Comparative analysis of skills development in Indian MSMEs: Gaps, programs, and international best practices

Abstract

The paper focuses on the distinct aspects pertaining to the issues and challenges of skills development in Indian Micro, Small, and Medium Enterprises (MSMEs), including the evaluation of certain government initiatives in comparison to globally accepted benchmarks. This study is guided by two questions, for which it has collected quantitative data by surveying 720 MSME owners, as well as conducting interviews with 60 experts in the industry. India’s skill development initiatives and their adoption by the industries have led to concrete outcomes, but gaps still exist in technology adoption, digital literacy, and some advanced manufacturing skills. These were studied in the context of India’s initiatives along with the successful dual education system of Germany and Singapore’s Skills Future program. 68% of the MSMEs included in the survey were missing skilled workforce, with the highest gaps in the new emerging technologies (74 percent) and in quality management (61 percent). It presents issues related to the gaps and puts forth a framework that combines the recommendations on industry-academia collaboration, tech-enabled learning designed for agile teaching, gap measurement, and constant assessment of the MSMEs.