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Skill Gap Study for Gujarat

Presentation
District Wise Skill Gap Study - Gujarat
(2012-22)

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Contents

1 Study Objectives

2 Methodology

3 Socio Economic Analysis of the State

Gujarat
4 Education and Training Infrastructure

5 Skill Development Opportunities

6 Challenges in Skill Development

7 Recommendations

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Contents

1 Study Objectives

2 Methodology

3 Socio Economic Analysis of the State

Gujarat
4 Education and Training Infrastructure

5 Skill Development Opportunities

6 Challenges in Skill Development

7 Recommendations

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The Skill Gap study for Gujarat was commenced with the following Study Objectives

 Socio-economic profile – demography, economic profile of district by industry, state of education.

 Identify developmental opportunities keeping in mind factor endowments and stakeholder perspectives.

 Identify specific developmental initiatives/projects which have an impact on employment generation.

 Articulate the aspirations of the youth.

 Identify the current and future (2012 to 2022) skills and manpower requirements by industry and

estimate the gap that exists

 Study the existing VT infrastructure booth in the private sector and the government domain.

 Suggest specific and actionable interventions/recommendations to address the skills gap.

 Recommendations to include specific initiatives that NSDC can take based on the mandate of the

organization.

 Create an action plan with indicative timelines

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Contents

1 Study Objectives

2 Methodology

3 Socio Economic Analysis of the State

Gujarat
4 Education and Training Infrastructure

5 Skill Development Opportunities

6 Challenges in Skill Development

7 Recommendations

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A structured methodology was used to assess the skill gaps and recommend interventions

KPMG has adopted a structured methodology to understand the skill ecosystem in


Gujarat, assess incremental manpower needs, and collate insights, to arrive at
recommendations to address the manpower skill gaps in the districts of the state…

Salient Features of the Study

 Socio-economic Profile: State/Districts

 Sectoral Focus: NSDC priority sectors along with district level potential sectors

 Voice of Stakeholders: Capturing insights from stakeholders involved in skill training

 Estimation of Manpower Supply: State/Districts

 Assessment of Existing Skill Training Capacity: State/Districts

 Computation of Incremental Employment Potential: Using a sector specific approach

 Manpower Supply-Demand Gap: State/Districts

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The Research Methodology comprised both primary and secondary research, as well as
qualitative and quantitative techniques

Primary Research: Primary research inputs were collected through research techniques such as in-depth
discussions, formal interviews, and Focus Group Discussions (FGD). Interview schedules, FGD Guidelines and
points for field observations were developed in accordance to the study objectives. Consultation meetings were
conducted with
Activity No.

• State Government Departments Primary Interactions with 300


officials, industry etc
• District Administration Officials
FGDs across all districts of 26
• Skill Training Providers Gujarat

• Skill Training Beneficiaries Youth participated in FGDs 730


• Industry Representatives
• Migrant Labour to understand their perspectives on skill development

Secondary Research: Secondary Data were collected from a number of sources including central, state and
district government/administration agencies, especially the Department of Industries and Department of Planning
and Statistics and program specific information from departments with a mandate in skill training, and from studies
commissioned by funding agencies, NGOs etc

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Methodology
KPMG’s primary interviews have encompassed various government departments at a state level
(1 of 2)…

Mode: One-to-one interviews


Index-Tb
Capturing
DEMAND

• Historic & projected growth in


State Level Sectoral investments
Government
Industrial Development • Thrust sectors for
Departments
Associations Boards Development
• Education infrastructure
• Skill Development Initiatives
Primary
Study

Mode: One-to-one interviews


SUPPLY

Statistics & Capturing :


Planning • Labour Force growth
Department estimations

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Methodology
…(2 of 2) followed by various officials, associations, industries and youth groups at a district
level

Mode :
District District Rural One-to-one interviews
Key Industries
Employment Development Capturing :
in the District
Officer Officer • Manpower Requirements in Key
Industries
DEMAND

District District
District CED
District • Current Employment
Industries Industries VTI/ITI/KVKs/N Generation Outlook
Officer
Commissioner Association GOs
• Historic investments & growth
trends
• Training infrastructure
(Industrial/Services/Agri-Allied)
Primary
Study
Mode :
Focus Group interviews
Udisha groups
SUPPLY

Youth in Rural Capturing :


Students of ITIs Areas Migrant Workforce • Youth Aspirations
(Gram Sabha)
• Local education infrastructure
• Local area skills

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Methodology
KPMG has adopted different methodologies for estimating sector wise incremental manpower
requirements for different sectors of the economy…

Est. district wise/sector wise growth in


output/input
Based on analysis of
• Growth targets from Govt Departments, inputs of
sector wise industry associations
• Achievability of targets from analysis of historic
data and trends

(Multiplied by)
Key Stakeholders
Estimated sector wise Manpower intensity
Inputs from key stakeholders-
Sector wise/category wise manpower intensity • Department of Industries
estimated based on • Department of Agriculture
• Historical trends in employment potential • GIDC and nodal bodies/players in high
• Inputs from industry associations/nodal agencies growth sectors of Gujarat
• Industry Chambers

Sector wise/category wise incremental


manpower requirement for 2012-22
(Adding manpower requirements
of all districts)

Incremental manpower requirement for


the sector in Gujarat for 2012-22

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Methodology
For Large Scale Industries, the methodology has focused on major industry groups, looking at
industry clusters, SEZs etc

Estimated district wise/sector wise investment Key Stakeholders


during 2012-22 in a district
Inputs from key stakeholders- GIDC, GIIC, GAIC
Sector wise projected investment estimated based on
and nodal bodies/players in identified priority sectors
• Investment targets from state industries
covering SEZs, SIRs, DMIC Region, Industrial
department/GIDC/GIIC/GAIC
clusters including
• Achievability of targets from interaction with nodal
bodies for identified priority sectors, historical trends
• Petroleum and petroleum products
(IEM data)
• Chemicals
• Basic Metal Industries
(multiplied by) • Electrical Tele & Electronics
• Glass, Ceramic & Cement
Estimated sector wise Manpower intensity • Pharmaceuticals
• Food processing
Sector wise/category wise manpower intensity for • Textiles
investments estimated based on historical trends for • Machinery and equipment
investment to employment ratio (IEM data) and inputs • Non-metallic mineral based products
from industry bodies. • Plastic and rubber products
• Fabricated metal products
• Auto and auto components
• Gems and Jewellery
Sector wise/category wise incremental • Energy(Conventional/Green)
manpower requirement for 2012-22 • Salt Industry
(Adding manpower requirements
of all districts)
Contribution of major nine industry sectors together
Incremental manpower requirement for accounted about 79.29 percent in the net value added
the sector in Gujarat for 2012-22 as per the ASI - 2009-10 provisional results

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Methodology
Manpower Estimation Approach for Healthcare Sector

District wise estimated growth of


healthcare institutions during 2012-22
Estimated based on analysis
• Growth targets based on universal healthcare
access targets(number of beds /healthcare
professionals per 1000 population)
• Achievability of targets from proposed
spending allocation, historical growth in
healthcare infrastructure

(multiplied by)
Key Stakeholders

Manpower intensity in healthcare institutions Department of healthcare along with nodal


agencies for
Estimated based on • Primary healthcare
• Requirement of healthcare professionals • Secondary healthcare
(Number of doctors/nurses/technician per • Tertiary healthcare
number of hospital beds)

District wise incremental manpower


requirement in healthcare for 2012-22

(Adding manpower requirements of all districts)

Incremental manpower requirement for


healthcare in Gujarat during 2012-22

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Methodology
Manpower Estimation Approach for Agriculture and Allied Activities

District wise/category wise estimated


growth in Agri-Allied output size by 2022
Estimated based on analysis of
• Growth targets from Nodal Agencies for key
Allied activities in Gujarat
• Achievability of targets from analysis of historic
growth trends, funding allocation from nodal
agencies.

(divided by)

Expected category wise manpower Key Stakeholders


requirement per unit output
Estimated based on interactions with Nodal Nodal Agencies for Individual Allied Sectors
Agencies(manpower requirement per ton fish • Gujarat State Horticultural Mission
production, manpower requirement per litre milk • Animal Husbandry
production) • Fisheries Department
(subtracting)

Total category wise Agri-Allied workforce


in 2012 * Gujarat contributes 14 percent to 20 percent
Analysis of current employment patterns in Agri- share in major fruit and vegetable crops
Allied activities
* Major producer of fish with an estimated
production of 7.75 lakh tonnes during 2010-11
District wise incremental Agri-Allied
workforce during 2012-22

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Contents

1 Study Objectives

2 Methodology

3 Socio Economic Analysis of the State

Gujarat
4 Education and Training Infrastructure

5 Skill Development Opportunities

6 Challenges in Skill Development

7 Recommendations

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State Analysis
Administratively, Gujarat is divided into 26 districts with Gandhinagar as the state
capital…

Districts of Gujarat-26

Gujarat

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State Analysis
While Gujarat has performed better than the national average on several human
resource development indicators, the state also lags on certain others…
Demographic Comparison of Gujarat with India
Indicator Gujarat India
Population in Crores (2011) 6.03 121.01

Gender Ratio- Females Per 1000 Males(2011) 918 940


Demographic Indicators where the State has
performed better than India…
Percentage of Children in Overall Population(2011) 12.41% 13.12% • Level of Urbanization
Population Density-Persons Per Sq.km(2011) 308 382 • Literacy Rate (Overall and Across Categories)
Level of Urbanization(2011) 42.50% 31.10% • Healthcare Coverage
Decadal Population Growth Rate(2001-11) 19.17% 17.64%
Urban(2001-11) 35.80% 31.80%
Rural(2001-11) 9.23% 12.18%
SC Population % (2001) 7.09% 16.20%
ST Population % (2001) 14.76% 8.20%
Other takeaways from Demographic
Literacy Rate (2011) 79.31% 74.04%
Indicators…
Male (2011) 87.23% 82.14% • Gender ratio is slightly on the lower side
Female (2011) 70.73% 65.46%
Urban (2011) 87.58% 84.98% • Level of urbanization is high
Rural (2011) 73.00% 68.91%
• Due to certain sparsely populated districts, the
Number of Villages covered per PHC (2011) 16 27
average spread of districts is large, and spread
Number of Villages covered per CHC (2011) 60 133
of talukas is also larger than the national
Number of Districts (2011) 26 640
average – hence showing lower
Average District Area in sq.km (2011) 7,530 4,950
decentralization
Number of Talukas (2011) 224 5,924
Number of Towns (2011) 153 3,894
Number of Villages (2011) 18,225 6,40,867
Source :Census 2001, 2011
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State Analysis
Ahmedabad, Surat, Vadodara, Rajkot, Banaskantha, Bhavnagar and Junagadh are
districts with high human resource potential – with over 60% of state population…
District Wise Population Distribution (2011 Census) Regional variations in Population Density
(State Average- 308 Persons per sq.km)
Ahmadabad 7, 208, 20
Sur at 6, 079, 231
Vadodar a 4, 157, 568
Raj kot 3, 79, 70
Banas Kant ha 3, 16, 045
Bhavnagar ,2 87, 961
Junagadh 2, 742, 291
Sabar Kant ha 2, 427, 346
Panch mahal s 2, 38, 267
Kheda 2, 298, 934
Jamnagar 2, 159, 130
Dohad 2, 126, 58
Kachchh 2, 09, 31
Anand 2, 09, 276
Mahesana 2, 027, 72
Sur endr anagar 1, 75, 873
Val sad ,1 703, 068
Bhar uch 1, 50, 82
Amr el i 1, 513, 614
Gandhi nagar 1, 387, 478
Pat an 1, 342, 746
Navsar i 1, 30, 71
Tapi 806, 489
Nar mada 90,5 379
Por bandar 586, 062
The Dangs 26, 769
Source :Census, 2011 Source :Census, 2011

Top 30 percent of districts account for more than 60 Population density has significant regional
percent of the state population with Ahmedabad and variations ranging from 46 persons per sq km in
Surat accounting for a significantly high share… Kutch to 1,376 persons per sq.km in Surat…
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State Analysis
The state has a low gender ratio of 918 females per 1000 males, and such low gender
ratio is seen across all levels of urbanization …
Level of urbanization by district (State Average Level Gender composition of population by district (State
of Urbanization-42.6%) average-918 female per 1000 males)

Source :Census, 2011 Source :Census, 2011

Level of urbanization has strong correlation to Skewed demographic composition is a challenge to


population density the state, and it should not be allowed to drop further
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State Analysis
Literacy levels in especially low in districts with a high proportion of SC/ST population
- mass education schemes specially focused on these districts are needed…

Regional variations in backward classes composition Regional variations in literacy composition of


among the districts(State Average - 22 percent) population among the districts (State Average- 79.3%)

Source :Census, 2001 Source :Census, 2011

Tribal districts of Dahod, Tapi, The Dangs and Narmada have significantly low literacy rates…
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State Analysis- Demographic Profile
Proportion of working age population is set to increase steadily to add over one
Crore people to this category during 2012-22 period…

Gujarat Demographic Estimations (2012-22)

6.82 Cr
 State would experience an
6.49 Cr addition of 60.51 lakhs to
6.11 Cr
working age population
6, 68, 26 during 2012-17, and
5, 45, 769
5, 081, 37 another 56.67 lakhs during
0- 14 Yr s
2017-22.
56.67 lakh
entrants into
60.51 lakh
41, 892, 509 working age group 4, 620, 592  Gujarat is expected to
38, 391, 580 entrants into 15- 59 Yr s
working age group witness a better
demographic dividend than
Above 60 Yr s
national average over the
next decade, and skilling
17, 639, 927 17, 536, 39 16, 920, 347 the new manpower entering
the workforce is crucial to
201 2017( e) 20( e)
leveraging this dividend

Source :KPMG Analysis

While job replacements would arise out of replacement of the retirement of the current workforce, additional
manpower entering the workforce needs to be trained considering the future growth trends in industries and
new employment opportunities in Gujarat…

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State Economic Profile
Gujarat continues to occupy an important position in the Indian economy (7.39% of
India’s GDP), with very high contributions in specific areas like Ports…
Economic Performance of Gujarat with India  Economic profile of the state indicates higher
Indicator Gujarat India savings and potential investments, with per capita
GDP in INR 000’ Cr (At Current Prices-2012) 611 8,353 consumption only marginally higher than the rest of
Net Domestic Product in INR 000’ Cr (At Current Prices-2012) 533 7,476 India, while per capita income is significantly higher
Per Capita Income in INR Thousands(At Current Prices-2011) 89 61
 The state lags behind in irrigation with open wells
Monthly Per Capita Consumer Expenditure in INR (NSS 66th
Round, 2009-10)
and bore wells as the major sources of irrigation
Rural 1,065 953
responsible for 71 percent of the net irrigated land
Urban 1,914 1,856
 State has nearly one fifth of total ports in India, with
Population in BPL Category (NSS 61st Round, 2004-05) 16.80% 27.50%
41 non major ports and Kandla major port
Primary Sector
Total Cropped Area(h.a) (2007-08) 11,571 1,95,104
 During the year 2011-12, non-major ports in the
Net Irrigated Area(h.a) (2007-08) 4,238 63,196
State together handled about 259 million tonnes of
Area Under Horticultural Land(h.a) (2007-08) 1,054 20,875
cargo, which accounted for 28 percent of the total
Total Livestock in 000s (2007-08) 23,515 5,29,698
cargo handled by all the ports of India
Fish Production in 000 tonnes(2009-10) 771 7,853
Value of Mineral Production in INR Cr(2009-10) 13,701 1,87,717  State has higher proportion of large scale industrial
Secondary and Manufacturing Sector units resulting in higher per factory output in
Number of Factories(2010-11) 21,282 2,11,660 comparison to rest of India
Output Value in INR Cr(2010-11) 8,06,783 46,85,213
Industrial Employment in Lakhs (2010-11) 19.12 287.10  Penetration of banking and financial services
Services and Tertiary Sector measured as available population per bank in
Number of Scheduled Banks(2012) 5,076 92,960 Gujarat stands at a 15,782 as against national
Total Road Length in km (2011) 1,46,630 30,47,783 average of 13,379 indicating the low level of
Total Railway Length(2008) 5,328 63,273 penetration of physical branch network in the state
Ports(2012) 42 199
Villages Served Per PHC(2012) 16 27
 Gujarat has a better coverage of healthcare
Villages Served Per CHC(2012) 60 133
infrastructure with better penetration of CHCs and
PHCs in rural areas
Source : Directorate of Economics & Statistics, Govt of Gujarat
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State Analysis- Economic Profile
Gujarat has achieved balanced growth across the primary, secondary and tertiary
sectors while services sector continues be a major contributor to state economy…
Gujarat’s Economic Performance (GSDP at Current Prices- Distribution of GSDP among key economic
INR Cr) activities (2011-12) Total- INR 6,11,767 Cr
Sub Sectoral Growth
Primary- 17.94% CAGR
Tertiary- 16.3% CAGR Banking & Public Agriculture, fore
Tertiary- 15.85% CAGR 611,767 insurance, real administration stry,fisheries
estate, ownershi and other and animal
530,430 p of dwellings services husbandry
and business 8% 18%
42.1% services
431,262
11%
367,912 41.4%
Mining and
329,285
42.6% quarrying
283,693 3%
44.0%
42.4% 36.1%
42.2% 36.8%
39.5% Trade, hotels & Manufacturing
37.3% 37.4%
37.3% restaurants, tra 27%
21.8% 21.8% nsportation, sto Electricity, gas,
20.6% 20.3% 18.6% 17.9% rage and construction
communication and water
2006-07 2007-08 2008-09 2009-10(P) 2010-11(Q) 2011-12(Q) 24% supply
9%
Tertiary Sector Secondary Sector

Source :Directorate of Economics & Statistics, Government of Gujarat Source :Directorate of Economics & Statistics, Government of Gujarat

 While the state has maintained a balanced economy, contribution of services sector has been higher

 Primary sector has witnessed better growth than the other two sectors

 Manufacturing, hospitality, retail, transportation & logistics and communications are key non agricultural economic
activities.
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State Analysis- Economic Profile
Manufacturing and services sectors have contributed to higher proportion of overall
employment than national average...
Work Force Distribution by Industry Category- Gujarat Work Force Distribution by Industry Category- India
Public
administration
Other Sectors
2% Education Public Education
1%
2% administration 3%
2%
Other service
activities Other service
2% activities
Construction 2%
5%

Transport, storage
and
communications Construction
10% Transport, storag
6% e and
communications
Wholesale and 4%
Agriculture, huntin retail trade; repair Agriculture, hunti
g and forestry of motor ng and forestry
53% vehicles, motorcycl 53% Wholesale and
es and personal
retail trade; repair
and household
of motor
goods
Manufacturing vehicles, motorcy
10%
14% cles and personal
Manufacturing
and household
11%
goods
9%

Source : NSSO 66th Employment Survey 2009-10, KPMG Analysis Source : NSSO 66th Employment Survey 2009-10, KPMG Analysis

 Manufacturing has contributed to 14% of overall state employment in comparison to national average of 11%
indicating the higher dependency of state workforce on manufacturing related activities

 Transportation & logistics, trade & retail, hospitality are among key employment generating segments within
services sector.
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State Analysis- Economic Profile
Unlike many other states of India, Gujarat has witnessed some of its large
industrial investments outside the urban districts...
Regional Distribution of Investments (INR Cr)
Investment Growth Trend in Gujarat
from 2001 to 2012– Total, 10,93,000 Crores
Kachchh 524,795
30 147, 791 160 Bharuch 178,609
14, 021 140, 47
Surat 97,956
140
250 12, 852 Jamnagar 75,777
Number of Uni t s Pr oposed

120 Vadodara 32,409


103, 871

Invest ment i n INR Cr


20 Banas… 26,726
10
Junagadh 26,155
150 71, 76 80 Amreli 25,431
61, 809
56, 892 Rajkot 23,082
60
10 Ahmed… 15,801
40 Valsad 15,257
25, 819
50 17, 426 19, 682 Bhavna… 10,246
860 20
691 617 541 Surend… 9,825
425 524 38 382 496 37
369
0 0 Panchm… 9,442
20 203 204 205 206 207 208 209 201 201 201 Patan 8,599
Gandhi… 6,709
Lar ge Scal e Uni t s Invest ment s Mehsana 6,014
Tapi 3,703
Kheda 2,762
Source :Directorate of Economics & Statistics, Government of Gujarat
Sabar… 2,565
Porban… 1,767
Anand 1,524
Growth of manufacturing and services industries in non
Navsari 631
urban regions of Gujarat is attributed to region specific Narmada 379
industrial policies like tax holidays in Kutch... Dohad 25

Source :Directorate of Economics & Statistics, Government of Gujarat

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State Analysis-Economic Profile
Employment opportunities in Gujarat have significant regional and sectoral
concentration indicating the need for specific skilling approach for focus areas..
Average Daily Employment in Registered Factories Category Wise Employment Outlook in MSME
- Total19.12 Lakhs (2011) Manufacturing Units
Ahmedabad 276, 980
Kachchh 247, 358 Drugs and
Manufacturing of Pharmaceuticals
Sur at 24, 390 Construction 2%
Manufacturing of
Material
Bhar uch 21, 430 Engineering
6%
Goods
Vadodar a 143, 547
12%
Val sad 108, 892
Raj kot 78, 19 Eletrical & Textile & Apparel
Mehsana 6, 95 Eletronics 32%
6%
Gandhi nagar 52, 25
Jamnagar 49, 830 Mineral
Prosessing &
Panchmahal s 3, 60 Wooden
Fabrication
Products &
Bhavnagar 24, 637 12%
Furniture
Junagadh 24, 491 Chemical & 4%
Sur endr anaga Chemical
21, 487 Rubber & Paper & Paper
r Products
Plastics Products
Navsar i 18, 58 19%
4% 3%
Anand 14, 645
Sabar Kant ha 14, 072 Source : MSME Part-II statistics, Industries Department, Govt of Gujarat
Amr el i 9, 690
Kheda 7, 806
 Top six districts account for nearly two thirds of the
Banas Kant ha 7, 723
overall employment in registered factories
Por bandar 4, 902
 Textile & Apparel, Chemical & Chemical
Tapi 3, 423
2, 143
Products, Manufacturing of Engineering Goods and
Pat an
Nar mada 94
Mineral Processing & Fabrication contribute to
Dohad 28
three fourths of the overall MSME employment
Source :Directorate of Economics & Statistics, Government of Gujarat
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State Analysis-Economic Profile
Key Growth Sectors and Geographical Presence – Transport & Logistics

Growth Enablers & Geographical


Overview
Developments Concentration
 Organized logistics dominated by port based logistics  Long costal line of 1600 Key Ports-
km, and a gateway for land- Pipav, Dahej, Kandla,
 High growth after Gujarat Maritime Board
locked states of North Mundra, Hazira
incorporation (2001)
 Growth driven by favourable
 Shipbuilding policy( 2010) a big governmental thrust Captive Jetties -
export policies and industrial
Hazira, Sikka, Dahej,
 Pipav Shipyard, Alang Recycling Yard, Chemical and activity over the next decade
Muldwaraka, Pipavav,
LNG Terminals in Dahej and VTMS are key Okha, Mandvi.
 Growth measures being
 Gujarat Maritime Board (GMB) manages 41 non- adopted: Private/ Joint
Sector Ports, Private Private Port
major ports with a traffic handling capacity of 342
Jetties, Captive Jetties and locations-
MMT (2011-12) accounting for 37% of total cargo
GMB Jetties, identification of Mundra, Hazira, Dahej
handled in Indian ports
10 regions for new ports , Dholera and
 Private port traffic has grown at CAGR of 24 % from Poshitra, Simar, Vansi-
2006-07 to 2011-12  Initiatives of Ro-Ro Borsi, Nargol, Bedi
Ferry, Port along with
 During Vibrant Gujarat summit (2011), 97 MoUs connectivity, Shipbuilding Kachchigadh, Mahuva,
signed in ports sector with investment of Rs. park, Development of port Khambhat, Dahej
1,02,899 Cr to increase cargo handling capacities by cities(Mundra) (north of DHIL jetty)
660 million tonnes by 2015-16 and Modhawa
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State Analysis-Economic Profile
Key Growth Sectors and Geographical Presence – Chemical & Chemical Products

Geographical
Overview Growth Enablers & Developments
Concentration
 Rationalization of tax regime, power  Support infrastructure of sector specific Dahej is the chemical
reforms, SEZ development, and proximity SEZs in Jambusar, Padraa & Dahej industry hub in
to Middle East gas resources, are key Gujarat
 Estimated to touch USD 70 Billion by
growth factors
2017 riding on high growth of specialty
Jamnagar refinery is
 Petroleum, Chemical & Petrochemical and fine chemicals segment
largest in India
Investment Region in Dahej, with estimated
 Gujarat expected to achieve nearly two
investment of Rs. 50,000 Cr and
thirds of foreign investments into the Oil & gas reserves
direct/indirect employment to 1.9 lakh
industry in India over the next five years located at
 Established distribution gas network and Ankleshwar, Mesana,
 Dahej attracting investments from Tapti High, Hazira,
LNG terminals at Hazira and Dahej have
leading global players like GK Co of Bharuch, Gandhar,
led to a strong base of chemical and petro
South Korea though JVs Dahej, Jambussar,
chemical products
Palej, Kalol
 US-based Styron Solutions, Eastman
 IIFCO, KRIBHCO, power companies like
Chemical Company and Heubach
NTPC and GEB and industrial majors like Dholka and Khambat
Corporation expected to invest
Reliance are key players oil reserves expected
 LNG and chemicals terminals in Dahej to drive growth of
 Estimated foreign investment of INR
expected to drive the growth of petro refining & allied petro
12,000 Cr into the sector during Vibrant
chemical processing units in Gujarat chemical industry
Gujarat 2013
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State Analysis-Economic Profile
Key Growth Sectors and their Geographical Presence - Textiles

Geographical
Overview Growth Enablers & Development
Concentration
 Occupies a key position in the state economy and  FDI flow over the next decade Surat is a
contributes to over 6% of the total industrial production expected from several countries traditional textile
and apparel hub
 Growth of the industry in Gujarat has been a recent  Gujarat is the largest producer
in India
phenomena started from the beginning of 21st century and exporter of Cotton
employing over 3
 Textile policy provides capital and operational  Technical and Power loom lakh people in
incentives including margin money subsidy, interest textiles is a key segment small to large
subsidy, interest reimbursement and capital subsidy expected to witness significant units
growth over the next decade
 Adopted 5F model - Farm to Fibre to Fabric to Fashion Ahmedabad,
from the current base of 860
to Foreign - as strategic outline for Government thrust Rajkot, Kutch,
units in 2009-10
Valasad,
 Textile policies, proximity to ports, other modes of
 State manufacturing policy has Gandhinagar,
transport, liberal labour policies, availability of low cost
ensured adequate measures to Bharuch,
raw material, and well developed textile machinery
provide skilled workforce to Valasad and
industry are key growth drivers
manpower intensive textile Navsari are other
 Lower cost of real estate in Gujarat made available units, with the policy targeting to focus regions for
through SEZs and textile parks in districts such as train nearly 3 Mn youth in the textile units in
Kutch, is another growth enabler sector, over the next five years. Gujarat

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State Analysis-Economic Profile
Key Growth Sectors and their Geographical Presence – Auto & Auto Components

Geographical
Overview Growth Enablers
Concentration
 State government has embarked series of  Tax holidays, special incentives and Sanand city in
measure to drive the growth of Auto available land (5000 acres) in the auto Ahmedabad district is the
industry through conducive policies cluster of Sanand auto hub with Auto giants
Tata, Ford and PSA
 Sanand Auto cluster is emerging as a  Growth potential for ancillary
Peugeot establishing
destination for growth of the industry industries around Sanand
their manufacturing
 Port-based assembling and pre-export  Strategically located on Delhi-Mumbai plants in the region
operations in the ports of Kutch district Infra Corridor providing Rail and Road
(Mundra) have helped growth of auto network and proximity to ports for Availability of port
assembling /testing operations in the state exports. infrastructure for export
has helped the growth of
 State has witnessed investments of INR  Various fiscal and non-fiscal benefits auto assembling and
2,500 Cr (Tata), INR 4,000 Cr (Maruti), provided to reduce project costs for testing operations in port
INR 2,500 Cr (Peugeot) and INR 4,000 the special investment region of city of Mundra.
Cr (Ford) from major auto companies. Sanand
Renault-Nissan, Honda Motorcycles, Bajaj Surat and Vadodara are
 Auto component industry is expected
Auto and Hero MotoCorp, AMW other important urban
to witness a 20-30% CAGR over the
companies are in various phases of clusters with several
next five years riding on huge
expanding in Gujarat ancillary auto units
investments in OEM segment

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State Analysis-Economic Profile
Key Growth Sectors and their Geographical Presence – IT and ITES

Geographical
Overview Growth Enablers
Concentration
 IT/ITES has been identified as a focus growth sector and  Conducive policy thrust Fourteen SEZs
the state IT Policy reflects governmental thrust: through special infrastructure identified in the
and fiscal, non fiscal state:
 Provision of employment to 200,000 persons
incentives •Four in
 Identification of land for IT Industry/Parks Gandhinagar
 Capacity of over 1,10,000 in
•Six in
 Assistance to IT industry for land acquisition Engineering & Diploma
Ahmedabad
colleges, ensures availability
•Three in
 Advisory to Municipal Corporations for designing of technical manpower
Vadodara
town planning schemes to accommodate IT parks
 19 MoUs (worth Rs 46,007 •One in Valasad
 Grant of SEZ status to IT Parks Cr) during Vibrant Gujarat
Summit 2009 and another 15
 Plans to provide capital subsidy to new IT units, turnover
MoUs in the 2013 Summit,
incentives for IT units and reduction of sales tax for
have been signed with IT-
purchase of computer hardware and peripherals
ITES players
 14 locations identified in 2010, for the growth of the sector
 For locations identified for IT
through sector specific SEZs
& ITES development,
 As on 2012, the state has 1 operational IT & ITES SEZ infrastructure development is
along with 6 SEZs in formal approval stage and 7 notified to be complete in 5-10 years
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State Analysis-Economic Profile
Key Growth Sectors and their Geographical Presence

Sector Growth Enablers for the industry Geographical Concentration

Food  Gujarat boasts of being the leader in exports of processed food and Ahmedabad, Bhavnagar. Bharuch,
Processing vegetables in India with a strong base of 3,700 small scale and 150 large Gandhinagar, Banas Kantha, Sabar
& medium scale food processing units. Companies such as ITC, Amul, Kantha and Anand
Hindustan Lever, McCain have explored the potential of this sector in
Gujarat.

 Gujarat offers a large number of incentives to set up food processing units.


Hassel free policies such as single window clearance, a strong agricultural
marketing network with over 200 Agricultural Produce Marketing
Committees (APMCs) and over 110 cold storages are some of the
enablers that have facilitated the rapid growth of this industry.

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State Analysis-Economic Profile
Key Growth Sectors and their Geographical Presence

Sector Growth Enablers for the industry Geographical Concentration

Banking &  Government has undertaken measure to boost the growth of financial Ahmedabad, Surat, Rajkot, Vadodara
Financial services activities through sector specific SEZs like Ahmedabad Financial and Gandhinagar
City.
Services
 Disposable income growth over the next decade would drive the
penetration of financial services in urban and semi urban regions.

 Banking inclusion targets are expected to drive the growth of banking


infrastructure in rural and under penetrated regions.

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State Analysis-Economic Profile
Key Growth Sectors and their Geographical Presence

Sector Growth Enablers for the industry Geographical Concentration

Hospitality  The tourism in Gujarat has been driven by the Tourism Corporation of Kutch, North Gujarat , Ahmedabad,
Gujarat Limited (TCGL) which has setup Gujarat Tourism Opportunities Saurashtra and South Gujarat tourism
and Tourism
Limited (GUJTOP) for development of tourist sites and Guj-Tour clusters
Development Company Ltd (GUJTOUR) to develop, create and market
Urban industrial clusters like
tourism-related infrastructure and projects.
Ahmedabad, Surat, Vadodara and
 The budgetary allocation towards tourism sector increased from 183 crore Rajkot
in FY11 to 200 crore in FY 12.

Healthcare  While coverage of healthcare infrastructure in rural areas would receive Surat, Ahmedabad and Vadodara
significant Government thrust, urban regions would have private
participation considering the affordability of healthcare services by urban
population

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Contents

1 Study Objectives

2 Methodology

3 Socio Economic Analysis of the State

Gujarat
4 Education and Training Infrastructure

5 Skill Development Opportunities

6 Challenges in Skill Development

7 Recommendations

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State Analysis
Dropout rates across education levels is a concern that needs to be addressed,
allowing a seamless transition into vocational education, is a key means to do this…

Penetration of Higher Education in Key Indian Enrollments in Gujarat Across Education Levels
States (Enrollments per 1000 Population)

Andhra Pradesh 21.8

TamilNadu 20.5

Maharashtra 17.4

Karnataka 16.4

Gujarat 14.8

All India Average 14.0

Madhya Pradesh 12.8

Uttar Pradesh 12.4

West Bengal 10.3

Source : MHRD Statistics 2012 Source :KPMG Analysis

 Capacity of higher education in Gujarat at 14.8 seats per 1000 population is only marginally better than national
average of 14 seats per 1000 population. Gross Enrollment Ratio in Gujarat is 15.9% (2009-10) while the average in
India is 15%, and the average in developed countries is often above 50%

 The international best practice followed in the education system, is to allow seamless transition of students at various
stages (from secondary school onwards) into vocational education streams. In order to facilitate this, vocational
education curriculum is incorporated in education at the schooling stage itself

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Education and Training Infrastructure- Training Capacities
Vocational education can play the crucial role of bridging the gap in the current
education system to create a skilled economy…
Higher Education Institutions  As per 2009-10 estimates, while Gujarat has a
Category of Institutions Number of Institutions marginally higher GER (15.9%) than India (15%), it is
Universities, Research 62 significantly lower than leading economies like
Institutes, Institutes of National USA(84%), UK(59%),Japan (55%) and China (28%)
Importance
Govt Colleges 71  Engineering diploma/degree account for a major
Grant in Aid Colleges 356 share of technical education capacity of 1.29 lakhs
Self financed institutions 605
Total Source : Gujarat Higher1,094
education Commission  Prevalence of vocation education measured as ratio
Technical Education Capacity of vocational education to technical education
Category of Institutions No. of Institutions Intake capacity (nearly 1:1) is lower than required levels,
Engineering Degree 114 53,773 considering the segmentation of employment
Engineering Diploma 102 56,918 opportunities (Skilled : Semi skilled), and also
MBA 132 13,365 considering the same ratio in countries like Germany,
Degree Pharmacy 80 5,005 Japan etc with a strong vocational education system
Total 428 1,29,061
 State has to focus on initiatives to improve private
Source : Gujarat Technical Education Statistics, 2012
participation in vocational education from current level
Vocational Education Capacity
of 26 percent, in terms of seat capacities, through
Category of Institutions No. of Institutions Intake innovative PPP schemes etc
ITIs 263 1,01,973
ITCs(Govt Aided) 448 14,864  NSDC partner institutes have established significant
VTPs(Private) 575 21,269 presence in the state with 69 centres across Gujarat:
Private Training 69 4,314* AISECT (40), B-ABLE (7), Empower Pragati (5),
Institutes(NSDC Partners) GTVE GOLS (9), Laurus Edutech (3), IL&FS (1), IIJT
Total 1,355 1,42,420 (2), Future Sharp Skills (1) and Labour Net (1)
*Trained in 2012-13 Source : Directorate of Labour & Training Gujarat
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Education and Training Infrastructure- Vocational Education
Regional variations in vocational training capacities indicates a need for geographical
focus towards capacity expansion…
No. of ITI/ Seat NSDC Partner Vocational  Densely populated industrial
Penetration Region
ITCs/VTP Capacity Institutes Capacity Training. Density* clusters of Ahmedabad,
Navsari 15 6,125 4.60 Vadodara, Surat and Rajkot
Bharuch 21 6,256 3 886 4.03 have significantly lower
High
Sabar Kantha 47 8,382 5 87 3.45 penetration of vocational
Gandhinagar 29 4,666 2 26 3.36 education.
Mahesana 37 6,377 3.14
Panchmahals 45 7,488 3 247 3.14  Regional variations in
Kheda 31 6,803 5 188 2.96
Junagadh 63 8,051 1 28 2.94
capacities with industrially
Dohad 38 5,770 2 221 2.71 backward districts having
The Dangs 1 600 1 45 2.66 high penetrations
Amreli 18 3,940 2.60
Surendranagar 27 4,356 2.48  State needs to formulate
Medium
Tapi 7 1,930 2.39 conducive policies and
Kachchh 19 4,712 2.25 special incentive schemes
Vadodara 48 9,168 4 143 2.21
Patan 12 2,952 2.20
to enable private
Jamnagar 17 4,656 2.16 investments in vocational
Anand 29 4,230 2 24 2.02 education in low penetration
Valsad 11 3,319 3 173 1.95 districts
Banas Kantha 32 5,676 1 80 1.82
Rajkot 36 6,920 1 43 1.82  NSDC partners largely
Ahmedabad 61 12,141 24 1926 1.68
Low concentrated around urban
Narmada 6 932 2 156 1.58
Bhavnagar 28 4,346 1 21 1.51 and industrial clusters like
Surat 30 7,750 1 20 1.27 Ahmedabad and Bharuch
Porbandar 3 560 0.96
Source : Directorate of Labour & Training Gujarat, NSDC
Gujarat 711 138,106 61 4,314 2.36
* Measured as seats per 1000 population
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Education and Training Infrastructure-Government Initiatives

Government Scheme Details/Objectives Performance


Scheme
Private Universities  Government of Gujarat has passed the Private  Gujarat has witnessed establishment of 10 are
Universities Bill in 2009 allowing the formation of private universities (6 already existing and 4 new
Bill
private universities without having to pass have been approved and will commence operations
legislation through the Assembly. soon) supported by the conducive policy.
 Any private institution applying for a private
university would be evaluated by the Department  In 2013, amendment to the bill for approving three
of Education and would amend the schedule of more universities-Lakulish Yoga University in
the Private Universities Bill on meeting eligibility Ahmedabad, Team Lease Skills University-ITI at
criteria. Tarsali in Vadodara, and CU Shah University in
Wadhwan has been approved.
Skill Development Government of Gujarat has initiated promotional  Prominent private vocational institutes including
schemes through Center for Entrepreneurship NSDC partners have setup training centers in
Promotional
Development (CED) in 2009-10 aimed at increasing Gujarat under these schemes. Currently there are
Schemes under private participation in vocational education. Schemes 49 approved SUCs in the state which have
Industries for conducted 156 training programs training 4282
trainers till date.
(i) Setting up extension centers/Skill Up gradation
Centers(SUCs) at GIDC estates, ITI premises,  Eleven proposals have been approved for SDCs
industrial clusters, industrial parks, SEZs, with prominent industrial players and training
investment regions with capital expenditure institutes like Apollo Tyres, ABG Shipyard and
support to a maximum of 1 Cr Ahmedabad Textile Industry’s Research
(ii) Specialized Skill Development Centers providing Association (ATIRA). SDCs in the state have
financial assistance towards capital expenditure conducted 98 training programs training 2123
(building/land/equipment) under a maximum limit trainers till date.
of 1 Cr are currently undertaken by the
Government.
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Education and Training Infrastructure-Government Initiatives

Government Scheme Details/Objectives Performance


Scheme
Promoting  Government of Gujarat has initiated promotional scheme in 2009-10 Currently seven PPP initiatives have been
through Center for Entrepreneurship Development (CED) for approved with players including General
Industrial
running Short Term Bridge Courses in PPP mode. Motors, Tata Motors Pvt Ltd and Powai Labs
Participation in  This scheme provides interested industrial players with options to which have offered 5 training programs
Education and either run existing courses or implement special programs in training 110 trainers till date.
Training partner institutes with a maximum cap on quantum of assistance-
INR 1 Cr
Introducing State has implemented measures to provide flexibility in curriculum  State Universities implemented Choice
selection for students across levels of education by introducing Choice Based Credit System at Postgraduate
Flexible Based Credit System (CBCS) allowing students to choose courses as level from the academic year 2010-11.
Curriculum- electives from different streams in UG/PG programs. The system permits  It was implemented at Undergraduate
Choice Based student to level at Saurashtra University, Sardar
Credit System Patel University, and Bhavnagar
 Learn at their own pace University and in the faculty of Science
(CBCS)  Choose electives from a wide range of courses
at M.S.University of Baroda.
 Undergo additional courses and acquire more than required number
of credits  State Government has proposed to
 Adopt an interdisciplinary approach in learning implement the CBSE across all higher
 Inter college/University transfer of Credits education institutes.
 Complete a part of programme in the parent institute and get
enrolled in another
 institution for specialized courses
 Enhance skill/employability by taking up project work,
entrepreneurship and vocational training.
 Carry on and transfer their credit
 Make best use of the expertise of available faculty.

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Education and Training Infrastructure-Government Initiatives

Government Scheme Details/Objectives Performance


Scheme
Improving State Government in Gujarat has initiated various measures aimed at enhancing the  SANDHAN initiative offers VSAT
quality of learning at higher education institutes like enabled classes for 12 hours a day
Quality of
 Introducing ICT in teaching and learning processes in classrooms through with courses ranging from English,
Education initiatives like SANDHAN Sciences, Employability areas
 Introduced Academic and Administrative Audit (AAA) to monitor the quality of  AAA has developed a successful
higher education institutions model for evaluating institutions
 Initiated implementation of TEQUIP-I in technical education institutions comprehensively with a scaling
 University Granth Nirman Board- Providing quality educational resources in local system providing weight ages to
languages at affordable prices Academic Information, Systems &
 Setting up of GEIC(Gujarat Educational Innovations Commission) with district, procedures, Administration and
block and cluster level cascading structure integrating schools with higher Government initiatives in Higher
education to promote the innovation in education Education

Improving Employability enhancement measures through initiatives like UDISHA (Universal  Currently there are established
Development of Integrated Employability Skills through Higher Education Agencies) UDISHA groups in all district
Employability
and finishing school, language training programs (SCOPE) are undertaken by the state regions and metro clusters.
of Students Government.  SCOPE has targeted plans to train
 Initiated in 2008 UDISHA is targeted to improve employability of students in 5 lakh youth in the next five years
higher education institutes across Gujarat by organizing career development  KVK initiative has trained over 3.3
programs, training for the clubs through faculty in charges lakh youth till 2012
 Technoseva and Viswakarma Yojana provide earning opportunities to students by
engaging them in social sector projects in rural and urban areas
 SCOPE- To youth in English proficiency through PPP and education institutions
 Started in 2008 emPower provides basic computer training to youth in schools,
higher education institutions, ITI s/ ITPs and also through employment exchanges,
KVKs (Kaushal Vikas Kendras) and PPP.

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Education and Training Infrastructure-Government Initiatives

Government Scheme Details/Objectives Performance


Scheme
Anchor Government has started Anchor Institutes initiative through CED in 2009 providing  Six Anchor Institutes have
financial assistance to support research and faculty training in respective sectors. Role of been selected under the
Institutes
the Anchor Institute scheme in Engineering
and Auto, Gems &
 To focus on enhancing technical and managerial competence of manpower in the Jewellery, Textile,
respective sectors, through appropriate training programs Garment & Apparel,
 To collect information on sectoral courses ( all levels – ITIs, UG, PG) offered and Plastic and Packaging,
review them for any up gradation required for making it industry responsive
Chemical and
 To suggest introduction of short term skilling courses for those already working in
the industry Infrastructure.
 To prepare teaching and learning material for skill training programs
 To constantly interact with industry and introduce new training programs of high  Each Sector (Anchor/Co-
standards Anchor Institutes) are
 To provide an opportunity for students pursuing courses in the sector to interact with eligible for a maximum
industry professionals by encouraging student-industry interaction forums capital and operational
 To encourage faculty to undertake industrial research and consultancy activities, so support of INR 10 Cr.
that they stay abreast of the industry developments
 To appoint, not more than 3, support institutions per sector across the state to  Across sectors around
support in performing its activity efficiently
400 training programs
have been conducted
A review committee headed by IIT Gandhinagar is set up to monitor the performance of
training over 10,000
the anchor institutes.
trainers/students till date.

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Education and Training Infrastructure-Government Initiatives

Government Scheme Details/Objectives Performance


Scheme
Setting up of Government of Gujarat has setup GSDM as a non delivery Skill Development mission has successfully
function entity to coordinate and strategize the skill implemented skill voucher scheme in the state. from
Gujarat Skill
development initiatives in the state. Key objectives for 2012-13. In the first year around 20, 000 skill
Development setting up the Gujarat Skill Development Mission include vouchers of value between Rs 2500 to Rs 5000 are
Mission  Develop an integrated strategy for enhancing the expected to be distributed.
employability of youth in the state
 Undertake survey/research to identify existing skill While the scheme is still in the initial stages of
gaps implementation, robust monitoring systems and
 To make a comprehensive skill development strategy simple procedural aspects have potential to make
for the state the scheme replicable across India. Key features of
 To disaggregate the skill development targets skill the program are
wise and beneficiary wise
 To allocate activities of strategy formulated among Funding entities will
various departments- Labour & Employment,  identify the beneficiary, get a skill voucher in
Education Department, Urban Development, Cottage his/her name and hand it over to the
Industries Department , Rural Development beneficiary.
Department etc.,  Institute training the candidate can claim the
 To monitor the performance of schemes for impact and money upon successful completion of course of
achievability of targets his choice
 If the candidate fails to undergo
training/evaluation money goes back to the
funding entity.
 GSDM just stands as a guarantor to the
 funding agency that the money will not go
waste.

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Education and Training Infrastructure-Government Initiatives

Government Scheme Scheme Details/Objectives Performance

Accessible training for KVKs are intended to address the issue of accessibility of From 2008 over 3,91,997 candidates have been
women and school training facilities for rural population, especially women by trained till May-2012, out of which 2,27,973 are
dropouts through KVKs running life skills, O & M of Micro irrigation equipment, Battery women indicating the high level of inclusiveness in
(Kaushalya Vardhan Talim maintenance, clay work, ladies tailor, agriculture implements these training programs
repairer, cloth doormat, zardozi work courses in available
Kendra )
Govt. buildings, Panchayat buildings or rented spaces.

MoU with International Collaborations will provide the framework within which detailed Gujarat government inked pact with Kangan Institute
Institutes for Skill proposals for programs for establishment of International of Victoria, Australia, for skill development in
Development Centre of Excellence, skills development , education, automotive sector in 2013.
research, training van be undertaken.
As a part of the agreement, board of Kangan institute
Interaction between the parties would be jointly considered on will jointly work with partners such as Maruti Suzuki,
the basis of reciprocity and mutual benefit. Ford Motors, GMDC and IIT Gandhinagar under the
umbrella of International Automotive Centre of
Excellence (i-ACE) to promote skill development in
automotive sector
Vertical Integration of Government of Gujarat has proposed to integrate vocational This scheme is yet to be operational.
Vocational and Higher education with higher education where a two-year ITI diploma
Education certificate would be equivalent to Class 12th certificate.

ITI certificate-holders would be eligible for admission to higher


education institutes like engineering colleges.

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Education and Training Infrastructure-Government Initiatives

Government Scheme Details/Objectives Performance


Scheme
Improving Employability enhancement measures through initiatives like UDISHA (Universal  Currently there are
Development of Integrated Employability Skills through Higher Education established UDISHA
Employability of
Agencies) and finishing school, language training programs (SCOPE) are groups in all district
Students undertaken by the state Government. regions and metro
 Initiated in 2008 UDISHA is targeted to improve employability of students in clusters.
higher education institutes across Gujarat by organizing career development  SCOPE has targeted
programs, training for the clubs through faculty in charges plans to train 5 lakh
 SCOPE- To youth in English proficiency through PPP and education youth in the next five
institutions years
 Started in 2008 emPower provides basic computer training to youth in  KVK initiative has trained
schools, higher education institutions, ITI s/ ITPs and also through over 3.3 lakh youth till
employment exchanges, KVKs (Kaushal Vikas Kendras) and PPP. 2012

Budget Thrust  Gujarat has taken an initiative of creating Skill University.


 Government has planned to create Gujarat Skill Development Corporation with a view to prepare industry‐
2013-14, Gujarat
responsive skilled youth that will meet the requirements of different industrial sectors like chemicals,
Government petrochemicals, ports, infrastructure, engineering, textiles and information technology.
 A provision of INR 116 crore is made for strengthening and modernization of it is.
 A provision of INR 20 crore is made for providing apprenticeship stipend to approximately 40,000 youngsters
trained at ITIs.
 A provision of INR 26 crore is made under eMPOWER with a view to provide computer training to 2.25 lakh
youngsters of the State.
 A provision of INR 19 crore under UMEED Programme to train approximately 1 lakh youngsters of the Urban
Poor for employment.
 A provision of INR 9 crore is made with a view to create a fund for The Modular Employable Skill in
association with industries
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Contents

1 Study Objectives

2 Methodology

3 Socio Economic Analysis of the State

Gujarat
4 Education and Training Infrastructure

5 Skill Development Opportunities

6 Challenges in Skill Development

7 Recommendations

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Skill Development Opportunities(2012-22)
Along with primary sector, transportation & logistics, banking and financial services,
hospitality would account for nearly three fourths of the overall employment...
Incremental Manpower Requirement (2012-17) Incremental Manpower Requirement (2017-22)
Sector Skilled Semi Skilled Minimally Total Skilled Semi Skilled Minimally Total
skilled skilled
Transportation & Logistics 17976 285441 339601 643019 14707 233543 277856 526106
Agriculture & Allied Activities NA NA 426677 426677 NA NA 357322 357322
Construction 13392 26785 227669 267846 11979 23957 203635 239570
Banking & Financial Services 64000 192000 NA 256000 44800 134400 NA 179200
Hospitality & Tourism 24963 37445 187223 249630 19970 29956 149778 199704
Trade, Retail 21632 32447 162237 216316 23646 35469 177347 236463
IT-ITES 60000 150000 NA 210000 50000 120000 NA 170000
Education & Training 24116 162346 NA 186462 36174 97408 NA 133581
Textile & Apparel 16564 66254 82818 165635 14815 59260 74075 148150
Chemical & Chemical Products 9692 38769 48461 96922 8669 34676 43345 86690
Healthcare 12080 54359 NA 66438 16093 80466 NA 96559

Mineral Processing & Fabrication 6471 25884 32355 64710 5788 23152 28939 57879
Manufacturing of Engineering Goods 5990 23962 29952 59904 5358 21432 26790 53580
Agro & Food Processing 3655 14619 18273 36547 3272 13089 16362 32723
Electrical & Electronics 3192 12769 15962 31924 2855 11421 14277 28553
Manufacturing of Construction Material 2885 11541 14426 28853 2581 10323 12904 25807
Rubber & Plastics 2266 9063 11329 22658 2027 8106 10133 20266
Misc. Manufacturing 2263 9051 11314 22627 2024 8095 10119 20239
Wooden Products & Furniture 1801 7004 10205 19010 1671 6336 9407 17414
Paper & Paper Products 1358 5431 6789 13578 1214 4858 6072 12145

Drugs and Pharmaceuticals 1168 4670 5838 11676 1044 4177 5222 10443
Total
2,95,420 11,69,685 16,30,943 29,56,901 2,68,654 9,34,784 14,32,025 26,52,023
Source : KPMG Analysis
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Skill Development Opportunities(2012-22)
Industrial clusters of Ahmedabad, Surat, Rajkot, Vadodara and Kutch are expected
to generate a large portion of incremental employment opportunities in the State...
Focus Sectors in Districts of Gujarat
Incremental

of Construction

Pharmaceutica
Paper & Paper

Transportation
of Engineering
Manufacturing

Manufacturing

Manufacturing
Processing &
Manpower

Agriculture &

Trade, Retail
Construction
Agro & Food

Hospitality &

Education &
Chemical &

Electrical &
Processing

Fabrication

Electronics
Products &

Healthcare
& Logistics
Drugs and
District Requirement

Rubber &
Chemical
Furniture

Products

Products
Textile &

Wooden

Tourism

Training
Material

IT-ITES
Plastics
Apparel
2012-22

Mineral

Goods
Allied

Misc.

BFSI
ls
Ahmedabad 748,197
Surat 707,504
Vadodara 485,337
Rajkot 373,826
Kutch 286,496
Valasad 249,117
Bhavnagar 247,421
Gandhinagar 229,728
Bharuch 228,614
Kheda 202,376
Mehsana 200,231
Banas Kantha 192,047
Junagadh 191,875
Jamnagar 185,436
Sabar Kantha 176,527
Panchmahals 160,135
Anand 140,724
Surendranagar 132,233
Dahod 121,242
Navsari 113,398
Amreli 105,311
Patan 85,094
Porbandar 52,541
Tapi 52,239
Narmada 48,352
The Dangs 32,828
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Skill Development Opportunities(2012-22)
Gujarat will have an excellent demographic dividend for years to come, with the
state labour force expected to reach nearly 260 million by 2022...

Expected Demographic Composition Transformation in Gujarat

2017 2022

Total Population Total Population

649 lakhs 682lakhs

Working Age Working Age


Group Population Group Population
419 lakhs 446 lakhs

Labour Force
Labour Force243
lakhs 259 lakhs

Work Force Work Force

231 lakhs 246 lakhs

Source : KPMG Analysis


•Labour Force: Number of people employed or seeking employment in Gujarat
•Work Force: Number of people employed in Gujarat
•Working Age Population: Number of People in the 15-59 age Group

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Skill Development Opportunities(2012-22)
State is expected to witness a gross addition of 35.53 lakhs and 33.36 lakhs during
2012-17 and 2017-22 periods to the labour force…
Labour Force Supply 2012-17 Labour Force Supply 2017-22

Gross Addition to Net Addition to Gross Addition to Net Addition to


Working Age Gross Addition to Labour Force- Working Age Gross Addition to Labour Force-
Region Population Labour Force Supply Population Labour Force Supply

Gujarat 6,051,859 3,553,511 2,041,412 5,667,176 3,336,960 1,585,016

Kachchh 200,506 95,295 58,158 219,075 101,138 45,156

Banaskantha 371,356 214,245 104,882 368,150 209,703 81,434

Patan 150,654 99,015 51,192 137,952 92,064 39,747

Mahesana 204,983 138,966 79,569 179,565 124,973 61,780

Sabarkantha 255,224 163,435 90,320 250,323 161,398 70,127

Gandhinagar 149,895 99,164 53,237 127,768 85,902 41,334

Ahmadabad 621,668 285,647 192,997 599,899 273,742 149,849

Surendranagar 196,756 119,975 62,191 180,122 110,788 48,287

Rajkot 338,798 183,119 119,548 320,481 172,910 92,821

Jamnagar 216,295 121,793 70,519 196,327 112,300 54,753

Porbandar 59,866 36,474 20,659 51,111 32,039 16,040

Junagadh 289,452 175,045 96,115 243,561 150,229 74,627

Amreli 153,029 100,860 57,697 133,421 90,641 44,798

Bhavnagar 317,500 172,242 90,720 286,459 156,483 70,438


Source : KPMG Analysis
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Skill Development Opportunities(2012-22)
State is expected to witness a gross addition of 35.53 lakhs and 33.36 lakhs
during 2012-17 and 2017-22 periods to the labour force…
Labour Force Supply 2012-17 Labour Force Supply 2017-22

Gross Addition to Net Addition to Gross Addition to Net Addition to


Working Age Gross Addition to Labour Force- Working Age Gross Addition to Labour Force-
Region Population Labour Force Supply Population Labour Force Supply

Anand 204,570 127,216 75,362 187,353 118,634 58,513

Kheda 236,245 154,598 87,227 214,336 142,759 67,726

PanchMahals 269,503 182,042 93,808 260,708 176,672 72,836

Dohad 257,486 161,955 78,233 283,596 174,005 60,743

Vadodara 393,227 237,767 145,880 363,174 222,577 113,266

Narmada 63,600 46,179 24,884 57,987 42,601 19,321

Bharuch 154,681 94,267 54,812 134,876 83,558 42,558

The Dangs 163,983 110,855 8,931 184,351 123,919 6,934

Navsari 81,807 55,675 52,366 73,451 51,584 40,658

Valsad 116,878 73,594 62,450 140,361 88,032 48,488

Surat 507,976 255,044 179,396 406,154 194,431 139,288

Tapi 75,920 49,042 30,195 66,615 43,881 23,444

Source : KPMG Analysis

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Skill Development Opportunities(2012-22)
State is expected to witness a net addition of 20.41 lakhs and 15.85 lakhs during
2012-17 and 2017-22 periods to the labour force…
Incremental Manpower Supply (2012-17) Incremental Manpower Supply (2017-22)

Region Skilled Semi Skilled Minimally Total Skilled Semi Skilled Minimally Total
skilled skilled

Gujarat 297,057 230,302 1,514,053 2,041,412 326,746 283,419 974,851 1,585,016

Kachchh 12,967 10,053 35,138 58,158 12,620 10,947 21,589 45,156

Banaskantha 18,257 14,154 72,471 104,882 19,267 16,712 45,455 81,434

Patan 7,103 5,506 38,583 51,192 7,890 6,844 25,013 39,747

Mahesana 10,788 8,364 60,417 79,569 12,391 10,748 38,641 61,780

Sabarkantha 12,856 9,967 67,498 90,320 13,446 11,663 45,018 70,127

Gandhinagar 7,100 5,504 40,632 53,237 8,466 7,343 25,525 41,334

Ahmadabad 34,352 26,633 132,012 192,997 37,026 32,116 80,706 149,849

Surendranagar 9,014 6,988 46,190 62,191 10,082 8,745 29,460 48,287

Rajkot 18,055 13,998 87,495 119,548 19,751 17,132 55,939 92,821

Jamnagar 8,478 6,573 55,467 70,519 9,498 8,238 37,017 54,753

Porbandar 2,973 2,305 15,380 20,659 3,496 3,033 9,511 16,040

Junagadh 13,589 10,536 71,990 96,115 16,356 14,187 44,085 74,627

Amreli 7,575 5,873 44,249 57,697 8,707 7,552 28,539 44,798

Source : KPMG Analysis

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Skill Development Opportunities(2012-22)
State is expected to witness a net addition of 20.41 lakhs and 15.85 lakhs during
2012-17 and 2017-22 periods to the labour force…
Incremental Manpower Supply (2012-17) Incremental Manpower Supply (2017-22)
Region Skilled Semi Skilled Minimally Total Skilled Semi Minimally Total
skilled Skilled skilled

Bhavnagar 15,146 11,742 63,832 90,720 17,220 14,936 38,281 70,438

Anand 11,034 8,554 55,774 75,362 12,221 10,601 35,691 58,513

Kheda 11,514 8,926 66,787 87,227 12,879 11,171 43,676 67,726

PanchMahals 12,734 9,873 71,201 93,808 13,553 11,756 47,526 72,836

Dohad 12,063 9,353 56,817 78,233 11,598 10,060 39,085 60,743

Vadodara 19,754 15,315 110,811 145,880 21,797 18,907 72,562 113,266

Narmada 2,790 2,163 19,931 24,884 3,124 2,709 13,487 19,321

Bharuch 7,828 6,069 40,915 54,812 9,122 7,913 25,523 42,558

The Dangs 326 253 8,351 8,931 302 262 6,371 6,934

Navsari 9,869 7,651 34,845 52,366 11,002 9,544 20,112 40,658

Valsad 12,878 9,984 39,587 62,450 11,121 9,646 27,721 48,488

Surat 23,664 18,346 137,385 179,396 32,063 27,811 79,414 139,288

Tapi 2,486 1,927 25,782 30,195 2,869 2,489 18,086 23,444

Source : KPMG Analysis

Limited supply of semi skilled workforce would indicate a need to focus on the vocational
training within the state
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Skill Development Opportunities(2012-17)
Supply Demand Gap Analysis for 2012-17, highlights the need for additional supply in
semi-skilled and minimally categories within the state…(1 of 2)
Labour Force Estimations for 2012-17

Demand for Human Resource Gross Addition to Working Age Population Gross Addition to Labour Force
=> New jobs created 2012-17 (1) => Total needing to be skilled 2012-17 (2) => Total available for employment 2012-17 (3)

Continued (next diagram)


2.95 L 8.9 L 5.17 L
Text Skilled

11.69 L Text 4.01 L


Semi-Skilled 6.9L

16.31 L 44.71 L 25.97 L


Minimally Skilled

Source : KPMG Analysis

1. Demand for Human Resource: Estimated number of additional employment opportunities created in the state based
on sectoral growth
2. Gross Addition to Working Age Population: Estimated new entrants into working age, needing some level of skilling
(minimal/semi-skilled/skilled)
3. Gross Addition to Labour Force: Portion of the Gross Addition to Working Age Population, who actively seek
employment
Supply demand gap indicates a need to improve participation rates in semi-skilled and minimally skilled
categories, along with providing vocational skills to high skilled labour force, to ensure adequate employability…
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Skill Development Opportunities(2012-17)
Supply Demand Gap Analysis for 2012-17, highlights the need for additional supply in
semi-skilled and minimally categories within the state…(2 of 2)
Supply Demand Gap Estimations for 2012-17

Demand for Human Resource Net Addition to Labour Force 2012-17 Supply-Demand Gap 2012-17
=> New jobs created 2012-17 (1) (4) = (3) – Estimated retirees (5) = (1) – (4)

2.95 L 2.97 L -0.02 L


Text Skilled

11.69 L Text 2.3 L 9.39 L


Semi-Skilled

16.31 L 15.14 L 1.17 L


Minimally Skilled
Source : KPMG Analysis

4. Net Addition to Labour Force: Gross Addition to Labour Force minus retirees – i.e. net new labour force available to
meet new human resource demand arising from sectoral growth

5. Supply of Human Resource: Difference between Demand for Human Resource (1) and Net Addition to Labour Force
(4)
Supply demand gap indicates a need to improve participation rates in semi-skilled and minimally skilled
categories, along with providing vocational skills to high skilled labour force, to ensure adequate employability…
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Skill Development Opportunities(2017-22)
Supply Demand Gap Analysis for 2017-22, highlights the need for additional supply in
semi-skilled and minimally categories within the state…(1 of 2)
Labour Force Estimations for 2017-22

Demand for Human Resource Gross Addition to Working Age Population Gross Addition to Labour Force
=> New jobs created 2017-22 (1) => Total needing to be skilled 2017-22 (2) => Total available for employment 2017-22 (3)

Continued (next diagram)


2.68 L
11.84L 6.87 L
Text Skilled

9.34 L
Text Semi-Skilled 10.27L 5.96 L

14.32 L 34.56 L 20.07 L


Minimally Skilled
Source : KPMG Analysis

1. Demand for Human Resource: Estimated number of additional employment opportunities created in the state based
on sectoral growth
2. Gross Addition to Working Age Population: Estimated new entrants into working age, needing some level of skilling
(minimal/semi-skilled/skilled)
3. Gross Addition to Labour Force: Portion of the Gross Addition to Working Age Population, who actively seek
employment
Supply demand gap indicates a need to improve participation rates in semi-skilled and minimally skilled
categories, along with providing vocational skills to high skilled labour force, to ensure adequate employability…
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Skill Development Opportunities(2017-22)
Supply Demand Gap Analysis for 2017-22, highlights the need for additional supply in
semi-skilled and minimally categories within the state…(2 of 2)
Supply Demand Gap Estimations for 2017-22
Demand for Human Resource Net Addition to Labour Force 2017-22 Supply-Demand Gap 2017-22
=> New jobs created 2017-22 (1) (4) = (3) – Estimated retirees (5) = (1) – (4)

2.68 L 3.26 L -0.58 L


Skilled
Text

9.34 L
Text 2.83 L 6.51 L
Semi-Skilled

14.32 L 9.74 L 4.58 L


Minimally Skilled

Source : KPMG Analysis

4. Net Addition to Labour Force: Gross Addition to Labour Force minus retirees – i.e. net new labour force available to
meet new human resource demand arising from sectoral growth

5. Supply of Human Resource: Difference between Demand for Human Resource (1) and Net Addition to Labour Force
(4)

Supply demand gap indicates a need to improve participation rates in semi-skilled and minimally skilled
categories, along with providing vocational skills to high skilled labour force, to ensure adequate employability…
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Skill Development Opportunities(2012-22)
District level variations in supply-demand gap indicate the need for geography
specific initiatives to address the skilling issues…
Supply-Demand Gap (2012-17) Supply-Demand Gap (2017-22)
Sector Skilled Semi Skilled Minimally Total Skilled Semi Skilled Minimally Total
skilled skilled

Gujarat (1,637) 939,383 116,890 915,489 (58,092) 651,365 457,174 1,067,007

Kachchh 1,326 46,100 48,944 (42,733) 159 35,366 51,289 86,813

Banaskantha (11,355) 14,068 (4,332) (1,620) (11,883) 5,133 14,094 7,350

Patan (2,896) 9,002 (11,270) (5,168) (3,955) 4,337 (1,064) (685)

Mahesana (2,179) 29,969 713 28,505 (4,499) 20,438 17,465 30,379

Sabarkantha (5,973) 19,336 (8,942) 4,416 (6,665) 12,358 5,972 11,664

Gandhinagar 13,215 55,324 3,643 72,175 8,775 41,340 12,861 62,980

Ahmadabad 4,134 139,893 66,247 210,268 (2,250) 105,400 91,935 195,078

Surendranagar (2,834) 17,243 (5,317) 9,089 (4,307) 10,729 6,240 12,663

Rajkot 792 64,624 15,601 81,018 (2,509) 49,060 33,892 80,440

Jamnagar 133 28,472 481 29,083 (1,683) 20,918 11,759 30,996

Porbandar 1,267 11,576 (4,617) 8,224 (57) 7,654 (6) 7,590

Junagadh (5,777) 22,715 (10,811) 6,127 (8,707) (11,297) 9,375 14,568

Amreli (2,225) 14,117 (12,924) (1,034) (3,816) 8,686 (1,025) 3,846

* (indicate excess supply) Source : KPMG Analysis

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Skill Development Opportunities(2012-22)
District level variations in supply-demand gap indicate the need for geography specific
initiatives to address the skilling issues…
Supply-Demand Gap (2012-17) Supply-Demand Gap (2017-22)
Sector Skilled Semi Skilled Minimally Total Skilled Semi Skilled Minimally Total
skilled skilled

Bhavnagar (332) 41,645 1,848 43,161 (3,765) 27,723 19,139 43,094

Anand (3,610) 16,009 (11,734) 658 (5,505) 8,751 2,950 6,192

Kheda (4,462) 28,316 (1,653) 22,199 (6,279) 19,037 16,015 25,223

PanchMahals (6,614) 15,347 (16,840) (8,109) (7,379) 8,708 151 1,474

Dohad (7,713) 8,767 (14,398) (13,345) (6,874) 4,179 (1,754) (4,448)

Vadodara 8,650 94,358 12,656 115,664 3,542 72,254 34,736 110,530

Narmada 238 7,741 (6,554) 1,427 (550) 5,050 (1,819) 2,681

Bharuch 3,791 40,887 23,383 68,062 1,114 31,324 32,788 63,183

The Dangs 1,910 7,493 (724) 8,678 1,748 5,951 585 8,285

Navsari (2,818) 16,674 (4,885) 8,972 (4,941) 10,175 6,168 11,404

Valsad 864 44,916 26,047 71,826 1,043 35,984 29,330 66,351

Surat 12,523 132,032 55,495 200,046 550 98,239 89,986 188,772

Tapi 172 6,451 (8,654) (2,036) (520) 4,222 (3,070) 634

* (indicate excess supply) Source : KPMG Analysis

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Skill Development Opportunities(2012-22)-Scheme Based Training
Government scheme based training would augment 19 lakhs training capacity to
vocational education with SJSRY, MES, SGSY contributing to a major share…
Key Schemes with Estimated Training
Around 20 Ministries are closely involved with skill Training Mandate Capacity (2012-17)
development initiatives either through own skill training
SJSRY 3,75,000
(done by Ministry of Labour and Employment, Ministry
of Higher Education etc) or by providing per-trainee SDI-MES 3,00,000
costs of training for specific target populations (done M/O Agriculture 2,50,000
by Ministry of Housing and Urban Poverty Alleviation, SGSY 2,00,000
Ministry of Rural Development, Ministry of Minority
Affairs etc). Using Construction Cess 1,90,000
ISDS - Textiles 1,25,000
National level scheme funding targets demarcated for Skill Others 1,15,000
Development are apportioned to Gujarat considering
D/O IT 1,10,000
population, industrial output, land, economic output and
social composition of population ART - M/o Tribal Affairs 50,000
SCA under TSP - M/o
Based on indicated cost per trainee for the identified Tribal Affairs 30,000
schemes, scheme wise training potential has been Hunar Se Rozgar 25,000
estimated for the period 2012-17. During the five year CSR Funds from Central
period 2012-17 major schemes have a potential to train PSUs 25,000
nearly 19 lakh people with SJSRY, SDI-MES and
Credit Scheme by Banks 1,05,000
Agricultural training program accounting for a major
share of this Total 19,00,000
Source : National Skill Development Mission, KPMG Analysis

Skill Development schemes from ministries need to focus on imparting demand led skill training with
robust monitoring mechanisms at various levels of implementation…
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Skill Development Opportunities(2012-22)-Youth Aspirations

Entry level salaries, work environment, job location, and socio-cultural factors, seem to influence youth
preferences towards employment.
Preference for
Employment Vs While certain communities have established preferences for entrepreneurship in skilled/unskilled
Entrepreneurship businesses, low entry level salaries in industries is another key factor influencing youth preference.
Youth in semi urban and rural areas have expressed higher level of inclination towards entrepreneurship
than their urban counterparts due to above mentioned reasons.

Youth from certain communities have aspirations of migrating to US, UK and Middle Eastern countries
for jobs, others from industrially less advanced areas are open to migrating to Surat, Ahmedabad, Kutch
Migration and Bhavnagar within Gujarat for better employment prospects.
While industrial belts have the potential to absorb and employ migrants, preference for centrally located
regions like Ahmedabad, Vadodara clusters is high over far away regions like Kutch.

Youth seem to show higher inclination for jobs in Govt/Govt Undertaking Sectors like Railways, GEB,
Preference for IOCL, NTPC and other PSUs. However, considering the limited opportunities in these segments, private
government jobs over sector jobs offering high job security (Large Corporate like Tata, Reliance, Adani) are the preferred
private option for youth in private sectors. The salary differences in the private sector are perceived to be not
very high across different companies, for blue collar jobs.

Sectoral Preference Regional considerations along with work place environment and salaries have significant influence on
for Employment preferences for sectors

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Skill Development Opportunities(2012-22)
Logistics, Financial Services, Hospitality &Tourism, Auto and Retail sectors are
high on employment potential as well as aspirational value for youth…
Focus Sectors*
Skill Development Attractiveness in Gujarat
Transportation &
Logistics
Transportation & Banking & Financial Services
Agriculture allied
High

activities Logistics Banking &


Hospitality &
Construction Tourism Financial Services
Retail

Hospitality &
Incremental manpower

Textile IT-ITES Tourism


potential in MP

Food Processing Education and skill


Chemicals development
Rubber & plastics IT-ITES
Auto- Auto
Wood & wooden Components
products Manufacturing of Retail
Machinery Healthcare
Drugs & Pharma
Low

Low High Healthcare


Youth aspiration for sectoral employment 

Auto - Auto
Components
Source: KPMG Analysis
*Employment growth opportunities and youth aspirations towards working in
the sector are the criteria for identifying focus sectors for the state

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Skill Development Opportunities(2012-22)
Port based logistics in the coastal districts of Gujarat is expected to witness
significant manpower requirement in the next decade…
Sector Growth Outlook
Transportation & Logistics Incremental Human
 Transportation & Logistics industry is predominantly dominated by port Resource Requirement, 11.69 lakhs (2012-22)
based logistics, with road logistics expected to witness considerable
boost along DMIC corridor region.

 Gujarat port based logistics industry, predominantly consisting of


private ports is expected to sustain the growth witnessed in cargo
Kachchh
handling capacities of private ports (24% CAGR between 2006-07 to
(43,081)
2011-12) during 2012-22. The sector has witnessed MoUs of INR Gandhinagar
102,899 Cr during 2011 Vibrant Gujarat Summit, expected to increase (22, 500)
the cargo handling capacities by 660 million tonnes by 2015-16
Ahmedabad
 Accounting for 38% of total DMIC corridor length with an estimated (2,45,715)
Anand
investment potential of 28 billion USD, state has significant growth
Jamnagar (18,342)
potential for road based logistics in Ahmedabad, Dholera, Surat
(36,799)
regions Bharuch
Bhavnagar
(22,009)
(46,465)
Skill Requirements for Port Based Logistics Industry
Core Skills Electrical Technician(Distribution,Cabling, Instrumentation, Maintenance, Surat
Automation, PLC, HMI Equipments), Mechanical (1,68,856)
Technician(Lubrication,Hydraulic Systems,Pneumatic Systems,Gear
Systems), Crane Operators, Conveyor Belt Operators, Eartmoving Equipment
Operator, Locomotive Engine Operator, LMB Driver, HMB Driver, Machine
Operators(MVU,Baking,Sticker Reclaimer)
Allied Skills Skilled Fireman, Radio Officer, Under water divers, Un-skilled Marine Crew,
Project Management Workforce (Surveyor, Draftsman Civil, Construction Focus districts account for nearly half of the
Workers, Auto CAD Engineers) state sectoral manpower requirement during
Skills with Marine Engineers, Instrumentation, Advanced Equipment Technicians, the period 2012-22…
Acute Shortage Crane& Machine Operators, Radio Officer , Skilled Fireman Source: KPMG Analysis

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Skill Development Opportunities(2012-22)
IT/ITES Special Economic Zones proposed in Ahmedabad, Vadodara and Valasad
would drive the investment growth in the state…
IT-ITES Incremental Human Resource Requirement,
Sector Growth Outlook 3.8 lakhs (2012-22)
 Conducive policy thrust through special infrastructure and fiscal,
non fiscal incentives for the IT units is expected to spur the growth
of IT industry in Gujarat during 2012-22

 Sector has received 19 Memoranda of Understanding (MoU) worth


Rs 46,007 crore during Vibrant Gujarat Summit 2009 and in 2013,
15 MoUs have been signed with IT-ITES players, highlighting the
promising investment trends in the sector Gandhinagar
42,000)
 Availability of skilled manpower from technical education institutes Ahmedabad
(seat capacity of 1.1 lakhs, engineering & diploma) is a key (76,000)
advantage for the state to drive the growth of IT and IT Enabled Vadodara
Rajkot (72,000)
Services industries
(30,400)

 Ahmedabad, Vadodara, Gandhinagar and Valasad districts with


proposed IT sector SEZs, are expected to witness significant
human resource requirement in the state during 2012-22. Surat
(57,000)

Skill Requirements
Core Skills Programming, IT Platform knowledge Valasad
Allied Skills IT BPO, Communication Skills (12,800)
Focus districts account for nearly three
Skills with Acute Shortage Online Marketing, Cloud computing, English BPO
fourths of the state sectoral manpower
requirement during the 2012-22 period…
Source: KPMG Analysis
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Skill Development Opportunities(2012-22)
Government thrust on the sector, has helped the emergence of Auto clusters like
Sanand in the state - creating a demand for skilled workforce…
Sector Growth Outlook Auto-Auto Components Incremental Human
Resource Requirement, 1.12 lakhs (2012-22)
 Gujarat is expected to lead the industrial growth of Auto-Auto
components riding on
 Conducive policy thrust through tax holiday in auto cluster
Sanand region, along with availability of land
 Connectivity by port, rail, road network for Auto cluster through
DMIC corridor
Kachchh
 Strong investment trend - INR 2,500 Cr (Tata), INR 4,000 Cr (15,981)
(Maruti), INR 2,500 Cr (Peogot) and INR 4,000 Cr (Ford) from
major auto companies
 Proposed plans of Renault-Nissan, Honda Motorcycles, Bajaj Ahmedabad
Auto and Hero MotoCorp, AMW for expansion in Gujarat. (35,500)

 Presence of OEMs in Sanand Auto cluster is making the region an


Vadodara
emerging as a destination for the growth of Auto and ancillary industries. (10,768)

Skill Requirements Surat


Auto Assembling and Core Skills: Motor Mechanic, Diesel Mechanic, Fitter, Welder, (6,981)
Component Fabricators
Manufacturing Allied Skills: Electrician, Wireman
Acute Skill Deficits: Specialized welders in Arc welding who can
work in extreme conditions on advanced fabrication equipments
Auto Manufacturing Core Skills: Shop floor technical workers Focus districts account for nearly 60 percent
Allied Skills: Maintenance(Mechanical, Electrical, mechatronics,
automobile electronics)
of the overall state sectoral manpower
Acute Skill Deficits: Painting, Body Building (spot welding), Sheet requirement during the 2012-22 period…
Metal Work, Machining & Casting. Source: KPMG Analysis
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Skill Development Opportunities(2012-22)
Higher private participation in healthcare around urban clusters would drive need for
healthcare professionals in Gujarat…
Sector Growth Outlook Healthcare Incremental Human Resource
Requirement, 1.62 lakh (2012-22)
 Healthcare industry in Gujarat is witnessing significant boost with
the emergence of India as a destination of healthcare tourism
 While primary healthcare facilities across urban, semi urban and
rural areas is predominantly driven by public expenditure towards
capacity expansion, tertiary healthcare services segment is
providing scope for private investments into the sector
 Vibrant Gujarat 2011 has attracted investments to the tune of INR
15,600 Cr into the sector for 3 Medicity Projects, 21 Multi Ahmedabad
(12,709)
Specialty Hospital Projects and 5 Medical Colleges with hospitals
 Booming medical tourism would result in the growth of private Rajkot Vadodara
investments into urban clusters of Ahmedabad, Vadodara, Surat (14,136) (14,441)

and Rajkot, and create significant need for skilled healthcare


workers in these districts.
Surat
Skill Requirements (6,234)
Core Skills MBBS Doctors, MD/MS specialists,
Physician Assistants/Compounders,
Focus districts account for 30 percent of
Radiologists, Dialysis technician, Respiratory
technician and OT Assistants & Perfusionist.
state sectoral manpower requirement in
Allied Skills Lab technicians, pharmacists 2012-22. Hence the demand for skilled
personnel will be quite spread out across
Skills with Acute Shortage Physiotherapists, Biomedical Instrumentation
technicians
other districts too…
Source: KPMG Analysis
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Skill Development Opportunities(2012-22)
Pilgrimage and wildlife tourism along with increasing business related tourism would
fuel need for additional manpower in tourism and hospitality…
Sector Growth Outlook Hospitality & Tourism Incremental Human Resource
 Gujarat has witnessed strong growth in the tourism industry with an 85 Requirement, 4.48 lakhs (2012-22)
percent growth in tourist arrivals from 2005-2011.
 Government has levied enough thrust on the sector by enhancing the
allocation towards tourism sector from 183 crore in FY11 to 200 crore in
FY 12.
Kachchh
 High growth regions for hospitality and tourism include: (38,862)

• Business tourism - Ahmedabad, Gandhinagar, Surat, Jamnagar, Gandhinagar


Vadodara, Rajkot and Kutch (23,238)

• Religious and spiritual - Dwarka, Somnath and Akshardham Temple


at Gandhinagar Ahmedabad
(58,122) Vadodara
• Wildlife – 4 National Parks and 21 Sanctuaries (28,944)
• Beaches – Long coastline along Ahmedpur Mandvi and Surat
• Hill Stations – Saputara and Pavagadh
Junagadh Surat
• Heritage Sites – World Heritage Site at Champaner, archaeological (15,858) (44,622)
sites at Kutch and historical forts at Junagarh
• Rural tourism site – Kutch

Skill Requirements
Focus districts account for nearly 46 percent
Hospitality Front Desk Executives, Room Service.
of state sectoral manpower requirement
Chefs, F&B production assistants
during the 2012-22 period…
Tourism Tour Guides, Travel Booking Executives
Source: KPMG Analysis
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Skill Development Opportunities(2012-22)
Sector specific SEZs like Ahmedabad Financial City and increasing penetration of
financial services would drive employment growth in the sector…
Sector Growth Outlook
Banking & Financial Services Incremental Human
Resource Requirement, 5.13 lakhs (2012-22)
 Banking and Financial Services industry in the state is
expected to make significant strides over the next decade
from the current levels of low penetration (One bank
branch per 15,872 people in Gujarat as against national
average of 13,379)

 Overall business size of scheduled banks (Deposit base of


INR 3,06,113 Ct and credit of INR 2,13,447 Cr as on
March 2012) indicates potential opportunity for the growth
Gandhinagar
of NBFC services in Gujarat. (21, 355)

 Growth of NBFCs and financial service enterprises is


Ahmedabad
expected in urban clusters of Ahmedabad with affluent (24,276)
population base and emerging infrastructure facilities like Jamnagar Rajkot
(19,009) (18,967) Vadodara
Ahmedabad Financial City (23,307)

Skill Requirements
Surat
Core Skills Knowledge on core banking/mobile/internet (15,412)
platforms

Allied Skills Sales & Marketing Focus districts account for only 24 percent of the
Skills with Acute Insurance underwriting, claims management
state sectoral manpower requirement in 2012-22.
Shortage Hence the demand for skilled personnel will be
quite spread out across other districts too
Source: KPMG Analysis
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Skill Development Opportunities(2012-22)
Penetration of organized retail is expected to be concentrated around urban clusters
of Ahmedabad, Surat and Vadodara…
Sector Growth Outlook Retail Incremental Human Resource Requirement,
 Penetration of organized retail in the state would receive 4.52 lakhs (2012-22)
significant boost with the retail houses expanding into tier-II
towns beyond urban regions of Ahmedabad, Vadodara, Surat,
Rajkot and Gandhinagar.

 Urban regions of Ahmedabad, Gandhinagar, Surat, Vadodara


are expected to witness tremendous growth of malls over the
next decade with players like Champion Agro, Future Group and
ACIL Cotton Industries, Food Bazaar, Reliance Fresh and
Spencers along with apparel retail brands leveraging the retail Ahmedabad
infrastructure in the state (54,049)

Rajkot
 While the state has taken a stand to oppose FDI in retail, Jamnagar Vadodara
(28,492)
industry has been able to garner significant investments. (16,190) (31,175)
Further, with INR 17,000 Cr investments into realty sector in
2013, organized retail is expected to gain a large share of
developed infrastructure Surat
(45,584)
 Growth of organized retail would generate employment across
the value chain for sourcing in rural/farming clusters
Focus districts account for nearly 40 percent
Skill Requirements of the state sectoral manpower requirement
Core Skills Shop floor executives/supervisors, in 2012-22. Significant employment would be
computer operator generated in tier-II and rural areas for
Allied Skills Transportation & logistics staff sourcing and supply chain related
Skills with Acute Shortage Store management, stock planning
activities…
Source: KPMG Analysis
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Contents

1 Study Objectives

2 Methodology

3 Socio Economic Analysis of the State

Gujarat
4 Education and Training Infrastructure

5 Skill Development Opportunities

6 Challenges in Skill Development

7 Recommendations

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Challenges in Skill Development
Continuing demand supply gap in education system is a key challenge for the state…
While higher education capacities have registered significant growth, considering the low
Continuing Demand- base, the gap continues. Capacity gaps along with affordability, are key reasons for drop
Supply Gap leading outs either during schooling years, or just after schooling - especially in tribal and
to after school economically backward districts
dropouts If the GER targets for India (30% by the end of 12th plan period 2012-17) have to be
matched, the current higher education capacity in Gujarat has to be nearly doubled by 2017

Gujarat being a leading manufacturing hub has to lay enough emphasis on improving
penetration of vocational education.
Low Penetration of
Vocational Education Comparison of the ratio of higher education to vocational education capacities (around 1:1
in Gujarat) with other manufacturing economies like Germany (around 1:2) having high
penetration of vocational education, indicates that in order to sustain the growth –
especially in the manufacturing sector - Gujarat has to lay enough emphasis on vocational
streams

Densely populated industrial clusters of Ahmedabad, Vadodara, Surat and Rajkot have
Regional imbalances significantly lower penetration of vocational education(Refer Appendix for detailed
in Training Capacities regional analysis of training capacities)
Special incentive schemes for private training players could be implemented in
geographies with low penetration of vocational education

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Challenges in Skill Development
Limited working level coordination among the skill development bodies is hampering
the prospects for achieving comprehensive skill development in Gujarat
PPP schemes implemented by department of labour and employment for private adoption
Challenges in the of ITI s has not taken off along expected lines with only limited number of ITI s in PPP
implementation of mode under operation. Non availability of industry ready curriculum for training in these
PPP Schemes institutes is a major hurdle for promoting private participation .
Remote location of GIDC centers where the SDCs/SUCs are granted land, is seen as a
major challenge to mobilize youth for training.

While Anchor institutes have been given a large mandate, limited funding (10 Cr per
Limited Operational sector) is a challenge to achieve the desired functional goals of the initiative. Also these
Scope for Anchor institutes running as fully funded entities with no source of additional revenue, will have
Institutes limited resources at their disposal.
Anchor institutes could be transformed into regional sector skills councils to play the role
of extended arm of national sector skills councils in Gujarat.

Gujarat Skill Development Mission, Anchor Institutes and Gujarat Skill Development
Need to bring Corporation have independent functioning currently even though the bodies share certain
common goals towards promoting skill development and training in the state.
synergies among
nodal bodies Better operational and strategic coordination among these three bodies would help in
developing a comprehensive skill development strategy for the state

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Challenges in Skill Development
Lack of uniform standards across training institutes is leading to unemployment of
trained youth due to set industry preferences…

While the Gujarat is expected to witness significantly high requirement for skilled workers
Misalignment of in Textile, Construction, Agriculture and allied activities in future, youth aspirations for
youth aspirations work indicate an inclination for white collar jobs predominantly in service based industries.
with employment
opportunities Sectors with high manpower needs and low youth aspiration needs to formulate strategies
to attract workforce either from within the state or from outside

Lack of uniform training and evaluation standards leads to various issues ranging from
Lack of uniform limited acceptability of certain training certifications in industry, to misalignment of training
training and with industry needs. Currently, NCVT & GCVT courses are being offered in ITI s/ ITCs,
evaluation standards while private training institutions/ industry led training bodies offer individual certifications.
There is a need to bring in uniform standards across institutes in order to achieve uniform
quality of training and certification.

Limited systems to
achieve gross root While GSDM and other skill development monitoring agencies have been operational at a
level monitoring of state level, grass root level implementation and monitoring needs to be made effective
schemes with adequate decentralization.

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Contents

1 Study Objectives

2 Methodology

3 Socio Economic Analysis of the State

Gujarat
4 Education and Training Infrastructure

5 Skill Development Opportunities

6 Challenges in Skill Development

7 Recommendations

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Recommendations
Government
1. Systematic mechanisms to identify and assist potential school dropouts transition into vocational programs
Scheme Objectives:
• In Gujarat, currently less only one-sixth of students move on to Higher Education. Students likely to opt out of
school education, should be proactively identified and brought into the fold of the vocational education system
• Integrate vocational courses in school curriculum to equip students with industry relevant skills, as well as skills for
starting businesses and self-employment. This will also ensure reduction in dropout rates
• Establish Systems for Integrated Learning with Industry through Multi Level (4 Levels) learning structure, where
Level 1 and 2 trainings are provided in school, and supplemented by Level 3 and 4 trainings in industry
Implementation:
• Class 9th To 12th should be the focus, considering low transition levels from secondary to higher secondary (38%)
• Districts with high capacity gaps in secondary and higher secondary systems- Anand(86%), Bhavnagar(78%),
Kutch(77%), Porbandar(73%), Banas Kantha (73%)and Narmada (72%)
• Focus on sectors that are high preference as well as high growth sectors of Gujarat (Auto-Auto Components,
Banking & Financial Services, Hospitality & Tourism, Organized Retail, IT-ITES, Transportation & Logistics )
• Upon successful completion of Level 1 and Level 2, candidates can join industry for Level 3 and Level 4 learning
within the industry, or opt for self employment opportunities
Scheme Enablers:
• Vocational modules for schools need to be standardized to ensure uniform learning outcomes for Level 1 and 2
courses in schools. Local Industry collaborations can be established for Level 3 and Level 4 trainings to students
• Considering the shortage of faculty for vocational education, the School Education Department can fund/create
systems for Training Trainers for vocational modules In Schools, through the it is and industry
• Support for Entrepreneurship of trained candidates through tie-ups with Financial Institution(Banks, NBFCs)
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Recommendations
Government
2. Develop the Gujarat Skill Development Mission in line with its charter, as a focal agency for skilling

 Define the strategic road-map for skill-development in the state for the next decade (2012-17, 2017-22), in close
consultation with other key departments, and central skill development agencies such as the NSDC, considering the
district level skill gap projections. Strategic roadmap would outline the skill development agenda for the state:

 Vocational training capacity building (sector/district level)

 Fund allocation plans

 Proposed systems to monitor the effectiveness of various training initiatives

 Schemes/ structures to garner private participation in the state

 Decentralize implementation and monitoring of skill development initiatives through dedicated SDM chapters at
sector level ( For focus sectors- Transportation & Logistics, IT/ITES, Auto-Auto components, Banking & Financial
Services, Retail, Healthcare and Hospitality & Tourism) and district level. Suggested representations:

 Anchor Institutes, SSCs, training institutes, industry bodies and key industries for sector level SDM chapters

 Local industries, training institutes, representatives of Government departments for district level SDM chapters

 Leverage on SSC certificated courses and standards that are being developed centrally, especially in the high
aspiration/ high potential focus sectors (mentioned above), and facilitate adoption in the state
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Recommendations
Government
3. Focus On Enhancing Skill Training Capacities In Districts With Low Penetration Of Vocational Education

 Focus on districts with low penetration of vocational education(seat capacity per population) - Kutch, Vadodara, Patan,
Jamnagar, Anand, Valsad, Banas Kantha, Rajkot, Ahmedabad, Narmada, Bhavnagar, Surat and Porbandar for capacity
expansion through public investments/ special schemes to promote private participation through PPP

 Revalidate the existing PPP schemes considering the challenges in implementation of existing schemes (Refer to
section on challenges in skill development initiatives) under

 Industries Department (CED)

 Labour & Employment Department

 Other Departments focused on specific industry sectors (Textile, IT-ITES etc.,)

 Fast-track the NSDC/SSC affiliated partners to setup training in these districts using subsidized govt. infrastructure
(GIDC etc), by waiving off detailed due-diligence, as NSDC partners are pre-approved through rigorous due diligence

4. Setting up Anchor Institutes in more focus industries, and broadening their scope

 Considering the high potential / aspirational value for sectors of Transportation & Infrstructure, IT-ITES, Retail,
Healthcare, Banking & Financial Services, Hospitality & Tourism, new anchor institutes can be setup for research and
faculty training. They can champion adoption of SSC standards & curriculum, and localize it as required (language etc)
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Recommendations
Government

4. Setting up Anchor Institutes in more focus industries, and broadening their scope

 Considering the high potential / aspirational value for sectors of Transportation & Infrstructure, IT-ITES, Retail,
Healthcare, Banking & Financial Services, Hospitality & Tourism, new anchor institutes can be setup for research
and faculty training. They can champion adoption of SSC standards & curriculum, and localize it as required
(language etc)

5. Engagement with Sector Skills Councils

 Given the high potential as well as aspirational value of the sectors of Transportation & Infrstructure, IT-ITES, Retail,
Healthcare, Banking & Financial Services, Hospitality & Tourism, the state government can engage with the sector
skills councils set up, or in the process of being set up, in these sectors. NSDC has been creating capacity in sector
skills councils, and the state government can have an engagement with them

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Recommendations
NSDC & SSCs
1. Developing Curriculum and Standards for Focus Sectors/ Vocational Courses in Schools

 SSCs can facilitate development of standardized curriculum that can be designed into four levels (as per practice
in some developed countries), where the first two levels are adopted at 9th -12th levels of school education, and
the next two levels are provided in industry. The districts of Gujarat where the Higher Education transition is low
(Anand, Bhavnagar, Kutch, Porbandar, Banas Kantha and Narmada), are of particular focus for implementation
of the first two levels of courses within schools

 SSCs to develop certification standards for high growth/aspirational value sectors of the state - Transportation &
Infrastructure, Auto & Auto Components, IT-ITES, Retail, Healthcare, Banking & Financial Services, Hospitality
and Tourism.

2. Promoting Private Sector Participation in Focus Sectors & Supply Clusters

 Encouraging NSDC Partners to enhance training capacities in the state by focusing on

 High growth sectors of the state - Transportation & Logistics, Auto & Auto Components, IT-ITES, Banking &
Financial Services, Tourism & Hospitality, Healthcare and Retail

 Districts with lower penetration of training infrastructure coupled with high industry growth - Kutch,
Vadodara, Rajkot, Ahmedabad, Bhavnagar, Surat

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Recommendations
Industry
1. Participation in Education and Training

 Aligning CSR Goals (especially mandatory 2% CSR requirement) towards skilling, and play an active role in
PPP initiatives. Share annual plan of recruitment with government and industry nodal agencies for skilling

 Support training institutes in development/delivery of programs

 Excess production capacity/equipments can be shared with institutes during lean production hours/shifts

 Support Training of Trainers (TOT) allowing skilled employees to be trainers for fixed no. of hours, for ITI
faculty, school faculty etc involved in vocational training

 Policy to encourage apprenticeships and internships of vocational & ITI students

 Provide used infrastructure at subsidized costs to academic institutions

 Support in providing level 3 and level 4 training for students with level 1 and level 2 certifications at
schools (Refer to recommendations on vocational programs in schools)

 Participation in development of curriculum for specific trades not available in ITIs/VTPs right now

 Align recruitment policies to ensure hiring certified manpower from Govt/SSC accredited training institutions

 Invest in up-skilling of existing manpower and formulate formal HR policies and mechanisms to encourage
employees to train in institutions
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Recommendations
Training Organizations

1. Recommendations for Private Training Institutions in Gujarat

 Focus on high growth/ aspirational value sectors where student acquisition is easier -Transportation & Logistics, IT-
ITES, Banking & Financial Services, Healthcare, Auto & Auto Components, Tourism & Hospitality and Retail

 Create capacities in districts with lower penetration of training infrastructure - Kutch, Vadodara, Patan, Jamnagar,
Anand, Valsad, Banas Kantha, Rajkot, Ahmedabad, Narmada, Bhavnagar, Surat & Porbandar. Districts where low
penetration of training infra is coupled with high industry growth, are high potential for future growth of skilling

 Explore scheme-based training potential to address the skilling needs of under privileges/BPL population - key
schemes with high training potential are SJSRY, MES, SGSY, Textile Department and Construction Cess

 Emphasize on offering accredited programs (SSC certifications) to ensure industry acceptance for certifications

 Leverage existing infrastructure to build optimal delivery models (ITI premises, GIDC space where offered, industrial
space during lean production hours etc)

 Build industry linkages in areas of development and delivery of training programs- placements, curriculum
formulation, apprenticeships, faculty training

 Engage credible local networks (SHGs, NGOs, student groups such as UDISHA groups) for student acquisition

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Appendix

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Best Practices in Skill Development
Australia has successfully implemented vocationalization of school education and
employer collaboration which can be replicated globally…
• Australian schools are permitted to offer some vocationally-oriented education subjects
in addition to the normal school curriculum.
Vocational • This initiative has helped Australian education system through
AUSTRALIA Courses in K- – Providing industry responsive and flexible approach to meeting different learning
12 Schools needs of students
– Eradicating long-standing, stereotyped views about the ‘superiority’ of academic
learning compared to vocationally-oriented learning.

• E-learning was perceived as beneficial for both students and training providers. This was
E- Learning in particularly the case in the Australian context of large distances between urban areas,
Vocational the difficulty of training/studying in remote areas, and the economic and social
Vocational Courses in K- Education imperative of reducing the urban/rural divide
12 Schools
• Middelburg - Toyota Motor Company provides equipment for training motor vehicle
mechanics, has developed a modular training course for interested learners and
E- Learning in appoints teachers to provide training at Middelburg Higher Technical School (MHTS)
Vocational Education outside school hours.
• Salient features of the program include
Corporate – Learners pay an additional fee for the training, and teachers are paid out of these
Corporate Collaboration funds

Collaboration with with Institutes – Learners do the first modules in the series and once they complete their schooling,
can apply for employment at Toyota, where they can complete the remaining
Institutes
modules as employees.
– Learners who achieve 80% or more, receive a certificate which states the modules
completed and entitles certificate holders to apply for a position at any Toyota
dealer across the country Source: KPMG Analysis
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Best Practices in Skill Development
Switzerland has addressed the issues of school drop outs through proactive
vocational training approach in schools…
• Introduction and Encouragement of Vocations Education at School level specifically for
students at the risk of dropping out or being unemployed. Salient Features of the
program include
Switzerland
AUSTRALIA – Targeting young people at risk of dropping out of school/and or becoming
unemployed.
– Project consists in the introduction of a case management model to aid the
Vocational transition of academically weak or socially disadvantaged young people from
Education lower to upper secondary education.

for Potential – Approach: i) it applies to the transition period from Lower to Upper secondary
School Level 2, and ii) it is preventive rather than reactive in its aims.

Dropouts – Process: As soon as a young person is identified as being at risk of dropping out
Vocational Education for of school the service will be activated; this will consist in appointing a case
Potential School manager to work with the young person, who will ensure that appropriate
Dropouts measures are taken, in collaboration with all relevant services – career guidance,
mentoring, counseling, housing services, etc - and the young person him/ or
herself. It is important therefore to emphasize that the case manager does not
Sector Level work directly with a student in a „mentoring‟ or „coaching‟ capacity; their role is
Competency rather that of a manager or co-coordinator of the whole process. This initiative has
helped Australian education system through
Building
• Leading Houses are set up coordinate at a national level the research efforts on
VET/PET and making them responsive to the country’s needs and priorities in this
Sector Level domain.

Competency • These are designated centres of expertise, located in universities, whose main mission
Building is to build a competence network to conduct research on their own account, grant
research contracts and promote young research talent, while being well connected
internationally.
Source: KPMG Analysis
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Best Practices in Skill Development
Countries like Germany and Switzerland have achieved significant private participation
through conducive ecosystem…

• Rebranding Vocational Training :South Korean government attempted to make vocational education more
attractive by changing the name of ‘vocational high schools’ to that of ‘professional high schools’ with an aim to
rebrand the way student and society perceive this course .
Global Best
AUSTRALIA • Creating Centres of Excellence : In South Africa, the 152 technical colleges in the country were reduced to 50
Practices Further Education and Training (FET) colleges, through a process of merger. The new multi-site ‘mega’ colleges
comprise campuses within a relatively close geographic locality, depending on the geographic profile of the
province. In each merged college, previously disadvantaged colleges were integrated with previously advantaged
colleges, and a process began for better utilization of resources.
• Focus on Enhancing Private Participation: In Germany and Switzerland, public funding of vocationally-oriented
and vocational education amounts to only about 55% of all funding of this sector, while private funding makes up the
balance.

Rebranding Vocational • Special Vocational Training Fund: Denmark Government has setup Central fund to support analysis and
projections related to new emerging fields and occupations and giving power to the Ministry of Education to initiate
Education
new education programmes covering trades or occupations not covered by the trade boards.
• South Africa’s second National Skills Development Strategy (2005-2010) attempted to move from setting SETAs
Focus on Enhancing input-focused targets, which had led to attempts to increase learner numbers without measuring impact, towards
Private Participation outputs-focused targets, such as quality and impact. South African SETAs are unique in catering to all employees
within a single company, from support services to production staff to management. SETAs therefore have a cross
sectoral element and often have to engage in partnership working with other SETAs

Special Fund for • The initial incarnation of New Zealand’s Retail Industry Training Council attempted to engage employers through
Vocational Education attempts to increase and improve in-house training. This attempt failed – many felt they were already providing good
quality training. The second incarnation of the Retail ITO instead offered accreditation of workplace training and
recognition of prior learning, which led to more successful engagement .

Source: KPMG Analysis


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Best Practices in Skill Development
Sector Skill Bodies have emerged to play crucial role in the skilling ecosystem at
national/state level…

Various Counties, including India have set


Principal Sector Bodies Activities by Country
Global Best
AUSTRALIA
up Sector Skill Bodies to foster skills

Practices
development and workforce development
within different industry sectors with an Employer Involved Model Sales outlets

objective to modernize vocational


Australia Singapore
education and training systems by Canada
UK
bringing together industry representatives
New Zealand
with other stakeholders, ‘formally France
South Africa
bridging the gap between education
Sector Level Skill provision, vocational training and the Employer Owned Model Employer Driven Model
Development Bodies labour market’ Hong Kong Netherlands
USA

Key considerations for setting up a nation level/ state level which can highlight effective sector skill
approach

Employers need to be engaged to identify skills needs and design relevant competencies.
Employees need to be engaged in the system and in identifying skills needs, which secures legitimacy among workers.
Financial incentives are widely used.
Public funding could be used as a lever to ensure that long-term policy objectives are considered by sector bodies.
(A portion of) public training funds need to be channeled through sector bodies.

Differences in approach, systems and priorities between local/state and national/federal government are recognized, and
steps need to be taken to manage these differences.
Source: KPMG Analysis
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Thank You

Narayanan Ramaswamy Akhil Krishna Gaurav Kumar


Head – Education Advisory Associate Director– Education Advisory Associate Director– Education Advisory
KPMG India KPMG India KPMG India
+91 (44) 3914 5200 +91 (80) 30654479 +91 (124) 43075203
email: [email protected] email: [email protected] email: [email protected]

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For more details please contact:

National Skill Development Corporation


Block A, Clarion Collection, (Qutab Hotel)
Shaheed Jeet Singh Marg
New Delhi 11 0 016
Tel : +91-11-47451600
Fax : +91-11-46560417
Email : [email protected]

www.nsdcindia.org
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