Skills and knowledge form the bedrock of the socioeconomic growth of a country. Various studies have pointed out the skill gap prevalent among the Indian workforce, and bridging this gap can help impede productivity rates in the economy.
For instance, a recent report states that vocational training can increase wages by 4.7%. Hence, to tackle challenges arising due to this skill gap and help people increase their efficiency, the Indian government established National Skill Development Corporation (NSDC) in 2008.
Read on to learn more about the NSDC and its various functions.
The National Skill Development Corporation (NSDC) was established by the Government of India as a public-private partnership (PPP) company. This organisation was established with the sole objective of boosting skill development in India.
This organisation works in alignment with the National Skill Development Mission (NSDM) and National Skill Quality Framework (NSQF).
The National Skill Development Corporation (NSDC) was formed by the Indian government as a non-profit company. This organisation was catalysed under Section 25 of the Companies Act of 1956 on July 31, 2008.
The Ministry of Finance set it up as a PPP model company, where 49% of the company’s shares are held by the Ministry of Skill Development and Entrepreneurship (MSDE). The remaining 51% of the shares of the company are held by the private sector.
Later when GST Rules were notified in 2017, the NSDC collaborated with the Institute of Company Secretaries of India to train 1 Lakh accountants. The objective of the NSDC Skill India was to make these professionals well-versed in the GST process.
To date, the NSDC company has upskilled 5.2 million individuals, entered into 235 partnerships with the private sector, and initiated 38 sector skill councils.
The National Skill Development Corporation (NSDC) under e-skill India was formed to execute the following objectives:
One of the main objectives of NSDC was to fill the skill gap prevalent among the Indian workforce and meet international standards
Provide a support system to private sector institutions by imparting vocational training through a PPP model
Act as a ‘market-maker’ for those sectors that lack market mechanisms
Enhance those initiatives that can have a multiplier effect on the economic growth and skilling of the workforce
The National Skill Development Corporation (NSDC) works to boost upskilling of the workforce under the e-skill India initiative. For this purpose, the organisation sets up large and quality vocational training institutions.
Moreover, they also provide funding to the private sector to promote them to build scalable training initiatives. Its responsibilities also include the creation of Skill India courses and modules based on which the training is imparted.
On successfully completing NSDC courses, the organisation also provides trainees with an NSDC certificate. This certifies that the trainee has completed vocational training in any one of the particular fields.
In addition, an autonomous body named National Skill Development Agency (NSDA) has been set up under the Ministry of Skill Development and Entrepreneurship.
It anchors the National Skills Qualifications Framework (NSQF) and ensures the quality of the training initiatives.
The NSDC model is created on three pillars which include the following:
Create: Creation of large quality vocational training institutions
Fund: Provide these institutions with capital, grants, and equity for their seamless functioning
Enable: Form a support system for skilling landscape in the country
From the time of its inception in 2008, the National Skill Development Corporation has entered into several partnerships with different sectors. Here are a few details of these partnerships:
The NSDC has partnered with several private sector entities focusing on the following factors:
Providing financing options
Assessing the skilling process
Providing trainees with NSDC certificates
Channelizing corporate social responsibility (CSR)
The NSDC company has also engaged with international organisations to partner in the following areas:
Investment in training programs
International standardisation of the e-Skill India program
The National Skill Development Corporation has also partnered with Central Government ministries. It runs the NSDC courses aligned with the flagship programs of the government like Make in India, Smart City project, Namami Ganga initiative, etc.
Just like the Central Government, the NSDC also works in tandem with programs and schemes initiated by various state governments.
This organisation also works in association with educational institutions like universities and schools to impart vocational training to the youth. The NSDC company addresses the following areas when working with the educational system:
Starting specific training programs
Evolving credit framework
The NSDC Skill India program is also associated with various non-profit organisations that help in upskilling marginalised sections by working on the following:
The NSDC also provides assistance to start-ups facing the skill gap in the current business ecosystem. The organisation also offers training programs for persons with disability.
The following are some schemes included in the National Skill Development Corporation:
Pradhan Mantri Kaushal Kendra: These ‘Kendras’ are model training centres that are equipped with industry-driven Skill India courses to provide employability to trainees.
Pradhan Mantri Kaushal Vikas Yojana (PMKVY): This Pradhan Mantri Kaushal Vikas Yojana is an initiative to enable workers to pursue industry-relevant skill training to improve their livelihood.
India International Skill Centre (IISC) Network: The NSDC company has set up 14 such centres that impart training pertaining to international standards across 9 job fields.
SWADES: SWADES, or Skilled Workers Arrival Database for Employment Support, is a joint program by MSDE, the Ministry of Civil Aviation and the Ministry of External Affairs. It aims to create a data set of skills for citizens returning from abroad.
Seekho Aur Kamao: This initiative was started in 2013-14 to upgrade the skills of minority youth in modern and traditional industries.
Technical Intern Training: The Technical Intern Training Program (TITP) was initiated in 1993 in Japan. It aims to promote skilling through on-the-job training in Japan.
If a company or other organisation decides to function as a training partner, they can avail a loan from NSDC. These loans are available at a lower interest rate of 6% p.a. For this purpose, they will have to first apply for it, and the NSDC will disburse the loan after assessing the essential parameters.
The following are some achievements of the National Skill Development Corporation:
To date, the NSDC company has provided training to 5.2 million trainees.
It has partnered with 235 institutions in the private sector, with each institution having the capacity to train 50,000 people in 10 years.
The organisation has also opened 38 Sector Skill Councils (SSC) focused on agriculture, manufacturing, and services. These SSCs span 19 of the total 20 high-priority sectors and 25 sectors under the Make in India initiative.
NSDC company has also created 1386 Qualification Packs with 6,744 unique National Occupational Standards (NOS).
The NSDC has introduced skill training in 10 states, spanning over 2,400 schools and two boards.
NSDC has also partnered with 21 universities, Community Colleges under UGC/AICTE with an aim to align education and training to NSQF
It has also created a Skill Development Management System (SDMS) with the hosting infrastructure certified by ISO with the following facilities:
1400 training partners
28179 training centres
20 job portals
77 assessment agencies
4983 impanelled assessors
The NSDC (National Skill Development Corporation) is a not-for-profit company based on the public-private partnership (PPP) model.
If your organisation decides to enrol as a training partner, you can avail loans from NSDC for your working capital. These loans are available at a lower interest rate of 6% p.a.
Yes, an organisation can be a non-funding partner if it has been in existence for more than 5 years with a decent record of growth.
Entrepreneurs, training institutes, partnerships, and non-funded partnerships can become NSDC partners.
To apply for accreditation, first fill out the Centre Accreditation Application Form or CAAF with the necessary information on infrastructure, jobs, equipment, etc. In the next step, upload the supporting evidence, like photos of the machinery and equipment.
Lastly, submit the annual accreditation fee to complete the process.
To be eligible for the accreditation, a training centre needs to complete the National Skill Development Corporation registration and pay the annual accreditation fee.
To become a non-funding partner, the organisation must be in existence for more than 5 years with decent growth.
The interest rate offered by NSDC to training partners is 6% p.a.
Yes, for quality assurance, inspection agencies periodically visit and inspect the training centres.