Indo EU Seminar on Skills Development, Training and Employment

Skills & Training in a Globalised World Economy

Lt Gen (Retd) S S Mehta, PVSM, AVSM and Bar, VSM

Director General
Confederation of Indian Industry

India

Size: 2,973,190 sq km Population: 1096 Mn Languages: National Hindi (14 other official languages)-English enjoys Associate Status. Multi Ethnic,Multi Religious; Pluralistic Society Largest Democracy. Confluence of Civilizations

India

One of the fastest growing economies avg 7% since 1994 and 7.5 - 8.1% in 2005. Inflation 4-5 %. Forex Reserves USD 150 Bn. GDP USD 650 Bn. Leadership in ICT.

Challenges
Social Appreciation of Skills As a Livelihood Asset Linking Education to Employability in the Global Knowledge Economy. No One Solution. Every Region demands an innovative approach.

Indias Advantage
Demographic
Societal Building Block

English Language
Affinity to Maths

Credible IT Image
Steady Growth Trajectory

Snapshot: Global Demographics

Indicators of Aging in Selected Countries (2000, 2025, and 2050
Country Median Age (Years) 2000 2025 2050 23.7 23.3 35.5 35.2 30 36.9 37.6 37.7 37.7 36.8 40.1 41.2 40.2 37.7 31.3 32.5 39.3 40.5 39 42.9 43.3 44.5 45.4 43.8 48.5 50 50.7 49.2 38 39.5 40.7 41.9 43.8 44 45.2 47.4 49.5 50 50.9 53.1 54.1 55.2 Old Age Dependency Ratio 2000 2025 2050 8.1 7.6 18.6 18.2 10 18.5 24.5 24.1 21.7 18 24.1 25.2 26.7 24.8 12.1 13.8 29.3 29.3 19.4 32.6 36.2 34.8 33.2 27.6 39 49 40.6 36.1 22.6 30 34.9 37.9 37.2 40.9 46.7 47.3 51.4 47.1 54.7 71.3 68.1 73.8

India Mexico USA Australia China Canada France UK Europe Russia Germany Japan Italy Spain

Global Demographics Scenario

47

Note: Potential Surplus is calculated keeping the ratio of working population (age15-59) to population constant. Source: US Census Bureau; BCG Analysis

An Idea
India has the unique opportunity to:
Complement what an ageing world needs the most -- Productive Workers. Provide investment opportunities for ageing population to earn high levels of post retirement income.

Globalisation
A complex series of economic, social, technological, cultural and political changes are increasing interdependence, integration and interaction between people and companies in disparate

locations.

. IMF

Trends to Watch
Centres of economic activity will shift profoundly, not just globally, but also regionally.
Shifts within regions will be even more dramatic Today, Asia (Excluding Japan) accounts for 13 percent of the worlds GDP, while Western Europe accounts for more than 30 percent. Within 20 years the two will converge.
. Mckinsey Quarterly Web Exclusive 2006

Pumping the Global Talent Pipeline:

The 21st Century Imperative

Global

Talent deficit is fundamental to sustainability. Owing to the flux in the global economy it is difficult to forecast where a skill shortage will arise next. External markets are not delivering the right skills at the pace of change
.Infosys Davos 2006 Panel Debate

Pumping the Global Talent Pipeline: The 21st Century Imperative

The challenge is to have the right people, at the right place, at the right time. The Paradox of Skill versus Will. The need for the public and private sectors to work together towards the vision of the future.
.Infosys Davos 2006 Panel Debate

Skills: A Global Currency

"Skills" are a global currency for a globalising world. Countries with a significant skills capital can innovate; remain competitive and enable sustainable growth. Skills Development will create inclusive societies. Global Skills Development should be added as a UN Millennium Goal.

India - Sectors Demanding MultiLevel Skills Options

Construction

Finance, Real Estate, Insurance & Business Services Transport, Storage & Construction Wholesale & Retails Trade Manufacturing Community, Social and Personal Services Agriculture Electricity

Mining & Quarrying

Four Collar Work Force

White Collar - Well understood across the World

Grey Collar The knowledge worker, which includes ICT
Skills, problem solving, analytical and effective communication skills.

Blue Collar Shop floor work in the manufacturing and service

sector.

Rust Collar Skilled worker at the grass root level in currently

unorganised and un-benchmarked sectors like Construction, Agriculture and related trades.

Guiding Principles

Independent Assessment and evaluation Competitive basis for quality Employment Orientation Global Benchmarking Levels and Progression routes License to Practise

Features of the CII Skills Initiative

Localised Approach Relevant to local needs Scaleability Short Duration, Focussed Programmes Modular Approach Smart Card Certification

Smart Card Certification

Biometric Identification Tamperproof Multifunctional

Convenient
Access to a gateway of Services Possibility of bank linkages for Micro-Credit

Conclusion

Skills formation delivers not only needed economic benefits but important social benefits as well. "Skilling a Million Indians" is a catalytic project of CII. Need for Quality Certification which is credible at Regional, National and International levels.

Focus on Developing Human Resource

Countries that get addicted to selling their natural resources rarely develop their human resource and the educational and innovative companies that go with that. So, after the ore has been mined, the trees cut, and the oil pumped, their people are actually even more behind. Thomas Friedman

We need to do more to get each stakeholder deeply involved, to have a sense of where society is going.
Professor Jagdish Bhagwati

What we need is a. Thought Shift

We need a thought shift from employment to employability ; from providing fish to teaching how to fish. Our progress will not be worth the trip if we do not give a majority of our people the strength and self esteem that comes with a job . The Journey has just Begun..

India & EU
EU Relations go back to early 1960.

India EU Key Trading Partners

Demographic Dividend

Shared Values:
Democracy Pluralism Liberalism India Open, Inclusive Societies

Thank You