Right to Apprenticeship law

Source – This post on Right to Apprenticeship law has been created based on the article “Express View on Right to Apprenticeship law: Training ground” published in “The Indian Express” on 9 March 2024.

UPSC Syllabus – GS Paper-3 – Indian Economy and issues relating to Growth, Development and Employment

News-The article presents a critical analysis of mandating Right to Apprenticeship law.

What is the Right to Apprenticeship law?

This is a proposed law which mandates private or public sector players to provide a one-year internship to any college degree/diploma holder on demand. The internship will be partially funded by the government.

What are the problems associated with mandating such law?

1) Hampers business ecosystem – The idea of forcing companies to accept candidates seeking temporary employment is undesirable. The decision to hire, even if for only a year, should be the employer’s prerogative and not a government diktat. This will discourage private investment in India.

2) High cost for private players –  The student does not contribute much to the firm’s revenues during training. Further, there’s no certainty that the apprentice who has acquired the requisite skills will remain after the training period is over.Thus,it may be an uneconomical proposition for private industries.

3) Limitation of MSMEs– MSMEs will have difficulty in investing resources for training employees due to their financial and logistical limitations.

Read more- Skill Development – Initiatives, challenges and solutions

What is the significance of mandating the Right to Apprenticeship law?

1) Creation of skilled workforce– The government subsidizing an apprenticeship training system in private industry may pave the way for proper skilling of young workforce. It can also enhance academic-industry linkage.

2) Mainstreaming of employment issues-The legal and statutory right would create the onus on the government to pay special focus on employment for youths.

3)Minimize populist scheme– A government-financed workforce training programme  can incentivize private companies to hire trained people. This is better than giving unemployment allowance schemes which lead to high fiscal deficit for state governments.

Question for practice

Critically analyze the significance of the Right to Apprenticeship law?