UTBIs: A Solution for Educated Unskilled Work-force in India

Abstract

The purpose of the paper is to analyse the need of corporate sector to spend on Business Incubators in ‘Knowledge India’ under mandatory 2 per cent CSR spending. This study points out the scarcity of updated training institutions to harness the skills of educated youth, which can be met through CSR. Database of RBI and Census helped in establishing the link between education and economic growth. Data from UGC report, AICTE report are used to show the demand and supply of higher education. Wheebox and NASSCOM reports are used to show employability ratio of Indian youths. Start-up India portal is used to get information regarding UTBIs. CSR funding can play more important role towards increasing employability of educated mass in India through business incubators than directly spending in education. There is excess supply of seats in general, technical and management seats all over India compared to demand, suggesting the need for diversification of CSR fund towards other channels like business incubators to facilitate employability. Since profitable companies are bound to spend 2 per cent of their three year average net profit on CSR, this paper adds to the knowledge that companies should take initiative to reduce educated unemployment by focusing on business incubators.