Skill Development and Employment Incentives Linked to Boost EmployabilitySkill Development and Employment Incentives Linked to Boost Employability The Economic Survey 2023-2024 emphasizes the need for bridging the gap between the skills of India’s young workforce and the requirements of the global labor market. Only 4.4% of the country’s young workers possess formal education, posing a significant challenge to its demographic dividend. To address this issue, the survey recommends aligning skill development efforts with production-linked incentives (PLIs) and employment-related incentive schemes in high-growth sectors such as toys, garments, tourism, logistics, and textiles. This would foster skill upgrading as production moves up the value chain. The report also highlights the importance of convergence and synergy with other employment-focused programs to maximize training outcomes. The government’s initiatives to create jobs and entrepreneurial opportunities tailored to the aspirations and skills of the youth are mentioned. Linking skill development to the PLI program and employment incentive schemes in sectors with high growth potential, such as toys, garments, tourism, logistics, and textiles, would promote skills upgrading as production moves up the value chain. In conclusion, the survey underscores the urgent need to equip India’s workforce with employable skills and knowledge to harness the country’s demographic advantage. By linking skill development to incentives and aligning it with high-growth sectors, the government aims to translate India’s demographic dividend into a productivity dividend.
New Delhi: Only 4.4 per cent of India’s young workforce has formal education. Linking skill development with production linked incentives (PLI) and employment-related incentive schemes in high-growth sectors such as toys, garments, tourism, logistics and textiles would boost skill upgrading as production moves up the value chain, the Economic Survey said on Monday.
The 2023-2024 study submitted to Parliament states that “to exploit the demographic advantage, it is necessary to equip the workforce with employable skills and knowledge that meet the demands of the globalised labour market”.
Currently, the Production-Linked Incentive (PLI) scheme is available for 14 sectors. Industry bodies have been demanding the introduction of an employment-linked incentive scheme to boost job creation in the economy in the face of a growing young population amid concerns over unemployment growth.
According to the study, convergence and leveraging synergies with other employment-focused programmes would benefit both sectors to maximise the outcomes of training initiatives.
“The government is taking steps to translate India’s demographic dividend into a productivity dividend by creating jobs and entrepreneurial opportunities that match the aspirations and skills of India’s youth. The government is working with industry to enhance skills with employability,” the survey said.
It was further stated that “linking skills development with the PLI programme and employment-related incentive programmes in sectors with high growth potential such as toys, garments, tourism, logistics, textiles, leather etc. would promote skills upgrading as production moves up the value chain”.
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Published July 22, 2024, 09:45 IST
