India Employer Forum

Apprenticeship

How Apprenticeships in India Reduce Education Costs and Create Career Opportunities?

  • By: India Employer Forum
  • Date: 07 October 2024

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India’s education system stands at a pivotal juncture, poised between potential and challenge. With a staggering 26.52 crore school students, 4.33 crore individuals pursuing higher education, and 11 crore engaged in various skill development programs, the country boasts a vast pool of learners. The nation’s educational infrastructure has grown significantly, with numerous initiatives to expand access to learning across all levels. From the establishment of 3,000 Industrial Training Institutes (ITIs) to the creation of prestigious institutions like 7 Indian Institutes of Technology (IITs), 16 Indian Institutes of Information Technology (IIITs) and 390 universities, India has made monumental strides in providing educational opportunities. However, despite these expansions, a deep-seated issue looms large: the spiralling costs of education.

According to the All India Survey on Higher Education (AISHE), undergraduate courses’ average annual tuition fees have risen to approximately INR 36,000. In contrast, postgraduate courses demand an even steeper cost of around INR 46,600. Simultaneously, government funding for higher education has steadily decreased, covering only 33.2% of the total expenditure. This financial strain forces many students and families to rely heavily on personal savings or take on loans, adding to the already growing debt burden. The escalating costs limit access to quality education for economically disadvantaged students and deepen the inequality within the system. Even with substantial investments in educational infrastructure, the link between educational attainment and employment remains tenuous. Many graduates find themselves unprepared for the demands of the job market, resulting in underemployment or contributing to the larger “jobless growth” phenomenon plaguing the economy. Apprenticeships and skilling programs emerge as vital solutions, providing practical training that aligns with industry needs, helping to mitigate education costs and enhance employability. India’s challenge is not just about improving access but ensuring that education is a viable pathway to quality jobs and sustainable careers for its vast youth population.

The Role of Apprenticeships in India: Empowering Skilling and Addressing Education Costs

The apprenticeship model offers a multitude of financial benefits for individuals embarking on their career journey, including:

  1. Earning while Learning: Apprenticeships and degree apprenticeships offer a “learn while you earn” model that integrates hands-on training with academic instruction. This approach enables individuals to acquire practical skills and theoretical knowledge simultaneously while earning a wage, which significantly reduces the financial burden of education. By helping mitigate the need for student loans and living expenses, this model helps students avoid the quagmire of debt, making career development more accessible for individuals from diverse backgrounds.
  2. Faster Career Progression and Job Transitions: Apprenticeships and degree apprenticeships significantly speed up career progression by offering hands-on, industry-relevant training while earning a wage. Early exposure to practical skills and professional networks allows apprentices to advance more rapidly within their organizations and across the industry. At TeamLease, we have witnessed a remarkable 98% transition rate into full-time roles, with 40% retained by the same employer, showcasing how these programs facilitate swift job transitions and align training with industry needs, bridging the gap between education and employment.
  3. Qualification Modularity and Degree Certification: Apprenticeships integrate skill-based learning with qualification modularity and formal certification, allowing individuals to gain hands-on experience while earning recognized credentials. This approach breaks training into modular components, enabling apprentices to build expertise progressively and earn certifications that validate their skills. Many programs culminate in degree diplomas, enhancing employability and aligning with industry standards. This combination ensures that apprentices acquire both practical skills and formal qualifications, supporting their career advancement effectively.
  4. Subsidized Education: Government initiatives and industry partnerships significantly enhance the value of apprenticeships through subsidized programs. These collaborations create a win-win scenario: employers invest in developing a skilled workforce tailored to their needs, while apprentices benefit from reduced or fully funded education and training. This approach not only democratizes access to quality education but also ensures that the skills being developed align with industry demands. The broader impact of these subsidized apprenticeships strengthens the national workforce and supports economic competitiveness.

As India continues to grapple with the challenges of rising education costs and a skills deficit, the apprenticeship model offers a viable solution. By providing opportunities to earn while learning, accelerating career progression, offering modular qualifications, and leveraging government and industry subsidies, apprenticeships can help mitigate the gap between education and employment. The 2024-2025 budget’s focus on education, employment, and skilling reflects a commitment to addressing these issues. However, the success of these initiatives will depend on strategic implementation and alignment with industry needs.

Through a concerted effort, India can transform its educational framework into a robust engine of economic productivity, ensuring that its youth are equipped with the skills needed for meaningful employment.

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