Gujarat SG Presentation 2
Gujarat SG Presentation 2
Presentation
District Wise Skill Gap Study - Gujarat
(2012-22)
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Contents
1 Study Objectives
2 Methodology
Gujarat
4 Education and Training Infrastructure
7 Recommendations
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Contents
1 Study Objectives
2 Methodology
Gujarat
4 Education and Training Infrastructure
7 Recommendations
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The Skill Gap study for Gujarat was commenced with the following Study Objectives
Identify developmental opportunities keeping in mind factor endowments and stakeholder perspectives.
Identify the current and future (2012 to 2022) skills and manpower requirements by industry and
Study the existing VT infrastructure booth in the private sector and the government domain.
Recommendations to include specific initiatives that NSDC can take based on the mandate of the
organization.
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Contents
1 Study Objectives
2 Methodology
Gujarat
4 Education and Training Infrastructure
7 Recommendations
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A structured methodology was used to assess the skill gaps and recommend interventions
Sectoral Focus: NSDC priority sectors along with district level potential sectors
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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.
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)…
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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
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Methodology
KPMG has adopted different methodologies for estimating sector wise incremental manpower
requirements for different sectors of the economy…
(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
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Methodology
For Large Scale Industries, the methodology has focused on major industry groups, looking at
industry clusters, SEZs etc
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Methodology
Manpower Estimation Approach for Healthcare Sector
(multiplied by)
Key Stakeholders
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Methodology
Manpower Estimation Approach for Agriculture and Allied Activities
(divided by)
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Contents
1 Study Objectives
2 Methodology
Gujarat
4 Education and Training Infrastructure
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
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)
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…
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
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
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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
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
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.
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State Analysis-Economic Profile
Key Growth Sectors and their Geographical Presence
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.
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State Analysis-Economic Profile
Key Growth Sectors and their Geographical Presence
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
Gujarat
4 Education and Training Infrastructure
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)
TamilNadu 20.5
Maharashtra 17.4
Karnataka 16.4
Gujarat 14.8
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
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Education and Training Infrastructure-Government Initiatives
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
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Education and Training Infrastructure-Government Initiatives
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Education and Training Infrastructure-Government Initiatives
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.
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Education and Training Infrastructure-Government Initiatives
1 Study Objectives
2 Methodology
Gujarat
4 Education and Training Infrastructure
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...
2017 2022
Labour Force
Labour Force243
lakhs 259 lakhs
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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
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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
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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
The Dangs 326 253 8,351 8,931 302 262 6,371 6,934
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)
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)
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)
9.34 L
Text Semi-Skilled 10.27L 5.96 L
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)
9.34 L
Text 2.83 L 6.51 L
Semi-Skilled
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
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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
The Dangs 1,910 7,493 (724) 8,678 1,748 5,951 585 8,285
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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
Hospitality &
Incremental manpower
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.
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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
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)
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)
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.
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
Gujarat
4 Education and Training Infrastructure
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
Gujarat
4 Education and Training Infrastructure
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:
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
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)
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.
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
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
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
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 .
Practices
development and workforce development
within different industry sectors with an Employer Involved Model Sales outlets
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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