With the demand-supply mismatch in skilled manpower posing a threat to the economy’s growth, the industry must use a part of the funds set aside for corporate social responsibility (CSR) for imparting skills to workers and aim at job-led growth, prime minister's advisor S Ramadorai said on Thursday.
Although two years of economic slowdown have slowed hiring, the main problem that India Inc confronts today is a severe shortage of skilled labour. Hardly a tenth of fresh management graduates and a fifth of engineers are employable in the industry, says a survey report prepared by CII in collaboration with PeopleStrong and Wheebox.
“Even as we think of skills, we must match them with jobs,” Ramadorai, the former TCS chief, who now heads National Skills Development Corporation and National Skill Development Agency, said at a CII conference. He urged private companies to allow their employees to volunteer to train people in various skills as well as devote some part of their CSR funds towards skill development.
“In a country with over 600 million people in the working age group, the need of the hour is ‘job-led growth’. We need to focus efforts on things that generate employment, such as cultivating entrepreneurs and promoting SMEs. Whether it is the services or the manufacturing sector, our mantra should be — ‘more with more for more’. By this I mean generate more output with more people in a manner to impact and benefit more people,” he said.
While pointing out that the current educational system was not adequate, Ramadorai said there was a need to adopt Massive Online Open Courses to provide high quality education to a much larger cross-section of people. The National IT Backbone could be leveraged for this purpose.