Editorials/Opinions Analysis For UPSC 12 September 2024

Contents:

1. Filling the Global Skill Gap: India’s Role in Addressing Labor Mismatch
2. Public Accounts Committee: Strengthening Parliamentary Oversight

Filling the Global Skill Gap: India’s Role in Addressing Labor Mismatch

Context: The global labor market is increasingly facing shortages due to an aging workforce and demand for new skills. This issue is particularly relevant to India, where the demographic dividend presents an opportunity, but also a challenge, to ensure that the workforce is equipped with the necessary skills for both domestic and global employment markets.

Relevance: General Studies Paper III – Economic Development

Mains Question: Analyze the role of skill development initiatives in addressing the global labor mismatch. How can India leverage its demographic dividend to meet international workforce demands?

1. Global Labor Mismatch and India’s Involvement:
   • The increasing mismatch between workers’ skills and job demands is a significant issue. For instance, Indian workers sent to Israel to address labor shortages faced challenges due to inadequate skill alignment.
   • Labor shortages are pronounced in key sectors globally, including construction, healthcare, and social services. For instance, the Global Skill Gap Report 2020 by NSDC highlights labor demand across regions like the GCC and EU. These regions look to countries like India to fill workforce gaps, especially given their aging populations.
2. India’s Skill Development Ecosystem:
   • The National Skill Development Mission (NSDM), launched in 2015, aims to create a skilled workforce capable of meeting industry demands both domestically and internationally. Under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), the government has trained millions of youth, providing skills certification for jobs in various sectors. The recent PMKVY 4.0 focuses on advanced skills in areas such as AI, robotics, and coding to align with global market needs.
   • India’s apprenticeship model, under the National Apprenticeship Promotion Scheme (NAPS), further supports on-the-job training, a critical aspect of bridging the skills gap.
3. Challenges in the Skill Development Sector:
   • Despite numerous initiatives, only 2% of India’s youth receive formal vocational training, compared to 96% in South Korea. This stark difference emphasizes the need for scaling up initiatives.
   • Another issue is the low employability among graduates, with only about 33% of Indian youth possessing the necessary skills to meet employer demands, according to the India Skills Report 2024.
4. Recent Initiatives to Address Skill Gaps:
   • The SANKALP Program (Skills Acquisition and Knowledge Awareness for Livelihood Promotion) was launched with World Bank assistance to improve skill training outcomes across states. The program particularly focuses on marginalized populations, aiming to improve both quality and access.
   • Additionally, PM Vishwakarma Yojana, launched in 2023, targets traditional artisans and craftspeople by providing them with skill upgradation, financial support, and tools to connect with global value chains​.
5. Global Integration of Indian Labor:
   • As India focuses on training its youth to international standards, various programs such as Pravasi Kaushal Vikas Yojana (PKVY) prepare workers for overseas employment by aligning skills with global job markets.
   • This focus on skill development can significantly address the labor needs of countries facing shortages, helping India become a global provider of skilled labor while simultaneously addressing domestic unemployment.

Additional Data:

• India Skills Report 2024: Only 33% of Indian job seekers have employable skills.
• Vocational Training: Only 2% of India’s youth receive formal training, compared to 96% in South Korea.
• SANKALP: Over 98 trainers certified in 2023 under the program to improve skill development infrastructure.

Conclusion:

The global labor market is evolving, and India is well-positioned to fill significant workforce gaps, provided it continues to upskill its population. With initiatives like NSDM, PMKVY, and SANKALP, India can ensure its workers are equipped for the demands of the international market. However, the country must address gaps in formal training and improve employability to truly leverage its demographic dividend.

Public Accounts Committee: Strengthening Parliamentary Oversight

Context: The editorial discusses the evolving role of the Public Accounts Committee (PAC) in India’s parliamentary system. With recent changes in the political landscape, there is a renewed focus on PAC’s role in ensuring accountability of the executive, especially in light of past attempts to evade parliamentary scrutiny.

Relevance: General Studies Paper II – Polity and Governance

Mains Question: Critically evaluate the role of the Public Accounts Committee (PAC) in ensuring financial accountability in India. How has its role evolved in recent years?

1. Background of PAC:
   • The PAC is one of the oldest parliamentary panels, tasked with ensuring that government expenditures are carried out in accordance with parliamentary decisions and financial prudence.
   • The committee draws much of its deliberations from the Comptroller and Auditor General’s (CAG) reports, which examine the financial functioning of government departments.
2. Recent Developments:
   • The new PAC, headed by Congress MP K.C. Venugopal, has selected 161 topics for discussion, focusing on areas such as reforms in the banking and insurance sectors, public infrastructure, energy transition, and regulatory frameworks.
   • The PAC is making efforts to move beyond traditional scrutiny of expenditures to also examine policy wisdom, faithfulness, and economy, marking a shift in its oversight role.
3. Political Dynamics and Oversight:
   • The recent political scenario, where the ruling BJP depends on allies, provides the Opposition with greater leverage in calling for accountability.
   • The PAC’s assertiveness in choosing politically charged subjects, such as reforms and public utilities, signals its willingness to investigate government policies deeply, despite opposition from the ruling party.
4. Challenges to PAC’s Functioning:
   • Despite the committee’s assertive stance, its effectiveness could be hampered by the majority of the ruling coalition (13 members from the NDA vs. 9 from the Opposition).
   • Moreover, delays in constituting related parliamentary standing committees may also weaken the broader framework of parliamentary accountability.
5. Importance of PAC in the Constitutional Framework:
   • The CAG is a constitutional authority, and its reports, which are the basis for PAC deliberations, are crucial in holding the executive accountable for financial transparency.
   • The PAC plays a pivotal role in scrutinizing public expenditures and ensuring that funds sanctioned by Parliament through Appropriation Bills are used as intended.
6. Issues of Crony Capitalism:
   • Allegations against the government for fostering crony capitalism have been raised, with PAC refusing to investigate certain public sector controversies, such as those involving SEBI and Adani Group.
   • The government’s reluctance to investigate these allegations points to a broader issue of accountability and transparency.

Conclusion:

The PAC’s role in ensuring financial accountability is critical for maintaining the integrity of India’s parliamentary system. Despite challenges, the recent assertiveness of the PAC offers hope for more comprehensive oversight of the executive’s financial and policy decisions. It is imperative that the committee remains independent and strengthens its capacity to act as a robust instrument of accountability.