Industrial training institutes of India: the efficiency report

In India, vocational training is offered through public industrial training institutes (ITIs) and privately established industrial training centres (ITCs). The Directorate General Of Employment and Training (DGE&T) with the assistance of the International Labour Organization undertook an efficiency/impact evaluation study of the ITIs in 2002-03. The purpose of this study was to suggest activities aimed at improving the efficiency of training institutes. The study, which covered 121 training institutes in the States of Orissa, Andhra Pradesh and Maharashtra, reviewed the training policy...  [+] Show more

In India, vocational training is offered through public industrial training institutes (ITIs) and privately established industrial training centres (ITCs). The Directorate General Of Employment and Training (DGE&T) with the assistance of the International Labour Organization undertook an efficiency/impact evaluation study of the ITIs in 2002-03. The purpose of this study was to suggest activities aimed at improving the efficiency of training institutes. The study, which covered 121 training institutes in the States of Orissa, Andhra Pradesh and Maharashtra, reviewed the training policy and system, the demand for skills training, and the capability of ITIs to respond to the needs for skills training in the most efficient way. Findings indicate that: there is a lack of employment orientation in the national training system of India; there has been a decline in the demand for long-term National Council for Vocational Training (NCVT) programs in basic trades; the role of the public training sector is diminishing; public ITIs in skills training play an insufficient role in providing training for the unorganised economy (comprising 92% of the workforce); the private returns to investment in training are low; many ITIs operate at insufficient/low efficiency levels; there is a lack of accountability for the performance of ITIs; there is an imbalance in the supply of graduates and a lack of focus on skills training for the unorganised economy; there is an absence of industry participation; the national vocational qualifications are narrow and inflexible; and there is insufficient academic freedom. The report includes a set of recommendations for reforming the training system. The contents are: Executive summary; Background of the study; Efficiency of industrial training institutes; The agenda for reform.