Industry seeks government incentives for investing 2% of CSR fund towards skilling youth

Indian industry has sought special incentives from the government to help it invest 2% of their corporate social responsibility fund towards skilling the large number of youth that enter the country’s workforce every year. This would ensure adequate capitalisation for government’s Skill India programme and in turn reduce the burden on the exchequer a huge part of the funding is currently coming from the government.

“Special incentive can be provided to industry by the government in order to invest their 2% CSR funds towards skilling initiatives in order to ensure adequate capitalization,” a report on re-engineering the skill ecosysytem said. Prepared by KMPG in association with FICCI the report was released on Thursday at the global skills summit 2016 organised by the latter.

Suggesting the policy level actions to impart training to 10 million youth that enter country’s workforce annually, the report has suggested policy-level and quality enhancement actions along with other systemic improvements that can be made to re-engineer the skills ecosystem in India.

“India needs a state-wise skill development programme and incentives to create industry in areas where labour is present,” TV Mohandas Pai, chairman of Ficci skill development committee said.
According to the report, developing skill development plans by states and central governments, based on major industries driving economic growth and rising formal employment opportunities there, is essential.

“Another important consideration is the ability of the state economies to provide employment opportunities to the local workforce versus supply skilled labour to the country,” it said.

(The Economic Times)

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