The importance of education is slowly taking centre stage in the Indian Government’s financial blueprint. The Budget 2023-24 budget saw a significant increase in spending in the education sector, hitting a new milestone. Union Finance Minister Nirmala Sitharaman announced the Ministry of Education would receive ₹1,12,898.97 crore, the highest-ever allocation for the sector.
The year-on-year increase in spending on education is vital for India’s aspirations, but what’s more striking is the government’s focus on vocational education.
India’s Skill Problem
Skills are far more critical than degrees in the evolving 21st century. Unfortunately, the Indian youth struggles with industry skills, which in turn, hamper employment.
According to the Global Business Coalition for Education (GBC-Education), United Nations Children’s Fund (UNICEF) and the Education Commission, over 50% of Indian youngsters will not have employable skills by 2030 if the current problems persist.
Several factors, including the conventional education system, act as a barrier for the youth, preventing them from acquiring the necessary skills. The Indian Government is aware of these issues and has formulated measures to help the youth gain essential skills. The education budget 2023 takes another in this direction.
Budget 2023 from an Educational Lens
Like every budget, India’s 2023 Budget listed a set of priorities. There are seven, with the government hoping that they serve as ‘Saptarishis’ and guide the country through the Amrit Kaal. The priorities include the following:
- Inclusive Development
- Reaching the Last Mile
- Investment and Infrastructure
- Unleashing Potential
- Green Growth
- Youth Power
- Financial Sector
Youth power, inclusive development, and unleashing potential are priorities focused on increasing skill development. The budget laid down the exact ways in which these priorities will be addressed and lead to skill development.
Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 4.0
The Pradhan Mantri Kaushal Vikas Yojana (PMKVY), implemented by the National Skill Development Corporation, is the flagship scheme of the Ministry of Skill Development and Entrepreneurship (MSDE).
The scheme aims to give industry-relevant skill training to youngsters in India and improve their prospects for a better livelihood. The scheme focuses on on-job training, industry partnership and aligning courses with industry needs. PMKVY 4.0 also provides new-age courses such as coding, artificial intelligence, robotics, mechatronics, IoT, 3D printing, drone, and other soft skills.
Individuals with prior experience are also assessed and certified under the Recognition of Prior Learning (RPL), increasing the scheme’s reach.
In the education budget 2023, Nirmala Sitharaman highlighted that the government would leverage the potential of Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 4.0 to create jobs. 30 Skill India international centres would be set up to ensure young Indians get their desired jobs and the industry needs are met.
Industry experts hailed the move, crediting the government for creating the PM Kaushal Vikas Yojana 4.0 and similar schemes to help the youth become employable. Such schemes can help the youth get the right set of language and soft skills along with tech exposure. It can help them meet the growing industry demands and help India Inc. flourish.
Skill India Digital Platform
Nirmala Sitharaman and the Union Government’s Budget 2023 is largely a budget for vocational education. The focus is on bridging the skill gap that has troubled the youth and the industry for a long time.
As part of her speech, FM Sitharaman announced the launch of a unified Skill India Digital Platform. The platform will focus on formal skilling, provide access to entrepreneurship schemes, and help people find jobs in various industries, including MSMEs.
The Skill India Digital Platform will also prepare the youth for international jobs leveraging the 30 Skill Indian international centres.
National Apprenticeship Promotion Scheme (NAPS)
Apprenticeship is a potent model to improve skill development in youths. It is an on-the-job training program where mentors or supervisors train apprentices for a specific skill with the aim of turning them into employees.
Countries like Germany and the United Kingdom (UK) have used apprenticeships successfully. Over 4% of the workforce in Germany and 1.7% in the UK are engaged in apprenticeships, while it is just 0.1% in India.
The lack of competitive pay is usually why youngsters in India avoid working as apprentices. Through the education budget 2023, Finance Minister Nirmala Sitharaman is hoping to change that.
She announced that the government would implement Direct Benefit Transfer under a pan-India National Apprenticeship Promotion Scheme in the coming fiscal. The program will offer stipend support to over 47 lakh youth in three years. It’ll help promote the program and ensure youngsters stay motivated throughout their apprenticeship.
National Education Policy 2020
The Indian Government’s National Education Policy 2020 could be a long-term game-changer. It is a comprehensive framework aiming to transform the country’s somewhat conventional education system.
Through the policy, the government wants to promote a holistic and integrated approach to education, moving away from the one-dimensional traditional system. Emphasis on developing critical thinking and problem-solving skills is the centrepiece of the National Education Policy 2020.
In her budget for vocational education, Finance Minister Sitharaman reiterated the National Education Policy 2020’s role in skill development.
The government has armed the Ministry of Education sufficiently to leverage the policy properly. Of the total ₹1.12 lakh crore given to the Ministry of Education, the Department of Higher Education would receive ₹44,094 crores, with the Department of School Education getting ₹68,804 crores.
National Digital Library
While it isn’t a vocational education scheme in India, setting up a National Digital Library can help kids and youngsters gain additional knowledge.
Reading can solve most things, including skill development. The government hopes to inculcate a culture of reading among youngsters through the National Digital Library. Books across geographies, languages, genres and levels will be provided, helping the future of India prepare itself for tomorrow.
A Budget for Vocational Education
Several factors can drive economic growth. The Government of India (GOI) has rightly recognised the role of skill development in India’s rise to a global giant.
Promoting vocational education through initiatives like the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 4.0 and Skill India Digital Platform can solve the skill gap in the youth. It can prepare them for the industry and increase efficiency in India Inc.
Smile Foundation and Vocational Education
Smile Foundation wants to utilise the nation’s young population in making its mark in the world through livelihood. We train the youth for opportunities in the emerging sectors like Banking, financial services and insurance (BFSI), healthcare assistance, digital marketing, and e-logistics.
Till 2022, 75,000+ youth have been trained and 45,000+ youth placed so far through our livelihood initiative, STeP or the Smile Twin e-Learning Programme. Come and join us in making India one of the strongest global economies in the world through skilling the youth.