The Government plans to issue skill vouchers or skill wallets in a bid to incentivise the youth of India to undergo skill training as per their interest.
These skill vouchers can be presented at any of the approved skill providers and redeemed after the course is over. The value of the vouchers will of course vary depending on the course opted for.
Currently, subsidies are given to trainers and employers so that they offer apprenticeship and skills training. This subsidy-based system will now be replaced by an incentive-based system that will take the Skill India Mission forward.
These vouchers will not only ensure youth empowerment as the youth will be able to undergo any training of their choice but will also make sure that they receive quality training. These vouchers will be 100 per cent redeemable and will help the youth with training in sectors where the salary is generally not enough for the youth to spend on any sort of training, such as the construction sector.
However, in the areas of fashion designing and for professions such as that of beautician, where the earnings are much better, the vouchers will be partly redeemable. The trainees will have to bear part of the cost.
The initiative will also ensure that training institutes start offering more courses in different skills to attract more students.
The move comes at the right time because research shows that India’s workforce has less than five per cent workers with formal skills. In South Korea, Japan and Germany, the figure is much better at 96 per cent, 80 per cent and 75 per cent respectively. The annual report of the Ministry of Skill Development and Entrepreneurship (MSDE) reveals that 68 per cent of the workforce in the UK and 52 per cent in the US are formally skilled.