Confederation of Indian Industry Since 1895 Social – Development: A Comparative Study of Northern States Confederation of Indian Industry (Northern Region) Sector 31-A, Chandigarh 160 030 Phone: 91-172-2607228, 2605868, 2602365 Fax: 91-172-2606259, 2614974 Website: www.cii.in Economic Research & Policy Division – CII (NR) 1 Table of Contents Executive Summary ...................................................................................................... 3 1. Interdependence of Economic and Social Development ...................................... 4 2. State of Social Development in NR ......................................................................... 5 3. Healthcare ................................................................................................................. 9 4. Education ................................................................................................................ 14 5. Skill Development ................................................................................................... 17 Economic Research & Policy Division – CII (NR) 2 “The real wealth of a nation is its people and the purpose of development is to create an enabling environment for people to enjoy long, healthy and creative lives”. -The First Human Development Report, UNDP, 1990 Executive Summary This paper is an attempt to analyse the progress made by various Northern Region (NR) States (UT of Chandigarh and States of Delhi, Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab, Rajasthan, Uttar Pradesh and Uttarakhand) on the social development front, as it has a direct bearing on the economic well being of the people of the region. The key highlights of analysis on Health, Education and Skill Development in the region are as follows: • NR performance on the Human Development Index (HDI) is far from satisfactory. The UT of Chandigarh ranks 1st and Delhi ranks 4th on the HDI, and are the only two NR States in the top ten. UP, the most populous State in the country ranks 34, and Rajasthan another large State ranks 31. • What is more worrisome is the fact that the performance of NR States is not improving. In terms of improvements in HDI scores between 1996 and 2006, Uttarakhand is the only State amongst the top ten States. • The expenditure on health as a ratio of total expenditure varies across NR States. NCT of Delhi has the highest spending on health- public health and welfare and stood in 2008-09 (RE) at 8.4 per cent to total expenditure of the State. Haryana has one of the lowest spending of only 3.1 per cent of its total expenditure during the same period. Spends by Haryana, Punjab and Uttarakhand on health is lower than the average of All States. • The UT of Chandigarh has the highest number of beds available per ten thousand population and on the other hand, Uttar Pradesh has only less than two beds. Some States like Punjab, Rajasthan and Jammu & Kashmir need to improve their accessibility in terms of availability of beds. Punjab has 16 doctors per 10,000 populations, whereas in case of Himachal Pradesh it is only one doctor. • The poor performance of most of the northern region States on the Education Development Index (EDI) is an indicator of the weak education infrastructure in the northern States. Also there are significant variations in State-wise performance Delhi ranks 2nd and Uttar Pradesh is almost at the bottom at 31. Only three States of the region are in the top ten in the country. • On skill development viz number of technicians, engineers and doctors per million population Northern Region States lag behind their Southern and Western counterparts. • Himachal has the highest share of population in age group of 15-24 with formal training followed by Haryana, Punjab and Delhi. The States which are lagging on this skill development indicator are Uttar Pradesh, Rajasthan and Jammu & Kashmir. Economic Research & Policy Division – CII (NR) 3 1. Interdependence of Economic and Social Development In a developing economy like India, social infrastructure plays a crucial role in spreading the fruits of rapid economic growth to different sections of the society. It is a well established fact that there is a direct positive correlation between the development of social infrastructure, social sector performance and the level of economic development. Figure 1.1: Impact of Social Infrastructure on Economic Development Social Infrastructure Health Education & Skills Development Better Accessibility Higher Economic Development Social Sector Performance Better Standard of Living and Employability Equity in Growth Opportunities Inclusive Socio-Economic Growth Improvement in social sector performance facilitates a fair and equitable distribution of wealth, income and hence economic assets. It improves accessibility to basic social services like health and education. In this process, it makes the economic growth of a country more inclusive and broad based. The Planning Commission of India recently adopted the Tendulkar Committee's methodology for poverty estimate, which 1 includes spending on education and health besides food , again emphasizing the linkage between social sector performance and the economic well being of the people. This paper analyses the progress made by various Northern Region States (UT of Chandigarh and States of Delhi, Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab, Rajasthan, Uttar Pradesh and Uttarakhand) on the social infrastructure front, as it has a direct bearing on the economic well being of the people of the region. 1 Expert Group on Methodology for Estimation of Poverty : - Chaired By Prof. Suresh D. Tendulkar Economic Research & Policy Division – CII (NR) 4 2. State of Social Development in NR 2.1 Poverty, Income inequalities and Social sector spending On an average the NR States have fared well as compared to all India averages on these indicators. Table 2.1: Social Sector Performance Indicators at a Glance Poverty Income Inequality Spending on Social Sector@ Gini Coefficient (Income % of population Social Sector Expenditure inequality): 2004-05 (URP) below poverty line: (as % of GSDP) 2004-05 (URP#) Rural Urban States/Indicators Avg 2005-10 Haryana 14.0 0.32 0.36 4.9 Himachal Pradesh 10.0 0.30 0.32 11.7 Jammu and Kashmir 5.4 0.24 0.24 16.0 Punjab 8.4 0.28 0.39 4.4 Rajasthan 22.1 0.25 0.37 9.3 Uttar Pradesh 32.8 0.29 0.37 9.0 Uttarakhand 10.6 39.6 0.28 0.32 Delhi 14.7 0.26 0.33 na Chandigarh 7.1 na na na All State 27.5 0.30 0.37 5.8* Note: #URP – Uniform Reference Period, @ includes poverty reduction interventions, expenditures in the fields of health, education & nutrition and social assistance & social welfare. * All States as % to GDP Source: Planning Commission, Reserve Bank of India 2 • According to the criterion used by the Planning Commission of India, in 2004– 2005, 27.5% of the population was living Below Poverty Line (BPL), down from 51.3% in 1977–1978, and 36.0% in 1993-1994. Among the NR States, Uttarakhand (39.6%) had the highest level of poverty, as measured by percentage of people below poverty line, followed by Uttar Pradesh (32.8%) whereas Jammu & Kashmir (5.4%) had the lowest poverty level in the region. • Except UP and Uttarakhand all the percentage of BPL population in other NR States is less than the all India average. • Income disparities measured by the Gini coefficient is high in India. Gini coefficient in year 2004-05 was 0.30 and 0.37 for rural and urban respectively. Among the NR States, Haryana (0.32) had the highest income disparity in rural area while in urban area it was highest in Punjab (0.39). • Except Haryana in case of Urban poverty and Punjab incase of rural poverty, all other NR States fare better than the all India average on income inequalities. 3 2 Criterion used by Planning Commission to determine the poverty level is – for Urban population it is 2100 calories per person per day and for rural areas it is 2400 calories per person per day. It is based upon consumption basket that derives from 1973-74 Consumer Survey. 3 The Gini coefficient is a measure of the inequality of a distribution, a value of 0 expressing total equality and a value of 1 maximal inequality Economic Research & Policy Division – CII (NR) 5 • Social sector expenditure as percentage to GSDP is higher in special category States, Jammu & Kashmir (16.0 per cent) and Uttarakhand (10.6 per cent) as compared with other non-special category States in the Northern Region. • Except Punjab and Haryana, other NR States, for which data is available have much higher spends on social sector as compared to all State average. 2.2 Human Development Index As per the United Nations’ Human Development Report 2009, the Human Development th Index (HDI) for India in 2007 was 0.612, placing it at 134 position among 184 countries. In this light, it is important to look at the intra-State disparities that have led to the dismal performance of India on HDI. The HDI captures human development in terms of three indicators: health (life expectancy), education (literacy) and standard of living (per-capita income adjusted for inequality). The following figures show the level of human development in each of the northern States: Figure 2.1: Relative Positioning of NR States on HDI Scores 2006 0.9 0.8 0.7 0.6 0.5 Chandigarh, 0.784 Himachal Pradesh, 0.667 Punjab, 0.668 Delhi, 0.740 Uttarakhand, 0.652 Rajasthan, 0.541 Haryana, 0.643 Jammu & Kashmir, 0.590 Uttar Pradesh, 0.528 0.4 0.3 0.2 0.1 0 NR States/UTs Source: Gendering Human Development Indices-2009, Ministry of Women & Child Development Note: HDI was computed by UNDP and IIPA for Ministry of Women & Child Development Economic Research & Policy Division – CII (NR) 6 Figure 2.2: Performance on Human Development Index 2006 – Rankings of NR States/UTs Health Education Income Human S.No. States/Union Territories Index Index Index Development Index 1 Chandigarh 3 3 1 1 2 Delhi 14 1 3 4 3 Punjab 16 22 7 14 4 Himachal Pradesh 19 19 9 15 5 Uttarakhand 21 16 22 19 6 Haryana 23 24 5 21 7 Jammu & Kashmir 24 27 28 27 8 Rajasthan 30 34 31 31 9 Uttar Pradesh 33 30 34 34 Source: Gendering Human Development Indices-2009, Ministry of Women & Child Development Note: Health Index is the Index of ‘A long and healthy life’ based on Infant Mortality Rate and Life Expectancy at age 1; Education Index is the Index of ‘Knowledge’ based on 7+ Literacy Rate and Mean Years of Education for 15+ age group; Income Index is the Index of ‘A decent standard of living’ based on Earned Income and HDI is the ‘Human Development Index’. States/UT ranked between 1 to 10, States/UT ranked between 10 to 20, States/UT ranked between 20 to 35 Decadal rate of improvement in Human Development Index (2006 over 1996) for the NR States/UTs reveal the following trend: Figure 2.3: Rankings based on Improvement in HDI Scores Health Education Income Human Development S.No. States/Union Territories Index Index Index Index 1 Uttarakhand 2 2 3 1 2 Himachal Pradesh 19 12 7 11 3 Haryana 17 13 12 15 4 Uttar Pradesh 13 8 33 16 5 Rajasthan 10 16 32 18 6 Chandigarh 29 27 6 22 7 Delhi 27 20 24 26 8 Jammu & Kashmir 18 28 35 29 9 Punjab 28 15 30 30 States/UT ranked between 1 to 10, States/UT ranked between 10 to 20, States/UT ranked between 20 to 35 Source: Gendering Human Development Indices-2009, Ministry of Women & Child Development Note: Rankings are based upon the differential of HDI values for 2006 over 1996 Economic Research & Policy Division – CII (NR) 7 The tables in the previous page throw up some interesting conclusions: • While the NR States have done reasonable well on the Economic Index, with 5 States being in the top ten rank, the performance on Health and Education indices is not so good. The overall performance is also not very good with only Chandigarh and Delhi being in the top ten. Two of the largest States in the region, Uttar Pradesh and Rajasthan rank very low at 34 and 31 respectively. • The NR States have also not done well in terms of improvements in HDI scores, with only Uttarakhand featuring in the top ten on the rankings based on improvements in HDI scores between 1996 and 2006. • The relatively prosperous State of Delhi and UT of Chandigarh rank 4th and 1st respectively on the overall HDI index, reaffirming the linkage between economic prosperity and social development. Economic Research & Policy Division – CII (NR) 8 3. Healthcare Inspite of the fact that healthcare industry in India is one of the fastest growing, India’s healthcare infrastructure has not kept pace with the need. The physical infrastructure is inadequate to meet today’s healthcare demands, in most States. For instance, India needs 74,150 community health centers per million populations but has less than half that 4 number . As per the National Heath Account (NHA) (2004-05), the total health expenditure in India, from all the sources, constituted 4.25 per cent of the GDP. Of the total health expenditure, the share of private sector was the highest at 78.05 per cent, public sector at 19.67 per cent and external flows contributed 2.28 per cent. The provisional estimates from 2005–06 to 2008–09 show that health expenditure as a share of GDP has came down to 4.13 per 5 cent in 2008–09 . Of all the dispensaries and hospitals 54 per cent and 73 per cent 6 respectively are privately managed along with voluntary organizations . Categories Bigger States (Population above 10 million) Smaller States (Population below 10 million) India/States/ Union Territories Delhi Haryana Jammu & Kashmir Punjab Rajasthan Uttar Pradesh Himachal Pradesh Uttarakhand Chandigarh India Table 3.1: Health Sector at a Glance Performance Indicators Health Infrastructure Indicators IMR MMR CDR Health Doctors* Per Beds per (2008) (2004-06) (2008) centers 10,000 People 10,000 (2008(2008) people** (2008) 09) 35 NA 5 49 3 14 54 17 7 2939 2 3 49 NA 6 2367 10 4 41 14 7 3468 16 4 63 48 7 12594 5 5 67 53.8* 8 24726 3 2 44 NA 7 2593 1 12 44 NA 6 2059 NA 8 28 53 NA 21 4 7 16 1,73,770 NA 7 23 4 Source: Registrar General of India, Ministry of Health & Family Welfare, Medical Council of India Note: * Allopathic Doctors with Recognised Medical Qualifications (under IMC Act) and Registered with State Medical Councils in India, ** include only Govt. hospitals CDR: Crude Death Rate IMR: Infant Mortality Rate MMR: Mother Mortality Rate Health Centers: Includes sub centers, primary health centers & community health centers It is interesting to note that the smaller States in general have done better on some of the health indicators including IMR, CDR and beds per 10,000 people. 4 Health Status Indicators 2008-09, Central Bureau of health Intelligence India Annual Report to the People on Health, Ministry of Health & Family Welfare, GoI, September 2010 6 Healthcare in India, Emerging market report – 2007, PwC 5 Economic Research & Policy Division – CII (NR) 9 3.1 Performance on key health indicators Infant Mortality Rate: It denotes the number of deaths of infants under one year old in a given year per 1,000 live births in the same year. Figure 3.1: Estimates of Infant Mortality Rate (IMR) Infant Mortality Rate (IMR), 2008 67 63 54 53 49 44 41 44 35 28 12 India Kerala Chandigarh Uttarakhand Pradesh Himachal Uttar Pradesh Rajasthan Punjab Kashmir Jammu & Haryana Delhi Source: Registrar General, India and SRS Bulletin, Volume 44, No.1 October 2009. *IMR for smaller States (HP & Uttarakhand) and UTs (Chandigarh) are based on three years period 2006-08 As can be seen, the best performers among the Northern States on IMR are Chandigarh, Delhi, Punjab, HP and Uttarakhand. The situation is alarming in UP & Rajasthan, where the IMR is much higher than the all India average. There is a huge gap between the best performing States in the region as compared to Kerala which has the lowest IMR. Crude Death Rate: The Crude Death Rate measures the rate of deaths for every one thousand people in a given population Figure 3.2: Crude Death Rate (CDR) Source: Registrar General, India and SRS Bulletin, Volume 44, No.1 October 2009. Economic Research & Policy Division – CII (NR) 10 In India, Crude Death Rate (CDR) has decreased from 25.1 in 1951 to 9.8 in 1991 and further to 7.4 in 2008. The northern States have also shown the similar trend. However Uttar Pradesh has a highest CDR as compared to all India average. Maternal Mortality Rate The maternal mortality rate is a measure of the number of maternal deaths per 100,000 women of reproductive age in same time period. Figure 3.3: Maternal Mortality Rate (MMR) Maternal Mortality Rate, 2004-06 54 48 17 21 14 5 India Kerala Punjab Haryana UP/Uttaranchal Rajasthan Source: Registrar General of India, Special Bulletin on Maternal Mortality in India 2004-06 SRS, SRS Bulletin – April 2009 MMR = Maternal Death * 100,000 / Live Births The MMR remains very high in India despite the expansion in health facilities in India. In northern region, it ranges between 14 in Punjab to 54 in Uttar Pradesh. The high level of mortality during childbirth or soon after childbirth indicates the inadequacy of facilities available for antenatal care and deliveries across the country. Figure 3.4: Life Expectancy at Birth Note: * UP includes Uttarakhand; the data for other NR States are NA. Life Expectancy of India for 2005-10 periods: Overall (64.7); Male (63.2) & Female (66.4) as per United Nations World Fact Book; (September 17, 2009) Source: SRS, Registrar General of India, 2002-06 Economic Research & Policy Division – CII (NR) 11 According to the data released by Ministry of Health and Family Welfare, life expectancy at birth for Indians is 62 and 65 years for males and females respectively. Punjab has the highest life expectancy amongst the NR States of which data is available, followed by Himachal Pradesh and Haryana. Except Uttar Pradesh the female average is higher in all the States than males. UP also has the lowest Life Expectancy (Male- 60.3 and Female59.5 years) both male and female compared to other States in northern region. 3.2 Healthcare Expenditure Health outcomes are directly associated with public investment in the health sector. If we look at health outcomes like Infant Mortality Rate (IMR) and life expectancy we find that the change has been very slow. This is clearly linked to poor investments in the public health sector. Figure 3.5: Expenditure on Medical and Public Health and Family welfare Source: Ministry of Health and Family Welfare, Government of India The expenditure on health as a ratio of total expenditure varies across NR States. NCT of Delhi has the highest spending on health- public health and welfare and stood in 2008-09 (RE) at 8.4 per cent to total expenditure of the State. Haryana has one of the lowest spending of only 3.1 per cent of its total expenditure during the same period. Spends by Haryana, Punjab and Uttarakhand on health is lower than the average of All States. Economic Research & Policy Division – CII (NR) 12 3.3 Health Infrastructure An important indicator of health infrastructure is the number of hospitals, beds and dispensaries. Figure 3.6: Number of Hospital Beds and Doctors per thousand population (2008) Numbe r of Gov e rnme nt Hospital Be ds Av ailable Pe r 10,000 Population India 4.3 Haryana 3.2 Rajasthan 5.1 Uttar Pradesh 1.8 4.0 Punjab 8.4 Uttarakhand 22.5 Chandigarh 14.1 Delhi 3.6 Jammu and Kashmir 12.3 Himachal Pradesh Doctors pe r 10,000 Population 7 India J&K 10 Uttar Pradesh 3 Rajasthan 5 Punjab Himachal Pradesh Haryana Delhi 16 1 2 3 Source: Medical Council of India, IndiaStat The above figures reveal large variations in health infrastructure (in terms of Government managed hospitals) in NR States. The UT of Chandigarh has the highest number of beds available per ten thousand population on the other hand, Uttar Pradesh has only less than two beds. Some States like Punjab, Rajasthan and Jammu & Kashmir need to improve their accessibility in terms of availability of beds. Punjab has 16 doctors per 10,000 populations, whereas in case of Himachal Pradesh it is only one doctor. Economic Research & Policy Division – CII (NR) 13 4. Education Education acts as the catalyst for Human Resource Development. Education infrastructure is one of the most crucial factors for rapid economic growth and improved quality of life. The foundation of a robust education system stems from the strength of its elementary education infrastructure. The effectiveness of the elementary education framework holds the key for a successful future of an economy. The increased direct involvement of the central Government in strengthening infrastructure and delivery of elementary education has become a crucial element of the education system in India. This is important as historically the State Governments have had almost the complete responsibility for delivering public elementary education. Recently, the Right of children to Free and Compulsory Education Act was also enacted. As per the Right to Education (RTE) Act, every child in the age group of 6-14 years will be provided 8 years of elementary education in an age appropriate classroom in the vicinity of his/her neighborhood. With the Act being implemented, the State Governments need to get their act together to deal with issues such as poor student-teacher ratio, poor infrastructure in existing schools and spiraling dropout rates. Both the Central Government and State Governments have also given significant importance to the higher education. The drive for improving higher education infrastructure stems from the fact that better higher education facilities widen the pool of skilled human resources. Supplemented by the vocational training institutes, higher education infrastructure provides means to strengthen the labour market delivery mechanism. 4.1 Education Development Index for Northern States As per the Educational Development Index (EDI) of Indian States/UTs, the performance of education sector in NR varies significantly. The Education Development Index captures the status of education development in the region across key variables. These variables include indicators measuring access to education, infrastructure, teacher infrastructure and outcome or performance measures. Table 4.1: Educational Development Index for NR States/UTs State / UTs Score on EDI Rank Delhi 0.707 2 Chandigarh 0.690 5 Himachal Pradesh 0.668 7 Punjab 0.608 14 Uttarakhand 0.605 15 Jammu & Kashmir 0.597 16 Rajasthan 0.583 19 Haryana 0.556 23 Uttar Pradesh 0.482 31 Source: National University of Educational Planning and Administration (NUEPA) – 2005-06 There are significant variations in the performance of the northern States on this composite nd index. Delhi ranks 2 and Uttar Pradesh is almost at the bottom at 31. Only three States of the region are in the top ten. The poor performance of most of the northern region States on the EDI, is an indicator of the weak education infrastructure in the northern States. Economic Research & Policy Division – CII (NR) 14 4.2 Education Infrastructure and performance indicators for NR States In terms of expenditure on education, as a percentage of respective State GDP, only Chandigarh and Haryana are below the all State average. Chandigarh has the highest literacy rate in the region while Jammu & Kashmir and Uttar Pradesh have been lagging behind significantly. 4 out of 9 States/UTs (Delhi, Uttarakhand, Rajasthan and Himachal 7 Pradesh) have a Gross Enrolment Ratio above the national average whereas in terms of 8 Pupil Teacher Ratio all NR States fare better than the all State average except UP. Figure 4.1: Education Infrastructure & spending in the northern States- Source: Selected Education Statistics, State Budget documents Figure 4.2: Performance Indicators for Northern States 120 50 45 44 100 40 80 29 33 32 31 27 60 33 35 30 25 25 20 40 15 14 20 10 8 5 0 0 Haryana Himachal Pradesh Jammu & Kashmir Punjab Rajasthan Uttar Pradesh Uttarakhand Delhi Chandigarh All India Literacy Rate 67.9 76.5 55.5 69.7 60.4 56.3 71.6 81.7 81.9 64.8 Gross Enrolment Ratio 84.8 112.7 88.8 83.6 104.4 96.4 109.3 105.5 90.3 100.5 29 8 14 31 27 44 25 32 33 33 Pupil-Teacher Ratio Note: Gross Enrolment Ratio pertains to Classes I-VIII (2005-06), Pupil-Teacher Ratio pertains to Higher Secondary Schools/Intermediate Colleges (2005-06), Literacy Rates (2001) Source: Census of India 2001, Selected Education Statistics 2005-06 7 Gross Enrolment Ratio (GER) is the total enrolment of pupil in grade or cycle or level of education, regardless of age, expressed as percentage of the corresponding eligible official age group population in a given school year. 8 Pupil-Teacher Ratio is the number of pupils enrolled in school divided by the number of school teachers Economic Research & Policy Division – CII (NR) Literacy Rate 15 Gross Enrolment Ratio PupilTeacher Ratio Figure 4.3: Higher Education Infrastructure Higher Education Infrastructure in NR 1800 1637 1600 1400 1200 1137 1000 751 800 600 400 200 325 232 228 168 169 8 95 83 7 65 169 6 8 0 Haryana Himachal Pradesh Jammu & Kashmir Punjab 43 25 Rajasthan Uttar Pradesh 87 85 19 12 14 3 Uttarakhand Chandigarh Colleges for General Education Colleges for Professional Education* Universities/Deemed Universities/Institutions of National Importance/Research Institutions Note: Data pertains to 2005-06, General Education includes Arts, Science & Commerce Colleges *Professional Educational includes Engineering, Technical, Arch., Medical, Teacher Training Colleges and Polytechnics & Others (Law, Management, MCA/IT, Agriculture etc) Source: Ministry of Human Resource Development, Abstract, Selected Educational Statistics 2005-06 Due to geographical size and higher population base, Uttar Pradesh and Rajasthan dominate the other States in the region in terms of number of higher education institutions including colleges for general education, professional education and universities. Although the distribution of higher education institutions is concentrated in these bigger States, but the proportion of colleges for professional education to colleges for general education is relatively low. Share of NR in All India for Higher Education Infrastructure Colleges for General Education Professional Education Univ/Deemed Univ/ Institutions of National Importance/Research Institutions Total All India % in the North 11699 9219 26.6 25.5 492 21410 27.8 26.2 Note: Data pertains to 2005-06, General Education includes Arts, Science & Commerce Colleges Professional Educational includes Engineering, Technical, Arch., Medical, Teacher Training Colleges and Polytechnics & Others (Law, Management, MCA/IT, Agriculture etc) Source: Ministry of Human Resource Development, Abstract, Selected Educational Statistics 2005-06 Also the share of NR in all India Higher Education Infrastructures is much less as compared to its share in population and expanse. Economic Research & Policy Division – CII (NR) 16 68 141 Delhi 18 5. Skill Development In most developed countries nearly 95% of the youth between the ages of 15 to 25 years, learn a trade or a skill, in a formal manner. This result in enhanced employability, productivity improvement and higher efficiency. However, the importance and relevance of Vocational Education & Training (VET) has not yet been established in India. In India this figure is less than 1%. If this increases to 5% to 7% of the population (should be taking some sort of VET program at any given time), it may result in about 50 million to 70 million 9 skilled people every year . In India, most of the 300 million unemployed youth are not employable. This is because they do not have skills training. VET will help them in starting small and medium businesses as well as make them employable. The following table summarizes the current status of Industrial Training Institutes (ITIs)/Industrial Training Centers (ITCs) in NR: Table 5.1: Industrial Training Institutes (ITIs)/Industrial Training Centers (ITCs) in NR Seating Number Seating Total Total Number of S. No. Name of State/UTs Capacity of Pvt. Capacity Seating ITIs/ITCs Govt. ITIs (Govt.) ITCs (Pvt.) Capacity 1 Chandigarh 2 952 0 0 2 952 2 Delhi 16 9,660 56 3,692 72 13,352 3 Haryana 81 19,656 77 6,808 158 26,464 4 Himachal Pradesh 60 6,324 54 4,252 114 10,576 5 Jammu & Kashmir 37 4,087 1 110 38 4,197 6 Punjab 94 19,236 123 10,736 217 29,972 7 Rajasthan 112 11,568 463 40,815 575 52,383 8 Uttar Pradesh 239 29,372 309 35,134 548 64,506 9 Uttarakhand 58 6,315 26 2,294 84 8,609 Total Northern Region 699 1,07,170 1,109 1,03,841 1,808 2,11,011 All India 1,987 4,05,944 4,847 5,26,568 6,834 9,32,512 Source: Planning Commission As can be observed from the data above, the Northern Region (NR) has a share of 26.5 per cent in terms of total number of ITIs/ITCs in the country whereas in terms of seating capacity its share is lower at 22.6 per cent. Figure 5.1: Skill Development Indicators in NR as compared to other regions North 335 938 1466 South 745 West 3968 No. of Technicians (Per Mn Population) No. of Engineers (Per Mn Population) 1414 East 223 428 0 1000 2000 3000 4000 5000 6000 Source: Making North India a Preferred Investment Destination, KPMG, June 2010 9 Social Infrastructure of India: Education & Training, Krishan Khanna, Chairman i Watch Economic Research & Policy Division – CII (NR) 17 The North lags the South and the West in terms of skilled professionals across categories and the gap is significantly large. Himachal has the highest share of population in age group of 15-24 with formal training followed by Haryana, Punjab and Delhi. The States which are lagging at this indicator are Uttar Pradesh, Rajasthan and Jammu & Kashmir that leads to high unemployment rate in these States. Table 5.2: Skill Formation among youth 15 - 24yrs: North India State Share of State in those % of youth in State with Formal Training (%) with formal training Jammu & Kashmir 0.4 2 Himachal Pradesh 1 5.6 Punjab 2.8 4.1 Uttarakhand 0.8 3.9 Haryana 2.8 4.5 Delhi 1.7 4.1 Rajasthan 2.5 1.7 Uttar Pradesh 6.9 1.7 Source: National Skill Development Corporation Disclaimer The information presented in this document has been prepared by CII. This paper aims to provide information to the user and care has been taken to make the information as accurate as possible. However, CII does not make any representation or warranty regarding the accuracy or completeness of the information and expressly disclaims any and all liabilities based on such information. Economic Research & Policy Division – CII (NR) 18
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