Political economy of skill formation in India

This study aims to study the evolution of relationships between skills, technology, state and firms in case of Indian Economy. Policy approach to skill development is supply driven and less attention is paid to demand side factors in case of India. Skill development policies in India are incremental rather than institutional or transformational. Only focusing on creation of skilled workforce and not having corrections on demand side constraints is an attempt to correct macro policy distortions through micro interventions. Study would aim to study the skill gap and wage gap and locate the presence of Skill Biased Technical Change in Indian manufacturing sector. Study uses unit level data NSSO data for analysis of 61^st and 68^th round. Study would also look at alternatives like whether Private sector financing, as an alternative, can help in solving the skill development problem in labour market of India. Studies on link between skill, employment, technological change and role of state and firms can be divided in different lines of economic thoughts namely: Neoclassical, Marxian, Empirical Based Heterodox approach, New Institutionalists and New Economics of Policy. With the help of all these theories the paper will try to determine concrete roles of state and firms in India skill development system and what policy changes can help in moving forward the skill India initiative.