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Background
According to an estimate of the Indian Planning Commission, around 36 million people eligible for employment are presently unemployed. About 92% of India’s workforce is in the unorganised sector; only 8% of the employees are employed in the formal sector. The predominance of the informal sector is likely to continue on two counts: firstly, the informal sector has a large absorption capacity for (self)-employment and income generation; secondly, there is scope for improvement of its low productivity levels through skill formation, improved tools, institutional credit, market information and other support measures. But the educational and skill levels of the existing workforce are also very low and their productive and social potential remains untapped, hindering sustainable development of this sector. Economic liberalisation and globalisation have further led to increased pressure on the informal sector, demanding more competitiveness, higher productivity and quality consciousness.
Although there has been a significant expansion of the education system in India, still two out of ten children do not reach grade 5 and only one in ten enrolls in higher education.1 Thus masses of people are left out without the opportunity to complete an education that leads to productive work or employment. For the people working in the informal sector to get gainful (self-)employment, it is crucial to acquire skills with strong market linkages. Therefore there is the need for an inclusive initiative that addresses the growing unemployment while delivering skilled labour to standards defined and quality assured for industry and other economic sectoral requirements.
In line with the ongoing global Education for All (EFA)2 process, it should be ensured that Technical and Vocational Education and Training is accessible to all, and particularly to those groups that in the past have either been excluded or have not considered skill training a viable option. Workers without a formal qualification or certification should be empowered through a comprehensive skill assessment and certification system.
Strengthening and activating the informal sector, so that it could act as a vehicle of employment provision and sustainable economic as well as social development, is also in line with the Millennium Development Goals: eradicate extreme poverty and hunger (MDG1), achieve universal primary education (MDG 2), and promote gender equality and empower women (MDG 3).
With these aims, many initiatives have been launched by different national and international development organizations, government and non-government agencies (NGOs) and even by industries. Such initiatives are mainly implemented at a small scale and on the local level. To create a wider impact it is crucial that these initiatives contribute to the generation of gainful (self) employment and improve the competitiveness of the informal sector. Good practices need to be promoted and their lessons learnt should be shared so that the successful, sustainable projects are adapted and replicated, and inputs optimized for the sake of a wider audience.
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