India has a severe skill shortage: FICCI Survey

The shortages are of such a serious nature that it is imperative to take immediate corrective action to maintain the growth momentum of the economy, according to a survey by FICCI.

The FICCI Survey, based on the feedback received from individual companies as well as industry associations, has identified key areas, which deserve immediate attention in terms of promoting skill development and meeting industrys requirement in 20 industry sectors.

The survey reveals that in the biotechnology sector, there is acute shortage of nearly 80% of Doctorate and Post Doctorate Scientists in the areas of Molecular Biology, Biochemistry, Biotechnology, Analytical chemistry; companies face shortages of people with Masters degree to the tune of 20%; there production staff shortage of 18% and regulatory and legal experts demanded by the industry are short by 22%.

Likewise, in the food processing sector, the FICCI Survey finds that there is a shortage of 65% of refrigeration mechanics, electricians and fitters; of food safety professionals (70%); and agricultural scientists (60%). At the same time, there is a shortage of certificate holders and persons trained in short term courses. The infrastructure at existing organizations like FPTC, ITIs, NCDC, NABARD etc., needs to be strengthened so that need-based, application-oriented courses can be organized. These need to be strengthened in terms of infrastructure, faculty, course contents etc., to make them more effective in promoting need-based training for the FPI sector.

In the banking and finance sector, responses received from companies show that in 2006 companies faced an acute shortage in several professional categories. For instance, there was 90% shortage of risk managers; IT professionals (65%); treasury managers (50%); credit operations professionals (75%); financial analysts (80%); wealth managers (80%); and economic and planning analysts (80%).

In the health sector, the survey points out that number of doctors available in the country in 2005 was 5,92,215. Current additions to the pool per year is 22,000 and the projected demand in 2012 is put at 1,200,000.

Respondents to the survey points out an acute shortage of doctors is expected over the next few years particularly anesthetist, radiologist, gynaecologist and surgeons (particularly neurosurgeons). Skills where large gaps would emerge over the next few years include basic cardiac life support, advanced cardiac life support and advanced trauma life support. The number of nurses available in the country in 2005 was 929,826. The projected demand in 2012 is estimated at 1,109,826. In the case of training imparted to nurses special focus should be given in the areas of OT, post dialysis training, trauma management, first aid training, basic cardiac life support, advanced cardiac life support and advanced trauma life support. In the case of paramedics, shortages are likely to emerge in the case of radiographers, physiotherapists, radiophysicists, ECG technicians, OT technicians and audiometrists.

In textiles, the FICCI survey reveals that about one million new jobs would be created in the textiles sector over the next few years with a projected investment of over 90,000 crore.

According to FICCI, skill shortages generally arise in the situations (a) when employers face difficulties in finding staff with the appropriate skills, experience or qualifications to fill vacancies, (b) when employers find that there are skill gaps as the existing employees lack the required skills, qualifications and experiences and (c) when employers are unable to recruit the required staff due to other factors like low remuneration, unsatisfactory working hours, distant location, dearth of sector-specific specialized skills. The findings of the quick survey conducted by FICCI show that similar situations of skill shortages exists across many segments of the industry and economy of the country. The survey says that India has moved to a position where not only the technically qualified professionals in various streams are in short supply but there also exists an acute shortage of shop floor workers.
The results of the survey, provide important insights into the areas where both the government and the industry need to focus their time and resources to address the issue at hand. Analysis of the responses received from various companies shows that we should have a twin approach towards skill and human capital development. While development of trades has a numerical aspect attached to it, development of professions has a quality aspect attached to it. On one hand the industry needs a large number of skilled workers to perform various functions at the shop floor, on the other hand the industry requires world-class professionals of excellent quality, says FICCI survey.