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State-Skill-Gap-Report.Pdf November 2019 Tamil Nadu Skill Development Corporation, Integrated Employment Offices Campus (1st Floor) Thiru. Vi .Ka Industrial Estate, Guindy, Chennai-600 032 Published by Tamil Nadu Skill Development Corporation (TNSDC) Integrated Employment Offices Campus (1st Floor) Thiru. Vi. Ka Industrial Estate, Guindy, Chennai-600 032 T +044 2250 0107 E [email protected] W https://www.tnskill.tn.gov.in Tamil Nadu Skill Development Corporation Tamil Nadu Skill Development Corporation (TNSDC) was established in 2013 as a not-for-profit public limited company incorporated under section 25 of the Companies Act, 1956 (corresponding to section 8 of the Companies Act, 2013) to meet the growing industrial demand for skilled workforce and to transform the state into the skill capital of the country. TNSDC is the nodal agency for skill related training and aims to catalyse the skill development ecosystem in the state. It actively collaborates with Government agencies, reputed private skill training institutions and industry partners to impart industry oriented and placement linked skill training. The Tamil Nadu Skill Development Corporation has engaged PricewaterhouseCoopers Private Limited (PwC) to carry out “Skill Gap Assessment Study and Action Plan for Tamil Nadu”. This is the first time such a comprehensive State- wide skill gap assessment study has been commissioned in Tamil Nadu, which duly considers block-level information across each of the districts. Acknowledgement We extend our thanks to District officials of Tamil Nadu, Youth, Employers, training service providers who participated in focused group discussions and survey, for their support in conducting research and drafting this report. We thank the PricewaterhouseCoopers Pvt. Ltd. Project team consisting Mr. Johnny Edward, SOLOMON, Mr. Chandan K Singh, Dr. Anuradha Gopalakrishnan, Mr. Preshant Sekar, Ms. Bipasha Ghosh, Ms. Mrinalini, Ms. Diana Evangeline, Mr. Om Shashwat, Mr Yash Jha for conducting the research and putting this report together. Table of contents Executive Summary .......................................................................................................................................... 17 1. Introduction ................................................................................................................................................. 29 1.1. Background ............................................................................................................................. 29 1.2. Skill Gap Studies – Their Relevance ....................................................................................... 30 1.3. Skill Development in Tamil Nadu ............................................................................................. 30 1.4. Context of the Present Assignment ......................................................................................... 31 2. Socio-Economic and Demographic Context of the State ............................................................................ 35 2.1. Demography ............................................................................................................................ 35 2.2. Migration .................................................................................................................................. 36 2.3. Economy .................................................................................................................................. 37 2.4. Industrial Development in the State ......................................................................................... 41 2.5. Economic Drivers .................................................................................................................... 45 2.6. Labour Market ......................................................................................................................... 47 2.7. Status of Education ................................................................................................................. 50 2.8. Vocational Education ............................................................................................................... 52 2.9. Shortlisting Priority sectors in the State ................................................................................... 57 3. Youth Perspective ...................................................................................................................................... 63 3.1. Respondent’s Current status ................................................................................................... 64 3.2. Economic Activity of Respondents .......................................................................................... 66 3.3. NEET Category Respondents ................................................................................................. 67 3.4. Youth Aspirations .................................................................................................................... 69 3.5. Skill Training Preferences ........................................................................................................ 75 4. Other Stakeholders’ Perspective ................................................................................................................ 79 4.1. Employers’ Perspective ........................................................................................................... 79 4.2. Other Stakeholders’ Perspectives ........................................................................................... 83 5. Priority Sectors ........................................................................................................................................... 89 6. Incremental Demand for Skilled and Semi-Skilled Workers ..................................................................... 107 7. Key Recommendations............................................................................................................................. 111 Annexure ......................................................................................................................................................... 119 A.1. Methodology for Present and Future Labour Demand – Supply and Gap Estimation ...................... 119 A.2. Incremental Demand for Skilled and Semi-Skilled Workers (2026-29) ............................................. 121 9 A.3. Methodology for Block Selection for Youth Aspiration survey ........................................................... 122 A.4. List of Selected Blocks ...................................................................................................................... 124 A.5. Methodology for Population Estimation ............................................................................................. 129 A.6. List of Large Industries Surveyed ...................................................................................................... 130 A.7. List of Industrial Associations Consulted with ................................................................................... 132 A.8. Industry-wise summary of Skill Development Plan for 2019-21 ........................................................ 133 10 List of abbreviations S.No Abbreviation Expanded Form 1. ASER Annual Status of Education Report 2. ASI Annual Survey of Industries 3. BFSI Banking, Financial Services and Insurance Sector 4. BPL Below Poverty Line 5. BSNL Bharat Sanchar Nigam Limited 6. BSNL - RGMTTC BSNL-Rajiv Gandhi Memorial Technical Training Center 7. CIFT Central Institute for Footwear Technology 8. CIPET Central Institute for Plastic Engineering and Technology 9. COE Centre of Excellence 10. DDU-GKY Deen Dayal Upadhyaya Grameen Kaushalya Yojana 11. DES Directorate of Economics and Statistics 12. DIC District Industries Center 13. DISE District Information System for Education 14. GDDP Gross District Domestic Product 15. GoTN Government of Tamil Nadu 16. GSDP Gross State Domestic Product 17. GVA / GSVA Gross Value Added / Gross State Value Added 18. ITI Industrial Training Institute 19. IT-ITES Information Technology and Information Technology Enabled Services 20. LFPR Labour Force Participation Rate 21. Manuf. Manufacturing 22. NAPS National Apprenticeship Promotion Scheme 23. NEET Not in Education, Employment, or Training 24. NIC National Industrial Classification, 2008 25. NSDC National Skill Development Corporation 26. NSQF National Skills Qualification Framework 27. NULM National Urban Livelihood Mission 28. PMKVY Pradhan Mantri Kaushal Vikas Yojana 29. PSU Public Sector Undertaking 30. Pub. Admin. Public Administration 31. QP-NOS Qualification Pack – National Occupational Standards 32. SIPCOT State Industries Promotion Corporation of Tamil Nadu 33. SSC Sector Skill Council 34. TANSIDCO Tamil Nadu Small Industries Development Corporation 35. TANUVAS Tamil Nadu Veterinary and Animal Sciences University 36. TIDCO Tamil Nadu Industrial Development Corporation 37. TN-GIM Tamil Nadu Global Investors Meet 38. TNSDC Tamil Nadu Skill Development Corporation 39. Tr. & Tou. Trade and Tourism Sectors 40. WPR Worker Population Ratio 11 List of Figures Figure 1: Major Trends Affecting Indian Workforce 29 Figure 2 Population pyramid, Tamil Nadu 2011 & 2026 35 Figure 3 Reasons for migration 36 Figure 4 Top five destinations for migrants’ population of Tamil Nadu 36 Figure 5 Distribution of TANSIDCO & SIPCOT Industrial Parks 44 Figure 6: Average monthly earning, Tamil Nadu, 2015-16 49 Figure 7 Education Outcomes - Rural, ASER
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