In light of global mega trends like automation, climate action, digitalization, and a decreasing workforce, the education and labor markets are experiencing significant shifts. These changes are redefining the paradigms of education and workforce development systems around the world. In this rapidly evolving global job market, these systems need to become more personalized, more accessible through remote and hybrid learning options, and continuous throughout workers’ careers. Skill development, which involves identifying and addressing individual skill gaps, is now more critical than ever. Recognizing this need, the Government of India launched initiatives like ‘Skill India’ in 2015, with the ambitious goal of training over 40 crore Indians in various industry-related skills. The state of Tamil Nadu also has established itself as a leader in skill development within India, thanks to its strong commitment to empowering its people through innovative programs. Initiatives like Naan Mudhalvan and TN Skills have played a crucial role in narrowing the skills gap and creating an environment that promotes both economic progress and social advancement in the state.
Why skill development is important in India
The significance of skill development in India is becoming increasingly evident. As various industries expand, particularly manufacturing, the demand for skilled labor is projected to surge. Estimates from the Confederation of Indian Industry suggest that by 2023, India will need approximately 300 million skilled workers. This escalating demand underscores the necessity to bridge the gap between available jobs and the skills of the workforce.
Simultaneously, India faces a rising unemployment rate, exacerbated by the pandemic. Many individuals have become disillusioned with their jobs or have lost employment altogether due to lockdowns, leading to an exodus from the workforce. This predicament emphasizes the urgency of equipping the workforce with the right skills to re-enter the job market and secure fulfilling careers.
Despite the clear need for skill development, significant challenges persist. Limited awareness of skill development programs, particularly in rural areas, hinders progress. Furthermore, collaboration between training institutions and industries often falls short, resulting in a disconnect between training content and industry requirements. Societal perceptions of vocational training as inferior to traditional education create another barrier. Finally, accessing skill development opportunities remains a challenge for those in remote or marginalized regions.
To address these challenges, the Indian government has launched several skill development initiatives. Programs like the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), Skills Acquisition and Knowledge Awareness for Livelihood Promotion (SANKALP), and UDAAN aim to provide training and enhance employability. However, their effectiveness depends on overcoming the limitations mentioned earlier.
The Case of Tamil Nadu
In 2011, Tamil Nadu was documented as the seventh most populated state in India, with a population exceeding 72 million people. This accounts for nearly 6% of the country’s total population. The state has outperformed national averages in certain socioeconomic areas, particularly sex ratio and literacy rates. Furthermore, it holds the distinction of being the most urbanized state in India.
Industrial clusters have significantly contributed to Tamil Nadu’s economic landscape. Sriperumbudur has emerged as a major electronics hub, while Chennai is a key center for auto component manufacturing. Additionally, Vellore has established a strong presence in the leather industry.
To assess the state’s skill development needs, the National Skill Development Corporation conducted a comprehensive study in 2012. This study focused on 12 districts and extrapolated findings to cover the entire state. The research aimed to project the skills gap over a ten-year period, extending to the fiscal year 2022, providing valuable insights for workforce planning and development initiatives in Tamil Nadu.
In 2019, the Tamil Nadu Skill Development Corporation (TNSDC) commissioned PricewaterhouseCoopers Private Limited (PwC) to conduct a “Skill Gap Assessment Study and Action Plan for Tamil Nadu.” This study provided more current insights into the state’s skill gap and outlined necessary actions.
Key findings from the study reveal that Tamil Nadu’s median age is 29, surpassing the national average of 26. This median age is expected to rise further to 37 by 2026, emphasizing the urgency for multi-level investments in skill development to capitalize on the demographic dividend. Notably, Tamil Nadu boasts the highest urbanization rate among major states, currently at 48%, and is undergoing rapid urbanization. However, increased exposure to diverse career options in urban areas, combined with the agricultural sector’s vulnerability to unpredictable weather patterns, has made agricultural careers less appealing to the youth.
Between 2011-12 and 2017-18, Tamil Nadu’s agricultural and allied sector demonstrated growth surpassing the national average, expanding at 4.1% annually. The industrial sector also flourished, achieving a 7.8% annual growth rate during the same period. This positioned Tamil Nadu as the third largest manufacturing state in India, following Maharashtra and Gujarat. The services sector significantly contributed 52% to the state’s GSDP, exhibiting a CAGR of 6.6% between 2011-12 and 2017-18.
The survey highlighted crucial skill gap needs in Tamil Nadu. Despite the state’s economic progress, only 4.7% of its population aged 15 and above had undergone vocational training, falling short of the national average of 5.4%. The current apprenticeship scheme primarily benefits public sector institutions due to their high demand for trainees. However, these apprenticeships often fail to translate into employment opportunities as recruitment processes in public institutions hinder the transition to full-time roles.
Moreover, training providers mainly cater to entry-level positions, such as tailoring, embroidery, or BPO/call center operations. The majority of courses focus on the apparel/textile, telecom, and electronics industries. While there is a demand for skilled workers with higher qualifications, a lack of career guidance poses a challenge to pursuing desired careers. Youth perceive relevant work experience, soft skills, and certified technical skills as crucial determinants of employability. Female respondents expressed interest in careers within food processing, BFSI, and agribusiness industries, whereas males preferred automotive, iron/steel/metal fabrication, and agribusiness sectors.
Employers acknowledge the role of migrant workers in maintaining competitive production costs in sectors facing international competition, such as apparel/textile. However, local workers are favored for supervisory positions. Employers identify a mismatch between acquired skills and industry requirements, as well as a lack of exposure to working environments, as key recruitment challenges.
According to the survey, Tamil Nadu is projected to require an additional 32.8 lakh skilled and semi-skilled workers over the next six years. This demand is primarily driven by key sub-sectors like manufacturing, education & healthcare, construction, communication-IT/ITES, trade, BFSI, real estate & business services, logistics, and allied sectors of agriculture. These findings underscore the importance of targeted skill development initiatives to meet the evolving needs of Tamil Nadu’s dynamic economy.
The Government Initiatives
The Tamil Nadu government, recognizing the state’s skill gap, has proactively implemented measures to address this issue. This commitment is evident in the establishment of the Tamil Nadu Skill Development Corporation (TNSDC) in 2013, aiming to transform Tamil Nadu into a skill hub by enhancing the employability of its youth and aligning their skills with industry demands.
TNSDC, as the designated State Skill Mission, collaborates with various government departments and public sector undertakings to provide vocational training. The state’s efforts extend beyond training, encompassing career counseling, job fairs, apprenticeships, and fostering self-employment and entrepreneurship.
Leading Tamil Nadu’s skill development initiatives is the groundbreaking Naan Mudhalvan program, launched in 2022. This visionary program focuses on empowering young people through comprehensive skill training and entrepreneurship development. By offering courses tailored to different disciplines in emerging sectors, Naan Mudhalvan has significantly contributed to transforming the academic credentials of students and youth in the state. It has successfully equipped them with the skills necessary to become self-sufficient and actively contribute to the state’s economy as a skilled workforce. Naan Mudhalvan proudly showcases over 2000 institutes and offers more than 300 diverse career pathways, providing a wide range of opportunities for the youth to explore and pursue their aspirations.
Naan Mudhalvan collaborates with prominent industries, both local and international, ensuring that graduates possess the skills and competencies sought after in the job market, thus enhancing their employability. The program offers diverse skill development opportunities, encompassing engineering technologies, AI, app development, personality development, and competitive exam preparation, among others.
Recognizing the dynamic nature of the job market, the Tamil Nadu government has implemented various measures to support skill development and entrepreneurship. These include providing accessible credit options for aspiring entrepreneurs, establishing incubation centers for startups, organizing hackathons, and fostering collaboration between industries and academic institutions. This multifaceted approach creates a favorable ecosystem for skill development, entrepreneurship, and innovation, ultimately contributing to the state’s economic growth.
The Tamil Nadu government has prioritized the comprehensive development and livelihood enhancement of women through various skill development initiatives. The Tamil Nadu Corporation for Development of Women (TNCDW) has been instrumental in this endeavor, implementing skill training programs since 2006.
One notable initiative is the provision of skill development courses exclusively for women through the Craftsmen Training Scheme. Ten government ITIs offer these courses, and in the last year alone, 2,790 women have undergone training. To further support women’s skill development, separate women’s wings have been established in government ITIs at Thanjavur, Ramanathapuram, and Hosur, with a total of 274 seats. Additionally, 30% of seats in all government ITIs are reserved for women.
These efforts highlight the government’s dedication to addressing the skill gap among women and successfully advancing its mission of empowering women through skill enhancement.
While there’s always room for improvement, Tamil Nadu’s significant strides in skill development and related endeavors have established its position as a national leader in empowering citizens and fostering economic growth. Initiatives such as Naan Mudhalvan and TN Skills showcase the state’s dedication to bridging the skill gap and providing avenues for individuals to reach their full potential. By forging partnerships with additional industry leaders, Tamil Nadu is well-positioned to fully achieve its mission and further solidify its leadership in skill development
