In 1975, Prime Minister Indira Gandhi prioritized increasing the number of apprentices in India as part of her 20-point program. Despite the significance of learning-by-doing and learning-while-earning, this initiative failed to bring about meaningful change because no legislative reforms were made to the Apprentices Act of 1961. The Act imposed harsh penalties, including jail terms for CEOs of non-compliant companies. This created a scenario where India had to choose between imprisoning 5,000 CEOs or providing 15 million apprenticeships. The result? India achieved neither.
However, in 2024, the Lok Sabha passed amendments to the Apprentices Act aimed at making it easier for employers to participate in apprenticeship programs. These reforms could potentially increase the number of apprentices in India by a significant margin.
The Growing Importance of Apprenticeships in India
India’s apprenticeship system, however, lags far behind global standards. As of 2024, there are only about 31,000 employers offering apprenticeships in India, supporting approximately 500,000 apprentices. This pales in comparison to Germany, which has 1.3 million apprentices, Japan with 3 million, and China with 20 million. The Apprenticeship reforms currently underway aim to close this gap and bring India’s workforce development closer to international benchmarks.
A critical role of apprenticeships lies in resolving the conundrum faced by many young people expected to showcase their skills and work experience at job interviews. An attendee at a job fair named Rajesh, highlighted this common frustration by wondering aloud, “How do I gain work experience without a job?” Apprenticeships offer the potential to answer this question which mires the job prospects of many a youth.
Key Challenges in India’s Apprenticeship System
Despite recent progress, India’s apprenticeship regime still faces several challenges:
- Non-engineering graduates, who make up 80% of the graduate pool, are not adequately covered by apprenticeship programs under either the Ministry of Labour or the Ministry of Education.
- The regulatory framework remains fragmented across central and state governments, leading to bureaucratic hurdles for employers.
- There is limited awareness about apprenticeship opportunities and trust in the system, leading to low participation rates among businesses.
The amendments passed in the Lok Sabha in 2024 aim to resolve many of these issues. They simplify processes for employers by removing rigid requirements around duration, location, and trade. This will make apprenticeships more attractive to employers and increase opportunities for young people seeking work experience.
The Role of Vocational Universities and Apprenticeships
The new amendments are crucial to the development of vocational universities in India. These universities differ from traditional institutions in several ways:
- They focus solely on meeting the needs of employers.
- They offer flexible learning pathways, including short-term certificates, diplomas, associate degrees, and full degrees.
- They provide three types of classrooms: online learning, physical learning, and on-the-job training.
To meet India’s goal of a 50% Gross Enrollment Ratio (GER) by 2035, there must be stronger links between apprenticeships and higher education. Each year, about 15 million students fail their Class 10 and Class 12 exams, leaving them with limited options for further education. Integrating apprenticeships with vocational universities could provide these students with a viable pathway to both education and employment.
Skilling India’s Youth for the Future
India’s youth face the challenge of entering a workforce that grows by 1 million new entrants each month. While there has been significant growth in educational capacity, the employability of graduates remains inconsistent. The lack of financing options for skill development further exacerbates the problem:
- Employers are hesitant to pay for training but are willing to hire trained candidates.
- Candidates are unwilling to pay for training without guaranteed jobs.
- Financial institutions are reluctant to offer loans for vocational training.
To address these issues, the government must focus on self-sustaining reforms like apprenticeships. Apprenticeships provide a direct link to employability, making them a powerful tool in tackling India’s growing workforce demands. A U.S. academic study found that 50% of the jobs advertised in the 1960s, 1970s, and 1980s did not exist in the previous decade, and this unpredictability will likely hold true for India as well.
The Path Forward for Apprenticeships in India
India is moving beyond a decade of state-led poverty reduction strategies. However, it is skills and jobs—not subsidies—that will ultimately eradicate poverty in a sustainable manner. The Rajya Sabha now faces a critical decision: to either support the reforms that will benefit India’s youth or to obstruct them for political reasons. The choice will have lasting consequences for the future of India’s workforce and the country’s ability to harness its demographic dividend.
You might also be interested to read: Apprenticeships As Classrooms: Reforming India’s Skilling System
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