Possible FUTURES for the Indian APPRENTICESHIP System Options Paper for INDIA Copyright © 2013 International Labour Organization, International Bank for Reconstruction and Development/The World Bank First published 2013 Publications of the International Labour Office enjoy copyright under Protocol 2 of the Universal Copyright Convention. Nevertheless, short excerpts from them may be reproduced without authorization, on condition that the source is indicated. For rights of reproduction or translation, application should be made to ILO Publishing (Rights and Licensing), International Labour Office, CH-1211 Geneva 22, Switzerland, or by email: [email protected]. The ILO and The World Bank welcome such applications. Libraries, institutions and other users registered with reproduction rights organizations may make copies in accordance with the licences issued to them for this purpose. Visit www.ifrro.org to find the reproduction rights organization in your country. 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Catalogues or lists of new publications are available free of charge from the above address, or by email: [email protected] ILO Cataloguing in Publication Data Possible futures for the Indian apprenticeship system: options paper for India/International Labour Office, ILO DWT for South Asia and ILO Country Office for India; The World Bank - New Delhi: ILO, 2013. ISBN: 9789221279198 (print) ISBN: 9789221279204 (web pdf) International Labour Office; ILO DWT for South Asia and ILO Country Office for India; World Bank apprenticeship/training system/vocational training/India Visit our website: www.ilo.org/publns Printed in New Delhi Contents Acknowledgements iv Foreword v Introduction 1 Background 2 The Indian Apprenticeship System 4 Potential Application of Identified Features of a Model Apprenticeship System to the Indian Context 21 Possible Options for India 26 Two Issues: Expansion of the System, and Informal Apprenticeships 33 References 36 Appendix 1: Analysis of selected Documents on the Indian Apprenticeship System 38 iii Contents | Acknowledgements his publication is the result of a collaborative effort between ILO and the World TBank. Under the technical leadership and guidance of Paul Comyn, Senior Vocational Training and Skill Development Specialist and Anjana Chelani, Senior Program Officer from the ILO, and Nalin Jena, Senior Education Specialist from the World Bank, this report has been prepared by Erica Smith, University of Ballarat and Ros Brennan Kemmis, Charles Sturt University, Australia. Mr. Sharda Prasad, the former Director General and Additional Secretary, Ministry of Labor and Employment, Government of India has not only provided support and patronage to this analytical work, but also technical guidance examining its relevance to the Indian context. Mr. Saravanavaba, Deputy Director General and is in-charge of apprenticeship scheme, Ministry of Labor and Employment, reviewed the option paper and provided diligent comments. The draft option paper was shared in a national workshop coordinated by ILO and the World Bank and attended by the representatives of the Government of India, state governments, industries, industry associations, professional bodies, trade unions, national level academic institutions, public and private training providers, and national and international experts. This report incorporates the comments and recommendations emerging out of the workshop. Last, but not the least, the World Bank would like to thank DfID for providing its resources through a Trust Fund. i i | Possib le Futures fo r the Indian Appre nticeship System: Options Paper for India Foreword eform of the Indian skills development system is proceeding at a rapid pace, Rwith significant change planned and underway in many key areas to make the supply of skills more responsive to the growing demands of the Indian economy. In this environment, the potential of formal workplace training programs is currently being explored to progress key elements of the National Skills Development Policy (2009). In particular, apprenticeships have been recognized as an effective way for young people to make the transition from school to work whilst at the same time improving links between industry and training institutions. The Indian apprenticeship system is well established and supported by legislative and administrative arrangements that span several decades. However, by international standards, it is considered to be under-utilised, with inadequate incentives for employers, and insufficient structure and resources to support quality vocational outcomes. In this context, the ILO and World Bank have jointly conducted a study to review international good practice in apprenticeships and workplace learning, and recommend options for future development of the Indian apprenticeship system. This work involved two distinct stages: the first saw an international review of eleven national apprenticeship systems, including India, and development of a model apprenticeship framework. The second stage developed an options paper for future reform of the Indian system which took into account of the model framework in the particular context of India. This report presents the Indian case study and the options paper for reform in a single reference, a report which has already provided timely inputs to the on-going reform of apprenticeships in India. We commend this report to you as an example of high quality technical inputs on skills policy and evidence of effective collaboration between our two organisations. Ms. Tine Staermose Mr. Onno Rϋhl Director Director ILO Decent Work Team for South Asia and World Bank India Country Office Country Office for India i Foreword | Introduction he purpose of this report is to use ideas gained from ten other national Tapprenticeship systems to put forward options for the Indian system. These countries are Turkey, Indonesia, Egypt, South Africa, Australia, Canada, USA, England, Germany and France. The report of the international phase of the research project is separately available1. The latter includes individual country case studies containing detailed information about the systems in these other countries (in addition to an Indian case study) presented in a common structure, a cross-case analysis, and a proposed framework for a model apprenticeship system. The options for India were presented at a Technical Consultation in New Delhi in September 2012 and the outcomes of that consultation are included in this report. The consultation indicated that there was widespread support for quite radical changes in the system. While this report attempts to evaluate the applicability of the proposed options, it is acknowledged that the suitability of the options is best determined by those with detailed experience and knowledge of the Indian system. Moreover, it needs to be stated that a complete new framework for the system has not been proposed. Experience in other countries has shown clearly that systems cannot be transplanted from one national culture to another; however, individual features of national systems can be introduced or adapted with considerable utility at particular points in time. 1 Smith E., Brennan Kemmis R., et al (2013). Towards a model apprenticeship framework: A comparative analysis of national apprenticeship systems. Geneva: ILO. | 1 Introduction Background pprenticeship can play a large part in the task of up-skilling India’s workforce, Aoffering the opportunity to share costs among different parties (employers, individuals and the government) and to involve governments, employers and workers in partnerships. The expansion of apprenticeships needs to work alongside other VET developments such as the Sector Skills Councils and the National Vocational Qualification system. In any expansion of the system, quality must be a pre-eminent consideration. For apprentices, an apprenticeship provides a chance to earn an income while learning, and to combine theoretical and practical training. Satisfying the aspirations of apprentices must be a central part of any reforms. For employers, apprenticeship provides a structured form of training that should provide confidence in the quality of people who have completed apprenticeships. The focus of this report is on the Trade Apprentice system. However, there is potential for some of the options to be translated for Graduate, Technician and Technician (Vocational) apprentices. The report concentrates on formal apprenticeships, with discussion of informal apprenticeships at the end of the paper. Moving from the 20th to the 21st century India has a well-established and regulated apprenticeship system. However, as is the case in many other countries, the modern-day