Traditional workshops are today giving way to manufacturing units that demand digital fluency, competency in data analysis, AI and robotics-related skills and the ability to work with climate-friendly engineering technologies. However, for at least a decade, surveys and reports have been flagging the skill deficits of the Indian workforce. Only a small fraction of graduates from the Industrial Training Institutes (ITI) get placed in the cutting-edge economy. The deficit also means that a large section of the youth lacks avenues and support systems to realise its potential. The government’s move to overhaul ITIs was, therefore, long overdue. Last week, the Union Cabinet approved the National Scheme for Industrial Training Institute Upgradation and sanctioned the setting up of five National Skilling Training Institutes (NSTI). The Rs 60,000-crore scheme aims to forge links between the technical education ecosystem and industry.
Established shortly after Independence, ITIs were intended to serve as vocational training centres for the emerging industrial sector. Today, India has close to 15,000 such institutes. Nearly 80 per cent of them came up after 2006-2007 when the National Council for Vocational Training relaxed rules, leading to a mushrooming of private ITIs. However, abetted by a faulty monitoring system, many flouted even the most basic norms. Audits conducted by the Directorate General of Training revealed that accreditation was granted to ITIs even while they were under construction or lacked basic safety measures. The government’s move to restrict the new programme to 1,000 ITIs could streamline the system.
Twenty lakh youth will be skilled in the revamped ITIs over five years. By conservative estimates, this would cater to about a fifth of the human capital needs of industry. The ITI upscaling project should, therefore, be seen as a beginning. Several experts have argued that the task of schooling professionals for the smart economy is too enormous to be left to government alone. A tenth of the new programme’s costs will be borne by the private sector, which has been accorded a more active role in designing courses and training faculty. The government must nudge industry towards enhancing its engagement with skill development.