National Skill Development Corporation

Significance of Skill
Development for MSMEs
to integrate into GVC
Contents

• Institutional Framework for Skill Development in India

• NSDC and Support for Skill Development

• National Apprenticeship Scheme

• Skill Development Needs in SMEs for integrating with the GVC

Institutional Framework for Skill
Development

New ministry notified on 10th Nov, 2014

Ministry of Skill
Development
& Entrepreneurship* Investment
Management
Agreement

National Skill National Skill National Skill

Directorate General Development Fund
Development

Loan, Equity, Grant

of Training (DGT) Development
Agency (NSDA) (NSDF) Corporation (NSDC)

Grant
*Other bodies under the Ministry include Indian Institute of
Entrepreneurship (IIE) and National Institute of
Entrepreneurship and Small Business Development (NIESBUD)
Private Sector
Sector Skill Councils Support
Fund Support for Skill Development

• Self – financed / Fee based Model

• Candidate pays
• CSR / NGO or Corporate Sponsored Model
• Government Sponsored Models
• PMKVY – CSCM by NSDC, • UDAAN by MHA,
• NAPS by MSDE • Other Ministries/Govt. Agencies
• DDU-GKVY by MoRD, • PMKVY – CSSM by SSDM/MSDE*
• DAY – NULM by MoH&UA, • State Govt. Schemes

• NSDC / MSDE Supported Models

• NSDC Funded Partnership • Pradhan Mantri Kaushal Kendras

• NSDC Non-Funded Partnership • India International Skill Centers
• NSDC Innovation Partners • TITP with Govt. of Japan
• CSR Partners & CoEs • World Bank Sankalp Project
National Skill Development Corporation

• Unique Public Private Partnership (PPP) (49% owned by Govt. & 51% by Private Sector)
• Launched in October 2009 with a mandate to skill 150 million people by 2022 and catalyse
creation of sustainable, for-profit, quality skills training institutions across the country.
• NSDC is the implementation arm of the Ministry of Skill Development and Entrepreneurship.
• 3-Pronged Approach to Catalyse Private Sector Investment: Create, Fund & Enable

CREATE FUND ENABLE

Proactively Catalyze • Commercially viable, • Sector Skill Councils

creation of large, scalable, sustainable • Quality Assurance
quality Vocational • Nurture • National Occupational
training institutions organizations Standards
through patient • Train-the-trainer
capital

Create the vision

& help define the path Demonstrate Create a viable
commitment to eco system
the purpose
Transformation in Skills Landscape
• Training Capacity available in 29 States & 4 UTs through the NSDC Partner Ecosystem

• Implementation Agency for Key GOI Schemes like PMKVY, Udaan and NULM.

• 39 Sector Skill Councils formed consisting of over 450 representatives from Industry,
Government and Academia

• Developing Competency Standards for Job Roles across Sectors – 1700 Qualification Packs
and 4314 National Occupation Standards (NOS) created

• International Engagements for Making Skills Transnational and enabling overseas labour
movement – collaboration with USA, UK, Australia, Canada, Germany and Denmark

• Collaboration with International Multilateral Organizations – World Bank, ADB, DFID – on

technical assistance, multi-lateral funding and other areas

• World Skills & India Skills Competitions - a platform to create youth icons for the country
Sector Skill Councils
Primary & PwD (5 SSCs) Manufacturing (20 SSCs) Service (15 SSCs)
1 Agriculture 1 Automotive 1 Management & Security
2 Food Processing 2 Rubber 2 Retail
3 Greed Jobs 3 Gems & Jewellery 3 IT-ITeS
4 Life Science 4 Electronics & Hardware 4 Media
5 PwD 5 Leather 5 Healthcare
6 Capital Goods 6 Telecom
7 Aviation & AeroSpace 7 BFSI
8 Iron & Steel 8 Logistics
9 Power 9 Plumbing
10 Mining 10 Beauty & Wellness
11 Textiles & Handlooms 11 Tourism & Hospitality
12 Apparels 12 Sports
13 Handicrafts 13 Coating & Painting
14 Infrastructure Equipment 14 Domestic Workers
15 Furniture & Fittings
16 Instrumentation
17 Strategic Manufacturing
18 Oil & Gas
19 Chemical & Petro Chemical
20 Construction
Kinds of NSDC Partnership
Funded Training Partner
• For all categories of entities seeking funding to enhance project capabilities
• Special window for: Corporates
• Private Universities/Engineering Colleges
• ITIs/Polytechnics
• Centre wise funding possibility

Innovation
• To promote interventions enhancing skill development activities

Non-funding Training Partner

• Corporate Houses
• Not-for-profits
• Special window for approval
Our Partners
CORPORATES & SMEs

TRAINING PROVIDERS

FOUNDATIONS & NGOs

NEW INITIATIVES
Pradhan Mantri Kaushal Kendra (PMKK)

• MSDE is creating PMKKs in every district of India

• In April 2016, NSDF approved the project and appointed NSDC as the
implementation agency

Salient Features
• Centre Size: At least 3000 - 8000 sq. ft. built up area (as per district’s population)
• Quality ensured via standard branding and infrastructure guidelines
• Courses determined to cater to local youth’s aspirations
• Mandatory training in the manufacturing trades

Investment Support
• Secured loan of up to 70 lakhs per PMKK at a subsidized interest rate for set-up
of lab equipment, machinery, training aids, etc.
• Dedicated training mandate for three years under PMKVY
Pradhan Mantri Kaushal Vikas Yojana (PMKVY)

• PMKVY mandated to skill-certify 1 cr. youth of the country

• Scheme implemented by the Centre (NSDC) along with the States

through two components
• Centrally Sponsored Centrally Managed (CSCM): 75% of the PMKVY
(2016-2020) funds available to MSDE for skilling through NSDC
• Centrally Sponsored State Managed (CSSM): 25% of the funds of
PMKVY (2016-2020) allocated to the States

• Under the scheme there are three types of components mentioned

below:
• Short Tem Training (STT)
• Recognition of Prior Learning (RPL)
• Special Projects
India International Skill Centre (IISC)

Provide skill trainings and certification

OBJECTIVE benchmarked to International Standards to
facilitate overseas mobility of youth for jobs

IISCs provide domain training through PMKVY &

PDOT through Pravasi Kaushal Vikas Yojana of MEA

Stakeholders MSDE, MEA, NSDC, SSCs, International Awarding Bodies,

Training Partners & Digital Literacy Partners

Sectors Domestic Workers, Retail, Tourism & Hospitality, Capital Goods,

Healthcare, Construction, Automotive and Security

Job Roles Sales Associate, Food & Beverage – Steward, General Duty Assistant,
Unarmed Security Guard, MIG Welder, General Housekeeper,
Commercial Vehicle Driver, General Mason
Udaan : Initiative for Youth of J&K

• Funded : MHA Objective

• Operations : MSDE & NSDC
• Facilitation: State government “to provide skills training and
enhance the employability of
• Target Segment: Graduate, Post
graduates and 3 year diploma 40,000 unemployed youth of
holders of J&K J&K in 6 years ”

Process

Proposal Candidates
Supply via -
Demand raised approval by placed at
PEC-PAC
Mobilization
by corporate Corporates
and MoU drives
across India
WorldSkills & IndiaSkills

• WorldSkills is a Biennial International competition - the biggest skill competition

held globally

• NSDC spearheading India’s participation at WorldSkills through the WorldSkills

India initiative since 2011

• A rigorous and tiered selection process involving District, State, Regional &
National level selections

• Final candidates in each skill category undergo rigorous training at international

standards
• International exposure through participation in competitions such as ASEAN
(Vietnam) & Oceania (New Zealand)
CSR: Industry Engagement Models

Corporate
NSDF NSDC
Partner

• As per Company CSR policy

(I) Sponsorship of Candidates • Project-based
• Cost covers Training + Assessment costs

• Setting up/upgrading existing facility

(II) Setup of Corporate Skill • Offers specialized programs
Excellence Centre • Managed by corporate or operated by third-party agency

• Donate land + building

(III) Donate • Part fund cost of machinery, etc.
Land/Building/Machinery • Third-party operator runs centre on sustainable basis

• Strengthening of existing centres

(VI) Align Existing Centres to • Centres with higher grading to be selected
NSQF • One-time capital cost + part operational cost

• Skilling programs in existing centres align to NSQF

(V) PMKVY Special Projects • To be adopted under PMKVY Special Projects
• May operate through third party and increase program basket
National Apprenticeship Promotion Scheme

• Launched in Aug, 2016 by MSDE, to promote apprenticeship training &

incentivize employers to engage 50 lakh apprentice by 2020.
• Implemented by
• Regional Directorates of Apprenticeship Training (RDATs) for Central PSUs and Pvt.
Establishments operating in more than 3 states
• State Apprenticeship Advisers for State PSUs and Private establishments in their
respective States
• Basic Training (Theory and Practical) mandatory for those who have not
undertaken formal training under ITI/PMKVY/MES, can be imparted at
BTCs set-up by industries alongwith OJT in the industry
• Applicable for 40 Sectors including Service industry also
• Employers/Industries can also design their specific courses
• Financial Support to employer to the tune of
• Reimbursement of 25% of prescribed stipend subject to a maximum of Rs. 1500/-
per month per apprentice by GoI to all employers who engage apprentices
• Reimbursement of cost of basic training (upto a limit of Rs. 7,500/- for a maximum
of 500 hours/3 months)
Skill Development Needs in SMEs for integrating
with the GVC

• SMEs constitute nearly 90% of industrial establishments in India and contributes

to approx. 40-50% of exports

• Skills shortages, poor management practices and workforce training limit SME
productivity and innovation and thus limiting their integration into GVC

• Pillars for achieving International Standards

• Processes – Efficient Operations, Resource Management, Quality Control, Environmentally
Sustainability, Legal Compliances, etc.

• Personnel – Up-skilling of leaders/decision makers; Recognition/certification of existing

work-force; Training Opportunities for additional work force required; local skilled resource
for technology up-gradation and servicing; etc.
• Technology – Up-gradation of production technology to global standards, Support for
innovation / technology development or enhancement; etc.
Skill Development Needs in SMEs for integrating
with the GVC

• Business Development Skills

• Skill Up-gradation
International Legal Compliances Financial & Taxation Norms
International Quality Standards Supply Chain Management technologies & Processes
Sectoral Environmental standards Exports and Market Trend Analysis

• Image Management
• Soft Skills

• Language & Negotiating Skills

• Networking, Branding & Communication – New Age Marketing Channels

• Technology Leveraging Skills – Adoption of Innovations

Skill Development Needs in SMEs for integrating
with the GVC

• Vocational Skills
• Skill Up-gradation to Internationally benchmarked processes and
technology

• Skill Up-gradation and certification as per the sectoral requirements /

standards internationally

• Skill Up-gradation on Latest technology/equipment

• Assessment and Recognition of the existing Skills

• Bridge Course trainings – Based on Assessment of the skills, the Skill

Gap of the individuals
Thank You