Government turns focus on skilling for small businesses

The skill development and entrepreneurship ministry has turned its focus on enhancing employability and productivity of small, informal enterprises by incentivising skills training for micro, small and medium enterprises (MSMEs) and providing tailor-made courses to meet the demand for skilled workers from small enterprises.

The initiatives, which mark a major shift from the earlier approach of skilling candidates as per the requirement of big enterprises, form part of the strategic priorities outlined by the ministry under its Vision 2025.

"MSMEs form the backbone of India's manufacturing sector and have huge potential for employment generation. Hence, the need to impart skills training to cater to their needs," a senior official told ET on condition of anonymity.


This will serve the twin purposes of enhancing productivity of MSMEs and generating millions of job opportunities with growth in manufacturing and exports, said the official.

"Going forward, the ministry's top priority over the next three years will be to develop a skilling ecosystem which will transition India to a high-skills equilibrium and help create positive outcomes for individuals, enterprises and the economy," the official said.

As per the ministry, its three key priorities over the next three years will be to catalyse demand for formal skills, specifically from small and informal enterprises and entrepreneurs, improve linkages between education and skilling, and improve quality assurance and reduce information asymmetry while increasing employer participation.

India has about 7.5 million MSMEs which employ more than 120 million people. The sector contributes around 33% to the country's gross domestic product and about 42% to its exports.