Indo – EU Seminar on Skills
Development, Training and
Employment
“Skills & Training in a Globalised
World Economy”
Lt Gen (Retd) S S Mehta, PVSM, AVSM and Bar, VSM
Director General
Confederation of Indian Industry
India
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Size: 2,973,190 sq km
Population: 1096 Mn
Languages: National –
Hindi (14 other official
languages)-English enjoys
Associate Status.
Multi Ethnic,Multi
Religious; Pluralistic
Society
Largest Democracy.
Confluence of Civilizations
India
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One of the fastest growing
economies – avg 7%
since 1994 and 7.5 - 8.1%
in 2005.
Inflation – 4-5 %.
Forex Reserves – USD
150 Bn.
GDP – USD 650 Bn.
Leadership in ICT.
Challenges
•Social Appreciation of Skills As a
Livelihood Asset
• Linking Education to Employability in
the Global Knowledge Economy.
• No One Solution. Every Region
demands an innovative approach.
India’s Advantage
• Demographic
• Societal Building Block
• English Language
• Affinity to Maths
• Credible IT Image
• Steady Growth Trajectory
Snapshot: Global
Demographics
Indicators of Aging in Selected Countries (2000, 2025, and 2050
Country
India
Mexico
USA
Australia
China
Canada
France
UK
Europe
Russia
Germany
Japan
Italy
Spain
Median Age (Years)
2000
2025
2050
23.7
23.3
35.5
35.2
30
36.9
37.6
37.7
37.7
36.8
40.1
41.2
40.2
37.7
31.3
32.5
39.3
40.5
39
42.9
43.3
44.5
45.4
43.8
48.5
50
50.7
49.2
38
39.5
40.7
41.9
43.8
44
45.2
47.4
49.5
50
50.9
53.1
54.1
55.2
Old Age Dependency Ratio
2000
2025
2050
8.1
7.6
18.6
18.2
10
18.5
24.5
24.1
21.7
18
24.1
25.2
26.7
24.8
12.1
13.8
29.3
29.3
19.4
32.6
36.2
34.8
33.2
27.6
39
49
40.6
36.1
22.6
30
34.9
37.9
37.2
40.9
46.7
47.3
51.4
47.1
54.7
71.3
68.1
73.8
Global Demographics
Scenario
47
Note: Potential Surplus is calculated keeping the ratio of working population (age15-59) to
population constant.
Source: US Census Bureau; BCG Analysis
An Idea
India has the unique opportunity to:
• Complement what an ageing world
needs the most -- Productive Workers.
• Provide investment opportunities for
ageing population to earn high levels
of post –retirement income.
Globalisation
A complex series of economic, social,
technological, cultural and political
changes are increasing interdependence,
integration and interaction between
people and companies in disparate
locations.
…. IMF
Trends to Watch
• Centres of economic activity will shift
profoundly, not just globally, but also regionally.
• Shifts within regions will be even more dramatic
• Today, Asia (Excluding Japan) accounts for 13
percent of the world’s GDP, while Western
Europe accounts for more than 30 percent. Within
20
years
the
two
will
converge.
……. Mckinsey Quarterly Web Exclusive 2006
Pumping the Global Talent Pipeline:
The 21st Century Imperative
• Global
•
•
Talent deficit is fundamental
to sustainability.
Owing to the flux in the global
economy it is difficult to forecast
where a skill shortage will arise next.
External markets are not delivering
the right skills at the pace of change
…….Infosys Davos 2006 Panel Debate
Pumping the Global Talent Pipeline:
The 21st Century Imperative
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•
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The challenge is to have the right people,
at the right place, at the right time.
The Paradox of ‘Skill versus Will’.
The need for the public and private
sectors to work together towards the
vision of the future.
…….Infosys Davos 2006 Panel Debate
Skills: A Global Currency
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•
•
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"Skills" are a global currency for a globalising
world.
Countries with a significant skills capital can
innovate;
remain
competitive
and
enable
sustainable growth.
“Skills Development” will create inclusive
societies.
Global Skills Development should be added as a
UN Millennium Goal.
India - Sectors Demanding MultiLevel Skills Options
 Construction
 Finance, Real Estate, Insurance & Business
Services
 Transport, Storage & Construction
 Wholesale & Retails Trade
 Manufacturing
 Community, Social and Personal Services
 Agriculture
 Electricity
 Mining & Quarrying
Four Collar Work Force
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White Collar - Well understood across the World
Grey Collar – The knowledge worker, which includes ICT
Skills, problem solving, analytical and effective communication
skills.
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Blue Collar – Shop floor work in the manufacturing and service
sector.
Rust Collar – Skilled worker at the grass root level in currently
unorganised and un-benchmarked sectors like – Construction,
Agriculture and related trades.
Guiding Principles
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Independent Assessment and evaluation
Competitive basis for quality
Employment Orientation
Global Benchmarking
Levels and Progression routes
License to Practise
Features of the CII ‘Skills Initiative’
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Localised Approach – Relevant to local
needs
Scaleability
Short Duration, Focussed Programmes
Modular Approach
Smart Card Certification
Smart Card Certification
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Biometric Identification
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Tamperproof
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Multifunctional
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Convenient
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Access to a gateway of Services
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Possibility of bank linkages for Micro-Credit
Conclusion
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Skills formation delivers not only needed
economic benefits but important social
benefits as well.
"Skilling a Million Indians" is a catalytic
project of CII.
Need for Quality Certification which is
credible at Regional, National and
International levels.
Focus on Developing Human
Resource
Countries that get addicted to selling their
natural resources rarely develop their
human resource and the educational and
innovative companies that go with that.
So, after the ore has been mined, the trees
cut, and the oil pumped, their people are
actually even more behind.
………Thomas Friedman
We need to do more to get each
stakeholder deeply involved, to
have a sense of where society is
going.
…… Professor Jagdish Bhagwati
What we need is a…….
Thought Shift
• We need a “thought shift ” from
employment to employability ; from
providing fish to teaching how to fish.
• Our progress will not be worth the trip if
we do not give a majority of our people the
strength and self esteem that comes with
a job .
• The Journey has just Begun…..
India & EU
EU
Relations go back to
early 1960.
India – EU Key Trading
Partners
Demographic Dividend
Shared Values:
•Democracy
•Pluralism
•Liberalism
India
•Open, Inclusive
Societies
Thank You
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