the Café outlets.
• Each of the training centers has a café training lab where the trainee is trained
on various aspects of food and beverages related to the company. S/he is
trained to make coffee to the standards required for service delivery in the café
outlets.
• The Trainers undergo 2 week training of trainer programs before being
deployed in the training centers
• The major challenge is in candidate mobilization, retention during training and
placement. This requires proper identification of interested candidates and
career counselling. The attraction to work with a reputed company has to be
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well communicated during the mobilization process. Café Coffee Day has now
developed structured processes to ensure higher effectiveness of the
mobilization process.
• The first batch of trainees has started working in the café outlets and the
response of the operations managers has been good. The company intends to
build on this.
5.6.3 STATE LEVEL SKILLS DEVELOPMENT PROGRAM
Every problem needs a unique solution and so does Karnataka’s unemployability. We

are aware that every month over 10 Lakh youth join the labour workforce in India. In
Karnataka, about 5 lakh people enter the Job market every year. Most of them are
unemployable with little or no skill, thus reducing the productivity of the organization
they work with.
Karnataka needs to develop a onetime solution to this problem while continuing to

prepare the workforce for future employment. It needs to create a scheme where
over the next 24 months, every youth who will possibly enter the labour workforce
should be trained on atleast one vocational skill based on their Behavior, Knowledge,
Interests and Aptitude.
5.6.3.1 THE SCHEME:
The scheme can be named as Karnataka Yuva Kaushlya Program (KYKP), which will
be aimed at providing vocational skills to the following segment on mission mode
basis:
a. School Dropouts looking for Employment

b. College Dropouts looking for Employment
c. Unemployed Graduates & Post Graduates
5.6.3.2 ROLE OF STATE GOVERNMENT:

a. The State Government must launch this program across the state in timely
manner. The target from beginning to the end of the scheme must be pre-
decided. (maximum 24 months)
b. Provide budget for the scheme (can be brought together from across ministries
that will benefit from the scheme)
c. Identify training partners for implementation of the scheme
d. Monitor the program till completion
5.6.3.3 ROLE OF TRAINING PROVIDERS:
a. Develop capacity for skilling the youth

b. Provide relevant infrastructure for the respective training program
c. Train and Certify trainers for effective delivery of the program
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d. Conduct training of the youth and ensure they get certified

e. Ensure certified trainees are either appointed as Apprentices or as Employees
5.6.3.4 CERTIFICATION:
Certification can be aligned to third party assessment such as the respective Sector
Skill Council such that there is industry validation and value to the certificate awarded
to the successful trainee.
5.6.3.5 TECHNOLOGY FOR MONITORING &PAYMENT:

Karnataka being the IT capital of India, the State should make optimal use of
technology for monitoring the quality of training program, and also make relevant
payment to the training partners through the technology platform. Data and
Documents related to the trainees should be uploaded onto the technology platform
and verification should also be done using the same.
Scale and Speed would be key to this mission mode program being successful.
5.6.4 CREATE A STATE APPRENTICESHIP CORPORATION
India only has 3 lakh formal apprentices while Germany has 3 million, Japan 10 million
and China 20 million. There is a crying need to develop a large base of “skilled”
employees before they enter the labour market. However, not much has been done
in this regard.
The KJA-Task Team on Skill Development recommends setting up of a Karnataka

Apprenticeship Corporation (KAC) that would become the nodal agency within
Karnataka for all stakeholders – Industry, Trainees and Education / Training Institutes.
The primary objective of the corporation would be:
i. Expanding the number of apprentices in Karnataka. We must aim to train 2 lakh

apprentices every year.
ii. Offer academic credit to all apprentices registered with the corporation
iii. Offer apprenticeship opportunities to all ITI / Polytechnic students either
concurrently with their studies or subsequent to completion of their studies.
iv. Set up an Apprenticeship Exchange in Bangalore by taking over an existing
Employment Exchange to become a nodal exchange.
v. Provide the credit framework, as per the National Skills Qualifications
Framework (NSQF) to ensure that there is an appropriate Credit Accumulation
and Transfer mechanism (CATS) and Recognition of Prior Learning (RPL).
The State Apprenticeship Corporation should be set up in PPP mode, wherein the
private partner will be responsible for:
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a. Making all requisite investments such as Technology, People, Processes and

Industry connectivity to setup KAC
b. Setup and operatewww.karnatakaapprentices.in, a complete apprenticeship
portal for students, apprentices and employers.
c. Setup and operate a call center 1800-… in Kannada, Hindi and English for
students, apprentices and employers.
d. Provide complete credit mapping framework for all courses undertaken by ITI /
Polytechnic /Vocational Training/ Other students. Provide regular updates to
the credit framework
e. Facilitate industries & academicians to provide continuous feedback and
improve upon the same. This will also involve using expertise from Industries to
create specific courses which are relevant to the particular industry.
KAC should become the single window for state compliances on apprentices and for
providing a platform to stakeholders to allow trainees and industries to experiment with
a new career and new job seekers respectively.
5.6.5 FOCUSSED SKILLS DEVELOPMENT PROGRAMS FOR THE

UNORGANIZED SECTOR
More than 2 crore people in Karnataka are employed in the unorganized sector and
most of them are unskilled when they join the labour force. It is recommended that
the Skills Department provides a special focus on creating long term skilling programs
for the youth who join the unorganized sector in industries such as Textile, Construction,
Tourism, Health & Wellness, Domestic workers, Security etc. This would also enable
them to transit from the unorganized sector to organized sector over a period of time.
5.7 PREPARE
5.7.1 SET UP VOCATIONAL UNIVERSITY THAT PROVIDES A
QUALIFICATION CORRIDOR FOR ITIS/ POLYTECHNICS ETC.
WITH ROADMAP TO UNIVERSITY DEGREE
India has made remarkable progress in terms of IT, space technology, establishment
of world-class institutions like IITs and IIMs, etc. Still India has issues in relation to
demographic pressures and financial constraints in providing equitable standard of
life to all its population. Much of the population is still rooted in traditional occupations.
Keeping in view the major socio-economic situations, we discuss some of the aspects
of Indian economy in detail. Around 93% of the Indian workforce is in informal sector
without employment and social security, experiencing significant economic
deprivation. India has the lowest proportion of trained youth in the world. The
quantitative dimension of India's skill development challenge is that 80 percent of new
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entrants to the workforce have no opportunity for skill training. Against 12.8 million per
annum new entrants to the workforce, the existing training capacity is only 3.1 million
per annum, causing annual increase in unorganized labour and low income groups.
Among persons of age 15–29 years, only about 2% are reported to have received
vocational training (VT) using formal routes and another 8% through non-formal means
indicating that very few young person’s actually enter the world of work with any kind
of vocational training. This proportion of trained youth is one of the lowest in the world.
The corresponding figures for industrialized countries are much higher, varying
between 60% and 96% of the youth in the age group of 20–24 years. The Indian
economic development depends on mass scale skill inculcation, as the countries with
higher and better levels of skills adjust more effectively to the global challenges and
opportunities. The solution calls for effective measures for education and inculcation
of skills at all levels, so that employment with moderate-income can be secured. The
Prime Minister's National Council on Skill Development has endorsed a Vision to create
500 million skilled people by 2022, whereas, at present, only about 2 percent of the
workforce has skill training. This can be effectively addressed by Skill University.
A need exists for identifying an institutional system that holds comprehensive skill
education (CSE) as its educational purpose. A new category of tertiary educational
institution is needed that fulfils the vocational skill needs and community education
requirements, thereby filling the societal void created by the non- responsive nature
of the traditional system of education to certain social demands for higher education.
This new institution should facilitate the holistic development of the society.
The proposed Vocational University will be an institution of higher education, which

provides academic programmes at all levels (Certificate, Diploma, Associate Degree
and Degree) in vocational domains.
Key features of the proposed Vocational University are:
i. Credit and non-credit Programmes linked to the needs of industry and

community
ii. Focus on teaching theoretical and practical skills (of course the relative portions
depend on the level of the Programme and the clientele group; the University
Programmes, by and large, give more focus on theoretical build-up)
iii. Help in industry recruitment, host small business incubators, provide
entrepreneurship development training and conduct applied research
iv. Coursework fused with apprenticeship in an industry
v. Options available for paid apprenticeship and international attachment.
vi. Faculty require theoretical knowledge and applied skills; part-time faculty used
for imparting skills in many domains
vii. Funds arise from fees, consultancy, training programmes and community
projects
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viii. Effectiveness evaluated through placement of graduates, their career

progression and contribution to improvement of the quality of social life in the
neighborhood.
The Vocational University would offer Associate Degree and its lower modules,
vocational education for the unorganized sector, Labour Education and Community
Education. The Campus also will be offering facilities for degree completion, PG and
Research Programmes and consultancy support to MSMEs. The University will be
undertaking projects relating to vocational training for the organised and unorganised
sectors on public-private partnership mode and in collaboration with private sector.
A details concept note on Vocational Skills University has been included in Annexure
– 1.
5.7.2 VOCATIONAL SKILLS AS AN ALTERNATE TO LANGUAGES/

VOCATIONAL SKILLS AT SCHOOL LEVEL
Language is not merely the medium of instruction at all levels of education; it is the
medium of growth. It provides capacity for preservation and communication of
intellectual life. At higher level, language provides the medium of fresh and free
thinking and research. In education, it is supposed to communicate knowledge, and
in general life it is the instrument to pick up information. We need language to learn,
to retain and to recall our knowledge. It is the primary need for development of a
child.
On the other hand, vocational skills development plays an integral part in the
economic and social prosperity of individuals, employers, communities and nations
worldwide
Productivity enhanced through increase in human capital has a positive and

significant effect on economic growth. Skills development can play an important role
in reducing poverty. Lifelong learning can help redress gender inequities by
supporting women to progress in their careers into higher paid jobs.
It is recommended that the School and Higher Education Departments identify

pathways for inclusion of vocational skills starting from Class 8 till Graduation so that
the student continuously gain skills. Eventually even if he / she go on for further
education, a vocational skill will only enable them to grow in their education or career
better than the ones without any vocational skill.
Time is of constraint to the School & Higher Education departments hence a way can
be found out to replace any Vocational Skill in place of the 3rd language the student
studies (reference be made to KSEP language policy pg. No.45-46). This may not be
the best possible solution, however we are aware increasing duration for students may
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not be possible, and hence replacing vocational skill in place of a language can be
an option.
5.7.3 ENGLISH LANGUAGE AT SCHOOLS
In the current business environment, the need for good communication skills is
imperative. Irrespective of the sector, one common issue that arises in any skill gap
analysis is the need for better soft skills in India. No longer is a professional qualification
enough to secure a job, in the present times in addition to having a degree one needs
to have a good personality and right attitude or proficiency in business language. The
demand for such skills is not restricted to highly skilled jobs. From the drivers of cab
companies to senior management professional, everyone is expected to have good
communication skills.
Communication skills include verbal, non-verbal and interpersonal skills. Knowing

English has become a prerequisite for anyone who wishes to enter the global markets.
Last few decades of last century and this century is being driven by technology.
Operational language for most of these technological instruments is also English.
Therefore, it has become very important for a person to be equipped with such skills.
As India has excess labour a part of the labour can move to countries with labour
constraint. For labour to migrate to other economies and to compete with others at
the global level, ability to communicate in English is a must. It is required not just to
secure a job but also for one to navigate themselves in other countries or states. Most
people undergo spoken English classes while searching for a job. Even if they manage
to speak the language at the end of the course, they don’t feel confident about it.
Low confidence levels, as a result of inadequate communication skills is recurring
problem amongst Indian population. As mentioned earlier industry wants people with
strong personality which cannot be developed with low confidence levels.
A study34 by Aspiring Minds, A New Delhi based employability solutions company

reported that “A significant proportion of graduates, nearly 47 per cent, were found
not employable in any sector, given their insufficient English language and cognitive
skills35.” Although each job profile requires varying degree of proficiency in language
34The study was conducted in 2013 and it regarded as the first ever national audit of employability of 3-year Bachelor’s degree graduates,
drew inferences from data of over 60,000 graduates pan–India, based on Aspiring Minds Computer Adaptive Test (AMCAT) – Daily Excelsior,
“47% Graduates In India unemployable for any job: Report” [dated 25-06-2013]
35 Daily Excelsior, “47% Graduates In India unemployable for any job: Report” [dated 25-06-2013]
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and cognitive skill, a significant amount of the people who undertook the survey did
not have the required proficiency in English and communication. With Globalization,
no economy remains isolated, there continuous interaction across the world and
labour is constantly moving across the countries. This requires that the employees are
equipped to talk in English at all levels
Therefore, the task team believes that English should be taught at early levels of
education so that students have adequate time to get used to the language and feel
confident about conversing in it.
5.7.4 CAPACITY BUILDING OF SCHOOLS / UNIVERSITY /

VOCATIONAL SKILLS TEACHERS
The Skilling mission can only be successful if certain reforms are bought about in the
Education System. Changes need to be made in both the mainstream level and for
Vocation Education. The Task team recommends that Vocational Education must be
introduced at Secondary School.
Great importance has been given to development of elementary education in the

country. The enrolment rates have improvised significantly in the past few years. Yet
reports suggest that children do not have the prescribed reading and comprehending
abilities. Therefore, changes must be made to improve the quality of education
imparted at schools. The onus of ensuring quality education is on the teachers.
Therefore, one must look at what can be done to train the teacher. It is an accepted
fact that all educated person can be good teachers. Teaching is an art that needs to
be cultivated and groomed so that children can make the most of their learning.
Some of the changes that can be brought about are:
• Stage specific 4-year teacher training programs

• Ending the isolation of teacher education institutes
• Management of Teacher Education
• In-service teacher development
The demand for higher education is vastly different from that of school education. The
level of learning that is imparted to students at higher educational institutions are
supposed to equip them for job market. The purpose is not being served by the present
system. Some of the changes that can be brought about at higher education level
are:
• Common criteria must exist for faculty recruitment across the state
• Mandatory pre-service training for teachers seeking position/appointment in
higher education institutions
• Providing teaching experience during post-graduate education
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• Teacher Performance Indices should be made comprehensive to capture the

real scenario
5.8 INITIATION
5.8.1 PHASE 1 INITIATION (THE NEXT TWO YEARS – TILL 2019)
i. The newly formed Skills Development Department should have a CEO from the
industry, who understands the Skills Landscape and is capable of running the
department as an independent entity. The CEO should report to the Secretary
– Skills. A committee comprising of the Secretaries of all related departments
such as School Education, Higher Education, Labour and Employment,
Industries etc., should be formed to ensure effective integration and
implementation of skill development plan.
ii. Public and Private Sector Participation: Industry and Government needs to
work jointly to make this plan a success. Public Infrastructure should be utilized
to maximize the reach, awareness and benefits to the youth and private
industries should be used to implement skill mapping, training, assessment and
employment linkage. Optimal capacity utilization of the Public Infrastructure &
Resources and Private Training Capabilities need to be developed.
iii. Employment Exchange Revamp: This is the lowest hanging fruit and can be
implemented almost immediately. The impact of each employment exchange
generating 200 – 300 jobs per month would be massive for the State and will
start showcasing Karnataka as the Skill and Labour capital of India.
iv. Develop a focus group for driving Apprenticeships ‘demand and supply’ within
the State
v. Identify few growth sectors basis the recommendations in the report and
develop skill plan for the next five years.
vi. Create a largescale Teachers’ Training and Certification campaign for
Vocational Skills in the State.
By implementing the above few recommendations indicated in Phase 1, we believe

the impact would be close to 30 Lakh job seekers getting skilled and employed.
Few other recommendations that the KJA Skills Committee would like to make
for the Skills Department are:
a. Setup a Skills Bureau: The key objective of this bureau should be to collect,
consolidate and analyse the current industry requirement of skilled manpower.
This need to be a continuous process and active involvement of all
stakeholders is important.
b. KJA recommends that the department employs a team of experts to
understand the demographics, school and higher education enrolments,
dropouts’ etc. along with the number and profile of job seekers entering the
labour market vis-à-vis the industry requirement.
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c. It is recommended that the State Government allocates a specific annual

budget for the purpose of vocational skilling. On an average, 6% of the state
annual budget is allocated for Education. We recommend that a minimum of
1.5% of the 6% budget be allocated for vocational skilling. It is also
recommended that skill development budgets across all ministries such as
Industry, Minority, Women & Child, Rural Development, Urban Development etc
be under the umbrella of the proposed Skills Department.
d. The department should deploy Subject Matter Experts to ensure effective
execution and monitoring of each of the programs conducted by them.
Speed, Scale and Effectiveness are key to make these programs successful.
--------------------------------X--------------------------------

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ANNEXURE - 1: VOCATIONAL SKILLS UNIVERSITY

EXECUTIVE SUMMARY
An unprecedented situation calls for unprecedented solution. Six decades of Indian
higher system has limited its focus on the formal sector that constitutes 8% of the labour
force. The rest of 92% in informal sector is outside the ambit of the universities. The
informal sector lives in graded levels of economic disadvantage – all in spite of
increase in GDP. Serious economic, regional, social, and gender disparities in
education, health and income levels are indicators of low human development. Mass
liberal education with increased enrolment in professional education has not
addressed the problems of unemployment and employability of the graduates. The
university system has a requirement to realign its policies, processes and educational
services to facilitate holistic societal development and harmony.
State renowned for entrepreneurial spirit, accounts for significant portion of the
industrial investment and production at national level. The state recognizes the
criticality of skill training and continuous skill upgradation amidst globalized
competition and, encourages educational institutions to take up quantitative and
qualitative measures for capacity building.
This University can be established in a PPP model and should offer skill based
academic programs to post-higher secondary students. It could enhance
employability of the graduates and provide human resource to the manufacturing
and service sectors. The Skills University (SU) programmes will provide vertical link to the
pass-outs of Vocational Higher Secondary Schools, which can synergize enrolment in
these institutions. Measures will be taken to offer higher education avenues to ITI and
Polytechnic pass-outs as per state Government Resolution through General
Administration Department. The SU can also offer consultancy, skill upgrade and
continuing education services to the Micro, Small and Medium enterprises. With the
support of the state Government, the SU will participate in skill inculcation of the
informal labour and community enrichment education. The proposal discusses the
details of organizational structure of the University, its location, academic offerings,
establishment of Community Colleges, curricular design methodology and research
areas. The SU will employ blended mode of instruction using faculty expertise, hands-
on training, cloud computing capability, VSAT infrastructure and industry interaction.
While offering its multipronged services, which are unprecedented in the Indian
university system, The SU will follow State Government Private Universities Act in its
policies, programmes, processes, decisions and activities.

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INTRODUCTION
Socioeconomic changes call for transformation in an educational system. The focus

of the educational system, still, depends on the role played by the Government. This
is particularly true for dozens of countries, which got liberated from the colonial rule.
In pre-independent India, the colonial rule wanted to make a change in the then
existing educational system to create “a class of persons, Indian in blood and colour,
but English in taste, in opinion, moral and conduct”. In 1857, three Universities were
established in Madras, Bombay and Calcutta to supply supportive work force to serve
the cause of colonial rule. After independence, the Government of India set about
the task of reorienting its educational system to suit the needs and aspirations of a self-
reliant nation committed to democracy. The concerns of the political leadership
towards addressing developmental issues through educational institutions are
reflected in the important national documents like reports of the commissions and
committees and statements of National Policies – starting from the Report of the
Radhakrishnan Commission on University Education (1948-49) and Report of the
Education Commission (1964-66). These Reports played a significant part in deciding
the educational policy that the governments followed. The recommendations
reflected the contemporary socioeconomic aspirations of the Indian society. Two of
the latest documents, the National Knowledge Commission Reports (2006-09) and
National Skill Development Initiatives (2009) reveal the objectives of the nation to put
in place an educational system that can help Indian population to progress towards
economic development and social harmony amidst a competitive scenario of
globalization, economic disparities and unemployment.
The terms higher education and development have a cause-effect relationship.

“Education” in its broadest sense, refers to any act or experience that has a formative
effect on the mind, character or physical ability of an individual. Higher education
refers to education in post higher secondary institutions, college and universities. It is
higher education because it constitutes the topmost stages of formal education and
more importantly, because it is concerned with processes in the more advanced
phases of human learning. The clients are about eighteen years of age; they are
mentally mature and capable of performing at the abstract level. They can analyse,
synthesise and grasp concepts and ideas of all kinds. Consequently, the content,
methods of interaction and organization of work have to be very different from what
they are at the school. Four aspects of higher education are of relatively recent origin:
(i) specialization (ii) formal and institutionalized system (iii) research and (iv) community
related extension work. All these constituencies are used for the higher development
of the individual. The meaning attached to the term, ‘development’ has been varying
with times – whether it means spiritual, civic (developing an individual as a responsible

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citizen), economic (improving in monetary terms) or social (providing for equality and
social justice). Development is taken to mean growth plus change; apart from
quantitative variation, there needs to be a qualitative change as well. In Indian
context, it means increasing the number of graduates on the one hand and bringing
about a favourable change in relation to equity and social justice. Higher education
has to play a vital role in working towards economic growth, self- reliance in the
scientific and technological expertise and mobilization of human resources in a
country.
The term, ‘skill’ refers to an acquired and practised ability or to a qualification needed
to perform a job or a certain task competently. It is a multidimensional concept, as
most jobs require a combination of skills for adequate performance - a combination
of physical abilities, cognitive abilities and interpersonal skills. The curriculum is
therefore to be formulated keeping in view the necessity of both domain skills and life
skills. In the context of economic development, the processes of formal acquisition of
skills and training are important. The formal skill acquisition and training arise from
general educational systems or from Technical and Vocational Education and
Training (TVET) systems. These processes encompass learning meant for developing
skills for entering, re-entering and progressing in particular occupations. It is also
essential to have continuous skill enhancement to adjust to changing technology or
to market requirement or for increased productivity.
While illiteracy debilitates significant section of the population from gainful

employment, the issue of educated unemployed is also serious. The Report of the
Federation of Indian Chambers of Commerce and Industry presented in the Higher
Education Summit 2007 discusses the industry perception of low employability rates of
Indian graduates drawn from various disciplines. The tragedy is that large number of
educated unemployed and dearth of skilled work force co-exist. The reasons
suggested for unemployable nature of the graduates are lack of domain specific
competence, work related skills and non-relevance of the curriculum. The proposal
for establishing a vocational University needs to be seen in this context, since a
nontraditional approach is required for supporting the issue of large-scale skill
development in domains not covered under traditional Universities.
EVOLUTION OF DIFFERENT TYPES OF UNIVERSITIES IN INDIA
The evolution of the University education in State is to be seen as a subset of Indian

higher education system. At the time of independence, India had 20 Universities and
500 Colleges. As per UGC website visited on Feb 5, 2011, there are 504 universities, 33
institutions of national importance in addition and 25,951 Colleges. The University

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system in post-independent India was evolved along the lines of (i) domain focus, (ii)
organizational structure, (iii) regulatory applicability, and (iv) mode of instruction.
EVOLUTION AS PER DOMAIN FOCUS
The domain focus based evolution signifies the shift from multi domain universities to
specified domain institutions.
Multi domain based Universities: The Universities of Bombay, Calcutta and Madras
started functioning in 1857 with multiple domains and a host of affiliated colleges that
would facilitate wider access. Many of the Indian Universities fall under this category.
Specified domain based Universities: From the latter half of 20th century, the
Universities were created for addressing specific segments of societal needs.
a. For fortifying higher education, research and training in Engineering,

Technology and allied Science sectors, the specialized University- level
institution was created for the first time as Indian Institute of Technology (IIT) in
Kharagpur in 1951. This was followed by IITs in Madras, Bombay, Kanpur and
Delhi, Roorkee and a few more recently.
b. For the focused development in Agriculture and related areas, like Forestry,
Fisheries, etc. the first University was started as UP Agricultural University (now
known as GobindVallabh Pant University of Agriculture and Technology) in
1960.
c. For developing Management Education, Indian Institutes of Management
(IIMs) were started; IIM, Calcutta and IIM, Ahmedabad were created one after
another in 1961.
d. The Jawaharlal Nehru Technological University in Hyderabad was the first
Technological University established in India in 1972.
e. In the medical field, the Andhra Pradesh University of Health Sciences (later
named as Dr. NTR University of Health Sciences) was formed in 1986.
EVOLUTION AS PER ORGANIZATIONAL STRUCTURE
Apart from the Universities classified based on the focus on one or more disciplines,
structural variations also exist such as given below:
i. Affiliating Universities: An affiliating university has a number of colleges affiliated

to it, besides its own postgraduate teaching and research departments. These
colleges are under the academic control of the university, but not under its
administrative and financial control. The universities of Mumbai, Uktal, Nagpur,
Andhra, Madras, Mysore, Calcutta, and many others fall under this category.
The affiliated model places less of demand on the parent university in relation
to provision of infrastructural and financial aspects for the affiliated colleges.
ii. Non-affiliating Universities: A unitary university is one wherein teaching work and
research is organized on the campus and the bulk of the students reside in
hostels or within the prescribed jurisdiction of the university. The Aligarh, Muslim

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university, Banaras, Hindu University, Varanasi M.S. University, Baroda and

Jawaharlal Nehru University, Delhi are examples of unitary universities in India.
Some of the Universities do not have affiliated college system, but have
Constituent Colleges, over which, the University has academic, administrative
and financial control. The Delhi University comes under this category.
EVOLUTION AS PER REGULATORY APPLICABILITY
Based on the type of regulatory applicability in relation to UGC Act -1956, the following
categories of Universities and University-level institutions are seen in India; unless
otherwise specified, the data given below pertains to June 2011:
i. Government-run Universities covered under Sections 2f and 12B of UGC Act:

Conventional, Open and Professional Universities established through Central
and State Acts; these are public funded as per Section 12B of UGC Act. There
are 42 Central Universities and 259 State universities.
ii. Private Universities established under Section 2f of UGC Act: These are
established through State Acts by Public-Private Partnerships through private
trusts or as a registered society or as a company under specified sections of
law; these are not eligible to receive public grants under Section 12B of UGC
Act. There are 73 Private Universities.
iii. Premier Institutions established under Central or State Acts [like the Institutes of
Technology Act, 1961 for establishing Indian Institutes of Technology]: In this
category, there are 33 institutions established under Central Acts and five under
State Acts.
iv. Deemed to be Universities: These are institutions of high repute and long
standing (or even de novo i.e., those in new knowledge areas) notified by the
Central Government as Deemed to be Universities (shortly called Deemed
Universities) on the recommendation of UGC. These institutions fall under
Section 3 of UGC Act. There are 130 Deemed Universities. A few are under the
Central Government and others are Private Deemed to be Universities.
EVOLUTION AS PER MODE OF INSTRUCTION
Depending on teaching learning processes followed, variations occur.
i. Many of the State, Central and Private Universities offer their programmes
through both face-to-face and distance modes and these are called dual
mode institutions.
ii. Another class, the Open Universities started their operations as distance
learning institutions – the examples are Indira Gandhi National Open University
(IGNOU), New Delhi and Dr. Babasaheb Ambedkar Open University,
Ahmedabad. Many of the states run Open Universities. IGNOU is now taking up
face to face teaching also.
The Open Universities and dual mode system were introduced to enhance access and
to provide flexibility in university programmes. Of late, many adult education

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programmes also are offered through distance mode. IGNOU has brought a number
of Community Colleges under its purview, although all of them offer education
through face-to-face teaching.
CLASSIFICATION OF UNIVERSITIES
CLASSIFICATION OF UNIVERSITIES BASED ON TYPE OF OWNERSHIP
Type of Ownership Total
Central Government 9
Private 10
State Government 20
Grand Total 39
Figure A-1 Classification of Universities Based on Type of Ownership
CLASSIFICATION OF UNIVERSITIES BASED ON DOMAINS OFFERED
Type of Domain Total
Multi Domain based 17
Specific Domain
based 22
Grand Total 39
Figure A-2 Classification of Universities Based on Domains Offered
CONTEMPORARY SKILL DEVELOPMENT ISSUES IN INDIA
India has made remarkable progress in terms of IT, space technology, establishment
of world-class institutions like IITs and IIMs, etc. Still India has issues in relation to
demographic pressures and financial constraints in providing equitable standard of
life to all its population. Much of the population is still rooted in traditional occupations.
Keeping in view the major socio-economic situations, we discuss some of the aspects

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of Indian economy in detail. Around 93% of the Indian workforce is in informal sector
without employment and social security, experiencing significant economic
deprivation. India has the lowest proportion of trained youth in the world. The
quantitative dimension of India's skill development challenge is that 80 percent of new
entrants to the workforce have no opportunity for skill training. Against 12.8 million per
annum new entrants to the workforce, the existing training capacity is only 3.1 million
per annum, causing annual increase in unorganized labour and low income groups.
Among persons of age 15–29 years, only about 2% are reported to have received
vocational training (VT) using formal routes and another 8% through non-formal means
indicating that very few young person’s actually enter the world of work with any kind
of vocational training. This proportion of trained youth is one of the lowest in the world.
The corresponding figures for industrialized countries are much higher, varying
between 60% and 96% of the youth in the age group of 20–24 years. The Indian
economic development depends on mass scale skill inculcation, as the countries with
higher and better levels of skills adjust more effectively to the global challenges and
opportunities. The solution calls for effective measures for education and inculcation
of skills at all levels, so that employment with moderate-income can be secured. The
Prime Minister's National Council on Skill Development has endorsed a Vision to create
500 million skilled people by 2022, whereas, at present, only about 2 percent of the
workforce has skill training. Two of the recommendations that evolved during various
periods are mentioned below:
i. The Committee on Universalization of Secondary Education under the Central

Advisory Board for Education (CABE) made the following recommendation in
2005: ‘Ensuring that vocational education is not a dead-end and allowing well
performing students in the vocational education track to proceed onto higher
education will ensure that the vocational stream is not seen as an option of last
resort by prospective students.’
ii. By 1986, the National Policy on Education introduced targeted of 10% of higher
secondary students on vocational courses by 1990 and 25% by 1995.
In India, the skill acquisition takes place through two basic structural streams—a small
formal one and a large informal one.
• The skill development through formal structure includes:

i. Higher Technical Education imparted through Professional Colleges (primarily
in the areas of agriculture, education, engineering and technology, and
medicine) – we shall not consider this category, as we focus on creating
midlevel workforce
ii. VHSS system (i.e. grades 11 and 12)
iii. Technical training in specialized institutions, such as Industrial Training Institutes
(ITIs) and Polytechnics and
iv. Apprenticeship Training in factories

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• The informal structure of skill development includes the transfer of skills from one
generation to another in traditional crafts or acquiring skills on the job. NGOs,
KrishiVigyanKendras (KVKs) and other institutions are also taking initiatives in
imparting skills at various levels.
Formal Vocational Education at the Higher Secondary level: The Ministry of HRD,
Government of India, funds the Vocational Educational system. There are 9,583
schools offering 150 vocational courses of two-year duration in broad areas of primary,
secondary, and tertiary sectors of the economy. In addition, National Institute of Open
Schooling also imparts VE in 80 courses. Total enrolment in Vocational Education
courses of all these schools is roughly 6,00,000. The formal School system alone is to
offer Vocational Education for nearly 9.8 lakhs.
Deficiencies in the Vocational education: The Vocational Education in India suffers

from a number of constraints and structural deficiencies. Merely 8 percent of all Senior
Secondary Schools in India impart VE. Only 3 percent of the students are under the
ambit of VE against the target of 25% of all Grade 11-12 students. Absence of linkage
with changing market needs and dominance of supply-side factors are significant.
The institutions suffer from poor infrastructure, absence of qualified staff and
obsolescence. The stream is under low-esteem being a low priority of choice among
parents and students. There is lack of lack vertical mobility. Seeing the public reaction
and the clientele category, the private sector participation is not much in
strengthening VE.
Vocational Training in the Unorganized Sector: India's unorganized sector accounts for
a 395 million workforce constituting 86 percent of the total workforce. The sector cuts
across all economic activities, includes rural and urban areas, and contributes to
about 60 percent of the country's GDP. This workforce is characterized by low skills,
poor productivity and poor income. Merely 2.5 percent and 12.5 percent of the
workforce were exposed to formal and informal vocational training respectively. One-
third of them are illiterates and fall below the poverty line. Another one-third of them
have studied up to primary & middle school level. Hardly 2 percent of the workforce
has attained technical skills. There is a severe deprivation of skills based on gender and
rural/urban divide. Further, the skill profile of India's labour force in the young-age
bracket (15-29 years) is very disappointing.
Challenges of skill development in the unorganized sector: Facilities for training in the
informal and the traditional sectors are grossly inadequate. Only about 9 per cent of
the workforce is technically trained, most of them only up to the ITI level. The
opportunity cost of training for the workers in this sector is high. Poor literacy and
numeracy along with high training costs often prevent informal sector workers from
participating successfully in training programmes.

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Vocational Training in the Organized Sector: Vocational training broadly refers to

certificate level crafts training and is open to students who leave school after
completing anywhere from grades 8-12. Roughly, 150 trades catering to agriculture,
manufacturing and service sectors are being conducted under two principal
schemes, viz., Craftsmen Training Scheme (CTS) and Apprenticeship Training Scheme
(ATS). Under the CTS, there are 2,129 Industrial Training Institutes (ITIs), and 5,855
Industrial Training Centres (ITCs) with a total capacity of more than one million in take.
The Government and private people, respectively manage the ITIs and ITCs. The
duration of the course varies from one to three years depending on the type of trade.
The ATS provides training to more than 2,00,000 trainees every year at the worksite in
the enterprises. The duration of training varies from six months to four years, depending
upon the types of trade. Many private and NGO-administered institutions provide
vocational training in select skills/trades.
Challenges for Vocational Training for workers in the organized sector: There is
mismatch between training and employment. Several empirical studies have
expressed serious concern about the labour market relevance of the trades in the
context of technological and industrial advancements. The curricula and
infrastructure are obsolete. There is imbalance of demand and supply. The absence
of Industry-Institute interaction/collaboration is striking. There are regional imbalances
in public and private provisioning and location of ITIs and ITCs. The management of
the system is fragmented and shared between the central and state authorities – the
National and State Authorities for vocational training. While different authorities have
clearly specified functions on paper, there is little coordination between them leading
to diverse accountability. There is often a duplication of effort with different agencies
performing the same functions. Furthermore, a preoccupation with providing and
financing training has resulted in the government neglecting a key role – providing
information about the availability and effectiveness of training programs. Institutions
do not have incentives to improve their performance. Institution managers have little
freedom to fill places, replace training courses with new ones, and ensure that
students receive quality training.
A. Challenges at the institution level in conducting formal VET programmes are

summarized below:
Precisely the following issues are to be addressed for effective skill inculcation through
VET:
i. How to make the vocational education and training more popular and
prestigious and attract students, irrespective of socioeconomic background or
academic calibre?

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ii. What should be done to remove regional, rural-urban and gender divide in
VET?
iii. What mechanisms should be worked out for vertical and horizontal mobility of
VE graduates?
iv. How to integrate VET with mainstream general education?
v. How to ensure employability and placements of pass-outs? The employers look
for basic academic skills along with vocational skills. How to incorporate
communication skills, problem-solving skills and teamwork skills?
vi. How to achieve Industry-Institute interaction?
vii. How to do regular surveys on skill mapping, market-survey and demand-supply
analysis?
viii. What steps are needed to bring the targeted 25 percent senior secondary
students into the VE stream?
ix. The management of the system is shared between central and state
authorities. How to ensure that the curricula and infrastructure are kept relevant
to skill inculcation as per market demand?
x. How should labour market information systems (LMIS) be used to ensure that
continuously changing market demand for skills are captured in LMIS? How to
collaborate with industry for developing efficient LMIS?
xi. What adaptations are needed if successful international models of VET are to
fit into the Indian system of education?
B. Challenges in the conduct of Vocational Training in the informal sector are

stated below:
a. What are the strategies/programmes for skilling the unorganized workforce
keeping in view the following: sheer size, heterogeneity in language, broad age
range, wide geographical coverage, poor educational & income status,
gender & social disparity?
b. What is the strategy to train the trainers keeping in view the learner
characteristics and pedagogy?
c. How do governments and employers address the issue of high opportunity cost
to the trainee – subsidizing full or part of the wages during the tenure of training?
What about the effectiveness of such financial support? It is a contrasting
situation that many of the students of formal system are not employed; the issue
of opportunity cost does not arise for them. The scholarship and other welfare
measures are well established in the formal system.
d. How to ensure that the trainers with local language proficiency are available?
How to bridge the gap in the social characteristics between the trainer and the
trainees to facilitate communication.
e. In informal apprenticeships, systematic theoretical knowledge is not built in the
process. Skills acquired are generally inadequate and, inappropriate practices
may have been picked up. The main limitation is that in such arrangements,
skills can be developed only for occupations which are well entrenched. How

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do we address the Skill requirement for emerging opportunities through informal

apprenticeship arrangements?
f. How to certify the range of competencies in informal skill development
arrangements? What are the international practices?
g. What model should be followed in training the unorganized labour? What is the
funding mechanism? Considering the socio-economic condition of the
beneficiaries while deciding the cost-sharing formula, should the model be
based on cross-subsidization?
h. How could the formal sector education and training institutions cater to
unorganized sector training? What role has the organized sector played in
building capacity for unorganized sector workers in other countries?
i. The service sector is the fastest growing area of employment with considerable
potential share for the unorganized sector. Would a special thrust on service
sector occupations, particularly those that are likely to be in the unorganized
sector, not help?
The VET/VT initiatives mentioned above pertain to the career entry in the organized or
unorganized labour force. For ensuring inclusive development, need exists for taking
up a few more challenges by offering support for MSMEs and community welfare; the
first requires opportunities for making available consultancy and training facilities and,
the second calls for offer of community enrichment programmes on matters relating
to citizenship, human rights, environment, public health issues, local governance, etc.
In other words, we need to have ‘Comprehensive Skill Education (CSE)’ that addresses
all the four segments – VET (for organized sector), VT (for the unorganized sector),
training and consultancy support to MSMEs and Community Education. The two
segments, VT for the unorganized sector and Community Education can be taken to
refer to Extension Education. In the next section, we shall discuss the desirable
characteristics of a tertiary institution that could offer CSE.
COMPREHENSIVE SKILL EDUCATION: NEED FOR NEW VARIETY OF

TERTIARY EDUCATIONAL INSTITUTIONS
A question could naturally arise: Is it possible to confer additional responsibilities to

Polytechnics and the existing Colleges for providing CSE? For answering this question,
we need to state the functions and characteristics of a desirable educational system
that could be a source of CSE. It is a worthy exercise to define a few desirable
attributes, which the proposed tertiary institution should possess for offering CSE. The
desirable attributes of the proposed tertiary institution are listed below
i. Institutional governance: The institutional success depends on appropriate

institutional governance and status of recognition. The ownership of the status of
recognition for its academic programmes enables the institution to use its multi-
function capability effectively. The statutory configuration should facilitate

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institutional autonomy. The self-governance is vital for many of the functions listed
below: adding a new programme or course, modifying the existing course as per
market requirement, addressing a different type of clientele (through continuing
education and community education), providing programme delivery with
multiple options, choosing a different examination pattern, going for collaborative
partnership (with other institutions locally, at national level or internationally or with
industry or NGOs) and providing consultation to MSMEs. Dependence on external
agencies for incorporating these features will affect flexibility of approach and
accordingly, decrease its multi-function capability.
ii. Learner-friendly academic approach: The institution should provide for flexibility in
terms of age and occupational status for admission, Programme completion time,
modularity with multiple exit options (required to help students balance their family
situations, academic pursuits, official responsibilities and economic needs),
instruction time (day time/evening offer or week end classes with extended tenure)
and mode of delivery (face to face instruction /blended mode / distance
mode/online mode). The institution needs to possess multi-function capability for
making available various levels of programmes [as Certificate, Diploma, etc.] and
various types of programmes (career oriented programmes, pre-employment
training programmes, personal development programmes, community training
programmes, etc.).
iii. Appropriate philosophical orientation: Accessibility and affordability of the
programmes, and contribution to social harmony are some of the aspects to be
considered in relation to institutional philosophy. Credit Programmes for VET
segment and, Non-credit Programmes on social issues and personal development
can be made available; the latter will serve as a feeder for social harmony. The
students could be sensitized to social aspects by integrating life skill courses into
the curriculum. The institution could ensure accessibility, so that it could reach the
unreached. The institution could use relevant teaching mode. To accommodate
affordability, feasible student support system needs to be put in place for the
benefit of the socially and economically underprivileged through relevant
financial schemes of the Government. For socially oriented programmes, schemes
available under public-private partnership (PPP) could be used. Offer of training
under modular employable skills scheme is an example for skill inculcation of the
unorganized labour under PPP mode.
iv. Focus on economic development: Enhancing the skills of the workforce and
adding to the productivity of the industry contribute to economic development
and facilitate sustainable growth in the face of global competition. At the student
level, the curriculum should include employability aspects. The Institution could also
offer placement support to its clientele.
v. Community reorganization: The provision of labour market oriented programmes
and community development oriented programmes facilitating lifelong learning
will make a positive change in the local community. The institutional leadership
should be aware of the socio-economic background, cultural aspects and

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aspirations of the local community. The extent to which the institution uses
education as a liberating force, its credibility and public acclaim also will go up.
vi. Thematic integrity: The institutional objectives should emphasize involvement in the
creation of productive workforce, preparedness for facing global competition and
contribution to social harmony. The action plan, implementation, evaluation and
corrective measures should be in conformity with the objectives of the institution.
Sustainability of the vigour and passion towards the focal theme along the line of
succession to leadership decides the continuance of the prestige and prominence
of the institution.
vii. Market-responsive leadership: Constant attention needs to be given to the labour
market situations (at the local, regional, national and international levels), the
emerging technology and globalization challenges. Industry needs to be involved
in curriculum design, implementation and evaluation. The institution needs to
assess local market needs and offer market relevant curriculum.
viii. Staff selection, orientation and healthy human resource policy: Recruitment and
retention of a compatible faculty, administrators and supporting staff are the key
issues. The staff development is an essential aspect. Faculty orientation towards
cultural diversity and community development should be ensured. As part of the
promotion policy, the contribution in terms of academic/administrative roles and
achievements, development of the formal and unorganized sectors and,
community development initiatives need to be given weight. The focus of the
promotion policy plays a critical role in workforce orientation.
ix. Working Pattern: The institution needs to have a blend of academic orientation,
labour force empowerment and community development, which will require the
institution to have long working hours round the year. The institutional infrastructure
needs to be optimally utilized through offer of short term, long term and non-credit
courses. The work culture of the staff should be accordingly molded allowing
flexibility for personal development of the staff. At present, the tertiary level
educational institutions carry out teaching work for around 180 days plus time for
student admission cum examination (for the second part, part of the staff alone
work); this system does not allow time for inculcating employability skills, effective
participation in community work, training the unorganized labour, etc. The
institutional workload of the desirable institution should evidently be more than
how the tertiary level institutions work at present.
x. Ensuring resources: In the process of contributing to the economic development
of the community, the institution could also explore genuine methods for
enhancing its financial status through sale of services, education materials and
goods produced, if any, during course work. Faculty should be encouraged to
secure funds from various agencies and industry through appropriate projects, so
that multiple functions could be performed.
xi. Information and Data Collection: Information and data on local, regional and
national level should be collected on socio-economic aspects, job profiles,
employment opportunities, key employers and other support systems. Systemic
research and development should be part of the system, for which data collection

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is vital. Building a Labour Market Information system and following its implications
are quite useful.
xii. Relationship Building and Partnerships: Institutional leaders should be capable of
building relationships with the stakeholders at the top level and be able to organize
resources for starting new programmes. Efforts need to be taken for partnership
with industry, industry associations, other academic institutions (for resource
sharing), government departments and NGOs, since support system will be
strengthened. After studying the future trends, partnership needs to be made with
emerging industries.
These attributes are essential, keeping in view the institutional responsibilities in skill
inculcation for formal and informal sectors and for community education. We now
come back to the question that we posed at the beginning of this section whether
the Polytechnics and the existing Colleges can be deployed for providing CSE. The
attributes (i) – (xii) can be contrasted with the characteristics of Polytechnics, Affiliated
Colleges and Autonomous Affiliated Colleges to choose the compatible variety. We
are not considering the Professional Colleges (Engineering Colleges, Medical
Colleges, Agricultural Colleges, etc.) in this context, although these institutions have
significant role in socioeconomic development. These institutions are intended for
creating work force of higher competence to hold senior official positions in the
respective domains. We shall give an outline of the configuration of Polytechnics,
Affiliated Colleges and Autonomous Colleges.
Polytechnics: Polytechnics offer three-year Diploma programmes in the field of

Engineering & Technology, Architecture, Art& Pharmacy etc. for producing technical
work force. The students are expected to find employment in all the functional areas.
However, the most important job functions include production, quality control,
installation, maintenance, servicing, marketing etc. The All India Council for Technical
Education (AICTE), a statutory authority under MHRD, has been vested with the power
to grant approval for starting new Polytechnics and introduction of new programmes
in consultation with the State Governments (through Directorate of Technical
Education and State Board of Technical Education).
Affiliated Colleges: The Affiliated Colleges offer undergraduate and postgraduate

programmes, generally in Arts, Science and Commerce. A few of them have
vocational subjects like Hotel Management, Fashion Design and Corporate
Secretaryship. The Affiliated Colleges have to run programmes as per the list approved
by the parent University, which decides curriculum, conducts examinations and
awards degrees.
Autonomous Colleges: Limited academic autonomy is provided to some Colleges of

repute, which can formulate the curriculum and conduct examinations. The flexibility

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exists in choosing new interdisciplinary areas but the University has to approve the
curriculum finally. The University and the Autonomous College award the degree
jointly.
Table A - 1 Contrasting the Desirable Attributes with the Characteristics of Specified Institutions
Contrasting the Desirable Attributes with the Characteristics of Specified Institutions

Autonomous
S. No. Attribute Polytechnics Affiliated Colleges
Colleges
1 Institutional Not possible - Not possible - To a limited extent;
governance controlled by AICTE controlled by the does not have
parent university independent
recognition status.
2 Learner-friendly Difficult; needs to Difficult; needs to To a limited extent.
academic approach; follow AICTE norms; follow the parent
flexibility is the key University norms;
3 Appropriate Possible Possible Possible
philosophical
orientation
4 Focus on Economic The regular programmescould add to the economic development for
development the families of students. Continuing education programmes,
unorganized labour oriented programmes and community based
programmes are of limited offer. Employability skills are not given stress.
5 Community In the absence of significant community-institution interaction and
reorganization planned sequence of actions, community based programmesare not
well knit.
6 Thematic integrity The focus is on academic orientation and general proficiency
development rather than on competitive workforce creation.
7 Market-responsive The curricular content does not reflect labour market situations. The
Leadership curricular revision does not take place frequently.
8 Staff selection, Recruitment and promotion policies are based mostly on
orientation and qualifications, experience and research; beyond these parameters,
healthy human labour market responsiveness and community orientation are not
resource policy given much weight.
9 Working Pattern Difficult to have long working hours for the institution to accommodate
all the four segments of CSE; mostly the schedule is academic
calendar based.
10 Ensuring resources Possible but depends on the grant from the Government or from the
institution management for regular institutional activities; significant
initiatives are not taken to obtain financial support/consultancy from
the Government/other agencies for continuing education of formal
labour, training of informal labour or for Community based activities.
11 Information and Data Data collection and maintaining Labour Market Information System
Collection – Building are difficult for a single institution, unless centrally made available by
and Following Labour AICTE/University/Government annually. Research and development
Market Information activities are almost negligible in Polytechnics. In Affiliated and
System; Research and Autonomous Colleges, the Research is mostly on Discipline areas.
Development policy Sustained research on labour policy followed by the curricular
towards labour market adjustment is not common.
issues
12 Relationship Building Experience shows it is not quite easy for individual institutions to have
and Partnerships significant collaboration with industry. Only a few are effective.

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From Table A-1, we see that the Polytechnics and the Affiliated Colleges have
relatively less capacity to address the skill requirement in the VET sector. Although the
Autonomous Colleges have better position, they possess limited learner-friendly
academic approach, do not have independent recognition status, will find it difficult
to create unique work culture (as it has to be within the policy framework of the parent
university) and, as an individual institution, will find it difficult to maintain Labour Market
Information System. The Community Polytechnic scheme could be effective, if
modifications are carried out as per (i) to (xii) shown above. It is relevant to quote from
the Paper of Vijay Goel on ‘Technical and Vocational Education and Training (TVET)
System in India for Sustainable Development’:
“Over the years, the diploma programmes have deteriorated losing the skill
components, which has resulted in their being just a diluted version of degree
education. The organizations employing them have to train them all over again in
basic skills. Major problems being faced by the polytechnic education system are:
1. Non - availability of courses in new and emerging areas.

2. Inadequate infrastructure facilities and obsolete equipment.
3. System unable to attract quality teachers
4. Inadequate financial resources
5. Inadequate or non-existence of state policies for training and retraining of
faculty and staff
6. Lack of flexibility and autonomy to the institutions
7. Inadequate industry institute participation
8. Lack of Research and Development in technician education
9. Antiquated Curricula
The XI Plan Document also expresses similar views on Polytechnic Education:
“Even the existing polytechnics seem to struggle for survival. Over the years, the
diploma courses have lost the skill components and are perceived as diluted version
of degree education. The Eleventh Plan will have to address several issues including
static curricula, poor industry interface, lack of flexibility to respond to needs,
obsolescence of equipment, lack of trainers, and inadequate funding.”
This discussion does not underestimate the contributions of Affiliated Colleges,

Autonomous Colleges and the Polytechnics with regard to their role in their respective
domains; the issue is their suitability for CSE. Before we arrive at a system that we
consider appropriate for providing CSE, we shall examine some of the conflicting
situations that Indian higher education faces presently.

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HIGHER EDUCATIONAL SYSTEM IN AN UNPRECEDENTED SITUATION
We start with Indian higher educational system and then focus on that of State.
Relevant data are available on the national level; India’s higher education system has
favorable circumstances to bring about socioeconomic development, which did not
exist so well a few years earlier:
i. India is experiencing fair increase of GDP growth rate, while many of the
developed countries face economic downturn. The political, economic and
educational factors are favorable for continued growth. Initiatives taken by the
University for skill-inculcation will fuel further growth.
ii. India’s demographic profile is going to be favorable for another 25 years, with
the aging population being present in other countries. It is pertinent to avail of
the opportunity.
iii. As per XI Plan allocation, the resource availability is in a much better position.
In the Eleventh Plan, the Central Government has allocated Rs 2.70 lakh crore
for Education, which is a four-fold increase over the Tenth Plan allocation. Out
of Eleventh Plan outlay, 30% is for higher education (including technical
education)
iv. During the Eleventh Plan, NSDM has allocated an outlay of Rs 22800 crores for
skill development.
The question arises whether Indian higher education in a position to exploit these
opportunities. Presently, the Indian higher education system is in the midst of a series
of conflicts. The conflicts arise due to the ideological differences that exist in relation
to direction and areas of operation that the higher education needs to have. Should
the resources be directed towards increasing access to higher education or for
improving the quality of existing institutions and creating excellent institutions in
specified areas? Should higher education concentrate only on the domains presently
served or should it introspect and add non-traditional domains as well? Should the
institutions serve only 18-23 age groups possessing eligibility for entry into university
programmes or should it have a larger canvass and expand its operations for all
persons irrespective of age group, occupational status or academic attainments?
There is a debate whether a University should be a place for knowledge gain out of
research, its critical evaluation and dissemination or should it strive for facilitating
utilisation of the gained knowledge for economic benefit as well.
An educational institution needs to decide its course of actions in terms of its

educational purpose. The educational purpose is to be defined in terms of three
factors: (i) social relevance (that an institution would like to maintain), (ii) the students’
needs (to what extent the institution would like to fulfill) and (iii) international standards
and practices (the capacity of the institution to maintain parity with international
institutions). The following contrasting situations highlight the unprecedented status of

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the Indian higher education system, which are explicit or implicit. Keeping equitable
socioeconomic development as its educational purpose, the educational system has
to take proactive steps to address the conflicting situations - such as those mentioned
below.
i. Increased GDP growth rate vs. population increase of ‘poor and vulnerable’
groups:
We mentioned that the period of globalisation between 1992-93 and 2004-05

registered an income growth of 125% and, per capita income increase of 77%. During
2004-07, the annual growth rate was 9%. The Report indicated that the total
population in the ‘poor and vulnerable’ group increased from 732 million in 1993-94 to
836 million in 2004-05, which gives an antithesis for the slogan of development initiated
by globalization. The situation is the consequence of non-inclusive approach. What
should be the role of the higher education system to facilitate GDP growth rate
increase, while bringing down the poverty levels?
ii. The demographic dividend vs. unemployability of the skilled, semiskilled and the
graduates:
Much is talked about the youth population resource that the country has and its
potential to supply skilled work force to the rest of the world. The dilemma is that the
skill mismatch and unemployability are noticed both in VET sector the higher
education sector. An employment survey reported in the FICCI deliberations indicates
that not more than 15% of University Graduates of General Education and 25-30% of
Technical Education are fit for employment. What should the higher education sector
do to address the issue unemployability of graduates?
iii. Significant increase in job prospects vs. depleted enrolment in VET and
Polytechnics
As per XI Plan document on Skill Development and Training there is an estimated 58.6
million new jobs in the domestic economy and about 45 million jobs in the international
economy for the skilled personnel. As against this, VHSS sector and Polytechnics
experience decreased enrolment across the country. What should the higher
education system do to avail of the employment opportunities and increase
enrolment in VET and related sectors?
iv. Focus on teaching & research at the University vs. lack of interest in the extension
activity
For the faculty in the Universities, the recruitment procedure, workload and promotion
rules focus on teaching and research activities. A mention about the extension
activities is generally found in the University Reports but without clear-cut plan of

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action. The National Assessment and Accreditation Council, while assessing the
performance of the Universities based on specified parameters, assigns only 3% weight
to Extension work Possibly, the Nevertheless, plight of unorganized labour and less than
desirable level of social harmony (wherever it arises) are fallouts of this approach; the
Universities concentrate on fostering the interest of the organized workforce, although
it is less than one-tenth of the unorganized labour. Is it possible to strengthen extension
activities (that will address the needs of capacity building of the unorganized labour
and community education) amidst the University agenda?
v. Fostering professional education vs. apathy for vocational education
Professional Education (PE) is a formalized approach to specialized training in a

professional system of study through which participants acquire content knowledge
and learn to apply techniques. Although content is focused, such an education helps
the participant acquire the competencies needed for proper practice and behavior.
Some common goals of professional education include incorporating the knowledge
and values basic to a professional discipline; understanding the central concepts,
principles, and techniques applied in practice; attaining a level of competence
necessary for entry into professional practice; and accepting responsibility for the
continued development of competence. Professional education is a response to
society's demands for expert help provided by competent people. Special
knowledge and skills were previously passed on from one professional to others
through apprenticeships, and came from nonacademic sources. This method
became inadequate for preparing competent professionals. University Departments
were established with the purpose of supplying human resources beneficial to society
and training the next generation of people. Engineering &Technology, Architecture,
Medicine and Law are some of the known professional areas.
Globally, Vocational Education has a broader meaning and covers education and
skill development at all levels from post primary to tertiary levels - both through formal
and non-formal programmes. There was a notion that VE is training of the hands, while
PE provides training for the hands and, education for the mind. As per the National
Policy on Education, 1986, the introduction of systematic, well-planned and rigorously
implemented programmes of VE is crucial to develop a healthy attitude amongst
students towards work and life. Vocationalisation can enhance individual
employability, add to productivity and fulfill the national goals of development. It can
reduce the mis-match between the demand and supply of skilled work force, and
provide an alternative for those without interest in academic streams but intending to
pursue higher education. The VE can help in meeting the needs of skilled and middle
level work force for the growing sectors of economy, both organised and
unorganised. In Indian conditions, VE is limited to School level. Largely, VE is generally

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not encouraged in the University portals. Only recently, Hotel Management and
Apparel & Fashion Design Disciplines have been admitted at the University level. The
apathy shown by the University system towards VE Programmes is evident, as vertically
linked University programmes are not available for many of the VHSS Programmes;
This, in turn, enhances the employment opportunities, demand for skilled labour,
catalyses labour migration and increases urbanization; some of the accompanying
issues are preserving the environment and maintaining community health. Under this
context, the call for CSE is quite intense. The educational purpose, social relevance
and the students’ needs identified by the Universities at the time of their formation was
not the same, as conditions exist today. If the existing Universities were to respond
effectively to the call for CSE overcoming their traditional apathy for VE and Extension
Programmes, the requirements in terms of attributes (i) to (xii) specified in Table A-1
and statutory changes are enormous. We have an unprecedented situation, where
the existing institutions would find it difficult to face the challenge of CSE. The
unprecedented situation calls for unprecedented solution in the form of creation of
new types of institutions. Introduction of innovation and change are easier thorough
a new institution rather than through an existing institution. We can cite two illustrations.
The first is the recent phenomenon of establishment of dedicated open universities in
India for offering courses with learner centered and technology mediated pedagogy,
credit transfer facility, modular curriculum and flexible approach, which are difficult
to achieve in conventional institutions. The second illustration is the establishment of
specific domain based Universities to ensure focused attention, without being
digressed amidst the conflicting demands of a multi-domain university.
VOCATIONAL UNIVERSITY SYSTEM – A NECESSITY OF THE

GLOBALIZED WORLD
A need exists for identifying an institutional system that holds CSE as its educational
purpose. An effort has been made to find out the strategies and measures taken
internationally for preparing the workforce for facing the exigencies of the present
knowledge era and for societal empowerment – suiting the kind of situation available
presently in India. The international options were considered in order to make a
suitable adaptation. Starting from early twentieth century, a new category of tertiary
educational institutions came up in quite a few countries for fulfilling the vocational
skill needs and community education requirements, thereby filling the societal void
created by the non- responsive nature of the traditional system to certain social
demands for higher education. These new institutions facilitate the holistic
development of the society. The system took various forms in different countries as per
local regulatory systems. Throughout twentieth century, declaration of independence

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to many countries, switch over to market economy, advances in technology, ICT

revolution, clamor for consumer goods and globalized competition to offer quality
material at low cost – all these compelled the industry across the globe to go for new
types of jobs requiring multiple skills, frequent upgrade and market sensitivity. To face
the challenge and offer Vocational/ Continuing / Community Education
Programmes, around 90 countries established new types of Post-secondary institutions
particularly since 1970s. Two of the forms are Vocational Universities (VUs) and
Community Colleges (CCs).
Vocational Universities: A Vocational University is an institution of higher education,

which provides academic programmes at all levels (Certificate, Diploma, Associate
Degree, Degree and Postgraduate Programmes generally in vocational domains and,
Doctorate Degree in restricted domains) along with non-credit education
programmes for the workforce. The VUs are also known as Universities of Applied
Sciences. The VUs, being Universities, have recognition status to offer academic
degrees. China, Japan, Korea, Finland, Germany, Hong Kong, Netherlands, Sri Lanka,
Sweden, France and Switzerland are some of the countries having VUs.
Community Colleges: A Community College is defined as a unique form of

postsecondary institution that offers vocational, academic and community education
programmes with a range of options for credit based and non-credit programmes,
the maximum award being Associate Degree. The CCs offer short-term Certificate,
Diploma and two year Associate degree programmes. The CCs need to have (i)
recognition status to offer Associate Degree Programmes through individual
accreditation or by link to a University and (ii) arrangement with the University system
to transfer to Degree programmes. The Community College concept started with the
founding of Scandinavian Folk High School, which was offering non-formal adult
education as per local community requirement. As these institutions serve the
community by accommodating their educational needs, which are not otherwise
fulfilled through traditional higher educational system, these institutions are called
Community Colleges. In many instances, the curriculum content and programme
delivery depend on the local community resources, requirement and learner profile.
The Community College models multiplied since 1950. In 2002, the policies of the World
Bank and other nongovernmental organizations have further intensified the adoption
of Community College model characteristics worldwide. USA has been successful in
establishing Community College system. As per 2008 data, there were 1255 CCs in
USA. The following are some of the other countries having CCs: Australia, China,
Canada, Belgium, Singapore, Egypt, Israel, Korea, Japan, Thailand, Singapore,
Malaysia, Russia, UK and India - recently through IGNOU. The effectiveness of CCs will
become evident from the acceptance of the pass-outs for employment and

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community recognition for its role in community welfare. Many of the CCs have started
offering traditional academic programmes to 18-23 year olds, as the Governments
desire to optimise the existing infrastructure for increasing access to higher education.
The Community College movement started in South India in October 1995 with the
beginning of the Pondicherry University Community College. It was taken forward by
the inauguration of the Madras Community College in August 1996. It was
strengthened by the Manonmaniam Sundaranar University, Tamilnadu by giving
approval to five Community Colleges in September 1998. It spread to Andhra Pradesh
with the starting of JMJ Community College in Tenali in July 1999. It also spread to the
states of Gujarat, Maharashtra, Kerala, Karnataka and Uttaranchal during the last
three years. IGNOU launched the Community College Scheme in July, 2009. It has
grown to include 449 Community Colleges in one year as on November 2010. IGNOU,
amidst its statutory structure, has formed three central bodies dedicated to the
governance of Community Colleges operating under its ambit
The Indira Gandhi National Open University and other institutions abroad offers many
Associate Degree Programmes. Tamilnadu Open University has recognised 118
Community Colleges as its vocational programme centres.
VUs and CCs have the following common characteristics:
• Credit and non-credit Programmes linked to the needs of industry and

community
• Focus on teaching theoretical and practical skills (of course the relative portions
depend on the level of the Programme and the clientele group; the University
Programmes, by and large, give more focus on theoretical build-up)
• Help in industry recruitment, host small business incubators, provide
entrepreneurship development training and conduct applied research
• Coursework fused with apprenticeship in an industry
• Options available for paid apprenticeship and international attachment
• Faculty require theoretical knowledge and applied skills; part-time faculty used
for imparting skills in many domains
• Funds arise from fees, consultancy, training programmes and community
projects
• VUs and CCs contribute significantly to Gross Enrolment ratio – USA 44%,
Canada 40%, Israel 58%, Japan 26%, Korea and France 20%
• Effectiveness evaluated through placement of graduates, their career
progression and contribution to improvement of the quality of social life in the
neighbourhood.
• Institutions need enabling features in the form of regulatory, academic,
administrative, philosophical and financial support to exhibit multiple functions

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The VUs and CCs are most successful in countries where (a) market forces create a
need for postsecondary institutions whose skilled technicians are in demand to support
technological, vocational, and industrial development; (b) adult and continuing
education is legitimized as postsecondary education; and (c) postsecondary
education is equated with social and economic mobility.
SKILLS UNIVERSITY- A SUPPORTIVE SYSTEM FOR SKILL

DEVELOPMENT EFFORTS OF STATE GOVERNMENT
This section explains the relationship between Skills University and its Community
Colleges and, their functions in response to the challenges of offering CSE in State.
Initially, the VUs and CCs world over offered support to acquire skills and competences
in domains not otherwise offered through traditional higher educational institutions.
Later, the CCs started functioning as the centers of education for traditional and non-
traditional students and for imparting traditional and non-traditional streams. Presently,
the CCs offer many types of post-higher secondary education. As mentioned earlier,
the maximum level of offer is 2 – year Associate Degree (through attachment to a
University, or in some countries, through accreditation). For facilitating completion of
Bachelor’s Degree and offer of Master’s and Doctoral Degree Programmes, CCs can
make use two types of arrangements. (1) The CCs can become Constituent Colleges
of a University system, where the parent University campus will provide facilities for
studies beyond Associate Degree obtained through it. (2) CCs could execute transfer
or articulation agreement with other Universities, which will facilitate studies beyond
Associate Degree. The Government can make use of both types of arrangements to
provide wider option to the students. A cluster of Community Colleges can be
established in future as Constituent Colleges of the proposed SU.
The Skills University would offer Associate Degree and its lower modules, VE for the
unorganized sector, Labour Education and Community Education. The Campus also
will be offering facilities for degree completion, PG and Research Programmes and
consultancy support to MSMEs. The SU will be undertaking projects relating to VT for
the organised and unorganised sectors on public-private partnership mode and in
collaboration with private sector. A diagrammatic representation of functions of SU
aimed at offering CSE is given in Figure A-3.
SKILLS UNIVERSITY - ORGANIZATIONAL ASPECTS
The vision, mission and objectives of the University are given below along with
organizational charts.

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Vision
To contribute to workforce productivity, socioeconomic development and social

harmony through well rounded and industry relevant educational programs with
employment at the heart of academic offerings, technology at the heart of
operations and academic mobility as the focus deploying inclusive, distributed and
low cost delivery methodology.
Mission
To enable all individuals acquire skills and capabilities, prepare them to get
appropriate employment and ensure their competitiveness in national and
international work environment.
Objectives:
The objectives of Skills University are as follows
i. To contribute to socioeconomic development through academic

programmes, research, training and extension work
ii. To focus on vocational education and related academic programmes
iii. To offer academic programmes in which employers are at the heart of
curriculum design, implementation, internship, assessment and job placement
iv. To inculcate domain specific skills, sector relevant job skills, generic and
transferable skills
v. To support placement initiatives through assessment for entry level
competence and follow-up measures for enhancement of employability
vi. To provide increased access and flexible approach
vii. To make available academic programmes from the campus and across state
through Community Colleges established by the University as Constituent
Colleges
viii. To deploy technology for improvement of student support services and learning
experiences
ix. To deliver education via multiple modes - face-to-face teaching, practical,
satellite mediated instruction, e-learning, distance mode, print materials and
on-the-job training as per programme requirement.
x. To offer distance education based academic programmes across State and
India
xi. To offer modular programs - Certificate, Diploma, Associate Degree, Degree,
Post-graduate and doctoral Programmes in various Disciplines as per
requirement
xii. To set up Research Centres and carry out research work for the furtherance of
the objects of the University
xiii. To collaborate with industry, Universities and institutions in India and abroad for
offering academic programmes, training, research and development
xiv. To ensure dignity, relevance and mobility of qualification

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Organizational Structure of the Skills University
The Organizational Charts of SU are given below:
i. Skills University (Figure A-3 – ‘S’ stands for Act Section)

ii. The Units Reporting to the Provost of Skills University (Figure A-5)
iii. The Campus Administration Unit (Figure A-5)
iv. The Campus Academic Unit (Figure A-6 – only a few domains shown) and
v. The Community Colleges (Figure A-7)
Governing Body of the Total=14 members, initially 9

University(GB) members, 4 from SB, President,
Provost, 2 Deans (through
Provost) and Secretary, HTE,
later 5 to be co-opted by GB
Board of Management {S20}
Sponsoring Body(SB)
President of the University

Direct appointment S16.1 as
First appointment for

Academic Council 1 yr { S 15,1}
per statues
Provost of the University
Chief Finance & Constituent Colleges / Other

Registrar Centers
Accounts Officer
Non – Academics
Admin Staff Finance & Accounts Staff Academic Staff Staff 7 7
Figure A-3 Organizational Chart of Skills University

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Figure A-4 Organizational Chart of the Units Reporting to Provost
Figure A-5 Organizational Chart of the Campus Administration Unit

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Figure A-6 Organizational Chart of the Campus Academic Unit (only a few domains shown)
Figure A-7 Organizational Chart of Community Colleges
THE SKILLS UNIVERSITY – SOME FEATURES
In order to facilitate CSE, The SU will offer the following types of Programmes through
its Campus and CCs.

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VET FOR THE ORGANISED SECTOR
The Associate Degree and Degree Programmes are proposed to be offered through
SU. Through its Programmes, the University intends to provide vertical mobility to VHSS
stream pass-outs. Efforts will also be made for articulation arrangements with other
Universities for providing another option for completing the Degree Programme. In
future, the University Campus will be offering Postgraduate and Doctoral programmes.
The career progression programmes will be offered for the benefit of workforce. The
career entry and skill training programmes will be made available for the benefit of
graduates from other systems.
VT FOR THE UNORGANIZED SECTOR
Skill Training initiatives for the unorganized sector will be undertaken on PPP mode. This
could enhance income levels of the unorganized sector.
COMMUNITY EDUCATION
The Life Skills Programmes, Community Welfare Programmes, and Training
Programmes for the Community Workers/ NGOs/ Public Service Officials will be
offered.
SUPPORT TO MICRO, SMALL AND MEDIUM ENTERPRISES
Programmes will be conducted for training the employees of industry/organisations.

Consultancy support will be made available for Micro, Small and Medium Enterprises.
The SU will have the following features commensurate with its multiple functions.
i. Institutional Governance:
Complying with the provisions of the State Private Universities Act, the University will be
governed by the statutory bodies -the Governing Body (GB), the Board of
Management (BoM) and the Academic Council (AC). The University will establish
Constituent Colleges, which will be administered and managed by its own faculty and
supporting staff. The University status will facilitate its Community Colleges to offer
academic programmes with employer and peer group credibility. The institutional
autonomy will help in choosing programmes as also in revising the curriculum as per
need. The functional autonomy helps in launching Credit based and non-credit based
Programmes. There will be internal quality control mechanism for academic proposals
and programmes ensured through its governance mechanism.
ii. Learner-Friendly Approach:
The University will provide flexibility in instructional time, programme tenure, entry- level
age, etc. to facilitate enrolment of students drawn from different age groups, family

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background and employment status. The Associate Degree Programmes will be

made available on both part-time and full time study options. The workers in the
nearby industry could take up study on part time basis for their career progression.
Opening up of possibilities for distance education and online mode could further
enhance enrolment of this clientele segment.
iii. Philosophy of Approach:
Consideration will be given for accessibility and affordability. For facilitating

affordability for the students, efforts will be made through financial institutions.
iv. Market Relevant Leadership and Focus on Economic Development:
The University will closely collaborate and partner with private institutions and industries
to gain knowledge of the market demand/skills needed by the industries. This
arrangement will facilitate in skill inculcation among the students of the University
through appropriate Programmes, followed by efforts for job placement. Support will
be given for career progression related studies. The University will take steps to offer
training and consultancy for the Micro, Small and Medium Enterprises for labour
enrichment.
v. Community Support and Thematic Integrity:
The focal theme for the University is capacity building through job oriented
Programmes and community development through non-credit Programmes on local
governance, human rights, environment, public health issues, water conservation, etc.
The University will concentrate on providing utilitarian Programmes across the society,
rather than disseminating liberal education to 18-23 years old only.
vi. Staff Selection and Training:
The selection and promotion procedure would reflect institutional objectives. Due
weight will be given for contribution in areas related to the themes of the University.
The staff will be given orientation towards the functional modes (which includes
coordinating projects obtained from the Government and other agencies), as a need
exists to obtain projects for skill development and community education initiatives.
vii. Working Pattern:
The SU may have to work through-out the year, keeping in view the twin mandates of
skill training and education of the formal and informal sectors. The students of the
formal programmes of the University will have course work for longer sessions than in
the conventional system; employability skills, on-job training, life skills, etc. are
proposed to be imparted along with domain based theory and practical
components. It can be seen from Table A-3 that a student has to work for 2688 hours

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during two-year study, as against 1800 hours of work by a student in conventional

system. The work schedule of the staff will be accordingly designed providing for
professional development.
viii. Providing Resources:
The students’ fees will be main source of income. It will be supplemented by the
government fund and other sources. Since the University is focusing on skill
development, the resource allocation priority will be decided accordingly.
ix. Data Collection & Partnership:
Labour Market Information System will be designed and applied in decision processes.
The SU would set up a Research Unit in private partnership. The Unit would undertake
skill mapping and collection of employment data for the state, national and global
level.
The advantages of Community Colleges as Constituent Colleges of the University are

given below:
i. Some of the domains offered in Community Colleges are less demanding by

way of rigor of theoretical concepts. This helps students who have better levels
of kinesthetic intelligence (sensory experiences), spatial intelligence and
naturalistic intelligence than logical/mathematical intelligence; the last is
required for hard-core Science and Technology studies.
ii. The Community Colleges provide the bridge to move on to higher level
University programmes from the Higher Secondary level. Such of those students,
who need to decide their future studies, are given counseling, guidance and
opportunity to explore their course of options.
a. The cost of education in Community Colleges is less than many of the
Professional Colleges. The Management will seek various financial options
for the students to complete their studies.
b. The entry into the Community Colleges is simple, as admission is less
competitive.
c. The industry has a companion in CCs to train its workers for the renewal of
skills and competences. The CCs are the educational solution for the
varying pattern of jobs in the industry. The CCs can mitigate the stress and
tension caused to the micro, small and medium scale industry because of
changing technology and globalized competition.
d. The CCs can support skill inculcation for the labour migrated from
agricultural sector and from other states; this is similar to the growth of
Community Colleges in USA during 20th century due to the flood of
immigrants from other countries (Ref. 27).
e. The non-traditional students can take up studies, hone their skills and obtain
social mobility. The Community Colleges have flexible programme delivery
facilitating educational opportunities to the unemployed and employed.

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The institution is not restrictive in age limit for entry. Full time and part-time
programmes are offered.
f. The local population gets support for community based education and
information.
g. The Community Colleges have made significant contribution to GER at the
tertiary level in many of the countries.
RATIONALE FOR TWO-YEAR TENURE FOR ASSOCIATE DEGREE

PROGRAMMES
The proposal is to offer two-year Associate Degree Programmes.
The rationale behind the two-year tenure of Associate Degree is given below:
a. The 12+2 curriculum of Associate Degree Programmes accounting for 14 years

of study could be helpful in preparing the workforce with the required basic
academic skills through
• general curricula for 12 years of Schooling and
• vocational curriculum for the last two years addressing areas of domain
knowledge, employability skills and life skills.
This could help in generalization of vocational curriculum and facilitate workforce to

adapt to changing professional demands in a globalized world. Such a distribution
with optimum grounding in general curricula is in tune with successful models adopted
internationally; this could be an advantage over the diminished focus on general
curricula through 10+3 Polytechnic curriculum with ten-year general curriculum and
three-year vocational curriculum. Thus, the 12+2 curriculum is better placed to address
the issue, which has been raised in relation to the difficulty faced by the employers in
training the Polytechnic graduates on basic skills.
b. There is a societal perception that degrees command a premium in the job

market rather than diplomas so offer of Diploma Programme is not favored. For
those desirous of completing third year of degree study, opportunity will be
provided through the University campus, as the University intends to offer its
programmes through modular format. The Associate Degree curriculum is a
subset module of undergraduate degree and so, it will not be a diluted version
of degree education.
c. The socio-economic conditions of a significant percentage of the population
do not allow long years of education. As years of study increase, the enrolment
pattern shows a decreasing trend. The Gross Enrolment Ratio (GER) values for
elementary, secondary and tertiary stages of education as reported by HRD
Ministry in 2003-2004 were 85%, 39% and 9%, respectively. Another instance is
that the All India dropout rates of 26.45%, 49.95% and 61.74% are reported for
2005-06 for Classes I-V, I-VIII and I-X, respectively Providing exit option after
two-year Associate Degree may enable enrolment of those students, who, for

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financial reasons or family need or personal situation would like to study for a
shorter period and then rejoin after some time. Modular format permits multiple
entry and exit routes.
d. The GER at tertiary level for India is low as compared to the world average of
23.2%, 36.5% for countries in transition, 54.6% for the developed countries, and
22% for Asian countries Two-year Associate Degree enrolment has made
significant contribution to GER in USA and Canada to the extent of 44% and
40%, respectively. An industrially developing state could get support through
Associate Degree Programs in increasing access, GER and Human
Development Index.
e. Two year Associate Degree Programmes could facilitate mobility of those
students who would like to relocate for personal reasons to another location in
State after getting Associate Degree.
f. Associate Degree Programmes can lead to job entry, as employability aspect
has been incorporated into it.
g. Receiving Associate degree could increases confidence of academically
weak students through step-wise progress and motivate them to continue in
their academic pursuit.
h. Two year Associate Degree Programmes in vocational areas could support VE
movement initiated under GSDM; a similar instance has been reported from
USA, where offer of two-year Associate Degree Programmes strengthened the
spread of VE since the beginning of twentieth century. The Associate Degree
Programmes provide vertical link to VHSS Programmes and facilitate offer of
academic programmes in vocational areas, which are not covered by the
conventional Universities.
STRATEGY FOR CURRICULUM DESIGN USING CREDIT ASSIGNMENT

AND MODULARIZATION
Initially four programmes can be launched – Finance & Accounting, IT – Infrastructure,

Hospitality and Mechatronics. The decision has been taken based on State Social
Infrastructure Vision and XI Plan document of Government of India, which have
predicted high demand for related domains
Following aspects will be considered while designing the Skills University curriculum:
i. Credit Assignment and Programme Structure Design

ii. Modularization
iii. Employability Inculcation
iv. Student Workload Adjustment
We use the convention that any Certification is a ‘Programme’ and its Subjects are
‘Courses’. For example, we say that the Associate Degree Programme in Finance &
Accounting has 25 Courses.

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CREDIT ASSIGNMENT AND PROGRAMME STRUCTURE DESIGN
An outline of historical evolution of credit system followed by its definition, the steps for
adopting credit system for drawing UG programme structure, its advantages and
limitation.
HISTORICAL EVOLUTION OF CREDIT SYSTEM

The Electives were introduced in Harvard curriculum in 1869 that also placed a need
for quantitative course measurements. Around 1870s, the measure of teaching was
formulated in hour units; around 1900, measuring in terms of credits was started. In
both the cases, the criterion of teaching measurement was in terms of time but not in
terms of outcome or the results obtained. The term, ‘Credits’ have led to business like
organization of teaching-learning process; knowledge in each Discipline is depicted
in terms of detached packages or courses for which ‘credit assignment’ is made
arbitrarily by the instructor.
DEFINITION OF CREDIT
Credit is a notional representation of a fixed amount of students’ study hours devoted
to various aspects of curriculum:
• Attending Lecture Sessions

• Doing Practical work
• Undergoing on-job-training
• Participation in VSAT/Online related activities
• Participation in Seminars
STEPS FOR ADOPTING CREDIT SYSTEM AND DRAWING UG PROGRAMME STRUCTURE (DOMAIN PART
ONLY)
1. All the Courses of a UG Programme are listed as per industrial requirement and
parity with two or three Universities (if relevant).
2. Around 96 – 108 are assigned as total credits for the UG Programme.
3. The relative importance to be given to various Courses is decided. The credit
weight is assigned to each of the Courses as per theory and practical hours of
instruction required.
4. The Courses are distributed keeping in view credit weight and domain
hierarchy. The template given in Table A-2 is used to prepare the structure for
all the six Semesters.
5. Associate Degree corresponds to the first four Semesters.
6. Subsequently, the Certificate (one Semester) and Diploma (two Semesters) can
be pulled out by a combination of relevant Courses from the degree
programme.

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Table A - 2 Template for Semester-wise Domain Specific Programme Structure
Template for Semester-wise Domain Specific Programme Structure

S.No. Unique Courses (from other The SU Courses
Universities)
Course Name Credits Course Name Credits
Table A-2 signifies only domain specific curriculum to which we will add employability
related Courses for the semester.
ADVANTAGES AND LIMITATION OF CREDIT SYSTEM

Credit system helps in
• Providing a basis for determining amount of study corresponding to a

qualification
• Calculating student work load
• Standardization of learning components as per regulatory aspects
• Modularization of the curriculum
• Supporting fiscal management –e.g. student fees, Library grants, academic
payments, etc.
• Facilitating student mobility across institutions applying the credit transfer
mechanism (to be decided by the Academic Council of the University)
• Allowing horizontal and vertical mobility for the students across the programs of
an institution
• Providing metrics for assessment in terms of Marks and Examination Paper hours
One critical view is that award of degrees based on accumulated Credits from
isolated subjects does not guarantee holistic scholarship required of graduates.
MODULARIZATION
We shall state (i) the definition of the term, ‘module’, (ii) modularization types and (iii)
reasons for modularization.
DEFINITION OF MODULE
A module is the smallest building block of a programme. It is a set of functionally linked
knowledge, skills and capacities (work competence) necessary for the performance
of a particular job/task. Modules, as discrete pieces of learning, can be assembled
together to make a program of study, leading to award of a
Certificate/Diploma/Associate Degree/Degree. The program developer can

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modularise the program structure in order to facilitate proper pace of study for a
learner. This could be useful for specific clientele and for continuing education
purposes.
TYPES OF MODULARIZATION
There are four main modular types in planning of a program:
1. General Modularization
2. Block Modularization
3. Fragmental Modularization
4. Branching Modularization
General Modularization
General Modularization leads to integrated qualification after completion of entire

program; at intermediate levels, it facilitates only credit accumulation. In this type of
modularization, modules are created by dividing the requirements of an occupation
into smaller and less complex working competencies. The credits can be acquired
and it does not lead to award of Certificate or Diploma, etc. at intermediate levels.
The only advantage is towards differed re-registration in subsequent semesters within
maximum validity period. It offers time-wise flexibility to students who could “take a
stop and hop.” See two examples in Figure A-8.
First Second
Semester Semester
AS.IT -MS
Fourth Third
Semester Semester
Figure A-8 Representation of General Modularization
Block Modularization
Block modularization leads to an opportunity created for building specific

competencies within the framework of general modularization. It offers the facility of

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early exit with certain level of working competencies of the labour market at different
levels of the program along with certification (the difference from the first variety of
general modularization). For example, in B.Sc. IMS, the modules can be planned in
such a way as to give the beginning level competencies to the student at the end of
first two semesters (as Diploma), advanced competencies at the end of first four
semesters (as Associate Degree) and UG qualification at the end of six semesters
(Figure A-9).
Figure A-9 Representation of Block Modularization
Fragmental Modularization
Fragmental modularization leads to knowledge level just required for performing a

particular task in a work place. The curriculum is split to suit specific competencies
required for a job, not necessarily as per the Semester grouping in the UG curriculum.
Independent Certification is possible as Certificate, Diploma, etc. An example is given
in Figure A-10, where the different colour codes represent different types of Courses.

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Figure A-10 Representation of Fragmental Modularization
Fragmental modularization, supported by credit transfer at the time of re-entry, could

facilitate completion of an UG Degree [B.Sc. (IT-IMS) in the above case] through
subsequent continuation of study.
Branching Modularization
Branching modularization leads to an opportunity of creating different specialization

areas from a programme. In this type of modularization, the base module is kept
common leading to the build-up of different specialization degrees/diplomas
depending on the optional subjects chosen at the higher level. For instance, MBA
program offered in some Universities has 6 specialization areas, the subjects for which
are offered in 3rd and 4th semesters. The subjects for 1st and 2nd semesters are the
same across the specialization areas (Figure A-11).

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Second Semester
First Semester
Figure A-11 Representation of Branching Modularization
MBA
It is possible that a candidate with one specialization of MBA can obtain PG Diploma
in other specialization areas by completing the corresponding subjects for 3rd and 4th
semesters, as per conditions specified in the University Prospectus.
REASONS FOR MODULARIZATION

Some of the reasons for modularization include the following:
• opportunity for the University to build need and competency based shorter
version sub-set programs from existing main programmes
• increased flexibility in educational planning by adjusting to meet individual
needs and learning capabilities due to the possibility of acquiring qualifications
through multiple stages with permitted time gaps
• increased opportunities for lifelong learning through vertical and horizontal
mobility in education
• adequate way to fill the gap between already acquired university
qualifications and competencies required in workplace (through choice of
related courses)
• facility for enhancing university revenue by optimising on resources generation
and increased enrolment by offering ‘by-product’ programs.

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EMPLOYABILITY INCULCATION
The Skills University aims at fusing domain specific skills with employability. The term,
employability, is defined as the capability to gain initial employment, maintain
employment and switch over to new employment, if required. Employability is the
synergic combination of personal qualities, skills of various kinds and subject matter
understanding. From the employers’ point of view, employability is the inclination of
the graduate to exhibit attributes that employers consider as necessary for the present
and the future functioning of their organization effectively. Increasingly, graduates
need to be more flexible in response to the growing number of career changes
experienced through life, because of the increase in short term contracts, part-time
work, outsourcing and home-working. In a globalized world, the workforce should be
willing to work in a competitive environment. The curriculum should pave way for
inculcation of both domain knowledge and employability skills. Many of the institutions
offer domain knowledge intensely, but are ineffective in handling the employability
skills. The employability gap in graduates irritates employers, as precious time and
resources are to be directed in preparing the unemployable graduates for the jobs.
Further, graduates with ingrained employability fit into challenging situations with
dexterity. Keeping these aspects in view, student workload need to be calculated
providing time for acquisition of domain based knowledge and employability
attributes.
COMPONENTS OF EMPLOYABILITY: LIFE SKILLS AND OCCUPATIONAL KNOWLEDGE

The employability skills literature contains a huge list of attributes, some of them being
synonyms. Precisely, skills enhancing employability come under two varieties - life skills
and organizational knowledge related. These two varieties are depicted under five
subdivisions: a) Intellectual skills; b) Key/generic/transferable skills; c) Self-efficacy
belief; d) Basics of citizenship e) Knowledge of organizational structures, systems and
processes. The types are explained below:
• Intellectual skills: Analytical ability, logical presentation, rapid

conceptualisation of issues, research skills (basic reading of designs and
drawings, repair of own equipment and additional skills required for new
product designs or domain agnostic analytical skills)
• Key/generic/transferable skills: Communication, IT, numeracy, willingness to
learn, problem solving ability, ability to summarize (office communications,
meeting minutes preparation, briefing, etc.)
• Self- efficacy beliefs: Motivation, self-reliance, ability to cope with pressure,
commitment, time management, dependability, flexibility, initiative,
adaptability.

KJA RECOMMENDATION
• Basics of citizenship: Relevant aspects of Indian Constitution, human rights,

environmental issues, issues of contemporary relevance from sciences and
social sciences etc.
• Knowledge of organizational structures, systems and processes: Transferring
theoretical knowledge to the industrial context (being able to handle more
advanced equipment and improved technologies, basic knowledge of
industrial production techniques, knowledge of recent technological
developments in the trades, team work, role of groups in micro and small
enterprise development, workshop layout, organizational structures, processes
of an industry, division of labour, pricing, accounts, material management,
prevention and management of waste, marketing, market research, customer
relations, planning of activities and stock, quality control, domain related
regulatory, legal and fiscal features and entrepreneurial aspects); on-job-
training provides opportunity to have real life experience in the industry.
A combination of above components with domain knowledge through a spectrum

of appropriate courses could help in preparing a student for employment.
While designing the curriculum, we intend treating
• the intellectual skills, key skills, self-efficacy beliefs and basics of citizenship
under the title, ‘life Skill courses’ and
• the knowledge of organizational structures, systems and processes through a
few organizational knowledge related courses and on-job-training.
The challenge lies in planning academic activities befitting these attributes and with
relevance to the industrial practices. Industry and employers will be opted as partners
in curriculum design, implementation and assessment.
CURRICULAR SPREAD
Accordingly, it is proposed to design Courses to accommodate for domain
knowledge and employability through a spectrum of Courses as given in Figure A-12.

KJA RECOMMENDATION
Figure A-12 Curriculum Spread
STUDENT WORKLOAD ADJUSTMENT

Consequent to addition of curricular components for employability inculcation, the
SU students will have enhanced workload.
ACADEMIC YEAR SPACING

The Associate Degree Programme consists of four Semesters. The first Semester begins
on July 15 and the session goes up to November 30. The first Semester Examinations
are to be held between Dec 7 and Dec 22. After ten holidays, the Second Semester
begins on Jan 2 of the next calendar year and the session goes up to May 9. The
second Semester Examinations take place between May 16 and May 31. The summer
holidays are between June 1 and June 30. The third and fourth Semesters run during
July 1 - Nov 30 and Jan 2 – May 9, respectively. The Examinations of third and fourth
Semesters are held on the same dates as for the first and second Semesters,
respectively. Totally, there will be 218 working days in the first year and 230 working
days in the second year. The Associate Degree workload is more by 88 days from the
conventional colleges for a two-year period (i.e., 360 days). The additional time, so
gained, is used for cementing employability, which otherwise the students have to
seek from other wings of the training industry by incurring more expenditure.

KJA RECOMMENDATION
CALCULATION OF TIME REQUIRED FOR ACQUIRING DOMAIN SPECIFIC SKILLS & EMPLOYABILITY SKILLS
Each working day will have 6 hours of classes – from 8.00 a.m. to 3.00 p.m. with an hour
of lunch break. We may run another session in a staggered manner. Out of 2688 hours
available for two years, domain based work is allotted 1360 hours (for 68 Credits) and
the balance of 1328 hours is for employability skills. This Scheme assigns almost equal
weight for domain-based knowledge and the employability skills (Table A-3).
Table A - 3 Instructional time for Associate Degree
Instructional time for Associate Degree

SNO Session Exam Semester Working Total Time for Time for
Period Holidays Days Hours (@ Domain Employability
6 Hours Based Inculcation
per Day) Knowledge
Semester I
July 15 to Nov
30
Dec 23 to Jan
[139 days - (20 Dec 7 to 114 684 360 hours
1 1 (10 324 hours
Sundays + 5 Dec 22 days hours 18 Credits
days)
holidays ) = 114
Days]
Semester 2
Jan 2 to May 9
[128 days - (19 June 1 to
May 16 to 104 624 320 hours
2 Sundays + 5 June 30 (30 304 hours
May 31 days hours (16 Credits)
holidays) = 104 days)
days
Semester 3
July 1 to Nov 30
[153 days - (22
Dec 7 to Dec 23 to Jan 126 756 360 Hrs
3 Sundays + 5 396 hours
Dec 22 1 (10 days) days hours
holidays) = 126
Days] (18 Credits)
Semester 4
Jan 2 to May 9
[128 days - (19 June1 to
May 16 to 104 624 320 hours
4 Sundays + 5 June 30 (30 304 hours
May 31 days hours (16 Credits)
holidays) = 104 days)
days]
448 2688 1360 hours 1328 hours
days hours
Total 80 days (68 Credits)
The curriculum would be subjected to peer group and employer review and be
updated as per requirement. An involved exercise is undertaken in curriculum design
to provide maximum flexibility to the students, which will come into play, once the
programmes are offered on distance mode.

KJA RECOMMENDATION
METHODOLOGY FOR CURRICULUM IMPLEMENTATION
In this section, we discuss the faculty resources, instructional system and assessment
methodology that the SU proposes to use.
FACULTY RESOURCES NEEDED
We need to have faculty to handle the types of courses, which we have discussed in
and indicated in Figure 14.
UNIQUE NATURE OF FACULTY REQUIREMENT IN A VOCATIONAL UNIVERSITY

The faculty type identification should support our earnestness in addressing the main
drawback seen in the present day vocational graduates in Indian context – namely
unemployability. The faculty chosen should have necessary skills and competences to
address the employability issues effectively. Many countries prescribe faculty positions,
qualifications, expertise and experience for Vocational Universities in a way different
from other Universities. For instance, in China and Sri Lanka, the teachers employed in
a Vocational University are selected under various categories, such as for domain
knowledge, life skills and vocational experience.
CATEGORIES OF FACULTY POSITIONS REQUIRED FOR INCULCATION OF EMPLOYABILITY

In the section we stated that for preparing a student for employment, a need exists
for offering a combination of courses from the concerned domains, life skill areas and
organizational aspects along with on-job-training. Accordingly, the faculty needed is
given in Table A-4.
Table A - 4 Categories of Faculty Required
Categories of Faculty Required
No. Type of Course Faculty Required

Domain specific faculty
Focal Courses
1 (Supportive/core/ele
ctive courses )
Analytical skill experts, soft skill specialists,
2 Life skill courses psychologists, experts from social sciences and
sciences
Experts in finance/marketing/material
Organizational management/ HR/legal issues/stores/equipment
3
knowledge courses maintenance/ administration
Two mentors –a faculty from the concerned Domain
4 On-job-training
and a senior employee from the host industry

KJA RECOMMENDATION
Appropriate faculty will be appointed prior to the starting of the academic programs
in TLSU. The Instruction will be conducted by full time and contract faculty (the latter
in view of the requirement of experts from industry and non-domain areas).
INSTRUCTIONAL SYSTEM
The Programmes will be offered in shifts on face-to face mode initially and later
through Distance mode after getting approval from Distance Education Council .As
the clientele is to be drawn from diverse age and occupational groups, a blended
mode of instruction (indicated below) will be made available; it could facilitate
flexibility and access.
• Blended mode of teaching consisting of face-to-face, VSAT & online instruction

will be used.
• VSAT Studio will be used for homogenisation of teaching resources. VSAT
supports two way audio and video. Details of VSAT mediated instruction are
given in Annexure-1.
• The SU will make use of the Cloud facility
• Practical, on-job-training and case studies will be part of the curriculum.
• Each Community College will have Library, VSAT terminal and internet facilities
apart from classrooms and laboratories.
ASSESSMENT METHODOLOGY
The Continuous Assessment and Term-end Examinations will be used. The Examination
Division of the University will conduct the Assessment and Evaluations. The appropriate
documents for curriculum formation, assessment and certification will be finalised
through Academic Council mediation.
RESEARCH, CONSULTANCY AND EXTENSION
Initially two Research Centres will be established:
1. Centre for Labour markets;

2. Centre for Technology in Education;
The Labour Policy Research is critical as the unorganized sector forms the major part
of the workforce and the ground rules are not clear for the sector causing
considerable hardship to the work force. Added to it, informalisation of formal sector
is taking place through what is called structural changes within the organized sector.
It arises due to outsourcing and contractualisation/casualisation of workforce. This is
happening in sectors like services, construction, hospitality and security services. In
such cases, the increasing presence of unorganized workforce with no or less skills is
alarming. Whether there should be any provisions/enforcement for such organized
sector/companies to provide skills to indirect-workforce, whether training of such
workforce by the employer can be made compulsory? What are the mechanisms of

KJA RECOMMENDATION
training? Another issue is whether service sector should be given a special thrust, as it
is the fastest growing area. The modalities of PPP for large-scale training of workers are
not established so far. Inquiry is needed into training pedagogy and trainer
preparation for the informal sector.
Similarly, technology in education is a vital area of research, as technology can

provide powerful support in pedagogy and can increase access. Technology has a
democratizing effect in that location based imbalance in expertise can be alleviated
through beaming of lectures of experts and materials using media. Research can
throw light on optimization of ICT facilities, minimization of costs, utilization of student-
friendly delivery mode and on-demand examination. The University plans to use
blended mode of delivery and would like to evolve appropriate combination of
media to provide effective support services to the students, for which research would
be a productive support. Research work will be started in other areas gradually.
COMPLIANCE TO THE CLAUSES OF THE SATE PRIVATE UNIVERSITIES ACT.
The clauses of the State Private Universities Act, 2009 will be followed in constituting
the University authorities, appointing the officers of the University, formulating the
Statutes and Ordinances and conducting the academic and administrative activities
of the University.
FINANCIAL PROPOSAL
Government can consider partnering with private industry/educational institutions. A
feasible and sustainable model can be worked out between/among the partners. Or
Government can solely invest in this venture.

KJA RECOMMENDATION
Table A - 5 Proposed Program-wise Fee Structure
Sr. Program Duration FY14 FY15 FY16 FY17 FY18 FY19 FY20
no Programs Type in yrs 1st Yr. 2nd Yr. 1st Yr. 2nd Yr. 1st Yr. 2nd Yr. 1st Yr. 2nd Yr. 1st Yr. 2nd Yr. 1st Yr. 2nd Yr. 1st Yr. 2nd Yr.
Fee Structure Courses Wise (INR)
1 Mechatronics 2 year 2 40,000 42,000 40,000 44,100 42,000 46,305 44,100 48,620 46,305 51,051 48,620
2 Mechatronics- spl in Mfg autmn. Associate 2 40,000 42,000 40,000 44,100 42,000 46,305 44,100 48,620 46,305 51,051 48,620
Degree or
3 Electronics 2 40,000 42,000 40,000 44,100 42,000 46,305 44,100 48,620 46,305 51,051 48,620
Post-
4 Commerce, Business &Social Devlp diploma 2 27,500 28,875 27,500 30,319 28,875 31,835 30,319 33,426 31,835 35,098 33,426
5 IT prorgams 2 35,000 36,750 35,000 38,588 36,750 40,517 38,588 42,543 40,517 44,670 42,543
6 Hospitality 2 32,000 33,600 32,000 35,280 33,600 37,044 35,280 38,896 37,044 40,841 38,896
7 Mechatronics 1yr-cert/ 1 40,000 42,000 44,100 46,305 48,620 51,051
8 Mechanical diploma / 1 40,000 42,000 44,100 46,305 48,620 51,051
Adv.Dipl.
9 Electrical/electronics 1 40,000 42,000 44,100 46,305 48,620 51,051
or 3rd yr
10 Finance and Accounts for bach. 1 27,500 28,875 30,319 31,835 33,426 35,098
11 IT Deg,after 1 35,000 36,750 38,588 40,517 42,543 44,670
12 Hospitality 2 yr AD 1 32,000 33,600 35,280 37,044 38,896 40,841
13 Modular 2 - 6 month programs various 0.5 20,000 21,000 22,050 23,153 24,310 25,526

KJA RECOMMENDATION
Table A - 6 An Estimate on Program-wise Student Enrolment
Sr. Program Duration FY14 FY15 FY16 FY17 FY18 FY19 FY20
no Programs Type in yrs 1st Yr. 2nd Yr. 1st Yr. 2nd Yr. 1st Yr. 2nd Yr. 1st Yr. 2nd Yr. 1st Yr. 2nd Yr. 1st Yr. 2nd Yr. 1st Yr. 2nd Yr.
1 Mechatronics 2 year 2 60 - 80 60 80 80 80 80 100 80 100 100
2 Mechatronics- spl in Mfg autmn. Associate 2 60 - 80 60 80 80 80 80 100 80 100 100
Degree or
3 Electronics 2 60 - 80 60 80 80 80 80 100 80 100 100
Post-
4 Commerce, Business &Social Devlp diploma 2 60 - 90 60 120 90 120 120 120 120 120 120
5 IT prorgams 2 60 - 80 60 90 80 90 90 100 90 100 100
6 Hospitality 2 60 - 90 60 100 90 120 100 120 120 120 120
7 Mechatronics 1yr-cert/ 1 25 25 45 75 100
8 Mechanical diploma / 1 25 25 45 75 100
Adv.Dipl.
9 Electrical/electronics 1 25 25 45 75 100
or 3rd yr
10 Finance and Accounts for bach. 1 25 25 45 75 100
11 IT Deg,after 1 25 25 45 75 100
12 Hospitality 2 yr AD 1 25 25 45 75 100
13 Modular 2 - 6 month programs various 0.5 30 60 75 100 100

KJA RECOMMENDATION
Works Cited
Planning, Programme Monitoring and Statistics Department. Economic Survey of
Karnataka 2014-2015. Bengaluru: Government of Karnataka, 2015.
Association of Mutual Finds in India. Industry Trends (at a broad level). Mumbai:
Association of Mutual Finds in India, 2015.
Commerce and Industries Department. Karnataka Industrial Policy (2014-19). Policy

Report, Bangalore: Commerce and Industries Department, 2014.
FICCI &KPMG."IndianMEdia and Entertainment Industry Report." 2015.
FICCI. Skills Development - Sector Profile. FICCI.
General Insurance Council. Indian Non-Life Insurance Industry – Year Book. Mumbai:
General Insurance Council, 2013-14.
India Brand Equity Foundation. Indian Banking Sector. November 2015.

http://www.ibef.org/industry/banking-india.aspx (accessed December 11, 2015).
—. Karnataka State Report. November 2015.

http://www.ibef.org/states/karnataka.aspx (accessed August 11, 2015).
International Labour Organization. Global Employment Trends for Youth 2015.

Geneva: ILO, 2015.
IRDA.IRDA - Annual Report. Hyderabad: IRDA, 2011-14.
Marope, P.T.M., B. Chakroun, and K.P.Holmes. Unleashing the Potentia ln - Transforming

Technical and Vocational Education and Training. Paris: UNESCO, 2015.
Ministry of Education, Brazil. What is Pronatec.

http://pronatec.mec.gov.br/institucional-90037/o-que-e-o-pronatec (accessed 12 8,
2015).
Planning Commission of India.11th Five Year Plan. New Delhi: Planning Commission,
2007.
Planning, Programme Monitoring & Statistics Department. Economic Survey of

Karnataka. Government Report, Bengaluru: Planning, Programme Monitoring &
Statistics Department, 2014-15.
Technical Group on Population Projections. Population Projection for India and State
2001-2026. New Delhi: Office of Registrar General and Census Commissioner, 2006.
Tirlapur, Laxmi N, Bheemanagouda O Patil, and Nazath

KJA RECOMMENDATION
ParveenNavalaur."Export of Processed Fruits and Vegetables in India with Special
Reference to Karnataka." International Journal of Commerce & Business
Management, 2015: 102-106.
World Bank.Skill Development in India - The Vocational Education and Training System.
World Bank, 2007.
World Economic Forum. "Employment, Skills and Human Capital. "World Economic
Forum. September 2015.
http://www3.weforum.org/docs/WEF_GCP_Employment_Global_Challenge_pager.p
df (accessed December 7, 2015).
LIST OF ABBREVIATIONS
AC Academic Council
AICTE All India Council for Technical Education
ATS Apprenticeship Training Scheme
BoM Board of Management
CC Community College
CSE Comprehensive Skill Education
CTS Craftsmen Training Scheme
Conditions of Work and Promotion of Livelihoods in the Unorganized
CWPLUS Sector
FICCI Federation of Indian Chambers of Commerce and Industry
GB Governing Body
GER Gross Enrolment Ratio
GSDP Gross State Domestic Product
HDI Human Development Index
HRD Human Resource Development
ICT Information & Communication Technology
IGNOU Indira Gandhi National Open University
IIJT Indian Institute of Job Training
IIM Indian Institute of Management
IIM-A Indian Institute of Management -Ahmedabad
IIT Indian Institute of Technology
IT Information Technology
ITC Industrial Training Center
ITI Industrial Training Institute
KVK Krishi Vigyan Kendra

KJA RECOMMENDATION
Madras Centre for Research and Development of Community
MCRDCE Education
MoLE Ministry of Labour and Employment
MSME Micro, Small and Medium Enterprise
NGO Non-Government Organisation
NKC National Knowledge Commission
NSDM National Skill Development Mission
NSDP Net State Domestic Product
PGDHE Post Graduate Diploma in Higher Education
PPP Public Private Partnership
SSI Small Scale Industry
SU Skills University
TVET Technical and Vocational Education and Training
UGC University Grants Commission
VE Vocational Education
VET Vocational Education and Training
VHSS Vocation Higher Secondary School
VT Vocational Training
VU Vocational University
WB World Bank
--------------------------------X--------------------------------

KJA RECOMMENDATION
ANNEXURE- 2: GO ON KARNATAKA JNANA AAYOGA (KJA)
Subject: Reconstitution of Karnataka Knowledge Commission.
Read: 1) Government Order No. ED 110 URC 2008, dated 5/9/2008

2) Government Order No. ED 462 URC 2013, dated 28-12-2013
3) Notification No. ED 364 URC 2016, dated 26-12-2016.
Preamble
Karnataka has emerged as the Knowledge Capital of the country. The State
needs to take on the global challenges in terms of innovation, conservation of
heritage, generation of new knowledge, application of knowledge in every sphere of
life, skill development, enhancement of competencies, creation of better human
capital to create new knowledge economy besides creation of a more humane
society. Keeping in view the setting up of National Knowledge Commission, the
Karnataka Knowledge Commission was constituted in 2008, vide Government Order
No: ED 110 URC 2008, dated 5-9-2008 read at (1) above, under the guidance and
Chairmanship of renowned Space Scientist Dr. K. Kasturirangan. After completion of
term of the Commission, was reconstituted and the term was extended till December
28, 2013 vide G.O. read at (2) above. Further, the term of the Commission was
extended for 03 years vide Notification read at (3) above. Recognizing the important
role to be played the Commission in making Karnataka a Knowledge State and a
Knowledge economy, it is proposed to reconstitute Karnataka Knowledge
Commission.
The Government has considered reconstitution of Knowledge Commission for

another term with the focus on institution building, policy innovation and excellence
in the field of education, health, science and technology, industry, entrepreneurship,
research and innovation, traditional knowledge, agriculture, e-governance, rural
development, etc., and other relevant areas in the context of Karnataka. In view of
the above, the Government has decided to reconstitute the Karnataka Knowledge
Commission. Hence this order.
GOVERNMENT ORDER NO. ED 354 URC 2016 (Part – 1)

BANGALORE DATED: 2-8-2017
In the circumstances explained above, the Government is pleased to

reconstitute the Karnataka Knowledge Commission in the State with the following
eminent persons as Chairman and Members.

KJA RECOMMENDATION
Sl.No Name and Address Designation
1 Dr. K. Kasturirangan, Chairman
Former Chairman of ISRO, Ex- Member
(Science), Planning Commission, GoI, Emeritus
Professor, National Institute of Advanced
Studies, Bengaluru
2 Dr. Mukund Kadursrinivas Rao Member -Secretary
Adjunct Professor, NIAS, Bengaluru
Sri. P.G.R. Sindhia Member
Former Minister for Home, Transport and
Finance, Government of Karnataka
3
4 Sri. Mohandas Pai T V Member
President, MEMG International India Ltd.
No. 70, 4th Floor, Grace Towers, Above
Navaneeth Motors, Milers Road, Bengaluru –
560052
5 Prof. Anurag Behar Member
Vice Chancellor, Azim Premji University, PES
Institute of Technology Campus Pixel Park, B’
Block Electronic City Hosur Road, Bengaluru
6 Prof. M. R. Satyanarayana Rao, Member
Ex - Director, Jawaharlal Centre for Advanced
Scientific Research (J.N.C.A.S.R), Jakkur,
Bengaluru- 560064.
7 Dr. Nazeer Ahmed, Member
Advisor, World Organization for Research
Development and Education, Ex-Scientist,
NASA, No. 4, 9th Cross, Jayamahal Main Road,
Jayamahal Extension, Bangalore – 560046
8 Prof. Sunney Tharappan, Member
Director, C.L.H.R.D, Valencia Circle,
Mangalore – 575002.
9 Prof. G. Padmanabhan, Member
Former Director of IISc, Bangalore – 560012.
10 Dr. Gayatri Saberwal, Member
Institute of Bioinformatics and Applied
Biotechnology, Biotech Park Electronics City
Phase I, Bangalore – 560100
11 Prof. S. Sadagopan, Member
Director, IIIT-Bangalore, 26/C, Electronics City,
Hosur road, Bangalore – 560100.

KJA RECOMMENDATION
12 Dr. Devi Prasad Shetty, Member
Heart Specialist, Narayana Hrudayalaya,
258/A, Bommasandra Industrial area, Anekal
Taluk, Bangalore – 560099
13 Dr. Rajashekar H. B. Member
Director Jawaharlal Nehru Medical College,
Nehru Nagar, Belgavi – 590010
14 Dr. B.M. Hegde, Member
Ex-Vice Chancellor, Manipal University,Ganesh
Lower Bendur, II cross, Mangaluru – 575702.
15 Dr. P. Balakrishna Shetty, Member
Vice Chancellor, Sri Siddartha Academy of
Higher Education, Agalakote, B.H. Road,
Tumkur – 572 107.
16 Sri. Rahul Sharad Dravid, Member
B 17, Epsilon Ventures, Yemlur PO, Bengaluru –
560037
17 Sri. Prakash Padukone, Member
Prakash Padukone Badminton Academy, No.
4, 3rd Main, KBA Stadium, Jasma Bhavan
Road, Opposite to Congress office, Vasanth
Nagar, Bengaluru – 560052.
18 Dr. Mohan Alva, Member
Chairman, Alva Education Society, Vidyagiri,
Moodbidri, Dakshina Kannada Dist – 574227.
19 Dr. B N Suresh, Member
Vikram Sarabhai Professor, ISRO Hqs, Antariksh
Bhavan, New BEL Road, Bengaluru-560 231
20 Sri. S V Ranganath, Member
Retd. IAS & Ex- Chief Secretary
21 Smt. Ashwini Nachappa, Member
International Athletic, No. 516, 16th E Cross,
17th A Main Koramangala, 6th Block,
Bengaluru- 560094
22 Dr. Pulak Ghosh, Member
Professor, IIM-Bengaluru
23 Prof. B. K. Chandrashekar, Member
Hon’ble Ex-Minister, GoK
24 Prof. Radhakrishna, Member
Academician

KJA RECOMMENDATION
25 Smt. Sudhamurthy, Member
President, Infosys Foundation
26 Prof. Basavaraja K. P, Member
Professor, IIM, Bengaluru
27 Dr. S.R. Patil, Member
Rtd. Professor & Head, Geography
Department, Karnataka University, Dharwad
28 Dr. Angarai Ganeshan Ramakrishnan Member
Professor & Chairman, Department of
Electrical Engineering, IISc, Bengaluru
29 Sri. Bharat Khinji, Member
Industrialist, Hubballi
30 Sri. Shivkumar Kheni, Member
Industrialist
Ex-Officio Members
Sl. Name and Address

No
1 Additional Chief Secretary to Government, Finance Department,
Government of Karnataka, Vidhana Soudha, Bengaluru-560001
2 Additional Chief Secretary to Government, Primary and Secondary
Education Department, Government of Karnataka, 6th Floor, 2nd
Stage, M.S. Building, Bengaluru-560001
3 Additional Chief Secretary to Government, Medical Education
Department Government of Karnataka, 6th Floor, 4th stage,
MS Building, Bengaluru-560001
4 Principal Secretary to Government, Higher Education Department,
Government of Karnataka, 6th Floor, 2nd Stage, MS Building,
Bengaluru-560001
5 Principal Secretary to Government, Health and Family Welfare Department,
Government of Karnataka, # 105, 1st Floor, Vikasa
Soudha, Bengaluru-560001
6 Principal Secretary to Government, Information Technology, Bio
Technology and Science & Technology Department, Government of
Karnataka, 5th Floor, 5th stage, M.S Building, Bengaluru-560001

KJA RECOMMENDATION
Term of Reference: -
The Commission shall strive to give recommendations in the following areas.
1. To focus on institution building, policy innovation and excellence in the field of

education, health, science and technology, industry, entrepreneurship, research
and innovation, traditional knowledge, agriculture, e-governance, rural
development, etc., and other relevant areas in the context of Karnataka.
2. Build excellence in the educational system to meet the challenges of the 21st
century and increase Karnataka’s competitive advantage in the fields of
knowledge.
3. Promote creation of knowledge in all formal and non-formal educational, scientific

and Knowledge institutions of Karnataka.
4. Improve the leadership and Management of educational and knowledge

institutions of Karnataka.
5. Promote knowledge applications in agriculture, rural development, health,

industry and other areas.
6. Enhance the use of knowledge capabilities in making government an effective

service provider to the citizen and promote widespread sharing of knowledge to
maximize public benefit.
7. Promote inter sectoral interaction and interface with the objective of preservation,
access, new concepts, creation, application, dissemination, outreach and
services relating to knowledge.
8. Develop appropriate institutional frameworks to strengthen the education system,

promote domestic research and innovation, facilitate knowledge application in
various sectors.
9. Leverage information and communication technologies to enhance governance

improve connectivity and reduce digital divide.
10. Device mechanisms for exchange and interaction between knowledge System in
the global arena.

KJA RECOMMENDATION
11. Conserve indigenous and heritage knowledge in Karnataka for better Utilization of
time tested concepts and knowledge by society.
By Order and in the name of the

Governor of Karnataka
Sd/-
(M.A. AHAMED JHON)
Under Secretary to Government
Higher Education Department (Universities-2)
To,
The Complier, Karnataka Gazette -for publication in next issue of the Gazette.
Copy to:
1. The Principal Secretary to Hon’ble Chief Minister, Government of Karnataka,
Vidhana Soudha, Bengaluru.
2. PS to Chief Secretary / Additional Chief Secretaries / Development Commissioner
to Govt., of Karnataka, Vidhana Soudha, Bengaluru, All Principal Secretaries/
Secretaries, Govt. of Karnataka, Bengaluru.
3. Dr. K. Kasturirangan, Member (Science), Planning Commission, Government of
India. Director, National Institute of Advanced Studies, Bengaluru.
4. Vice Chancellors/Registrars of All Universities.
5. Executive Director, Karnataka State Council for Higher Education, Bengaluru.
6. Dr. K. Kasturirangan, Member (Science), Planning Commission, Government of
India. Director, National Institute of Advanced Studies, Bengaluru.
7. Dr. Mukund Kadursrinivas Rao, Adjunct Professor, NIAS, Bengaluru
8. Shri. PGR Sindhia, Former Minister, Home, Transport & Finance, GoK, No. 24,
Doddamaralavadi Village, Maaralavadi Hobli, Kanapura Taluk, Ramanagara Dist.
9. Sri. Mohandas Pai T V, President, MEMG International India Ltd., No. 70, 4th Floor,
Grace Towers, Above Navaneeth Motors, Milers Road, Bengaluru – 560052
10. Prof. Anurag Behar, Vice Chancellor, Azim Premji University, PES Institute of
Technology Campus Pixel Park, B’ Block Electronic City Hosur Road, Bengaluru
11. Prof. M.R. Satyanarayana Rao, Ex-Director, Jawaharlal Centre for Advanced
Scientific Research (J.N.C.A.S.R), Jakkur, Bangalore – 560064.
12. Dr. Nazeer Ahmed, Advisor, World Organization for Research Development and
Education, Ex-Scientist, NASA, No. 4, 9th Cross, Jayamahal Main road, Jayamahal
Extension, Bangalore – 560046.
13. Prof. Sunney Tharappan, Director, C.L.H.R.D, Valencia Circle, Mangalore – 575002.
14. Prof. G. Padmanabhan, Former Director of IISc, Emeritus Professor Department of
Biochemistry, Indian Institute of Science Bangalore – 560012.

KJA RECOMMENDATION
15. Dr. Gayatri Saberwal, Institute of Bioinformatics and Applied Biotechnology,
Biotech Park Electronics City Phase I, Bangalore – 560100.
16. Prof. S. Sadagopan, Director, IIT-Bangalore, 26/c, Electronics City, Hosur road,
Bangalore – 560100
17. Dr. Devi Prasad Shetty, Heart Specialist, Narayana Hrudayalaya, 258/A,
Bommasandra Industrial area, Anekal Taluk, Bangalore – 560099.
18. Dr. Rajashekar H B Director, Jawaharlal Nehru Medical College, JNMC Campus,
Nehru Nagar, Belgaum – 590010.
19. Dr. B.M. Hegde, Ex-Vice Chancellor, Manipal University, Ganesh Lower Bendur,
2nd Cross, Mangaluru -575702.
20. Dr. P Balakrishna Shetty, Vice Chancellor, Sri Siddhartha Academy of Higher
Education, Agalakote, B.H. road, Tumkur – 572 107.
21. Sri. Rahul Sharad Dravid, B 17, Epsilon Ventures, Yemlur PO, Bengaluru – 560037
22. Sri. Prakash Padukone, Prakash Padukone Badminton Academy, No 4, 3rd main,
KBA stadium, Jasma Bhavan road, Opp Congress office, Vasanth Nagar,
Bengaluru – 560052.
23. Dr. Mohan Alva, Chairman, Alva Education Society, Vidyagiri, Moodbidri,
Dakshina Kannada Dist – 574 227.
24. Dr. B N Suresh, Vikram Sarabhai Professor, ISRO Hqs, Antariksh Bhavan, New BEL
Road, Bengaluru-560 231
25. Shri. S V Ranganath Retd. IAS & Ex- Chief Secretary, Vice-Chairman, Karnataka
State Higher Education Council, Palace Road, Bengaluru.
26. Smt. Ashwini Nachappa, International Athletic, No. 516, 16th E Cross, 17th A Main
Koramangala, 6th Block, Bengaluru- 560094
27. Dr. Pulak Ghosh, Professor, IIM-Bengaluru, Bengaluru, Bannerughatta Road,
Bengaluru-560076.
28. Prof. B. K. Chandrashekar, Door No. 4032, 28th Cross, 17th Main Road,
Banashankhari 2nd Stage, Bengaluru – 560070
29. Prof. Radhakrishna, Academician
30. Dr. Sudha N. Murthy, Chairperson, Infosys Foundation, Infosys Towers, No. 27,
31. JP Nagar, 3rd Phase Bannerghatta Main road, Bangalore – 560076.
32. Prof. Basavaraja K.P, Professor, IIM Bengaluru, Bannerughatta Road, Bengaluru-
560076.
33. Dr. S.R. Patil M. A. Ph.D, Professor of Geography, (Retd) Department of
Geography, Karnataka University, Dharwad
34. Dr. Ramakrishnan Angarai Ganeshan Ph.D,(Bio-Medical Engineer), Department of
Electrical Engineering, IISc, Bengaluru
35. Mr. Bharat Khinji, Director, Founder and Chief Executive Officer BDK Engineering
Industries Limited 47/48, Gokul Road, Hubli, Karnataka
36. Sri. Shivakumar Kheny, Industrialist, Managing Director, Nandi Highway Developers
Ltd., BF Utilities, Ltd., Bengaluru

Room No. 432, 433, 438 and 439
4th Floor, Vikasa Soudha
Dr. B. R. Ambedkar Veedhi
Bengaluru – 560 001
e-mail:admnkkc@gmail.com
www.karnataka.gov.in/jnanaayoga

KJA Recommendation on Karnataka Skill Plan

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KJA Recommendation on Karnataka Skill Plan

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KJA RECOMMENDATION

KARNATAKA SKILL DEVELOPMENT PLAN

PREPARED BY KJA TASK TEAM

Karnataka Jnana Aayoga

(RECOMMENDATION SUBMITTED BY KJA)

Karnataka Jnana Aayoga

KJA recognised the importance of skill development – especially in the un-organised

A comprehensive skill development plan requires fundamental education reforms

As part of an overall process of skill development in the state, the KJA

(Mukund Kadursrinivas Rao)

The report on Karnataka Skill Development Plan is a culmination of series of meetings

Mr. Mohandas Pai Mr. Manish Sabharwal

Co-Chairs of KARNATAKA SKILL DEVELOPMENT PLAN

Member Secretary of KARNATAKA SKILL DEVELOPMENT PLAN

Members of KARNATAKA SKILL DEVELOPMENT PLAN

Convenors of KARNATAKA SKILL DEVELOPMENT PLAN

Research Associate of KARNATAKA SKILL DEVELOPMENT PLAN

KJA Secretariat Support

• Shri. Subhash Chandra Khuntia, IAS, Chief Secretary, Government of Karnataka –

KJA TASK TEAM – KARNATAKA SKILL DEVELOPMENT PLAN

EXECUTIVE SUMMARY ......................................................................................................... 1

1.1 SOCIO – ECONOMIC STATUS OF KARNATAKA ............................................... 3

1.2 GLOBAL TRENDS IN SKILL DEVELOPMENT ......................................................... 6

1.2.1 SKILL DEVELOPMENT IN AUSTRALIA .................................................................. 7

1.2.2 SKILL DEVELOPMENT IN GERMANY .................................................................. 8

1.2.3 SKILL DEVELOPMENT IN BRAZIL.......................................................................... 9

1.3 NATIONAL TRENDS IN SKILL DEVELOPMENT ................................................... 11

1.3.1 DEMOGRAPHIC DIVIDEND.............................................................................. 11

1.3.2 MARKET REQUIREMENT .................................................................................... 12

1.3.3 CURRENT STATUS OF VOCATIONAL TRAINING INFRASTRUCTURE ............... 13

1.3.4 ELEVENTH PLAN STRATEGIES............................................................................ 15

2. SKILL DEVELOPMENT IN INDIA .................................................................................... 17

3. SKILL GAP IN KARNATAKA ......................................................................................... 21

3.1 STATE’S VOCATIONAL EDUCATION AND SKILL DEVELOPMENT ..................... 21

3.2 DEMOGRAPHIC DIVIDEND ............................................................................. 23

3.3 STATE LEVEL INITIATIVE .................................................................................... 24

3.4 VOCATIONAL EDUCATION IN KARNATAKA .................................................. 25

3.4.1 TRAINING OF TRAINERS .................................................................................... 27

4. SECTORWISE SKILL GAP ANAYLSIS ............................................................................. 31

4.1 BANKING, FINANCIAL SERVICES AND INSURANCE SECTOR ......................... 32

4.1.1 BANKING AND INSURANCE SECTOR IN KARNATAKA................................... 32

4.1.2 NON-BANKING FINANCIAL COMPANY ......................................................... 36

4.1.3 MUTUAL FUNDS ................................................................................................. 37

4.2.1 GROWTH RATE OF CONSTRUCTION INDUSTRY IN INDIA .............................. 37

4.2.2 EMPLOYMENT IN THE SECTOR ......................................................................... 39

4.2.3 PRESENT LABOUR SUPPLY ................................................................................ 40

4.2.4 PROJECTED LABOUR DEMAND ...................................................................... 41

4.3 TEXTILE AND GARMENTS SECTOR ................................................................... 42

4.3.2 EMPLOYMENT IN TEXTILE SECTOR ................................................................... 45

4.4 MEDIA AND ENTERTAINMENT INDUSTRY ........................................................ 46

4.4.2 FILM AND TELEVISION....................................................................................... 47

4.4.3 ANIMATION VFX AND GAMING ..................................................................... 47

4.4.4 SKILL GAP .......................................................................................................... 48

4.5 AGRICUTURE ................................................................................................... 48

4.5.1 AGRICULTURE PROFILE OF THE STATE ............................................................. 48

4.5.2 WORK FORCE IN AGRICULTURE: .................................................................... 49

4.5.3 ALLIED SECTORS ............................................................................................... 50

4.5.4 SKILL GAP .......................................................................................................... 52

4.6 TOURISM AND HOSPITALITY ............................................................................ 53

4.6.1 EMPLOYMENT IN TOURISM SECTOR................................................................ 54

4.7 HEALTHCARE ................................................................................................... 55

4.7.2 EMPLOYMENT IN HEALTHCARE SECTOR ........................................................ 56

4.7.3 PROJECTED LABOUR DEMAND ...................................................................... 56