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BIJ
26,7 Skill development research in
India: a systematic literature
review and future research agenda
2242 Clement Cabral and Rajib Lochan Dhar
Department of Management Studies,
Received 19 July 2018
Revised 22 March 2019 Indian Institute of Technology Roorkee, Roorkee, India
Accepted 16 April 2019
Abstract
Purpose – The purpose of this paper is to conduct an in-depth analysis of the literature and provide new
insights on skill development research in India. Objectives in the study are twofold. First is to conduct
descriptive analysis in terms of structural dimensions such as geographical context, focus on skill development,
research methods, economic sector, type of training and origin of the study. The second objective is to conduct
thematic analysis on importance of skill development, institutional and regulatory mechanisms, skill
development as an antecedent for technology adoption, role of skill development in women empowerment,
integrating skill development with secondary education and labour market reforms for skill development.
Design/methodology/approach – Systematic literature review method is employed to review 45 articles
on skill development research in India conducted between 2004 and 2017.
Findings – The review discusses about the importance of skill development, the role of institutions such as
NSDA and PMKVJ, skill development as a necessity in the advent of technological changes, an effective
measure to empower women in the country and the need of integrating skill development with secondary
education. Labour market reforms are required to overcome challenges such as mismatch between theory and
practice, low quality of skills assimilated, the mismatch between demand and supply of skilled labour force,
low level of in-house training, low cooperation from students and employees due to lack of incentives and lack
of qualified teachers.
Originality/value – This study is the first to offer a systematic literature review on skill development. The
study provides insights into the concept of skill development, specifically for academicians to carry out
research in a niche area and for government authorities in policy formulation.
Keywords India, Systematic literature review, Technology adoption, Skill development,
Demographic dividend
Paper type Literature review
1. Introduction
With the increased demand for competitiveness amongst nations, the concept of skill
development has gained international importance. Skill development can solve two major
developmental challenges in the world: poverty reduction and unemployment (King and
McGrath, 2002). Skill development is regarded as the solution for emerging nations like
India, which faces enormous transitional problems. Prominent problems include building
democracy in accordance with human rights and tolerance while undertaking continuous
and quick development of its human resources to focus on competition from the external
environment (Horwitz, 2013). Hence, skill development gains significance in this context and
can be explained as the process of determining a workforce’s skill gaps and developing and
refining such skills for a trade or occupation.
The double-digit growth of India after its economic liberalisation generated immense
demand for a skilled workforce, which created tremendous employment opportunities,
especially in sectors such as manufacturing and service (Agrawal, 2014; Mehrotra and
Ghosh, 2014). However, economic growth did not translate into employment and instead
Benchmarking: An International
Journal resulted in the phenomenon of jobless growth, which implies that the growth rate of
Vol. 26 No. 7, 2019
pp. 2242-2266
employment in the manufacturing sector remains negative (Dev, 2013). Along with jobless
© Emerald Publishing Limited
1463-5771
growth, India faces challenges such as job shortages combined with a rise in the number of
DOI 10.1108/BIJ-07-2018-0211 unskilled labourers (Agrawal, 2012). It is also observed that a meagre number of people
(7 per cent) in India’s labour force have higher education, compared to the USA (92 per cent), Skill
UK (52 per cent) and Japan (45 per cent) (Swaminathan, 2008). Further, if India fails to meet development
the challenge related to the need for a skilled labour force within the next decade, the research in
outcome will be catastrophic and may override growth in non-agriculture production and a
shortage of a skilled labour force, resulting in the replacement of labour with machines India
(Mehrotra et al., 2013). These circumstances highlight the immediate need for skill
development in the economy. Therefore, the Indian government has initiated steps to 2243
formulate skill development initiatives through a qualification framework, namely, National
Skill Development Policy, 2009 (Blumenfeld and Malik, 2017).
India experiences the advantage of a demographic dividend because a young labour force
accounts for majority of its population. This demographic dividend can be increased by
improving the younger labour force’s skills (Agrawal, 2014). The Eleventh Plan Document,
2014 elaborates that India has one of the youngest populations in the world, wherein the
average age of the population is less than 24, as compared to nations such as China (30),
Europe (38) and Japan (41) (Batra, 2009). According to the World Bank Report, 2012, China’s
demographic dividend was exhausted in 2015, but India will have the benefit of the
demographic dividend until 2040 (Mehrotra et al., 2013). Additionally, the current scenario of
an aging population across the world demands the need for widening the skill gap, which will
increase the requirement for skilled human resources, in turn creating an opportunity for India
to meet its global and domestic demand (Agrawal, 2014).
Moreover, it is expected that in the future, India will have a surplus of 56m working-age
people, whereas the rest of the world will face a scarcity of around 47m working-age people
(Dev, 2013). According to Malik (2015), the benefits of this labour force surplus can be
reaped by developing the labour force’s potential and productivity, and the demographic
dividend can be realised through skill development and education. However, if the nation
fails to inculcate skill development initiatives, which are essential to develop talent, a
demographic nightmare may be the result (Batra, 2009; King, 2012; Mishra, 2014).
There is an increase in the number of studies being done on the concept of skill development.
Prior studies in business and management have provided insights into the significance of skill
development, such as an innovation-driven ecosystem for skill development (Shrotriya et al.,
2018), work skills, gendered identity (Gooptu and Chakravarty, 2018) and purchasing and
supply chain skills (Rahman and Qing, 2014). However, there is a paucity of studies examining
the state-of-the-art associated with skill development research in India. To address this gap, the
study conceptualises the construct and deliver insights for academicians and practitioners.
This article is structured in the following sequence. After an introduction, research
methodology is explained in Section 2. The results of the descriptive analysis are described
in Section 3. In Section 4, an overview of skill development research in India is elaborated.
Section 5 presents the implications from academicians and practitioners and the conclusion
is discussed in Section 6.
2. Research methodology
2.1 Experiential learning theory
This study uses experiential learning theory propounded by Kolb (1984) and several
studies have used the theory to understand the management and managerial process
(Holcomb et al., 2009; Hoover et al., 2010). The stages of experiential learning comprise of
reflective observation, abstract conceptualisation, active experimentation and concrete
experience (Kolb, 1984; Vince, 1998). The theory discusses the process of learning in the
business organisation through experience. Experiential learning is viewed in two
perspectives, first, field-based learning which includes internships, practical, service
learning and so on. Second, classroom-based learning includes experiential learning in
class room via games, simulation, role playing, etc. (Lewis and Williams, 2006). As a
BIJ whole, experiential learning model proposes three prerequisites, the experience should be
26,7 meaningful and enhance skill, knowledge or attitudinal level, critical thinking and
reflexivity and the ability to take a course of action to achieve desired results (Kolb and
Kolb, 2008). Based on the above-mentioned studies, skill development is contemplated as
an experiential learning which is learning by doing or acquiring knowledge, skills and
abilities through experience. The outcome of such learning would be development of
2244 competencies, attitudes and novel thinking to engage in a given job or task. On the basis of
experiential learning theory, this study put forward two objectives. First, descriptive
analysis is conducted based on the classification framework (see Table I). Second, the
study asks the following research questions:
RQ1. What is the importance of skill development in the Indian context?
RQ2. What are the institutional and regulatory measures of skill development?
RQ3. How does skill development help in technology adoption?
RQ4. How does skill development act as a catalyst in women’s empowerment?
RQ5. Why is integration of skill development with higher education necessary?
RQ6. What is the significance of labour market reforms in skill development?
3. Descriptive analysis
2246 3.1 Results of the literature analysis
Table II depicts the classification of prominent studies considered for the literature review.
The main contribution of each analysed study has been shown in Table III.
3.1.1 Geographical context. The authors categorised different states of India into
six zones in accordance with two legal statutes of India, i.e., State Re-organisation Act, 1956
and North Eastern Council Act, 1972 (Ministry of Home Affairs, 2016). The six geographical
zones and corresponding states are mentioned in Table IV. The results indicate that a
majority of the studies were not confined to a specific state (Figure 1). Further, more than
half of the studies (55.10 per cent) were conducted on a Pan India basis. Regarding the zonal
area, the studies’ main focus was based on the southern zone (14.29 per cent). However, there
were no studies in the southern state of Karnataka and Union Territory of Pondicherry,
Lakshadweep, and Andaman and Nicobar Islands. The central zone can be placed in the
third position, as 10.20 per cent of all the studies were conducted in this zone. Further, it was
found that no studies were conducted in Uttarakhand, Bihar, Goa, Rajasthan, Sikkim,
Himachal Pradesh, Jammu and Kashmir, Maharashtra, Punjab and north eastern states.
Union territories not included in any study were Dadra and Nagar Haveli, Daman and Diu,
New Delhi and Chandigarh.
3.1.2 Focus on skill development. Classification 2 is on the basis of focus on skill
development in India (Figure 2). The lion’s share of studies discussed skill development,
i.e. 83.33 per cent (2A and 2B). However, only a small number of studies, i.e. 16.67 per cent
discussed 2C, i.e. skill development is not predominant. The results signify the importance
of skill development construct because most studies discussed the concept in a detailed
manner.
3.1.3 Research methods. Classification 3 discusses the research methods adopted in the
studies (Figure 3). The most common research methods employed in the study involve
3B.3C – qualitative combined with the conceptual, 3D – mixed methods, 3D.3E – mixed
methods combined with the survey, 3B.3E – Qualitative combined with the survey, 3B.3F –
qualitative combined with the case study, and 3B.3C.3E – qualitative and conceptual
combined with the survey.
The majority of studies emphasised qualitative along with survey, and mixed methods,
both of which account for 23.81 per cent each. Mixed methods with survey hold the third
position. These results indicate that studies on skill development have been analysed from a
wide range of methods. However, it is to be highlighted that studies conducted only through
case studies and conceptual studies are absent. The lack of conceptual study has created
ambiguity around the term skill development, and future studies need to use this research
method to rectify the issue. The case studies can be carried out in a specific Indian state,
considering it as a sample area. It is observed that the majority of the studies was conducted
on macro-level analysis and can be solved by employing case studies that focus on
individual skill development.
3.1.4 Economic sector. The categorisation of the economic sector is made in
Classification 4 (Figure 4). The analysis shows that approximately 60 per cent of studies
focus on service sector and only 29.55 per cent on the industrial sector. The majority of
studies were done on the service sector due to the nature of skill development, as it belongs
to the educational sector, a sub-sector in the service industry. The results indicate that
Focus on Constituents Origin
Skill
Geographical skill Research Economic of skill Type of of the development
Study context development methods sector development training study research in
Agrawal (2012) 1G 2C 3D 4C 5A.5C 6A.6B.6C 7A India
Agrawal (2014) 1G 2A 3D 4C 5A.5C 6A.6C 7A
Agrawal (2016) 1G 2D 3D 4C 5A.5B.5C 6A 7A
Ahmed (2016) 1G 2C 3D 4C 5A.5C 6A 7A 2247
Anant (2015) 1G 2C 3B.3C 4C 5A.5C 6A 7A
Batra (2009) 1G 2C 3B.3C 4C 5A.5B.5C 6A.6B 7A
Bhardwaj (2014) 1G 2C 3D.3E 4B 5A.5B.5C 7A
Damodaran (2008) 1G 2A 3D.3C 6B 7A
Das (2011) 1G 2C 3B.3C 4C 5A.5B.5C 6A.6C 7A
Das (2015) 1G 2A 3B.3C 4B 5A.5B 5C 6A 7A
Dev (2013) 1G 2C 3D 4A.4B.4C 5A.5C 6A.6B.6C 7A
Ghosh (2008) 1G 2A 3D 4A 5A.5B.5C 7A
Hegde and Narahari 1G 2C 3D.3F 4B.4C 7A
(2009)
Hukampal and 1C 2C 3E.3D 4B 7A
Bhowmick (2016)
Jauhari (2006) 1G 2A 3B.3C.3E 4C 5C 6A 7A
Jauhari and 1G 2C 3B.3C 4C 5C 6A 7A
Manaktola (2009)
King (2012) 1G 2A 3B.3C 4C 5A.5B.5C 6A.6B.6C 7B
Krishnakumar et al. 1B 2D 3D.3E.3F 4C 6A 7A
(2013)
Malik (2015) 1G 2C 3D 7A
Malik and Nilakant 1G 2D 3B.3E.3F 4C 5B.5C 6A.6B 7E
(2011)
Mehrotra and Ghosh 1G 2C 3B.3C 5A.5B.5C 6A 7A
(2014)
Mehrotra et al. (2013) 1G 2A 3B.3C 4A.4B.4C 5A.5B.5C 6A.6B.6C 7A
Mehrotra et al. (2015) 1B 1C 2C 3D.3E.3F 4B.4C 5A 6A 7A
Mehta and Sherry 1F 2D 3D.3E 4B 5A 6C 7A
(2009)
Mishra (2014) 1D 2B 3B.3F 4C 5A.5C 6A 7A
Narayanan (2016) 1G 2C 3D 5A.5B.5C 6A.6B 7C
Okada (2004) 1A.1C 2C 3B.3E.3F 4B 5B.5C 6A.6B 7A
Pallikadavath et al. 1B 2C 3D.3E 5A.5C 6A 7A.7B
(2016)
Panda (2015) 1B.1D.1F 2C 3D.3E 4B 6A 7A
Pattanaik and Nayak 1G 2D 3D 4A.4B.4C 7A
(2013)
Peters et al. (2010) 1B.1F 2D 3D.3E 4C 7C
Pilz and Li (2014) 1G 2C 3B.3E 4B 5A.5C 6A.6B 7B.7C
Pilz and Wilmshofer 1D 2C 3B.3E 4A 5A.5C 6A.6B.6C 7B
(2015)
Pilz et al. (2015) 1A.1B 2A 3B.3E 4C 5A.5C 6B.6C 7A.7B
Pradhan et al. (2017) 2C 3A 3E 4A 7A
Rao (2015) 1G 2B 3B.3C 4C 5C 6A 7A
Rolleston (2014) 1B 2B 3D 4C 5C 6A 7B
Saini and Budhwar 1A 2C 3B.3F 4B 6A.6B 7A.7B
(2008)
Shanmugham and 1G 2C 3B.3C 4C 5A.5B.5C 6A 7A
Kishore (2012)
Singh (2007) 1G 2C 3A 3E 4A 7A Table II.
Classification and
codifying of the
(continued ) analysed studies
BIJ Focus on Constituents Origin
26,7 Geographical skill Research Economic of skill Type of of the
Study context development methods sector development training study
studies need to diversify into “4A – Agriculture and allied activities” (11.36 per cent), a
category which absorbs the maximum amount of unskilled labour force in India (Kakad,
2002). India has been conventionally known as an agrarian-based economy and one of the
leading producers of wheat, paddy, and milk (Panda, 2015). The major share of the labour
force has been employed in agriculture, which accounts for 52 per cent of employment and
15 per cent of GDP in India (Agrawal, 2014). Mehrotra et al. (2013) stated that the labour
force engaged in agriculture, i.e. 244m (2009–2010) cannot be termed as unskilled, as they
were reasonably skilled in crop production and allied activities. The problem arises when
the labour force moves from the agricultural sector to other sectors due to lack of training. In
such cases they can be termed as unskilled. In recent years, several innovative and
technological changes have taken place in the Indian agricultural sector which has created
huge skill gaps that need to be addressed by skill development initiatives.
3.1.5 Elements of skill development. According to Mehrotra et al. (2013), skill development
constitutes vocational, technical and general education and consequently, Classification 5
has been categorised as per the definition (Figure 5). The results reveal that general
education has been discussed more than other sub-categories, i.e. 42.86 per cent, followed by
vocational education (35.71 per cent). The studies focused on vocational education because
of the narrow perspective associated with skill. Hence, there is need for skill development for
elaboration and inculcation of the element technical education (21.43 per cent). This is in line
with the findings of Mehrotra et al. (2013), who stated that skill development was viewed
from the narrow perspective of vocational and general education by ignoring technical
education. Drafting a specific definition in the Indian context can help provide clarity about
the constituents of skill development. Moreover, technical education in India is significant,
and future studies need to focus on this issue.
3.1.6 Type of training. The sixth classification deals with the type of training (Figure 6).
The analysis reveals that there are only a few studies of “non-formal training” in the Indian
context, whereas a majority of studies explain the role of formal training in skill development.
The analysis recommends considering not only non-formal training but informal training for
future studies. Formal training has been most assessed in the selected studies; it accounts for
57.14 per cent, which is higher than informal training (26.79 per cent) and non-formal training
(16.07 per cent). Non-formal training in the Indian economy is important due to its capacity to
deliver skill sets to the labour force. It is evident from the available data that 11m individuals
in the labour force received skills through formal training, whereas 33m were trained through
non-formal methods (Dev, 2013). Hence, future studies need to focus on the impact of informal
and non-formal training in the Indian context.
3.1.7 Origin of the study. The origin of the study was mentioned under Classification 7
(Figure 7). The analysis revealed that three out of four studies were contributed by
Asian authors, with appreciable contributions from Japan and Indonesia. The second
Sl. No. Author/s Main contribution of each analysed study
Skill
development
1. Agrawal (2012) The author studied about labour market outcomes concerned with research in
vocational graduates by comparing their employment as well as earning.
The results show that there exists high level of unemployment among India
the vocational graduates, especially in the age category of 1529 years. In
addition, high rate of unemployment exists among vocational graduates
than the general secondary graduates’ unemployment rate 2249
2. Agrawal (2014) The study interrogated labour market outcomes related with vocational
trainees, in addition to their employment as well as unemployment
scenario to ascertain the favourableness of VET programmes. The large
share of VET holders belongs to non-formal segment and lion’s share of
them are casual labours or self-employed. The tremendous opportunities
that exist in the informal sector for skill development need to be utilised
through the proper formulation of system
3. Agrawal (2016) The author investigates justification regarding the need of educational
expenditure on the economic system in India. The study analysed four
factors namely., overall evaluation of higher education structure, low
ratio in public expenditure and GDP, increase in Pupil-Teacher ratio
(PTR) and low ratio of enrolment
4. Ahmed (2016) The author explores to comprehend whether the trained individuals
after the fulfilment of VET, remains in the labour market or not. It also
examines the incentive of safety net prevailing among trained
individuals of VET. The unemployment among the VET holders with
low level of general education is extremely high
5. Anant (2015) The author elaborated the key challenges which consist of human capital
development and improving English proficiency, lack of access to skilled
manpower, as well as skill and competency development
6. Batra (2009) The author highlighted the major skill development and educational
initiatives implemented by government through mission mode activities.
The lackadaisical approach in implementing skill development
initiatives by various government institutions has slow down the growth
of knowledge economy
7. Bhardwaj (2014) The study revealed that skill development (education) helps women to
formulate innovative ideas and these ideas would transform to establish
enterprises. The study recommends that skill development and training
would help women to enhance their entrepreneurial skill
8. Damodaran (2008) The article demonstrated the problem of skill deficiency in India and
argues that not only the market failure but also restricted outcomes from
the private parties led to show positive results in skill development of
man power.
9. Das (2011) The author asserts that lifelong learning is necessary to develop human
resource in knowledge economy. Open Educational Resources (OER)
acts as a tool to nurture occupational as well as life skills among the
young learners
10. Das (2015) The paper portrayed how schemes such as National Skill Development
Mission (NSDM) as well as National Rural Livelihood Mission (NRLM)
helps to foster skill development in PPP mode. It also concludes that skill
development of rural youth helps in job diversification as well as
upliftment from poverty
11. Dev (2013) The study investigates the Post-2015 Development Agenda as well as
evaluates the scenario of economic growth and employment in India.
This study states that there is decreasing growth and employment in
economic sector and highlights the importance to skill development and
need to shift the focus from quantity to quality
Table III.
Main contribution of
(continued ) each analysed study
BIJ Sl. No. Author/s Main contribution of each analysed study
26,7
12. Ghosh (2008) The study evaluated the skill development training of centrally
sponsored programmes like TRYSEM and SGSY. The findings reveal
that low level of importance is given to skill development factors in these
programmes such as training and funds for training
13. Hegde and Narahari (2009) The author asserted that there is no requirement of investment in skill
2250 development because the entrepreneurs acquire their prerequisited skills
through inheritance. The use of technology would be helpful to achieve
the entrepreneurial goals
14. Hukampal and Bhowmick The study asserted the criteria such as skill development, information
(2016) accessibility, production enhancements as well as entrepreneurial
development were vital which are required for the notion of innovation
network in rural areas
15. Jauhari (2006) The study identified that skill gap exists in demand and supply of man
power in hospitality industry and it could be mitigated through skill
development initiatives. The study recommends the requirement of
academic- industrial partnership especially in association to ensure
growth of managers in the employment
16. Jauhari and Manaktola The study stated that the key issues in the hospitality industry are lack
(2009) of proper education, absence of skill development and competencies,
negative perception about the industry, compensation as well as work
environment and improving the existing opportunities for employment
17. King (2012) The study reveals that India lacks training in the unorganised sector,
which accounts for 93% of aggregate employment in India. The study
suggested that lack of training institutes and ITI could be covered by the
private participation
18. Krishnakumar, Devi, and The model developed in this study predicts the future requirement of
Rao (2013) labour in skill development, organisational development and employee
empowerment. The model also formulates two indices namely.
organisational performance and entrepreneurial orientation to employee
19. Malik (2015) The study stated that Wealth Index/Standard of Living (SLI) has
significant relationship to youth development in India. The other
findings involve a) rural female youth are disadvantaged than urban
youth b) youth from poor household are unemployed than rich
households c) poverty has significant effect in Indian youth development
20. Malik and Nilakant (2011) The study evaluates the determinants that effect decision making on
training in Information Technology enabled Business Process
Outsourcing (BPO) SMEs in India. The key factors that include in training
of SMEs are staff turnover, process complexity and client specification
21. Mehrotra and Ghosh The author discussed about the need for national training fund to mitigate
(2014) the skill deficiency in the nation. The authors recommended to levy tax
from organised sector and channelise to unorganised sector. The demand
side of financing youth can be rectified by providing stipend
22. Mehrotra et al. (2013) The study estimated the number of manpower in three contexts required
for the year 2022 and warned about the lack of quality in education and
demand-supply mismatch
23. Mehrotra et al. (2015) The authors asserted that companies’ faces challenge in term of quantity
and quality of skilled man power. The authors delineated the
significance of adopting German dual system of VET which ensures
vocational education to be dynamic, formal structure and integrated
network
24. Mehta and Sherry (2009) The study recommended that training, skill development and schooling
of children helps them to be involved in labour market with requisite
skill sets. The child labour needs to be abolished and there is necessity to
position for studies on skill development is occupied by the European continent, especially
Germany, a nation known for its unique mode of skill training, i.e. German dual mode.
Studies on the sub-category “North America” are mainly from the US. There is only one
study from Australia (7E) and none from South America (7D) and Africa (7F). Future
collaboration will help to adapt best practices from these continents.
Zone States
Northern zone Himachal Pradesh, Haryana, Jammu and Kashmir, Punjab, Rajasthan, New Delhia
and of Chandigarha
Southern zone Andhra Pradesh/Telangana, Karnataka, Kerala, Tamil Nadu, Lakshadweepa,
Andaman and Nicobara and Puducherrya
Eastern zone Bihar, Jharkhand, Odisha, Sikkim and West Bengal
Western zone Goa, Gujarat, Maharashtra, Daman and Diua and Dadra and Nagar Havelia
Central zone Chhattisgarh, Uttarakhand, Uttar Pradesh and Madhya Pradesh
North eastern zone Assam, Arunachal Pradesh, Manipur, Tripura, Mizoram, Meghalaya and Nagaland Table IV.
Note: aUnion Territory Zonal classification of
Source: Ministry of Home Affairs (2016) States in India
Geographical Context 27
7
4 5
3 3 Figure 1.
0 Frequency
distribution for the
Northern Southern Western Eastern Zone North Central Zone Pan India geographical context
Zone Zone Zone Eastern Zone
26 Figure 2.
9 7 Frequency
distribution for the
Entirely on the Skill Development Skill Development is focus on skill
concept Skill and another/various not predominant in development
Development factor/s the analysis
BIJ were integrated as a significant dimension of skill development initiatives and are regarded
26,7 as a means to provide employability (Rao, 2015).
By 2040, India will have become the world’s largest economy, backed by achieving the
goals of poverty eradication and economic development. The nation also records one of the
fastest GDP growth rates in the world and is expected to surpass China in the near future
to become the fastest-growing economy (Sinha and Dorschner, 2010). However, India’s
2254 double-digit growth is not reflected in employment growth, which is primarily due to the
lack of a formally trained skilled workforce. Vocational- and technical-educated individuals
Research Methods
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Economic Sector
Figure 4. 26
Frequency 13
5
distribution for the
economic sector Agricultural and Industrial sector Service sector
allied activities
Figure 5.
Frequency 25 30
distribution for the 15
constituents of skill
development Vocational Technical education General education
education
Type of training
Figure 6. 32
Frequency 15
distribution for type 9
of training
Formal training Informal training Non-formal training
secure less income than secondary-educated individuals (King, 2012). This has resulted in Skill
the rise of educated unemployment rather than uneducated employment among youth development
(Agrawal, 2014). research in
India has made a plausible claim for embedding a knowledge-based economy by
employing a major section of the labour force, which has low relevance for novel India
technologies and work practices for knowledge economy (McGrath, 2002). Furthermore, the
lack of skills for the knowledge economy is the biggest policy challenge that the government 2255
needs to address. This section describes the evolution of skill development, its importance
as an antecedent to technology, role in women’s empowerment, integration with secondary
education, and challenges and possible solutions for labour market reforms are provided
after reviewing the selected articles.
32
Figure 7.
7 Frequency
3 0 1 0 distribution for origin
Asia Europe North South Australia Africa of the study
America America
BIJ will increase from the current 2 per cent to a mammoth 50 per cent by 2022 (King, 2012). The
26,7 core aim can be achieved through “Coordinated Action of Skill Development” formulated in
the 11th five-year plan (Agrawal, 2012), which subsequently led to the formation of two
institutions for skill development, i.e. the Prime Minister’s National Council on Skill
Development (PMNCSD) and the National Skill Development Coordination Board (NSDCB)
(Dev, 2013). The National Skill Development Corporation (NSDC) was incorporated in 2008 to
2256 provide collaboration between the central government and industrial bodies. The National
Skill Development Fund (NSDF) was developed for channelling government funds, and acts
as a fund manager for distributing funds to the needy (Das, 2015). The institution has aimed
to build skill development initiatives with the private sector to achieve the target of nurturing
a skilled labour force of 500m by 2022 (Agrawal, 2012). The initiatives can be achieved
through the Skill Sector Centre (SSC), which has created 1661 Qualification Packs and covers
4420 specific National Occupation Standards (Tara and Kumar, 2016). The emphasis of the
five-year plan is to launch the “Skill Development Mission” with a huge outlay of Rs228bn
(Agrawal, 2012).
The 12th five-year plan, which commenced in 2012, gave vital importance to the quality
of employment and skill development (Dev, 2013). The plan supported the formation of
institutions and infrastructure to foster skill development across the nation. In 2013,
PMNCSD, NSDCB and the Office of Adviser to Prime Minister on Skill Development merged
to form a single entity known as the National Skill Development Agency (NSDA). The core
aim of the NSDA is to develop essential infrastructure and strategic guidance by nurturing a
skilled workforce in the Indian economy (Das, 2015).
The Government of India has formulated an independent ministry to govern skill
development initiatives, i.e. the Ministry of Skill Development and Entrepreneurship (Tara and
Kumar, 2016). The Ministry aims to facilitate an extensive infrastructure to provide training
facilities through institutions such as National Skill Development Corporation, NSDA and
Directorate General of Training. The Ministry has been engaged in formulating several
institutional innovations to enhance training programmes (Ahmed, 2016).
Government efforts continue in policies like the National Skill Development Policy, 2015
to encounter the dearth of skill development by formulating standards and identifying skill
gaps in the nation. The policy is stipulated to achieve the target of a skilled labour force of
402.9m by 2022 (Ahmed, 2016). Furthermore, Pradhan Mantri Kaushal Vikas Yojana
(PMKVY), the largest vocational training scheme in the world, was launched in 2015 as a
part of the Skill India Mission. The objective of the PMKVY is to skill, upskill and reskill
2.4m labour force in different trades in a year. The government has launched the scheme
Udaan, which primarily focuses on sensitive regions like Jammu and Kashmir and North
East states (Tara and Kumar, 2016). Recently, skill universities such as Rajasthan-ILD
Skills University (RISU) and Bharatiya Skill Development University have been established
(The Hindu, 2017). These institutions provide standard training to develop different
skills through a well-designed curriculum and assessment procedures for attracting the
reluctant younger generation which considers vocational training as less-lucrative careers
(Tara and Kumar, 2016).
4.6 Labour market reforms for skill development: challenges and solutions
4.6.1 Mismatch between theory and practice. The mismatch between theory and practice
provided through educational institutions is rampant in India (Batra, 2009). From an
academic perspective, the problem can be solved through applying the duality principle,
i.e. an amalgamation of theory and practical knowledge in a single workplace. Germany’s
dual model of vocationalism involves the application of the duality principle in such a way
that apprentices spend a few days in a classroom and the lion’s share of time in the practical
field, which helps reduce the gap between theory and practice. It is evident that Germany’s
dual system of industrial-academic participation is expected to act as a panacea to rectify
the gap between theory and practice (Mehrotra et al., 2015). Inspired by Germany’s dual
system, the National Skill Development Mission is collaborating with industry for skill
development initiatives which are expected to provide desired results.
4.6.2 Low quality of skills assimilated. The quality of skills propagated through educational
institutions in India is low (Agrawal, 2014; Mehrotra et al., 2013). To counter this problem,
National Skill Qualifications Framework (NSQF) and industry standards can be embraced.
Collaboration between educational institutions and industry can help solve concerns regarding
education quality ( Jauhari, 2006). Moreover, there needs to be an emphasis on teacher training,
so they can impart high-quality knowledge to students (Tara and Kumar, 2016).
4.6.3 Mismatch between demand and supply of skilled labour force. Studies by Agrawal
(2016), Agrawal (2014) and Mehrotra et al. (2013) have posited a mismatch between demand and
supply of a skilled labour force. According to survey reports from the Federation of Indian
Chambers of Commerce and Industry, 2001, vocational or technical training institutions have
not been able to focus on fulfilling the global needs of industry (Swaminathan, 2008). An absence
of scientific analysis into the skill gap can be considered as the main reason. India’s educational
institutions turn out youth with obsolete skills, and hampering their employability. To address
this situation, NSDC has prepared a skill-gap analysis to determine the demand and supply of
the majority of districts in India. It can be helpful for policy makers, government agencies and
educational institutions to understand the lucrative jobs from the NSDC report and foster youth
according to industry demand (Das, 2015).
4.6.4 Low level of in-house training compared to other BRICS nations. The major issue of
low level in-house training (Mehrotra et al., 2015) is due to a lack of organisational financial
resources. Hence, the government should provide infrastructure to initiate such measures
for training and skill development. The shortage of financial resources can be mitigated
through joint funding by government and business organisations, corporate social
responsibility (CSR) funding under new provisions of The Companies Act, 2013 (Mehrotra
et al., 2015; Tara and Kumar, 2016), creating a national training fund to mitigate the financial
crunch (Mehrotra and Ghosh, 2014), and encouraging the private-public partnership model
for skill development (Ghosh, 2008; Mehrotra et al., 2013, 2015).
4.6.5 Lack of cooperation/participation due to no incentives for students/employees. The
younger generation’s lack of participation in skill development initiatives (Swaminathan, 2008)
has led to the failure of such initiatives and wastage of taxpayers’ money. India can take Skill
inspiration from the African nation of Kenya, which has attracted youth to its skill development development
initiatives through a “voucher system”, a mechanism designed for young participants in skill research in
development initiatives, wherein participants receive vouchers, which act as a monetary benefit.
There are multiple benefits to this scheme, as it is helpful for the youth in creating interest in India
training, which results in eradicating poverty and generating a productive labour force
(Agrawal, 2012). 2259
4.6.6 Lack of qualified trainers/teachers. The absence of adequate formal education for
trainers and teachers is evident in India (Swaminathan, 2008; Batra, 2009; Jauhari and
Manaktola, 2009; Mishra, 2014; Rao, 2015). The government should create a reserve pool of
talented faculty to fill immediate vacancies. Faculty quality should be improved through
regular training (Srivastava and Dhar, 2015), and educators must be encouraged to conduct
cutting-edge research through industrial partnerships. Using open educational resources
can enable lifelong learning among faculties (Das, 2011).
5. Implications
5.1 Implications for academicians/researchers
This study has identified several research gaps which can be addressed through future
research. It has been observed that there is a dearth of studies in areas such as
conceptualisation of skill development and socio-economic benefits of implementing such
initiatives. In this context, future studies need to be conducted to arrive at conclusions based
on scientific evidence, which requires the use of rigorous research methods:
(1) The findings from the study have identified a lack of clarity on the concept of skill
development. It is evident that the term is used to replace the old concept –
vocational education and training (VET). In this regard, future study needs to
document the operational definition of the concept, dimensions associated with the
construct and develop a scale.
(2) The study has hypothesised skill development as an explanatory variable for
technology adoption. In this context, technology adoption models such as the
Unified Theory of Acceptance and Use of Technology (UTAUT) can be integrated
with skill development as a dependent variable to test the empirical relationship
between the constructs.
(3) The successful implementation of Germany’s dual model of vocationalism by
National Skill Development Mission needs to be quantified and empirically tested.
There is a need to examine barriers in implementating such a western concept
in the Indian context. To examine such enablers and barriers, multi-criteria
decision-making techniques can be used.
(4) It is important to understand how corporations’ CSR spending plays a role in
improving skill development in society’s younger workforce. According to The
Companies Act, 2013, skill development is a specific area where corporations need to
allocate CSR funds. Studies that establish a causal relationship between CSR
spending and skill development initiatives need to be examined.
(5) The younger generation’s reluctance to participate in skill development is
seen across India and is mainly attributed to their preference for white-collar
jobs. Hence, it is important to understand behavioural factors that prompt the
younger generation to refrain from seeking employment in blue-collar jobs, and
solutions need to be established for changing such mind-sets among the young
labour force.
BIJ (6) Training plays a vital role in developing the skills of an organisation’s labour force.
26,7 The research needs to explore the causal relationship between training and skill
development in various jobs especially teachers/trainers and whether it enhances
their job performance.
(7) Few studies have examined whether skill development is supply driven or demand
driven. Some observe that skill development initiatives facilitated by the
2260 government, which are supply driven, have failed to provide benefits to the
public. In this regard, it is urgent to conduct studies on the adverse impact caused by
skill gaps in the labour market.
(8) Employability of the labour force after completing skill development initiatives
showcases the success of such initiatives. The lack of studies that establish an
empirical relationship between skill development and employability need to be
addressed in future research.
(9) The construct of skill development has been viewed at macro-level and meso-level, i.e. it
is considered as a macro-economic variable and an organisational-level variable,
respectively. However, there is a dearth of studies considering the variable at micro-level,
i.e. individual skill development, which can be incorporated in future research.
5.1.1 Implications based on descriptive analysis. Case studies as a research method can be used
to conduct studies on states and union territories of India. Conceptual clarity regarding skill
development is absent and can be mitigated by focusing conceptual studies on skill
development, which may remove ambiguity related to the concept. Further, the definition needs
to incorporate technical education. Even though the Indian economy relies appreciably on
agriculture and allied activities, significance has not been given to this segment, and future
studies can focus on this economic sector. In India, 93 per cent of employment is provided by the
informal sector which follows informal and non-formal training. Hence, these areas need to be
given importance to fulfil the objective of skill development for achieving poverty reduction. As
per the results of the analysis, future research can also focus on collaborative research with
emerging economies like Brazil and South Africa (South American and African continents),
which are a part of BRICS along with India, to adopt best practices from these nations.
6. Conclusion
The current study has carried out a systematic literature review on skill development
research in India to analyse and synthesise the literature and provide insights for future
studies. The objectives of this study are twofold. First, based on the classification
framework, this study carried out a descriptive analysis. In terms of the geographical
context, Pan India studies need to be considered rather than confining the work to one state.
Regarding research methods, the conceptual studies will provide clarity on the concept of
skill development. Studies on skill development of the labour force engaged in agriculture
are vital because this sector provides 15 per cent of the total GDP and 52 per cent of
employment for the Indian population. Studies on informal and non-formal training need to
be considered for future studies, and collaborative research with African and South
American countries will be beneficial for adopting best practices.
Second, this study seeks an answer to the research questions, and the authors
recommend insights to researchers through a future research framework. As India aspires
to be the largest economy in the world by 2040, it is important to instil the necessary skill
BIJ sets in the workforce. The nation has missed opportunities during the past three industrial
26,7 revolutions. Therefore, in the era of the fourth industrial revolution and to utilise the
advantage of the demographic dividend, the nation needs to contemplate skill development
initiatives. Moreover, the nation has established numerous institutional arrangements such
as the NSDA and the Ministry of Skill Development and Entrepreneurship to provide
necessary infrastructure and foster skill development initiatives. On the other hand, the
2262 nation faces several challenges, such as shortage of skilled trainers and mismatch between
theory and practice, which needs to be rectified through necessary policy formulation by the
government. The government needs to facilitate policies to provide skill development
initiatives because its benefits are manifold for embracing technology adoption and acting
as a means for women’s empowerment.
To conclude, the study conducted a systematic literature review, and the authors provided
implications for academicians and policy makers. This study discussed a lack of conceptual
clarity for the term “skill development” and portrayed challenges and possible solutions from
the available literature. It is hoped that scholars will be encouraged to carry out future
research on skill development in accordance with research gaps as recommended in the study.
Note
1. The five-year plan has been replaced by NITI Aayog since 2014.
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Rauth Bhardwaj, B. (2014), “Impact of education and training on performance of women entrepreneurs:
a study in emerging market context”, Journal of Entrepreneurship in Emerging Economies, Vol. 6
No. 1, pp. 38-52, doi: 10.1108/JEEE-05-2013-0014.
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