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Last updated: 27 Sep, 2014  

msme-THMB-2010.jpg MSMEs' skilled worker shortage a big problem

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Bikky Khosla | 28 Feb, 2012

Much has been said about the significance of the MSME sector. The government often terms it as the "growth engine" of the Indian economy, and with a number of schemes in place to promote the sector, it seems that policy makers are doing their up most best for the welfare of the sector, which contributes to 45 percent of the nation’s industrial output and 40 percent of exports, and provides employment to nearly 60 million people.

But talk casually to any SME owners, and you're likely to get another picture. They complain that the rhetoric of support hardly translates into reality, and when it comes to providing the right 'ecosystem' for entrepreneurs, the government needs to do much more. Shortage of skilled labour is one of the areas where different government schemes have reaped little success to help the sector.

According to official data, the National Policy on Skill Development has set a target of skilling 500 million people by 2022. This is welcome move, but at the same time, I think, this is mammoth task, and it calls for extensive systematic reforms – and not merely setting up of some new training centres or launching of some skill development programmes.

First and foremost, I think that there is a dire need to push vocational education and training in the country. At present, our education system is excessively oriented towards general academic education, and although there is a good network of ITIs and ITCs across the country, most of the courses offered there do not lead to a job, and there is little incentive to pursue them. Facilities available in most of the institutes are inadequate and performance outcomes in them are not measured with industry participation.

In addition, while R&D and innovation activities are fundamental drivers of value creation in today’s business, the level of such activities in India compare poorly with other countries. To address this challenge, we need policies that encourage greater participation by international players, promotion of industrial cluster among small firms, facilitation of cheap finance to boost SME R&D, and introduction of industry-specific policies. In addition, it is essential that the industry and the academia come closer to create a more skilled workforce for employment in today’s high performance workplace.

 
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Mixed blessings of wrong doings of 60 years
Rajkamal Khandelwal | Tue Mar 13 12:18:13 2012
Dear Editor, We badly need education reforms. Work culture development should replace currently in vogue work avoidance culture. Work should be rewarded and avoidance/ negligence be punished. accountability criteria be encouraged for any remuneration. Leadership needs to be encouraged- not the kind of Political type, who have exactly opposite style to grab all the country earns hard way.Nationalism be encouraged and not corruption and reservation with no upper hand to merit. Question is drastic changes in attitude and style of working and thinking is required. But people who can do this are being sidelined and punished. So very difficult- political reforms if brought, than better leaders may come and implement good policies. We await such bonafides will emerge. Current youth is misinformed and has become leaderless. Thus most powerful has become helpless, due to wrong implementation of policies all these 60 years. We should pay more for skill development and less for paper oriented routine work. Hard work be rewarded and simple work should get simple rewards only. Thus only skilldevelopment be encouraged at all points. Also technical education should be a serious business, unlike an easy way to get a degree. Skill development current centra are short of skilled people for training. So trainers be encouraged and rewarded for good performances. ITIs 's current standard be improved. So... much... to be done ?


skill programe
lokendra mahavar | Tue Mar 13 12:17:27 2012
plese send detail defferent types of skill decelopment programe plese detail send my e mail


Not fault of workers
Ajay | Tue Mar 13 08:08:07 2012
Workers were forced to live in slums, often away from their families. Naturally when they get better conditions in their villages, they will stay in their villages. Secondly the employers make very little effort to train their workers to rise further. If they train their uneducated employees for higher skills, they will get many candidates.


Need to do something constructive
MR BIKASH SAHA | Tue Mar 13 05:15:15 2012
Topic on "MSMEs' skilled worker shortage" is very good & appropriate in the present day situation.We need to do something constructive on this front to compete with other Asian countries like China.


Low educated Highly skilled, semi skilled youth
S.G. Ahmed | Sat Mar 10 12:50:22 2012
my opinion on the skill development of youth is this that government/institution should focus on the skill talent of the youth.most of the youth who passes the SSC or higher standard search for skilled job. and participate in examination where the exams are conducted on bases of their studies.I request to set up a course for low educated candidates in the specific field as a certified low skilled worker, then only the problem of labour will be solved.examination should be conducted practically and theory on the skill in which he is interested or capable of the skill. so i request the Government or ITI institution to select the candidates based on their interest or ability to work in a required field/ industry because an uneducated mechanic or skilled worker in India has much experience than an educated person, who is also aback bone of a specific field,but all over india there are 90% of the technical labour are uncertified and uneducated even then there is no much difference in all this. please have a good policy set up on this if a candidate is dis qualified in an of the exam conducted he/she will not wait for whole year,they diversify in another specific field this is the reason our SSI,MSI industries run out of skilled or semi skilled labour and another policy is lack of funds.


Vote bank policies making rural youth lazy
Durga Prasad | Tue Mar 6 05:34:00 2012
With the present policies of the govt. i.e.Re.1kg rice, rural employment scheme, etc.(vote bank policies)rural youth are becoming lazy. They do not need to work hard for entire month. Govt. should provide infrastructure, employment and establish new industries which can generate more revenue and more employment rather than opening up liquor shops and making the youth drunkards. These govt. policies are making govt. employees and politicians more corrupt, every scheme is misused. The present political system should change. Educated Youth should come into politics and work for a change other wise this country with the present system will not have future. In the name of democracy the present political parties are looting the country. The best examples are 2G spectrum, YSR and his son, DMK, BSP, etc.

  Re: Vote bank policies making rural youth lazy
Subroto Sarkar | Tue Mar 13 01:12:32 2012
I support this point with a practical case study. Now I am 60 years.Since 30 years I am trying to generate self employment in India in my way. I have been discouraged in all respects by the political circle even a threat to stop my earning points. I approached media for help but they are busy in publishing articled where a deputy collector admits his ward in a govt school but no place for my initiative. I approached NGO who says are working for welfare of the mass. They demanded share from the beneficiaries income. Some board members after knowing this as high profit zone with less or 0 investment even proposed me partnership leaving NGO. As I am particular that it will be for poor village youth I have been turned down their offer. SO I am fighting this battle alone and will continue. I am happy that I could make some youth in millions self employed. Gold is spattered in our villages. Both agriculture and Horticulture dept knows this but are not willing to share it with the farmers. Because our politicians do not want to drive out poverty fully then they will not get party workers. It is not an imagination. I was told directly by a leader of a political party. Once again I am appealing here to one and all let us donate 2% of our income to this cause personally accumulate it and motivate an youth to start a business. Neither NGO nor Govt support is required we can do it individually.

  Re: Vote bank policies making rural youth lazy
Concern | Tue Mar 13 07:50:59 2012
I may not be an Indian citizen but i've gone to northern India many times until i've got myself so familiar with the belief,culture,attitude and characteristics of the people. The youth now-a-days are dependent on their parents rather than themselves. They enter into vices, drugs and alcohol and are definitely pretty lazy. They want good things in life and easy come money. If you were to do a statistical study within a village, or lets say within a row of houses, there will be more than 50% of the youth are not working either they would be junkies or alcoholics. If the Indian govt doesn't do anything to help and to educate or to create a career line, in just a matter of time, together with the corruption of the govt, India will be going down the drain .


Govt bodies do'nt help
R.K.Seethapathi Naidu | Tue Mar 6 01:38:47 2012
Govt has "so many" bodies to help/assist SME's:But just tell me,in how many occasion(s) these so called bodies has helped them? Nothing but "Harassment" r.k.seethapathi Naidu,CEO,M/S Medicament Del`artic,karaikal pathiplans@sify.com


MSME Skilled worker shortage a big problem
S.P.Singh | Mon Mar 5 17:13:07 2012
Sir, Your above article is ok but there is also shortage of unskilled (Helpers) in industries.Why the people is not coming for jobs in industries. Reason 1.Most of them do not want to do work in industries but wants to do jobs as security person in Malls, ATMs,offices because they know very well that they have to sit only or move in or around the building/office. Reason 2. When the people knows that by doing little work has handsome income in villages under MGNREGA scheme why they will do work in industries. MSME entrepreneurs now want to close their unit and interested for trading because of the labour problem. If the things continue you will worse condition of the Indian industry.


Most Important Problem of MSME in India
Aditya Jain | Mon Mar 5 11:18:03 2012
For the protection of MSME The Govt. of India and many State Govt. had issued NSIC Single point registration scheme and Store Purchase Rules starting from 1995 BUT still NO GOVT> DEPARTMENT FOLLOWS IT If it is followed just for 5 years labour shortage etc etc all problems will be solved


Customers not ready to accept increases in inputs
Milind Naniwadekar | Mon Mar 5 10:33:03 2012
The problem is of shortage but the biggest one is that the Customers are not ready to accept the various increases in Input costs except that of raw materials.


Shortage of Skilled labour
Sadeesh Babu | Mon Mar 5 04:54:07 2012
Sir, We ourselves are creating problems and then finding solutions. There were sicere and hardworking labour in Kerala & Tamil Nadu for all farm works, Construction and industrial activity. With the implementation of Gramin Yojana scheme of Govt Of India there is absolute labour deficit in Kerala. Now the requirement of people is met from North Eastern region Nepal, Bengal, Bangladesh etc. These people are less educated without much skill. Moreover some of them are more critical nature disagreeing to change from their on state of work.Lot of riots, fighting, looting, etc are happening in Kerala. No body is responsible. The Social responsibility has been reduced. Everybody is choosing short term gains and to engage persons in low expenditure. For the Industry there should be specific curriculum. Finishing schools Not money minded fake certifying institutes opened by Governmental institutions. Or let the training be part of Curriculum itself. Let the apprenticeship act be extended for training from Academic institution itself. Like the house surgency in Medical field. Avoid creation of new engineering colleges and polytechnics and strengthen the existing ones to create good and skilled persons rather than money minded cunning fellows.


 
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