Industry chamber CII has asked the government to liberalise the education sector and allow Foreign Direct Investment to create a skilled manpower pool for meeting the requirements of the rapidly growing economy.
"Excessive regulation in the education system has led to rigid and non-flexible course curriculum, which in turn hampers development of skill sets. In the light of this, there is need for opening up of FDI in the education system to encourage more institutes," the industry chamber said.
CII's demand comes even as the Commerce and HRD ministries are at loggerheads over the issue of allowing foreign universities to set up campuses in the country. While the Commerce Ministry favours such a proposal, the HRD ministry has been opposing the move.
"The demand for skill sets is rising at a faster pace and the current education system is unable to support it, leading to a huge gap in skill sets necessary to sustain the current levels of growth in services sector," CII said in a statement.
It is estimated that by 2020, India would have 325 million people in the age group of 20-35 years, constituting 25 per cent of its population. Although India would have surplus manpower of 47 million by 2020, the challenge was to create a large pool of skilled workforce, the chamber said.
The global manpower shortage of 39 million translates into a huge opportunity for India. In fact, the country has the capacity to create up to 36 million new direct jobs and many more indirect jobs, the chamber said.