Thriving Kandum Business

In Raguvir Nagar of West Delhi, Kailash runs a unit of stitching and along with his family he manages to earn the considerable sum. His entrepreneurial endeavor enables a comfortable life. They buy used-clothing from the households that are useless for those people. After loosening stitches, they re-stitch them into various sizes before sell to the traders at nearby Purana Kapada Market.
Mohan (45 year old) a school dropout from Uttar Pradesh who came in Delhi about 20 years ago with having seventy rupees in pocket now he possessed a piece of land which priced at 75 lakh. Since then, Mohan is a regular peripatetic trader at Mandi and business of this used clothing gave him everything. Mohan narrated his success story to me. He added that he prefers embroidered garments and jeans. And prices of these embroidered cloths are much higher.
It is not an isolated story of entrepreneurial spirit at back of rubbles but this locality is a cradle of such numerous entrepreneurs. They are blooming on a principle – the fine stitch and the more money and further that is improving overall employment scenario. Same locality is also important for another reason. The government is running a cash transfer initiative instead of food grains through public distribution system but growing entrepreneurial spirit enabling them as self-dependent. They are aware of such initiatives.
When I ventured into nearby Purana Kapda Vikray Market ( one of the largest market place for used-clothing) there were forty to fifty thousand people, roughly. They vied for lying cloths like trousers, sarees etc. Some of workers were sorting cloths very fast. This market opens at 2 am daily and closes at around 1 pm after floor mopping and cleaning.
There are two types of workforce involved in this market one is self-employed and second one is wage employed. Under the self-employed category, whole families work together and toil for more than eight hours a day. On the other hand, there is another group of people who shorts cloths at piece rates. All most all market participants belong to Gujarat.
If you are regular for some times but you have not enough money to pursue your business then you can borrow easily form informal sector here known as Kishtiya. However, this business does not require a lot of money. Traders come here from Alwar, Gurgaon, Rohtak and all nook and corner of Delhi.
However there are no exact figures or data on involving work forces. Traders pay 3 rupees per gathar and if you are buyer of cloths then you will pay five rupees per gather.
These are not survival activities. It provides employment, goods and services for low-income groups. Anonymously these “ultimate entrepreneurs” are contributors to the economy as whole but they are invisible to the glitzy but it does not dampen their enthusiasm.

Picture by Shailesh Nigam

SRI: An Innovative Agricultural Practice

Indian agriculture largely depends on monsoon rain and farmers face challenges of erratic weather but majority of them follows tradition ways of agricultural practices. In this backdrop, an agro-ecological methodology is gaining ground in various pockets which is popularly known as SRI. System of Rice Intensification is a set of innovative agricultural practices and many farmers from states like Bihar and Chhattisgarh are adopting it. But its contribution is inadequately documented.
In this backdrop, Solution Innovation Review interviewedProfessor Norman Uphoff, Cornell Institute of Public Affairs, Cornell University, USA – who worked extensively on this innovative agricultural practice. Professor Uphoff shade light on this agro-ecological methodology. Edited Excerpts:

Now, several experts are advising about change in cropping. What your view on it?
The whole world is likely to face greater challenges of more erratic weather and climate stress. There will need to be some changes in cropping, but more important, changes in practices — how crops are managed.

And how rice intensification can work in such scenario?
The methods of the System of Rice Intensification (SRI) enable plants to become more resistant and resilient to climate stresses — especially drought and water stress, but also the damages from storms (lodging of plants due to wind and rain), and also flooding, and extreme temperatures. This is because with SRI methods, the plants grow larger, healthier root systems that can take up more nutrients and anchor plants better.
There is also good evidence that the healthier plants grown with SRI methods are more resistant to pests and diseases, which are made a more serious threat by climate changes.

What are challenges ahead, you see?
Mostly making changes in mindset. SRI shows that reductions, rather than increases, in inputs like seed, water and fertilizer can give more production. The green revolution had many successes, but these are diminishing now. We need to be benefiting from genetic potentials for greater productivity and plant protection that can be evoked with SRI methods that promote greater root growth and also greater abundance and diversity of beneficial soil organisms that help nourish plants and protect them from predators and pathogens. There are strong interests still favoring input-dependent improvement. Inputs can be beneficial, but better when part of a larger management strategy to support the life in the soil and to promote symbiotic relationships between plants and their biotic environment.

In countries like India, we witness emergence of grass-root innovations. Such innovators express their concern over lack of funding in developing countries. What’s your take?
Innovations almost by definition do not have the same support base that established practices have. India is fortunate to have a very vibrant NGO sector (civil society), but there are some very good partners in universities, government agencies and the private sector. Such like-minded persons need to work together to mobilize resources within their respective organizations, and by working closely with farming communities to mobilize self-help resources there. If there are successful efforts being made to reduce hunger and poverty, it should be possible to attract some external support. But that support will not come as a precondition for effective local efforts. And those efforts should be prepared to make as much progress as possible with their own resources. A big part of development is overcoming the psychology of dependence that pervades colonial and post-colonial situations. Too many people are still waiting for others to come to their rescue or provide their salvation. If such resources can be attracted and mobilized, fine, if there is a self-standing and self-directed base to work from.

Picture Credit:

A Lived Experience

In The Waste Land, TS Eliot wrote, “April is the cruellest month”. Agrarian economy in India is witnessing such situation in this month. Because of un-seasonal rains and step motherly treatment from political leadership through policy responses.
April rains turn farmers’ bane in Eastern Uttar Pradesh and the rest of India. I witnessed sheer loss of crops at various stages from field to granary and transportation.
In this backdrop, Hindi papers are replete with news of suicides and sudden deaths of farmers.
All farmers are desperate to harvest and sell their crops to Banias. But all efforts are just efforts. Harvesters, threshers and manpower all are useless in front of sudden rains. It has affected all size of farmers- Big, small and marginal. Banias are like vultures here. They are trying to fetch profitable grains especially pulses and oil seeds. Not much interested in wheat! Where is the state-run procurement initiative no one knows. Supply chain and storage in disasterious. It nose dived and state machinery is completely failed.
What is working here is prediction of MET Department. They are predicting accurately and scores of farmers are subscribed their SMS alerts. They are receiving information related to uneven rains and spreading news of arrival. It has escalated demand for plastic sheets. Farmers are using it to protect the crops from sudden rains.
In recent past, I read about insurance initiatives in agriculture sector but none of farmers in Eastern UP have such financial instruments to cope with agricultural loss. Despite a fact that they know that rain is approaching but they are unable to save their crops from fuc**** rains.
Political leadership is busy in slug fest and forming a coalition. And another section is crafting policies on how to grab land efficiently from farmers! On the other hand… We are fade off with lofty promises of PM.
In order to make India a manufacturing hub in capital intensive sector, our PM is busy in shaping and cementing relationships with various nations. I have doubt about such steps because these manufacturing approaches are not going to work here. Already, some Asian players including China garnered this opportunity. You missed this opportunity and don’t involve in a ‘rat race’. Agrarian society urgently need response from the governments and the political leadership! Because this agricultural loss is very wide and deep.

Rise & Fall of Unincorporated Entities

In India, there are 5.77 crore unincorporated non-agriculture enterprises (excluding construction) which employ 10.798 crore workers across the country.(1)
Such unincorporated entities goes through various stages. In this entire process, they adopt several approaches but these are unexplored terrain in India. Street vending and its transformation into an enterprise in rural India is truly inclusive in nature. But researchers and media are not concern about their approaches.
This blog’s basic purpose is to provoke and offer a nuanced explanation of what is happening in the unincorporated sector. In following lines, I am narrating two stories. I will take help from Hernando De Soto which is based on his book – The Other Path in an attempt to give theoretical perspective on street vending.

De Soto writes in his book: “The people who start out street vendors do not do so with the idea of remaining on the street forever, but with the intention of moving at some point to markets away from the public thoroughfare in order to conduct their activities under better conditions. All the traders now working in markets worked on the street at one time or another.”
Recently, I went to my village and I saw Lallan has opened his shop in the town which is close to near T Point. In other words, it’s an interaction zone and people from various region come here and gather or shop. Lallan was a street vendor when I was a small child and he regularly visited the nearby street of my home. At his cycle, he carry a range products from utensil, plastic toys to sweets and pea nuts. We generally bought delicious stuffs from him. His approach was largely based on barter system. One can bought something in exchange of small iron rod or rice. Since form beginning, he worked very hard and devoted several decades in this journey without any regret or disappointment.
Lalan’s story from street vending to his march towards starting a small business in rural India is an apparent trend in India. It’s story of many entrepreneurs. Having nothing to lose, such street vendors start their journey from scratch. Their aspirations is to build own enterprise and own market in rural hinterland is not adequately chronicled and recognized. But no one can’t ignore them.
Street vending and unincorporated entities face several challenges in country like India. One big challenge is attitude of the Government especially the Urban Bodies towards these establishments. To these micro entrepreneurs, such challenges are very severe in many ways. I following lines, I am trying to narrative a story of micro entrepreneur who hails from Allahabad.
Few months ago, I visited Entrepreneurship Development Institute of India, EDII, Ahmadabad in Gujarat. EDII Campus is located at the outskirts of the city. After two days, I decided to visit city. After crossing Indira Bridge, I find a shop which was close to EDII Campus. I entered into shop and I asked to Bhaiya (Brother) to save and set my hair. After initial conversation with him, I realized that he not ‘LOCAL’ and he either belong to Uttar Pradesh or Bihar. And I asked him about his native place. He responded to me, ‘I am from Allahabad.” (Allahabad is holy city for Hindus and after 12 years of interval this city hosts a religious Prayag Mela which is very popluar in the world for its management and Millions of devotees come here during Mela from India and rest of the World.)
My guess was right and Allahabad was not new for me. Conversation started and he asked me about my work and what I am doing here? I responded on his queries. When I asked him, Bhaiya why you are here? Is any better prospect or else here? After few seconds, he narrated his story which is very pathetic and I can say that it is not isolated case.
He narrated:
My shop was located in Allahabad, which was near to Prayag Mela. There were scores of shops on both sides of roads. People were earning and saving from these establishments. And fulfilling their everyday needs. In a beautification drive, the State Administration and the Urban Body demolished these shops and evicted their owners from quickly. No mercy. No compensation, nothing. In short time span, these micro entrepreneurs lost everything. Their dreams shattered by their own Government. When Bhaiya narrated his story his eyes were full of tears. He loves Allahabad but he can’t start anything from his beloved place when he born and brought up.
He was very humble and during 10 days of stay I visited him fours times. He never forget to bring TEA for me from nearby shop. Even after my resistance, he brought tea…We finished tea…
His shop is set to run in Gujarat but there is a loneliness of leaving his birthplace, one can easily observe.
Above narrated stories show that how micro entrepreneurs are running their shops or venture after several decades of hard work and toil. But they are unable to resist legally when eviction drive starts. They cannot challenge it in the Court because they are not registered and they don’t have rights where they running their shops. More important thing is lack of political bargaining power. At the considerable extent, they are heterogeneous groups. They don’t have organised associations which can put their demand in an organised manner.

Reference:
http://mospi.nic.in/Mospi_New/upload/Revised_ReportNo546.pdf

Bottom-up Problems

After four years of stint in news media, I started to work with a New Delhi-based NGO in area of Water, Sanitation and Hygiene (WASH). It runs various projects of international NGOs. They asked me to document their initiatives in various schools and Anganwadi Centres(AC). Before delving into detail there is a need to shade light on Anganwadi Centres. The Indian Government started these centres for children under Integrated Child Development Scheme where the government provides free lunch to children(0-06).
Without prior experience in documentation, I ventured into the sector of ‘not-for-profit’. Though I have masters in rural development and I was aware about key policy issues.
In partnership with donors, they installed hand washing platforms, cemented floor and white washing in Anganwadi Centres in Delhi, India. In order to understand actual situation, I went there on the first day of my job. These enclaves are known as Camps in Delhi where street are narrow. Clogged drains are very common and they pose several challenges related to health. But it is a buzzing pulsating place where migrants from various states are cohabiting irrespective their identities. There are many Aganwaadi Centres where children and toddlers were queued for the Mid-Day Meal. Everyday children from nearby areas gather here and play with their friends. It has emerged as a centre for activity where children come with their mothers for food and play there. Their mothers talk and interact with other women. I witnessed that they were involved in some activities. Keeping this in mind, NGOs installed hand washing platforms. They demonstrated and discussed benefit of hand washing which is a step towards achieving goal of personal hygiene in the underserved communities.

A Sustainable Solution!
In development sector, designers design various tools to tackle more complex problems and mainly they ephasise on functionality of products. It’s a new way to provide low-cost healthcare (and sanitation) throughout the world. But many times such low cost products undermine basic things. With help from International Donors, NGO started this initiative and local politician was invited. In a first glance, I found that there was no hinge in the gallon which was being used for storage of water. They just holed in 20 litre Gallon and adjust into a iron frame. I was surprised to see that how top NGO and MNC allowed to install it. I’m sure that they never opened it. I informed Head of NGO that there is a need to add one hinge in the box of washing platform. Otherwise it’s useless. On the other hand, I suggested making one soap case in hand washing platform where one can put soap after hand wash. In order to make project effective, there is a need to ensure day-to-day involvement and observation. And it’s not ‘rocket science’; one can easily observe innovative solutions. They can adopt simple way to documentation just following simple principle – Wrote what you see or observe during visit. I realised that many NGOs which are running with help from outside funding are not unable choose appropriate tools for their projects. They are just parasites. During this assignment, I realised that donors are not involved actively in many projects. Their visits are just ‘poortainment’. There is no monitoring. There is sheer lack of expertise and finance. It’s not an isolated case; they are just trying to make for profit. With help of technological advancement, people are coming up with affordable products which make facilities better and easily accessible for the underserved communities. There is a need to focus on such sustainable solutions.

Skills First

Recently, Indian Prime Minister (PM) said that nation needs to think big and focus on skill, scale and speed to get India back on track. It’s not first time PM expressed his concern, but he underscored importance of skill development from various platforms. Keeping importance of skill development in mind, the new government has created a separate ministry for skill development and entrepreneurship. This is an indication that the Union Government is very serious about skill development.
In this backdrop, I am trying to unfold various skill development initiatives in India. They are part of various ministries and organisations ranging from private to public sector.
In the early nineties, the Union Government started economic reform. After this bold policy decision, some sectors witnessed an impressive growth in couple of years. Such growth further created a demand for skilled workforce and industries expressed their concern over unskilled lebour force. Various studies and researches find that there is acute shortage of skilled labour in various sectors and industries are facing the brunt of such shortage. Such situation forced the government to start some serious initiative to lag the gap. Skill development has emerged as force for inclusive development. In last couple of years, India underscored importance of skill development and various players are have involved in skill development initiatives. These are:

(1) Skill Development by the Government
(2) Corporate led Skill Development
(3) Skill Development by International Players
(4) Initiatives by Not-for-Profit
(5) Initiatives by Social Enterprises or Small Ventures

Before delving into detail, I will shed light on existing skill development policy in India. First of all I will discuss national policy on skill development, followed a leading body at the union level and its role in skilling the unskilled in India. Then, I will shade light on involvement of various ministries.

National Policy on Skill Development
In 2009, the Union Government approved the National Policy on Skill Development. It was proposed by the Ministry of Labour and Employment. In order to ensure inclusive development, this policy underscored the importance of increasing productivity. It unlined the importance of organsied and unorgansied work force.
The salient features of the Policy (1):
(a) Demand driven system guided by labour market signals thereby reducing skills mismatch.
(b) Expansion of outreach using established as well as innovative approaches.
(c) National Vocational Qualifications Framework which will inter alia include opportunities for horizontal and vertical mobility between general and technical education, recognition and certification of competencies irrespective of mode of learning.
(d) System to deliver ‘competencies’ in line with nationally and internationally recognized standards.
e) Focus on new emerging occupations.
(f) Focus on pre-employment training and Lifelong learning
(g) Equity consideration – adequate participation of women, disabled persons and disadvantaged groups including economically backward & minorities – enhancing their access to training; improving employability and increasing employment opportunities.
(h) Stress on research, planning and monitoring
(i) Involvement of social partners – responsibility for management and financing of the system would be shared with all stakeholders and provide greater space for Public Private Partnership.
(j) Promoting excellence.
(k) Use of modern training technologies including distance learning, e-learning, web based learning, etc.
(l) Skill upgradation of trainers, their quality assurance, and improvement of status.

Union Ministries/ Organisations
National Skill Development Corporation(NSDC)
Labour & Employment
HRD Ministry (HRD Higher Education & HRD Vocational Education)
Road Transport and Highways
Women and Child Development
Micro Small and Medium Enterprises
Rural Development
Agriculture
Textile
Heavy Industry
Urban Development
Construction Industry Development Council (under Planning Commission )
Urban Development
Finance-Insurance/Banking
Information Technology
Consumer Affairs
Social Justice & Empowerment
Overseas Indian Affairs
Chemicals & Fertilizers

National Skill Development Council (NSDC)
In October, 2009, National Skill Development Council was launched by the then Union Finance Minister Pranab Mukherjee. It is incorporated as a not-for-profit organization under Section 25 of the Companies Act, 1956 by the Ministry of Finance. In the NSDC, shareholdings of private and government are 51:49. In other words one can say that it is a PPP enterprise and emerged as an apex body for skilling and up skilling unskilled workforce in India.
Speaking on the formal launch, Pranab Mukherjee the then Finance Minister said, “The vision outlined by the Prime Minister’s Council calls for serious up-scaling of the skill development targets. Hence, as against 40 million people currently, who have received any kind of formal or non-formal training, the vision envisages creation of a pool of 500 million skilled people by 2022. This translates into a rapid escalation of the training and skill development capacity, and, a quantum leap in the number of trades, wherein training is currently being imparted through existing institutes. The vision also emphasis, a high degree of inclusivity, which shall effectively deal with the current, divides prevailing in our society, such as gender, rural and urban, organized and un-organized employment, and, traditional and contemporary work places. In order to achieve the mission outlined in the vision, it has become imperative for Government to engage with the private sector, through long term partnerships to achieve synergy in delivery and implementation. The NSDC, therefore, is the important component of the overall roadmap for radically transforming India’s skill landscape.”
With NSDC, seventeen union ministries and departments are associated. But it comes under the Union finance Ministry. It provides funding to entrepreneurs through equity, loan and grants.

Ministry of Human Resource Development
Several decades ago, the Union HRD Ministry started Polytechnics for skill development keeping needs of burgeoning economy. It offer three year generalized diploma courses in subjects such as civil, electrical and mechanical engineering. The courses are now diversified to include electronics, computer science, medical lab technology, agriculture and hospital engineering. There are 1292 polytechnics under the aegis of the Ministry of Human Resource Development. Since its inception, polytechnic centres trend score of people.

Ministry of Micro Small & Medium Enterprises
The MSME Ministry conducts a number of vocational and entrepreneurship development programmes throughout the country. They focus on entrepreneurial skills development. Such programmes are associated with various sectors like food processing, solar power, electronics such programmes help the budding entrepreneurs to start their own ventures.

International Collaborations in Skill Development
In order to skill unskilled, the Government is fostering several international collaborations with industrialized countries and leading international bodies.
The UK India Skills Forum (UKISF) established in April 2002 is an initiative led by the UK India Joint Economic and Trade Committee (JETCO). It provides a platform for organizations across the technical and vocational education sectors in UK and India, to tap the business opportunities in the sector by exchanging ideas for delivery of skills training by collaborations between the two countries.(3)

India EU Skills Development Project aims to increase the capacity of policy makers and key counterparts, develop a National Vocational Qualification Framework, and enhance labour market analysis processes. The overall objective of this exercise will be to improve the quality and relevance of training provision and the number of certified skilled labourers in various sectors of employment. The aim of this project on skill development in India is to contribute to achieving rapid and inclusive growth. (4)

Skill Councils in Various Sectors
Aerospace & Aviation Sector Skill Council
Agriculture Sector Skill Council of India
Apparel Made-ups and Home Furnishings Sector Skill Council
Automotive Skills Development Council
Beauty and Wellness Sector Skill Council
BFSI Sector Skill Council of India
Capital Goods Skills Council
Construction Sector Skill Council
Electronics Sector Skill Council
Food Processing Sector Skill Council of India
Gems & Jewellery Sector Skill Council
Healthcare Sector Skill Council
IT-ITeS Sector Skill Council
Indian Plumbing Skills Council
Iron & Steel Sector Skill Council
Leather Sector Skill Council
Life Sciences Sector Skill Council
Logistics Sector Skills Council
Media & Entertainment Skills Council
Mining Sector Skill Council
Power Sector Skill Council
Retailer’s Associations Skill Council of India
Rubber Skill Development Council
Security Knowledge and Skill Development Council
Telecom Sector Skill Council of India
Textile Sector Skill Council
Tourism & Hospitality SSC

References:
(1): http://pib.nic.in/newsite/erelease.aspx?relid=47842
(2) NSDC
(3) http://www.ficci.com/sector/74/Project_docs/SectorProfile.pdf
(4) http://india-euskills.com/

Skill Development: A Tool to Fight Extremism

Left Wing Extremism poses challenges in various pockets of India. In these geographical enclaves, there is a sheer lack of skills among youths and they are forced to remain unemployed. In such scenario, they are very prone to the extremism.
In this backdrop, appropriate policies for skilling youths are realized. And now it occupies a dominant position in the policy making circle. The Union Government rolled out several initiatives.
Recently, the Minister of State (Independent Charge) for Labour and Employment, Bandaru Dattatreya said that Governmen formulated following schemes for establishment of Industrial Training Institutes (ITIs) in 17 States and Skill Development Centres (SDCs) in 9 States:
(i) Skill Development in 34 Districts Affected by Left Wing Extremism
(ii) Enhancing Skill Development Infrastructure in NE States & Sikkim.

Skill Development in 34 Districts Affected by Left Wing Extremism
Cost of the scheme: Rs. 241.65 Crore
Duration of the scheme: From March, 2011 to 31st March, 2016.

Components:
(i) Skill training programmes for:
• 1000 youth in Long Term Training (30 per district)
• 4000 youth in Short Term Training (120 per district)
• Train 340 youth in Instructor Training (10 per district)

(ii) Infrastructure will be created for:
• 34 Industrial Training Institutes (ITIs) (one ITI per district). Cost of one ITI is Rs. 532.60 lakh.
• 68 Skill Development Centres (SDCs) ( two SDCs per district). Cost of one SDC is Rs. 50.00 lakh.

Skill Development for 34 Affected Districts by Left Wing Extremism
States Covered
1. Andhra Pradesh: Pradesh Khamam
2. Bihar: Jamui, Gaya, Aurangabad, Rohtas, Jehanabad, Arwal
3. Chhattisgarh: Dantewada, Bastar, Kanker, Surguja, Rajnandgaon, Bijapur, Narayanpur
4. Jharkhand: Chatra, West Singhbhum, Palamau, Garhwa, East Singhbhum, Bokaro, Lohardaga, Gumla, Latehar, Hazaribagh
5. Madhya Pradesh: Balaghat
6. Maharashtra: Gadchiroli K, Gondia
7 Orissa: Gajapati, Malkangiri, Rayagada, Deogarh, Sambalpur
8. Uttar Pradesh: Sonebhadra
9. West Bengal: Paschim Midnapur (Lalgarh Area)

Enhancing Skill Development Infrastructure in NE States and Sikkim
Cost of the scheme: Rs 149.80 crore.
Duration of the scheme: From February, 2011 to 31st March, 2017.
The scheme has provision for Central assistance to States in following three components:
• Upgradation of 20 ITIs by introducing three new trades per ITI;
• Supplementing infrastructure deficiencies in 28 ITIs by constructing new hostel, boundary wall and supplementing old and obsolete tools and equipment; and
• Establishment of 14 New ITIs in 7 States.

Name of the States
Arunachal pradesh
Assam
Manipur
Meghalaya
Mizoram
Nagaland
Sikkim
Tripura

Similar initiative has started by Indian Government in Jammu & Kashmir which is known as Udaan.

Note: This Post is largely based on a written reply in Parliament by the Minister of State (IC) for Labour and Employment, Bandaru Dattatreya.

Skilling the Unskilled

National Policy on Skill Development
In 2009, the Union Government approved the National Policy on Skill Development. It was proposed by the Ministry of Labour and Employment. In order to ensure inclusive development, this policy underscored the importance of increasing productivity. It unlined the importance of organsied and unorgansied work force.
The salient features of the Policy (1):
(a) Demand driven system guided by labour market signals thereby reducing skills mismatch.
(b) Expansion of outreach using established as well as innovative approaches.
(c) National Vocational Qualifications Framework which will inter alia include opportunities for horizontal and vertical mobility between general and technical education, recognition and certification of competencies irrespective of mode of learning.
(d) System to deliver ‘competencies’ in line with nationally and internationally recognized standards.
e) Focus on new emerging occupations.
(f) Focus on pre-employment training and Lifelong learning
(g) Equity consideration – adequate participation of women, disabled persons and disadvantaged groups including economically backward & minorities – enhancing their access to training; improving employability and increasing employment opportunities.
(h) Stress on research, planning and monitoring
(i) Involvement of social partners – responsibility for management and financing of the system would be shared with all stakeholders and provide greater space for Public Private Partnership.
(j) Promoting excellence.
(k) Use of modern training technologies including distance learning, e-learning, web based learning, etc.
(l) Skill upgradation of trainers, their quality assurance, and improvement of status.

Skill Development: List of Small Ventures (2)
Access Livelihoods
AISECT
Amass Skill Ventures Private Limited
Ants Consulting
Anudip Foundation
Anuna
Apollo Med Skills
Aptech
ARUNIM
Aspiring Minds Assessment Pvt. Ltd.
Avon Facility Management
AVR Edge
AVTEG Pvt Ltd
B – ABLE
Best First Step Education Pvt. Ltd
Calance Software
CAP Workforce Development
Caravan Craft Retail
CENTUM
Cinema Vision
CREDAI
Datapro Computers
Delphi Skill Development Corporation Pvt Ltd (DSDC)
Dialogue in the Dark
Domestic Workforce Services Pvt. Ltd.
Don Bosco Tech Society
Drishtee
Edubridge
Edulight Careers
Emerge Learning Services Pvt Ltd
EMPOWER
Employability Skills Training to rural youth in India
ePalm Leaf
ESMS Esource Consulting
Extramarks Education
F-Tec Skilling India
FUTURE
Future India: The Creative Skills & Innovation Reality Show
Global Talent Track
GLOBSYN
GOLS
GRAM TARANG
GRAS
IAHV
ICA Infotech Private Limited
ICA
ICSS (Pragmatic)
IIGJ
IIJT
IISD
IL&FS Education
IMS Proschool Pvt Ltd
Indus Edutrain Private Limited
Mahindra Special Services Group (MSSG)
Apollo Technical Education Foundation
I-SKILL
Istar
Indus Edutrain Private Limited
Industree Crafts Foundation
Institute of Advanced Security Training & Management
Involute
JBS Academy
Jetking
JobSkills
Kalyani Skills
KarmYog Education Network Pvt. Limited (KEN)
Keertika
Kherwadi Social Welfare Association
LabourNet
Laqsh Job Skills Academy
Laurus Edutech
LIQVID
L S Talent
Mahindra Namaste
Manipal-City & Guilds Skills Training Pvt Ltd (MCG)
Mann Deshi Udyogini (B-school for Rural Women)
Medha Learning
Microspin Machine Works
NIIT
NSHM Skills
Orion Edutech
PANIIT Alumni Reach for India
Pipal Tree
Prakhar Skill Development Academy (Prakhar/SBU)
PRATHAM
Premier Centre For Competency Training Pvt Ltd
Prolific System & Technologies Pvt Ltd
Providers Business Academy
Quivan
Reliance AIMS
Rooman Technologies
Rural Shore
Safeducate
Sahaj eVillage Limited
Saksham
SaltLake Institute of Engineering and Management Limited (‘SLIEM’)
SB Global Educational Resources
Skill Sonics
SkillSource
Skill Tree Consulting
Skill Ventures
Smart Edusol
Stratadigm Education & Training Pvt. Ltd.
Surgeforth Technologies Pvt. Ltd.
Sutra Tri-tech Software Pvt. Ltd.
Suvarna Bharat
SynchroServe Global Solutions Private Ltd
TALENTSPRINT
TeamLease Services Private Limited
Technable
The Unbeatable India
TMI
TVS
24×7 Learning
2COMS Consulting
Value Hub – Skilling and Up-skilling Indian Youth
Vidyanta
Virinchi

Ministry of Labour & Employment
In order to train workforce for industry, the Union Government started Industrial Training Institutes. According to a document of FICCI – an industry body, “The Directorate General of Employment & Training (DGE&T) had the initiated Craftsman Training Scheme in 1950 by establishing 50 Industrial Training Institutes (ITIs) for imparting skills in various vocational trades to meet the manpower requirements for technology and industrial growth of the country. Since then the demand for skilled manpower has increased substantially due to rapid economic growth, changes in technology and work process, and globalization of economy.”
The Minister of labour & Employment is running this scheme since then. It is certified by International World Organisation (ILO) There are about 200 it is in India run by Indian Government.

Ministry of Human Resource Development
Several decades ago, the Union HRD Ministry started Polytechnics for skill development keeping needs of burgeoning economy. It offer three year generalized diploma courses in subjects such as civil, electrical and mechanical engineering. The courses are now diversified to include electronics, computer science, medical lab technology, agriculture and hospital engineering. There are 1292 polytechnics under the aegis of the Ministry of Human Resource Development. Since its inception, polytechnic centres trend score of people.

Ministry of Micro Small & Medium Enterprises
The MSME Ministry conducts a number of vocational and entrepreneurship development programmes throughout the country. They focus on entrepreneurial skills development. Such programmes are associated with various sectrors like food processing, solar power, electronics such programmes help the budding entreprenesu to start their own ventures.

India EU Skills Development Project aims to increase the capacity of policy makers and key counterparts, develop a National Vocational Qualification Framework, and enhance labour market analysis processes. The overall objective of this exercise will be to improve the quality and relevance of training provision and the number of certified skilled labourers in various sectors of employment. The aim of this project on skill development in India is to contribute to achieving rapid and inclusive growth. (4)

References:
(1): http://pib.nic.in/newsite/erelease.aspx?relid=47842
(2) NSDC
(3) http://www.ficci.com/sector/74/Project_docs/SectorProfile.pdf
(4) http://india-euskills.com/

Understanding the Clusters

Recently I completed a short term course on faculty development. During this course, participants were professors, bankers to scientists. All of them were associated with entrepreneurship development in various capacities. There was one group of assistant professors who were associated with a clusters development unit of a leading university. But they were erratic in terms of participation and the resource person was not happy with their performance. But they become popular among the batch for wrong reasons. And other adult learners started calling them ‘Clusters’. Here my objective is not to discuss what happen in the class but this blog’s basic purpose is to provoke and offer a nuanced explanation of cluster as a concept and its relevance in India.

Cluster: In 1990, Michael Porter – a well-known professor at Harvard Business School introduced this concept and elaborated it with various examples. Since then, this word has emerged as tool for economic development in various geographies. Several experts, economists and development practitioners did work on this economic concept.

What is a Cluster? In the Harvard Business Review (HBR), Michael Porter wrote, “Clusters are geographic concentrations of interconnected companies and institutions in a particular field. Clusters encompass an array of linked industries and other entities important to competition. They include, for example, suppliers of specialized inputs such as components, machinery, and services, and providers of specialized infrastructure. Clusters also often extend downstream to channels and customers and laterally to manufacturers of complementary products and to companies in industries related by skills, technologies, or common inputs. Finally, many clusters include governmental and other institutions—such as universities, standards-setting agencies, think tanks, vocational training providers, and trade associations—that provide specialized training, education, information, research, and technical support.”

Porter added, “Today’s economic map of the world is dominated by what I call clusters: critical masses—in one place—of unusual competitive success in particular fields. Clusters are a striking feature of virtually every national, regional, state, and even metropolitan economy, especially in more economically advanced nations. Silicon Valley and Hollywood may be the world’s best-known clusters. Clusters are not unique, however; they are highly typical—and therein lies a paradox: the enduring competitive advantages in a global economy lie increasingly in local things—knowledge, relationships, motivation—that distant rivals cannot match.”

Shedding light on this concept, The Economist stated, “Clustering is the phenomenon whereby firms from the same industry gather together in close proximity. It is particularly evident in industries like banking. Banking centres in cities such as London and New York have thrived for centuries. Hundreds of banks cluster there, close together and within easy walking distance of each other. This makes it easier for customers to choose between them, and might be thought to act against each individual bank’s best interests.”

Economist further added, “Modern high-tech clusters often gather round prestigious universities on whose research they can piggyback. Silicon Valley is near Stanford University, for example, and similar high-tech clusters are gathered around MIT near Boston in the United States and around Cambridge University in Britain.
One of the most famous clusters is that of the Hollywood film industry. When the big movie studio system broke up in the 1930s it fractured into a large number of what were essentially small specialist firms and freelancers. Clustering around Hollywood allows each of these small units to benefit as if it had the scale of an old movie studio, but without the rigidities of the studios’ wage hierarchy and unionised labour.”

Emergence of clusters is not restricted to the developed world. Several emerging and developing countries adopted this approach in couple of decades and intensifying economic activities in certain geographies.
In emerging countries, their size varies from small to big. Irrespective of size and scale they create employment for skill workforce. In various cases, the clusters are nurturing innovations and new ideas which are strategically important for them.
Achieving competitiveness and efficiency in various sector, clusters are playing a crucial role where they becoming a backbone of industrial and export production in India. In India, majority of clusters are associated with micro, small and medium enterprises. They are playing a crucial role in reducing hardship.

Types of Clusters in India
Industrial Clusters
Manufacturing Clusters
Handloom Clusters
University Clusters
IT Clusters
Services Clusters

To diffuse innovation culture, NInC proposes to seed Cluster Innovation Centres (CICs) in industry clusters. This centre will act as a networking hub/arm of the cluster, forge linkages between various stakeholders, initiate and assist innovation activities acting as catalysts and facilitators. With a lean management structure, this body will aid the cluster and its ecosystem in connecting with each other, provide guidance to various stakeholders when needed, organize initiatives to promote growth, channel various incentives that benefit the cluster and act as an incubating body managing the growth of innovation in the cluster.(1)

National Innovation Council and Clusters in India
The Union Government set up National Innovation Council in 2010 under Sam Pitroda – a well-known technocrat who headed this apex body. Since its inception National Innovation Council played a crucial role in encouraging innovation and cluster development. NIC did comprehensive studies on various clusters. They gave policy suggestion on various issues related to cluster development and entrepreneurship.

Some new clusters identified by NInC
Auto Components Cluster – Faridabad, Haryana,
Ayurveda Cluster – Thrissur, Kerala,
Bamboo Cluster – Agartala, Tripura,
Biotech & Pharma Cluster – Ahmedabad, Gujarat,
Brassware Cluster – Moradabad, Uttar Pradesh,
Food Processing Cluster – Krishnagiri, Tamil Nadu
Furniture Cluster – Ernakulam, Kerala

A case study by IIM B Researchers finds, “The Moradabad Brassware Cluster, in Uttar Pradesh, is mainly focused on the export market. The annual turnover of the cluster is over Rs 3,500 crore of which 80% is earned through exports of metalware, including brassware. The cluster has evolved from utilizing only brass a decade ago to now incorporating other metal alloys. Despite growth in the number of exporters in the cluster, there has been a significant decline in the number of artisans due to challenges in living conditions, wages, raw material procurement, prices and stricter international compliance norms.” NInC was closely associated with this study.

Cluster Innovation Centre, University of Delhi
Ministry of Human Resource Development and National Innovation Council started Cluster Innovation Centre (CIC) under the University of Delhi. Cluster Innovation Centre started in 2011. They run B. Tech four years degree in innovation, mathematics etc.According to its official site, these are broad objectives of CIC:
Connecting research with application for the benefit of society
Support application oriented research to solve real world problems
Focus on developing affordable innovations that can benefit a large number of people and at the same time commercially viable and sustainable.
Emergence of cluster as an engine of increasing economic activities depends on various factors. These are location, connectivity, availability of raw material, easily available work force, favourable industrial policies, adequate power supply and strong funding ecosystem. Enabling all these factors of cluster development is not easy. It requires a vision for development and political will.

Reference:

(1): http://innovationcouncil.gov.in/images/stories/report/Industry_Innovation_Clusters.pdf(2): http://www.innovationcouncil.gov.in/index.php?option=com_content&view=article&id=305:national-innovation-council-success-story-published-in-uns-global-innovation-index-2013-report&catid=14:news&Itemid=13

Rise and Fall of Unincorporated Entities