At an ETRise Dialogues panel discussion held recently in Mumbai on ‘overcoming challenges regarding land, labour and capital’, Amit Vadera, Regional Head, TeamLease Services expressed concern on the skill deficit widening day by day. “On one hand, there are lakhs of people looking for a job. And on the other, there are corporates or MSMEs who wish to hire, but are unable to due to skill deficit. In India there is no job problem, there is a wage problem. There is a 45% difference in the salary on paper and the one received in hand. This prohibits the informal to become formal,” he stated.
The event, hosted under the aegis of ET Rise MSME Ranking, which will be a definitive ranking of businesses basis a rigorous evaluation of their performance across innovation, financial health, and financial growth, saw key industry stakeholders deliberating on the main issues plaguing the MSME sector.
Vadera said that the main issue is about making the move from informalisation to formalisation. “It’s only after formalisation where one can step forward and work towards skilling the masses. All sectors are facing this problem where they are unable to find the right fit for a job and that’s what needs to be addressed,” he added.
Drawing attention to the Apprentices Act, 1961 which was institutionalised to impart practical training to technically qualified people in varied trades, Vadera said that due importance needs to be given to vocational training. “If you look at other countries – China has 20 million apprentices, Japan has 10 million and Germany about 4 million. India has roughly 3.5 lakh apprentices. So the Apprentices Act has not been utilised. If we simplify that, it can enable organisations to hire people and also let them go if they are not the right fit because skilling is something that is set to change drastically,” he said.
Rooting for better adoption of the apprentices model to make a sizeable difference in the ecosystem, Vadera substantiated his point with Germany’s example, which sees a 33% initial hiring through this model. “This is a successful model in all other countries. But in India, it is taboo. That needs to change. Vocational training needs to happen on a large scale. The government needs to empower special training universities which will be able to change the entire dynamics. India’s biggest challenge is productivity. So a conducive environment has to be created which will make people more productive,” he highlighted.
ETRISE Dialogues has Union Bank of India as the Presenting Partner, MIDC and Caspian Debt as the Associate Sponsors and CARE Ratings as the Assessment Partner. IMC Chamber of Commerce and Industry was an Associate Partner for the Mumbai session.
The next session will be in Bangalore on January 28, 2020. To register, click here.