lent example of the joys and tribulations of the Indian growth story. Achieving a 92 % increase in gross turnover between 2006-07 and 2010-11 to touch $ 58.5 bn in March 2011, the domestic auto industry has had to deal with a host of challenges over the past year or more, which has slowed down its heady pace of growth. However, notwithstanding its present predicament, a robust auto sector is critical to the country getting back on the growth trajectory as the progress of the automotive industry has a direct bearing on the development of infrastructure (one of the major areas of focus in the 12th Plan). But, as is the case with many other sectors, holding the key to the future growth of the Indian auto sector itself would be the availability of skilled manpower in sufficient numbers – an issue that is increasingly becoming the hottest topic of discussion in the boardrooms of auto majors. According to a skill gap analysis conducted by management consultancy IMaCS (an arm of rating agency ICRA) on behalf of the National Skill Development Corporation (NSDC), the auto sector may face the prospect of an incremental shortage of 35 mn people by 2022. Considering that studies by IMaCS and another management consultancy Aon Hewitt on behalf of the NSDC have projected a combined shortfall of 347 mn people by 2022 in 20 identified high growth sectors and the infrastructure arena, the auto sector, in days to come, may not just need talent but also have to compete for it with other industries facing similar manpower-related issues. Already, there are numerous examples of people connected with auto retail crossing over to other forms of retail. The situation for the auto industry is not being helped by the inadequate skills training capacity prevalent in the country. While 12.8 mn people join the workforce every year, the training capacity is only about 5 mn. Several automotive companies in the recent past have tried to overcome the people problem by adopting Industrial Training Institutes (ITIs) or by partnering with the government to improve the education imparted at these facilities. Some have started their own private training schools or got involved with polytechnics and engineering colleges, so that the curriculum could be tailored to meet the requirements of business. However, if one were to sum up the impact of all the skill development efforts currently underway, it has barely scratched the surface. Skilling initiatives have to increase manifold to meet the auto sector’s own requirements. A task of this magnitude can’t be handled by either the government or the private sector working in silos. A coordinated approach involving all stakeholders is FOCUS ON SKILL DEVELOPMENT IS NEED OF THE HOUR Dilip Chenoy, CEO & MD of the National Skill Development Corporation (NSDC) Guest COMMENtary
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