Private sector comes on board to upgrade the skills of India’s youth

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A woman operates a high-reach stacker with ease in a Pune warehouse. A woman operates a high-reach stacker with ease in a Pune warehouse.

With the world’s largest cohort of young people, preparing the youth for the rapidly evolving world of work is a major priority for the Indian government.   

Since many of the children who are in primary school today will likely work in jobs that do not even exist right now, the country’s new education policy has begun to groom younger populations – middle and high school students - for the jobs of tomorrow.

But while the government has devoted vast resources towards this effort, public capacities and public resources alone cannot match the staggering extent of the challenge.  

In October 2019, JPMorgan Chase & Co. – a multinational investment bank - joined hands with the World Bank and the Indian government in this endeavor. The three-way partnership will facilitate the school-to-work transition for India’s youth, especially for girls and young people from marginalized communities.

Some 1.6 million students will benefit directly and millions more will stand to gain when the program is scaled up across the country.

India has devoted vast resources for skilling its youth for the jobs of tomorrow.
India has devoted vast resources for skilling its youth for the jobs of tomorrow. Photo: World Bank

“Efforts like this will make a huge difference over time,” said Jamie Dimon, Chief Executive Officer of JPMorgan Chase, speaking at the launch of the partnership in New Delhi. “But it won’t be done by governments alone, nor by not-for-profits alone. It needs government and business collaboration. And we’ve become firm believers that businesses have to do their part.”

“In the simplest terms, the firm’s $10 million grant will leverage the World Bank’s $500 million loan to India for improving the education and skills of school children,” explained Junaid Ahmad, World Bank Country Director for India. “This will, in turn, leverage the $36 billion invested by the Indian government in its flagship program for skill building.”

“But even more importantly, it will fund the adoption of innovative models from across the world, helping embed them in government programs to reach the scale we need in such a vast and diverse country.”

Taking skilling to younger populations

A large part of the firm’s $10 million support is helping develop 21st century skills among 37 million middle and high school students (grades 6-12) in six Indian states, under the ambit of the World Bank’s $500 million STARS project.   This will eventually be scaled up by the Ministry of Education to reach 90 million students and 4.5 million teachers across the country.

Another critical element is the $2 million allocated to India’s Central Board of Secondary Education (CBSE) for helping develop materials that students, assessors and trainers can use for skills training. Some 1.6 million students will benefit directly from this intervention and millions more will stand to gain when the program is scaled up across the country.

Meeting the critical shortfall in skills in frontline sectors

JPMorgan Chase’s funds are also helping four of India’s Sector Skills Councils develop job-relevant skills among young adults.

In Pune, for instance, Mahindra Logistics, a leading logistics services provider, couldn’t find enough men to operate forklifts in warehouses and faced a frequent turnover among those who had the skills to stack goods at heights of 20 to 30 feet. “The risk and strain of operating a high-reach stacker led to high attrition rates,” explained Mukesh Kapoor, Deputy General Manager.

Deft teamwork between industry and the Logistics Sector Skill Council helped overcome this shortage by grooming local women instead for these traditionally male-only roles.

Woman operating a forklift and high-reach stacker
“At first, I was scared of operating at such heights,” Rituja recalls. “Now I operate the forklift and high-reach stacker so well that I’m eager to train other ladies like me.” Photo: World Bank

Rituja, a young woman in her thirties, is now a skilled and valued employee at the firm.  “At first, I was scared of operating at such heights,” Rituja recalls. “Now I operate the forklift and high-reach stacker so well that I’m eager to train other ladies like me.”

The women’s efficiency – far greater than their male counterparts – is widely acknowledged. “If I depute a male driver on a high reach stacker, within 6-8 months he will come complaining that it is a difficult job,” said Kapoor.  “But she (Rituja) has been doing this continuously for 14-18 months.” 

In another out-of-the-box move, women and persons with disabilities from the rural areas of Alwar, Ajmer and Pune are being trained to work as electric vehicle service technicians and 3 D printing operators. Many of the trainees had never left home before but, with counselling and training, their horizons have expanded to include frontline industries, and some have even begun to think of setting up their own small enterprises.

In addition, JPM grants are helping equip fresh school graduates from Mumbai and Delhi with the skills needed in the banking, financial services and insurance sectors by providing them apprenticeships in banks and microfinance institutions.

And, in the increasingly important health sector, the grant is helping India’s Sector Skills Councils to identify the training needs for teleconsulting, vaccine administration and the provision of critical care.

“Academic institutions design courses that are very generic in nature,” explained Arindam Lahiri, CEO of the Automotive Skills Development Council. “Which is why the Sector Skills Councils play such an important role in defining job requirements, devising training and, finally, in certifying and assessing performance.”

JPMorgan Chase’s $10 million grant forms the first part of its five-year commitment for building the skills of India’s youth. Importantly, it has paved the way for other philanthropists and private sector entities to follow.


Authors

Shabnam Sinha

Lead Education Specialist, INDIA for the World Bank Group

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