India's Workforce Training: Investing In The Future?

India has the highest percentage of companies in the world offering training to all employees, with 77% of companies providing training, according to a global report by Randstad RiseSmart. The report also found that 81% of Indian companies maintain skills inventories, again the highest in the world. The Indian government has also recognised the importance of training and has introduced the Skill India Mission, which includes schemes such as the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), which focuses on providing skill development training to youth nationwide, including in rural areas. In addition, the National Policy for Skill Development & Entrepreneurship (NSDE) addresses challenges in skill development by bridging gaps, improving industry engagement, and establishing a quality assurance framework. The Indian corporate training market is experiencing rapid growth, driven by ambitious companies in sectors like IT and healthcare, and a youthful, tech-savvy workforce. The market is expected to grow with a CAGR of 16.3% by 2027, reaching a value of $12.7 billion by 2030.

India's corporate training market is expected to grow with a healthy CAGR of 16.3% by 2027

India's corporate training market is expected to grow at a healthy CAGR of 16.3% by 2027, driven by ambitious companies in sectors like IT and healthcare, and a youthful, tech-savvy workforce. This growth is particularly impressive given that the market was valued at $12.7 billion in 2019.

The need for highly qualified workers, a focus on talent development, and advanced training options like blended learning and microlearning are key factors in this expansion. India's young population, with a median age of 28, presents a significant opportunity to develop a skilled workforce that can meet the needs of the industry.

The country has recognised the potential of its youth and the challenges of skilling such a large population. The Ministry of Skill Development and Entrepreneurship (MSDE) introduced the Skill India Mission, which includes schemes like Pradhan Mantri Kaushal Vikas Yojana (PMKVY) that focuses on skill development training for youth, including in rural areas.

The importance of corporate training is also reflected in the fact that 77% of Indian companies offer training to all employees, the highest percentage globally. These companies understand that a well-trained workforce is more engaged, motivated, productive, and efficient.

The training programs offered by Indian companies cover a range of skills, including IT skills, web development, AI, adaptability, creativity, and soft skills. The shift to virtual classrooms and the use of online platforms for training have also played a role in the growth of the corporate training market.

The success of these initiatives is evident in the positive employment trends in the country. The Worker Population Ratio (WPR) has increased from 52.9% in 2021-22 to 56.0% in 2022-23 for individuals aged 15 years and above.

Overall, India's corporate training market is expected to continue its impressive growth, supported by the need for a highly skilled workforce and the adoption of advanced training technologies.

The National Policy for Skill Development & Entrepreneurship addresses challenges in skill development by bridging gaps, improving industry engagement, and establishing a quality assurance framework

India has taken steps to invest in the training of its workforce through the National Policy for Skill Development and Entrepreneurship. This policy was first introduced in 2009 and updated in 2015 to address the changing macro environment and the lessons learned from implementing various skill development programmes. The 2015 policy addresses challenges in skill development by bridging gaps, improving industry engagement, and establishing a quality assurance framework.

The policy aims to create an ecosystem of empowerment by promoting a culture of innovation-based entrepreneurship that can generate wealth and sustainable livelihoods for all citizens. It focuses on four key areas: addressing obstacles to skilling, aligning supply and demand for skills, promoting equity, and supporting entrepreneurship.

To bridge existing skill gaps, the policy emphasises the need to make quality vocational training aspirational for both youth and employers. It aims to integrate skill training with formal education to provide vertical and horizontal pathways for the workforce's growth. The policy also seeks to increase the capacity and quality of training infrastructure and trainers to ensure easy access for all citizens.

Improving industry engagement is another key aspect of the policy. It promotes national standards in the skilling space by actively involving employers in setting occupational standards, curriculum development, providing apprenticeship opportunities, and offering gainful employment to skilled workers. The policy also aims to establish an IT-based information system to aggregate the demand and supply of the skilled workforce, helping match and connect supply with demand.

Furthermore, the policy emphasises the importance of establishing a well-defined quality assurance framework aligned with global standards to facilitate the mobility of labour. This framework ensures that individuals have the necessary competencies through instruments such as credible certifications, credit accumulation, and transfer.

The National Policy for Skill Development and Entrepreneurship is financed through various mechanisms, including the National Skill Development Fund, encouraging companies to allocate a percentage of their Corporate Social Responsibility funds towards skill development, and government schemes contributing a portion of their budgets. These initiatives demonstrate India's commitment to investing in the training and development of its workforce.

The Indian IT industry is overhauling its employee training process to keep up with shifts in technology

The Indian IT industry is witnessing a significant shift in its employee training processes to keep pace with the rapidly evolving technology landscape. This evolution in training approaches is driven by the need to stay relevant and adaptable in a dynamic market. Here's an overview of how the industry is overhauling its training strategies:

Shifting Focus to Digital and Cloud Technologies

The Indian IT industry recognised the need to adapt to shifts in technology, particularly the move towards digital and cloud computing. This shift impacted their business as customers, mainly in the US and Europe, started reducing their budgets for traditional desktop application development and maintenance. As a result, Indian IT firms had to retrain their staff, cut costs, and re-evaluate their hiring strategies.

Blended Learning and Virtual Classrooms

Indian IT companies are now offering blended learning approaches, where a large portion of training happens outside the traditional classroom setting. This includes providing new recruits with access to basic skill courses even before they officially start work, allowing them to focus on more advanced training once they join. Additionally, there has been a shift from real to virtual classrooms, offering customisable and flexible learning experiences.

Hands-on Training and Experiential Learning

To ensure that employees gain practical skills, companies like TCS and Mindtree have implemented initiatives where employees create labs in the cloud. This approach allows them to test their skills and receive hands-on training on new technologies. Other companies, like Hexaware, have revamped their training programmes to ensure that each trainee completes the programme as a full-stack developer, recognising the increasing fluidity of job descriptions.

Emphasis on Emerging Technologies

The Indian IT industry is prioritising training in emerging technologies such as artificial intelligence (AI), machine learning, blockchain, cybersecurity, and the Internet of Things (IoT). This focus ensures that employees stay ahead of the curve and are equipped with the skills demanded by the market.

Collaboration with Academic Institutions

Tech Mahindra and TCS are working closely with academic institutions to bridge the gap between academia and industry. They aim to make universities aware of industry requirements and encourage them to modify their curricula accordingly. This collaboration ensures that fresh graduates possess the skills needed by the IT industry, reducing the need for extensive retraining.

Reskilling and Upskilling Initiatives

IT companies in India are investing in reskilling their existing workforce to keep up with technological advancements. For instance, NASSCOM, the IT industry body, launched the FutureSkills platform to reskill employees in areas like big data analytics, AI, machine learning, cybersecurity, and IoT. This initiative aims to reskill 1 million professionals and potential employees over five years.

Challenges and Opportunities

While the Indian IT industry is making strides in employee training, challenges remain. Training mid- to senior-level employees can be difficult due to their lower willingness to undergo training. Additionally, the industry needs to adapt to the changing talent dynamics, where employees have more options and are seeking higher-risk, higher-reward opportunities in startups.

In conclusion, the Indian IT industry is actively revamping its employee training processes to stay competitive in a rapidly changing technological landscape. By embracing digital transformation, prioritising emerging technologies, and collaborating with academic institutions, Indian IT companies are ensuring their workforce remains skilled and adaptable to meet the evolving demands of the industry.

India's garment workers can benefit from basic skills training, which can be the difference between economic empowerment and persistent poverty

India's garment industry is the second-largest exporter and manufacturer globally, after China. However, despite the booming economy, Indian garment workers face exploitation, poverty wages, and unsafe working conditions. Millions of workers are employed in sweatshops, and millions more work in informal settings, typically in their homes.

Basic skills training can help Indian garment workers in several ways. Firstly, it can lead to economic empowerment by providing them with the knowledge and skills needed to secure better-paying jobs or start their own businesses. This can help them break the cycle of poverty, support themselves and their families, and access essential services such as education and healthcare.

Additionally, skills training can help workers adapt to the changing nature of work in the era of digitalization and automation. For example, the International Labour Organization (ILO) organized a series of soft skills training in 2022, targeting garment factory workers in Indonesia. The training focused on developing soft skills such as teamwork, communication, critical thinking, and integrity, which are highly demanded by the industry. Similar initiatives in India could help garment workers navigate the highly competitive labour market and adapt to technological changes in their workplaces.

Furthermore, skills training can also empower women workers specifically. Women make up a significant portion of India's garment workforce, and they often face additional challenges such as gender inequality and a lack of financial inclusion. By providing women with access to financial services and training on how to use them, skills training initiatives can help advance gender equality and women's empowerment, as seen in similar programs by BSR's HERproject.

Moreover, fair fashion brands in India, such as WORK+SHELTER, are already providing skill-based training and employment opportunities to garment workers. These initiatives ensure workers receive a fair wage, work standard hours, and have access to promotions and raises. This model has proven successful during the COVID-19 pandemic, as workers have continued to be paid even when products are not selling.

Finally, the Indian government has also recognized the importance of skills development and introduced various schemes under the Skill India Mission. These schemes aim to enhance the skill levels of millions of people through long-term and short-term training programs, addressing challenges such as improving industry engagement and establishing quality assurance frameworks.

In conclusion, basic skills training can be a powerful tool for India's garment workers to overcome economic challenges and break free from persistent poverty. By providing them with the necessary knowledge and skills to adapt to a changing job market, empowering women, and ensuring fair wages and working conditions, India can harness the potential of its young and ambitious workforce to drive economic growth and societal advancement.

Training is useful when it serves strategic priorities and has a real end goal

To harness the potential of its young workforce, India has implemented various initiatives and schemes to enhance the skill levels of its people and prepare them for the needs of the industry. The National Policy for Skill Development & Entrepreneurship (NPSDE), introduced in 2015, aims to bridge gaps, improve industry engagement, establish quality assurance, and expand apprenticeship opportunities. Under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) scheme, the government focuses on imparting skill development training to youth nationwide, including rural areas. The Jan Shikshan Sansthan (JSS) initiative provides vocational training to non-literates, neo-literates, and school dropouts in rural regions, with a priority on empowering women, SC, ST, OBC, and minorities.

The corporate training market in India is also experiencing rapid growth, driven by sectors like IT and healthcare. Companies are investing in the training and development of their workforce to enhance productivity and efficiency. According to a report, the Indian corporate training market was valued at $12.7 billion in 2019 and is expected to grow exponentially by 2030.

The impact of training programs is evident in the improved productivity and retention rates. For example, a training program for female garment workers in Bangalore resulted in a 7% increase in productivity and a 3% higher retention rate during the program.

To ensure the effectiveness of training, it is essential to have internal systems that support the desired behavior and a willingness to adapt to new systems. Training should address specific problems and have measurable outcomes to ensure a successful return on investment.

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