NSDC 2.0: New Board, New Chief, New Mandate For Skills Body

Until now, the NSDC has not managed to make a mark. And it has been operating without a chief, after Ved Mani was removed as CEO in May, following corporate governance-related complaints. The current board is also likely to be diluted, and a new one constituted. 

“Lapses in corporate governance had come up regularly. That is one area which needs focus, and it is being looked into,” a senior government official told The Secretariat.

In the new structure, the government’s involvement is expected to be enhanced. “There's very little appetite in the private sector to run skilling centres. What is now needed is to bring industry and companies into the fold, and provide them with incentives, to actively participate in the skill development process and generate employment,” said the official on condition of anonymity. 

While the NSDC is under the aegis of the Ministry of Skill Development and Entrepreneurship (MSDE), the body, established in 2008, operates on a public-private partnership basis, with the government holding a 49 per cent stake. Industry bodies hold the rest. 

The official added that industry participation in the functioning of the NSDC needs to be direct, rather than through industry chambers. 

Besides, funding of skill programmes is another area, which is being looked into. Social bonds could be the way out for the government. Eventually the NSDC may have to look into this aspect as well.  

A recent report by Observer Research Foundation noted that India lacks a dynamic framework that enables continuous monitoring of skills needs across sectors and states, and for conducting periodic forecasting.

“Skill studies in India have been fragmented, supply-driven, and based on different methodologies, which makes it difficult to build a national picture or align training with actual labour demand,” it said. 

Until now, the NSDC has not managed to make any significant mark despite facilitating skilling programmes for the country's youth. It is understood that the Prime Minister's Office has also expressed concern over the issue, especially as the skill training needs to be linked with employment generation.  

Why Skilling Is Key For India

India is not only home to about 18 per cent of the world’s population, but it also has one of the youngest, with a median age of 28. 

According to official data, 65 per cent of India’s fast-growing population is below the age of 35. Skill development will be key to ensuring that it can leverage its demographic dividend and generate employment, while it aims to achieve “Viksit Bharat” status by 2047.

The MSDE is also looking at introducing the required training for the youth to be able to deal with AI and other new-age technologies. 

China’s skill training was directly linked to industry needs. Beijing is now focusing on re-skilling its people, keeping in mind the new changing global dynamics and requirements.

But with China’s shrinking population and rising labour costs, several multinational companies are looking at India as an alternative to set up factories. According to the World Economic Forum, by the end of the century, China’s working-age population would fall to just 36 per cent. 

India, therefore, would be a key provider of human capital. And to be able to grab the opportunity, it needs to provide the right training to its youth.

“The need and scope for NSDC will therefore be amplified, but it has to be reconstituted,” the senior government official said.