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0Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. 2011 NSDC. All Rights Reserved.

District wise skill gap study for the State ofMadhya Pradesh

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice 2013 NSDC. All Rights Reserved


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Contents


Objectives of the study

Methodology

State Analysis

Recommendations


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Contents



Methodology

State Analysis

Recommendations


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Objective of the study


Madhya Pradesh District Skill Gap Study objectives would include a review of the following at an

overall state and for all districts:

Socio-economic profiledemography, economic profile of district by industry, state of education.

Identify developmental opportunities keeping in mind factor endowments and stakeholder perspectives.

Identify specific developmental initiatives/projects which have an impact on employment generation.

Articulate the aspirations of the youth.

Identify the current and future (2012- to 2022) skills and manpower requirements by industry and estimate

the gap that exists. Study the existing VT infrastructure booth in the private sector and the government domain.

Suggest suitable interventions/recommendations to address the skills gap.

Recommendations have to be specific and actionable.

Recommendations should also include specific initiatives that NSDC can take based on the mandate of the

organization.

Create an action plan with indicative timelines


5/294Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. 2011 NSDC. All Rights Reserved.

Contents



Methodology

State Analysis

Recommendations



Methodology

KPMG has adopted a structured methodology to understand the skill ecosystem in Madhya Pradesh, assess

incremental manpower needs, and collate insights, to arrive at recommendations to address the manpower skillgaps in the districts of the state.

Salient Features of the Study include:

Socio-economic Profile: State/Districts

Sectoral Focus: NSDC priority sectors along with district level potential sectors

Voice of Stakeholders: Capturing insights from stakeholders involved in skill training

Estimation of Manpower Supply: State/Districts

Assessment of Existing Skill Training Capacity: State/Districts

Computation of Incremental Employment Potential: Using a sector specific approach

Manpower Supply-Demand Gap: State/Districts




Methodology


Research Methodology of the Study

The study was carried out through both primary and secondary research methodology, as well as qualitativeand quantitative techniques.

Primary Research: Primary research inputs were

collected through research techniques such as in-

depth discussions, formal interviews, and Focus

Group Discussions (FGD). Interview schedules,

FGD Guidelines and points for field observations

were developed in accordance to the studyobjectives. Consultation meetings were conducted

with State Government Departments, District

Administration Officials, Skill Training Providers,

Skill Training Beneficiaries, Industry

Representatives, Migrant Labour to understand their

perspectives on skill development

Secondary Research: Secondary Data were collected from number of sources including central, stateand district government/administration agencies, especially the Department of Economics and Statistics,

Department of Industries - and program specific information from departments with a mandate in skill

training, and from studies commissioned by funding agencies, NGOs etc.,

Activity

Primary Interactions 720

FGDs across MadhyaPradesh

40

Students participatedin FGDs

700



Contents



Methodology

State Analysis

Recommendations



State Analysis-Social Profile


Madhya Pradesh is set to become leading provider of human capital in the coming decade

District Wise Population Density (2011 Census)Socio-economicindicator

MadhyaPradesh

India

Population(2011) 72 million 1210 million

Decadal Population

Growth Rate(2001-

11)

20.3% 17.64%

Population

Density(2011)

236

Persons/Sq

km

382

Persons/Sq km

Percentage of RuralPopulation (2011)

72.37% 68.84%

Percentage of ST

Population (2001)

20.63% 8.2%

Percentage of SC

Population (2001)

13.14% 16.2%

Sourc e :Census 2011Sourc e :Census 2001, 2011





with significant variations in social composition of demographics

Regional variations in demographic compositionSocio-economicindicator

MadhyaPradesh

India

Gender Ratio(2011)

930

female/1000

males

940

female/1000

males

Overall Literacy

Rate(2011)

70.63% 74.02%

Male Literacy

Rate (2011)

80.53% 82.14%

Female Literacy

Rate (2011)

60.02 65.46%

Infant Mortality

Rate(IMR), 2010

62 47

Crude Birth

Rate, 2010

27.3 22.1

Crude Death

rate, 2010

8.3 7.2

Sourc e :Census 2011, Census 2001Sourc e :Census 2011, Madhya Pradesh Human Development Report





experiencing an addition of around 9 million to the workforce in the next decade

Source :MP Planning Commission, KPMG Analysis

0-14 Yrs

15-59 Yrs

Above 60Yrs

32.8% 30.4% 28.1%

60.1% 61.8%63%

7.1%7.8%

8.9%

2012 2017(e) 2022(e)

7.22 Cr7.78 Cr

8.31 Cr

47.34 la kh

entrants into

w ork ing age

group

42.48 lak h

entrants into

w ork ing age

group

Madhya Pradesh Demographic Estimations





Limited growth of higher education capacities in comparison to K 12 institutions has created significant gap in

the educational system of the state

Enrolment in K12 Institutions of Madhya Pradesh

Sourc e :Madhya Pradesh Educatio nal Statistics 2010-11

94% 96%99% 99% 99%

88%

90% 97%99%

99%

35%58% 60% 66%

82%

0%

20%

40%

60%

80%

100%

2006-07

NER In Primary Classes NER of Upper Primary Classes Transition from Upper Primary to Secondary Classes

2007-08 2008-09 2009-10 2010-11

Current State of Institutional Capacities

109

Lakhs

45.5

Lakhs

17.5

2

Lakhs

9.2

8

Lakhs

PrimarySchools

Middle/SecondarySchools

Higher SecondarySchools

HigherEducation



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Vocational education from current levels of low penetration is expected to play a key role to bridge the gap in

educational system riding on Government thrust


Department Wise Training Targets

Source :Madhya Pradesh Skil l Development Mission

Tentative Department wise Composition for Skill Development targets in Xll five Yrar Plan

Technical Education and

Skill Development 16%

Total Training

Target:

48 Lakhs

SC and ST

Welfare 8%

Rural

Development 8%

Urban

Development 8%

Health and

Family Welf are 11%Labour and Employment 8%

OBC Ministry 8%

Agriculture 8%

Tourism 2%

Higher Education 8%

CI & E 2%

Information Technology 2%

Transportation 2%

Gas Tradegy Welfare 2%

Horticulture 2%

School Education 8%

Village Industries 2%

Medical Education 2% Women and Child

Development 3%

Category of

Institutions

Number of

Institutions

Intake

BE/Architecture 222 82,400

Management 218 18,490

MCA 94 6,348

Pharmacy 127 8,829

Medical

Colleges

(MBBS)

11 1070

Polytechnic(Voc

ational)

58 13,630

ITI/ ITC 279 38,880


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Source :Madhya Pradesh Skil l Development Mission, KPMG A nalysis

Ministry under Central

Govt / Schemes

Scheme Details Training Potential

2012-17

Building and Other

Construction Workers'

Welfare Cess

Skill Training for Construction Activity based on the availability of Construction Cess with

the State Government, of which around 50% can be deployed in manpower training

initiatives

2,50,000

Ministry of AgricultureSkill Training for agri and allied sectors based on national targets of the sector and states

employment share in the agricul`ture and allied activities97,336

Ministry of Labour

the state is expected to receive funds based on national targets set for Modular

Employability Scheme under Skill Development Initiative Scheme, proportionate to it

contribution to secondary sector activities

72,000

Ministry of Communication

and IT

Scheme wise national targets for software export industry including setting up of DOEACC

Centres/RIELIT and upgradation of existing centres, Special Manpower Development

Programme in the area of VLSI Design and related software (SMDP-II); Estimations are

based on national targets and the states aspiration to sectoral growth in IT/ITEs

44,000

Ministry of MSMENational MSME manpower development targets apportioned to state based on states

employment share in MSME segment36,000

Ministry of HUPA

Physical training targets from an estimated allocation of INR 38.86 crores towards skill

training component STEP-UP under Swarna Jayanthi Shahari Rozgar Yojana 21,118

Ministry of Textiles

Manpower training targets under Integrated Skill Development Scheme for Textiles and

Apparel Sector including Jute and Handicrafts, apportioned based on states contribution to

textile sector

15,000

Construction Workers Welfare Cess, Dept Agriculture, Dept of Labour based training schemes have

large potential in the state


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State Analysis-Economic Profile


Geographically concentrated economy with key district economies accounting for more than half of GSDP

24% 23% 22% 22% 21% 20%

30% 30% 31%30% 30% 30%

46% 47%46%

47%49%

50%

17013 1757219442

2109522382

24132

5000

10000

15000

20000

25000

2006-07

Pe

rCapitaIncomeatConstantPrices

(base2004-05)inINR

GS

DPatConstantPrices(base2004-05)

inINRCr

-

Primary Secondary Tertiary Per Capita Income

1,26,528 1,32,5671,48,851

1,64,5771,78,073

1,95,368

0

2007-08 2008-09 2009-10 2010-11 2011-12

40%

34%

33%

20%

38%

47%

46%

29%

47%

11%

30%

57%

21%

5%

9%

22%

32%

17%

28%

22%

22%

22%

23%

17%

27%

25%

26%

25%

25%

21%

38%

34%

50%

52%

40%

31%

32%

48%

36%

62%

45%

16%

54%

70%

70%

Guna

Betul

Ratlam

Satna

Hoshangabad

Shahdol

Dhar

Sagar

Chhindwara

Gwalior

Ujjain

Sidhi&Singrauli

Jabalpur

Bhopal

Indore

Primary Sector Secondary Sector Tertiary Sector

16,324 Cr

11,045 Cr

9,041 Cr

6,913 Cr

6,606 Cr

6,426 Cr

5,642 Cr

4,757 Cr

4,714 Cr

4,444 Cr

4,286 Cr

4,253 Cr

4,033 Cr

3,856 Cr

3,833 Cr

Economy of key districts in Madhya PradeshEconomy of key districts in Madhya Pradesh

State econom y has grow n at 9.7% CAGR during 2006-12

driven by s econdary and tert iary sectors...

Source :MP State Planning Commission

As per 2008-09

GDDP estim ates


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Further, regional prominence of specific economic activities is witnessed

Sector Activities Districts

Primary(Agriculture and Allied) Agricultural Crops:Rice, wheat, maize, mustard, sugarcane,

soyabean, jowar and bajra.

Agri-Allied Crops:Horticulture and Sericulture

Agri-Allied Activities:Diary, Poultry, Piggery, Goatery and

Fisheries

Dhar, Ujjain,Chindwara, Jabalpur,

Hoshangabad, Guna and Ashok Nagar,

Dewas, Indore, Shajapur, Vidisha, Sagar,

Ratlam, Sehore, Mandsaur, Khargone

Secondary(Manufacturing) Agro-products, Chemical and Chemical

Products consumer goods, drugs and

pharmaceuticals, mines and minerals,

manufacturing and textiles sectors

Indore, Bhopal, Jabalpur, Ujjain,Gwalior,

Dhar, Satna, Dewas, Sagar, Khandwa

Tertiary(Services) Trade, Retail, Hospitality and Tourism,

Financial Services, Healthcare,

Transportation and Logistics, Education

Indore, Bhopal, Jabalpur, Gwalior,

Ujjain,Sagar, Satna, Ratlam,Chindwara,

Rewa

Source : KPMG Analysis


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Madhya Pradesh, an agrarian workforce economy has lower penetration of manufacturing and

services sectors compared to national average

2

4

5

2

5

4

13

20

17

19

67

78

61

3

8

8

8

13

1319

21

26

43

95

96

110

0 20 40 60 80 100 120

Electricit y, gas and water supply

Financial int ermediation

Health and social work

Extraterritorial organizations and bodies

Hotels and restaurants

Real estate, renting and business activit ies

Other community, social and personal ...

Public administration and defence; ...

Education

Transport, storage and communications

Wholesale and retail trade; repair of ...

Construction

Manufacturing

India

MP

Comparison of Worker Distribution by Industry (per 1000 workers)

Sourc e : NSSO 66thEmployment Survey, KPMG Analysis


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supported by conducive Government policies and improving industrial infrastructure

Source :MP Industr ies & Commerce Department

2.3 2.6 3.0 3.2 3.64.1

10.0 10.5 10.9 11.311.8 12.2

22.023.5 24.0

25.4 26.0

39.6

1.7 1.7 1.7 1.8 1.8 1.8

0

5

10

15

20

25

30

35

40

45

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12Investment

inINR'000Crand

Employ

mentinLakhs

SSI - Investment in INR '000 Crore SSI - Employment in Lakhs

LMI - Investment in INR '000 Crore LMI - Employment in Lakhs

Investment and Employment Trends

Source :MP Industr ies & Commerce Department

State is poised to witness significant industrial growth over the next decade

Industrial Infrastructure in Madhya Pradesh


19/29




expected to result in realignment of workforce distribution over the next decade

SectorPolicy Thrust Growth Regions

IT-ITES Employment and Land Rate Concessions , Exemption

of stamp duty , Exemption on tax and acts , Power

Related Incentives , Special incentive to invest in E-

governance projects

Indore, Bhopal, Gwalior, Jabalpur

Renewable Energy Special package for mega projects , Industrial

investment promotion assistance , 5 year electricity

duty exemption on captive power generation , 25%

capital subsidy

Gwalior, Indore, Bhopal, Jabalpur and Rewa

for solid waste based power.

Rajgarh, Neemuch, Mandsaur for solar power.

Narmada Basin area for geo thermal energy.Ratlam, Dewas for wind energy

Wellness Tourism Tourism is a thrust sector for the State Government All major tourist destinations in Madhya Pradesh have

potential for the growth of Rejuvenation, Yoga &

Meditation, Diseases Management , ayurvedic treatment

and spa industries.

Logistics Madhya Pradesh Warehousing & Logistics

Corporation (MPWLC) is appointed as the nodal

agency for the development of logistics sector.

Growth thrust on Road ways throughencouragement of BOT contracts etc.,

Multi Modal Logistics HubPitampur,

Composite Logistics Hubs -Bia, Ujjain, Jabalpur

Construction of Modern Warehouses -Balaghat, Katni,

Shahdol, Shivpuri, Morena .

Operating & Maintaining CPCIndoreComposite Logistics HubHoshangabad

Witnessing emergence of new employment generating sectors including allied services like security

services and house keeping



20/29


State Analysis- Labour Force Estimations


Madhya Pradesh workforce would reach 28.8 million by 2022 from current estimates of 23.9 million

Madhya Pradesh Workforce Estimations (in lakhs)

Year Population Working

Age

Population

Labour

Force

Work

force

Incremental

Supply

2012-17

Incremental

Supply

2017-22

2012 722 434 256 239

2017 788 481 283 265 47

2022 839 524 309 288 43

Total

Population

839 lakhs

Working

Age Group

Population

524 lakhs

Labour

Force

309 lakhs

Work Force

288 lakhs

Human Resource Supply-2022

Sourc e : Census 2001, NSSO 66thRound of Employment Survey, KPMG Analysis


21/29


State Analysis-Incremental Manpower Requirement


Sector wise Break-UpIncremental Manpower Requirement 2012-22

782,000

7,600

26,800

170,600

21,500

12,900

90,500

28,300

50,000

24,900

74,800

9,500

1,135,000

131,700

187,800

962,100

1,783,700

330,900

639,700

964,300

380,800

Agric ulture &Allied Act ivit ies

Pharma & Medicinal Products

Rubber and plastics products

Food Processing

Fabrication

Paper & Paper Products

Chemical & Chemical Products

Construction Based M aterial

Mineral Processing

Auto an d Au to Com ponent s

Textiles

Manufacturing of Electrical Products

Construction

IT&ITES

Healthcare

Transportations and Logistics

Retail

Hospitality

Communication

Banking and Financial Services

Education and Training

Source: KPMG Analysis

Primary10%

Secondary21%

Tertiary69%

100% =78,16,000

Predominantly tertiary sector driven job market

with Construction being major employment

generating area within secondary


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State Analysis- Incremental Manpower Requirement


2012-17 2017-22

SectorSkilled

Categ

ory

Sem

i-

Skilled

Categ

ory

Unskilled

Categ

ory

Total

Skilled

Categ

ory

Sem

i-

Skilled

Categ

ory

Unskilled

Categ

ory

Total

Agriculture & Allied Activities NA NA 422771 422771 NA NA 359915 359915

Pharma & Medicinal Products 204 2680 1187 4071 177 2326 1032 3535

Rubber and plastics products 717 6578 7036 14331 622 5707 6108 12437

Food Processing 4568 19227 67564 91359 3966 16695 58653 79314

Fabrication 575 5367 5550 11492 499 4660 4816 9975

Paper & Paper Products 345 3105 3451 6901 300 2695 2996 5991

Chemical & Allied Products 2420 17382 28601 48403 2101 15087 24828 42016

Construction Based Material 756 5425 8930 15111 657 4731 7753 13141

Mineral Processing 1337 11866 13542 26745 1161 10300 11757 23218

Auto and Auto Components 666 8292 4355 13313 578 7202 3780 11560

Textiles 2002 8917 29123 40042 1738 7744 25285 34767

Electrical Products 253 3037 1763 5053 220 2635 1548 4403

Construction 30022 75654 494755 600431 26728 67354 440473 534555

IT&ITES 3294 62588 NA 65882 3291 62520 NA 65811

Healthcare 3806 72317 NA 76123 5588 106169 NA 111757

Transportations and Logistics 22444 53716 372729 448889 25660 61414 426128 513202

Retail 48804 123446 803838 976088 40381 102138 665099 807618

Hospitality 9054 45556 126461 181071 7491 37692 104633 149816

Communication 14558 81917 194681 291156 17429 87804 243340 348573

Banking and Financial

Services

23536 48883 398309 470728 24679 51256 417650 493585

Education and Training 9135 165790 7782 182707 9907 178896 9343 198146

High proportion of semi

skilled and un-skilled job

market

Un-skilled employment to

emerge from predominantly

un-organized industries

Sectoral skill requirementshave considerable regional

variations depending on the

penetration of mechanization

etc.,

Employment from Agri-Allied

activities would be mainly

due to complete/partial

displacement of workforcefrom cultivation activities.



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State Analysis- Incremental Manpower Requirement


Sector Focus Districts

IT-ITES Indore, Bhopal, Gwalior, JabalpurLogistics Dhar, Ujjain, Jabalpur Balaghat, Katni, Shahdol, Shivpuri, Morena, Indore, Hoshangabad

Hospitality& Tourism Indore, Bhopal, Gwalior, Ujjain, Sagar

Retail Indore, Bhopal, Gwalior, Jabalpur

Healthcare Indore, Bhopal, Satna, Ratlam, Rewa

Financial Services Indore, Bhopal, Gwalior, Jabalpur, Sagar, Ratlam, Chhindwara, Rewa

Auto Sector Dhar

Engineering Products Bhopal, IndoreMineral & Mineral Processing Balaghat, Singrauli, Panna, Katni, Satna and Sagar

Cement Industry Satna, Damoh, Panna andRewa

Agro and Food Processing Bhopal, Sagar, Gwalior, Jabalpur

Textile Industry Dewas, Dhar, Ujjain, Bhopal, Indore

Logistics Indore,Dhar (Pitampur),Hoshangabad, Ujjain, Jabalpur,Balaghat, Katni, Shahdol, Shivpuri,

Morena

Renewable Energy Gwalior, Indore, Bhopal, Jabalpur and Rewa( solid waste based power)

Rajgarh, Neemuch, Mandsaur (solar power),Ratlam, Dewas( wind energy)

Sector wise focus districts for organized employment opportunities



24/29


State Analysis- Supply Demand Gap(2012-17)


Skill

Category

Incremental

Demand

Incremental

Supply

Source of Supply Training Gap 2012-

17

Skilled 1.78 lakhs 5.85 lakhs From higher education institutes -4.07 lakhs

Semi Skilled 8.21 lakhs 5.97 lakhs From Vocational Training Institutes and

Various Govt Training Schemes

2.24 lakhs

Un-Skilled 29.92 lakhs 31.03 lakhs School drop-outs without any access toformal skill training

-1.11 lakhs

Significant capacity expansion requirement for semi-skilled category through vocational education in

Madhya Pradesh

Vast scope of employment in un-organized sector for un-skilled workers and limitations of the study interms of sectoral coverage attribute to the surplus manpower in this category.

Excess supply in high skilled category would indicate relatively low employment opportunities in this

category within the state expected to result in migration of skilled workforce from the state


25/29


State Overview- Skill Development Attractiveness


Low HighLow

stakeholders need to work on building a positive image of skill development

Source: KPMG Analysis

High

Incrementalmanpower

pote

ntialinMP

Youth aspiration for sectoral employment

Agriculture allied

activities

ConstructionRetail

Hospitality

Transportation

and logistics

Food processing

Healthcare

Mineral processing Auto and Auto components

IT-ITES

Education and skill

development

Electronics and hardware Media and entertainment

Textile

Banking and financial services


26/29


Contents



Methodology

State Analysis

Recommendations


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Recommendations-Stakeholders


Government NSDC/SSCs

Industry Training Providers

Setting up Anchor Institutes for Manpower Development in

focus industries

Offering Short term Training Programs Courses through

Public Private Partnership

Incorporating Skill Training in mainstream K12 Education

Exploiting technology for trainer development activities, as

well as to reach out to remote areas

Transformation of District Employment Exchanges into Skill

Management Centers

Support training initiatives in the priority sectors of

Construction, Mining, Textiles and Apparel, Power,Healthcare, Education and Agri-allied such as Dairy,

Poultry Farming and Horticulture

Setting up a joint forum of NSDC Investee Training

Companies, NSDC partner Training companies and

representatives of Government of Madhya Pradesh. Aimed

at bringing national/global level training providers to

Madhya Pradesh

Focus on Government endowment training schemes for

sectors of Construction, Retail, Transportation and

Logistics, Food Processing and Healthcare

Set up finishing schools for tertiary sectors with a high

salary potential, where students will be willing to pay andlearneg: IT&ITES and Banking and Financial Services

Promote cluster based skill training initiatives in PPP mode

in industrial clusters

Short term Training Programs Courses through Public

Private Partnership (PPP)

Setting up of sector skill councils(SSCs)

A task committee should be set up by Government to implement the skill development

initiatives including all the stakeholders


28/29


Thank You


Narayanan Ramaswamy

HeadEducation Advisory

KPMG India

+91 (44) 3914 5208

email: [email protected]

Akhil Krishna

ManagerEducation Advisory

KPMG India

+91 (80) 30654479


Gaurav Kumar

ManagerEducation Advisory

KPMG India

+91 (124) 43075203



29/29


National Skill Development Corporation

Block-A, Clarion Collection, (Qutab Hotel)

Shaheed Jeet Singh Marg

New Delhi 11 0 016

T: +91-11-47451600

F: +91-11-46560417Email : [email protected]


Industry Partner

For Further Details

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