Current Scenario of Apprenticeship Training in India

Only 2.30 lakh trade apprentices are undergoing apprenticeship training in 30,165 establishments throughout the country under the Apprentices Act, 1961. Out of these, 36,000 apprentices are in Central Public Sector Undertakings/Central Government and 1.94 lakh apprentices are in State Public Sector Undertaking/State Government Departments and Private Sector. There is a huge opportunity for us to promote Apprenticeship and extend opportunities for the youth to engage with the industry directly.

The objective of the Apprentice Act which has now been reformed.

The Apprentices Act, 1961 was enacted with the objective of regulating the program of training of apprentices in the industry by utilizing the facilities available therein for imparting on-the-job training. Ministry of Skill Development and Entrepreneurship is the administrative ministry responsible for implementation of the Act.

What does the skill policy say about apprenticeship?

The National Policy of Skill Development and Entrepreneurship 2015, launched by the Hon’ble Prime Minister on 15th July, 2015, focuses on apprenticeship as one of the key program for creating skilled manpower in India.The policy proposes to pro-actively work with industry including MSME sector to facilitate a tenfold increase in apprenticeship opportunities in the country by 2020.

What are the advantages of apprenticeship training today?

Apprenticeship training is one of the most efficient ways to develop skilled manpower for industry by using training facilities available in the establishments without putting any extra burden on exchequer to set up training infrastructure. Persons after undergoing apprenticeship training can easily adapt to industrial environment at the time of regular employment. The other advantages of apprenticeship training are as follows:

What is the worldwide scenario on Apprenticeship training?

Apprenticeship training is gaining a lot of importance all over in the world. Apprenticeship is seen as a mechanism for skilling the workforce and also to increase the overall productivity of the country. Japan has 10 million apprentices, Germany has 3 million apprentices, USA has 0.5 million apprentices, United Kingdom has 0.5 million apprentices.

In many countries, governments have introduced incentive schemes to encourage companies to get involved and increase their apprenticeship intake and to share cost of apprenticeship training incurred by companies. Frequently used incentive mechanisms include reimbursement (or part reimbursement) of training costs as part of a training levy system e.g. Denmark, South Africa or direct subsidies paid by governments to companies that can prove employment of apprentices (Australia, France). In other countries special tax incentives are given for companies engaging apprentices e.g. tax credit scheme in Canada under which 30 to 40% of the expenditure incurred on apprenticeship is reimbursed in the form of tax credits.

Governments spend huge amounts of money to support apprenticeships. In Australia, Commonwealth Government spends $ 1.1 billion for promoting apprenticeship.  U.K. spends £ 1.5 billion annually on apprenticeship program and 100% training cost for apprentices aged between 16-18 years is borne by the Government. France spends a minimum of € 3000 per apprentices per academic year and Germany spends € 3 billion annually for the dual system. Many countries have started degree and diploma programmes in apprenticeship.

What is the National Apprenticeship Promotion Scheme?

Cabinet in its meeting held on 5th July, 2016 approved National Apprenticeship Promotion Scheme (NAPS). Accordingly, guidelines of NAPS have been prepared and notified on 19th August, 2016 and made effective from the date of notification.

What are the components of the scheme?

The scheme has the following two components:Sharing of 25percent of prescribed stipend subject to a maximum of      Rs. 1500/- per month per apprentice with the employers. The stipend support would not be given during the basic training period for fresher apprentices. Sharing of basic training cost of Rs 7500 in respect of apprentices who come directly to apprenticeship training without any formal trade training.