Why Plumbing?

Why Skill development is necessary for India?

It has been observed that countries with highly skilled human capital tend to have higher GDP and per capita income levels and they adjust more effectively to the challenges and opportunities of the world of work. For India, skill development is very critical from both socio-economic and demographic point of view. For Indian the economy to grow at 8% to 9%, with the targeted growth rate of 10% for secondary, 11% for tertiary and 4% for agriculture sectors, a multi-faceted and highly efficient skill development system is imperative. Further, India is destined to be a contributor to the global workforce pool on account of demographic bonus, with the growth rate of higher working age population as compared to its total population and home to the second largest population (with a headcount of around 1.4 billion by 2025) in the world with distinct advantage of having the youngest population with an average age of 29 years as against the average age of 37 years in China and the US and 45 years in Western Europe (FICCI, 2014).

Present skill levels of the Indian workforce in the age group of 15-59 years in the form of their general educational levels and vocational training levels. The drop-out rates of educational institution was estimated to be 50% in the age group of 5-14 years and86% after 15 years of age and in contrast to this the participation rate of the workforce rises rapidly after 14 years of age and it results in a semi-literate workforce which finds it difficult to absorb higher form of skills. 38% of Indian workforce is illiterate, 25% has education below primary or up to primary level and remaining 36%has an education level of middle and higher level. 80% of Indian workforce does not possess any employable skills. Only about 2% have received formal vocational training and 8% non-formal vocational training, thereby implying that very few new entrants to the work force have any marketable skills as compared to developed economies such as Korea (96%), Germany (75%), Japan (80%) and United Kingdom (68%) The above facts are reminder that India’s demographic dividend can rapidly convert into a demographic nightmare if skills are not provided to both new and existing workforce.

As detailed in Building, Construction and Real Estate Services Sector (2022 by NSDC, Building, Construction and Real Estate Services Sector is around Rs. 2,171 billion, the housing sector is estimated to grow at 12% in the long term.

Demand for housing is estimated to be around 4.8 million houses per year over the Eleventh Five Year Plan period. . Considering the growth one of the key risk factor is Manpower Shortages - Although the construction industry employs 33 million people, second only to the agricultural sector, the incremental workforce requirement is around four million people per year over the next seven years to sustain the current growth rate.

The construction industry is set to face a challenge in terms of sourcing manpower.

According to this report Human Resource and Skill Requirements in Construction Industry and Real Estate Services for Plumbers is about 12 Lakh which is highest in any other skill required. Currently Industry Inputs reveal that apart from human resource native to particular region there is an Import of Huma Resource from the state such as Orissa, West Bengal and Bihar especially at Minimum skill levels. Given that the large requirements it is necessary to build skill training capability at the local level. The analysis revels that large portion of development in construction sector would be in Maharashtra, Tamilnadu, Delhi, part of Utter Pradesh and Haryana neighbouring Delhi apart from other southern states.

Based on the above study DIFPT has decided the objective of skill development is Plumbing Technology

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