📋 Tender Overview
Project Name
Supporting National Industrial Training Institute (ITI) Upgradation Program
Project Number
59039-001
Country / Economy
India
Project Status
Proposed
Project Type / Modality of Assistance
Loan
Source of Funding / Amount
Loan: National ITI Upgradation Program
Ordinary capital resources US$ 900.00 million
World Bank US$ 900.00 million
Sector / Subsector
Education / Technical and vocational education and training
Gender
Effective gender mainstreaming
Description
India has experienced robust economic growth recently, emerging as the world's fastest-growing major economy. It is expected to grow at 6.4% during fiscal year (FY) 2024-25 driven by strong domestic demand, increased private consumption, and significant government capital expenditure. India's recent growth has been characterized by 'jobless growth' where the increase in employment opportunities has not kept pace with the growth in gross domestic product (GDP). The manufacturing sector, which would create large number of jobs, growth has remained largely static, contributing 13% in 2022 and 2023 to the country's economic output (value added as % of GDP), and down from 17% in 2010 (in contrast, Viet Nam and Bangladesh recorded 24% and 22%, respectively in 2023). India's global manufacturing share currently stands at 2.8%, compared to the People's Republic of China's 28.8%
Project Rationale and Linkage to Country/Regional Strategy
To strengthen its industrial competitiveness, the government has launched initiatives such as Make in India which aims to create and incentivize companies for investments into manufacturing and push for the creation of jobs for skilled labor in 25 manufacturing sectors to make India the most preferred global manufacturing destination. Additionally, significant investments have been made in emerging sectors-semiconductors, artificial intelligence, renewable energy (National Solar and Green Hydrogen Mission), and electric vehicles (EV). By 2030, the EV industry is projected to create 5 million jobs while solar and wind energy production can potentially create 3.4 million jobs. Rapid automation and transformation of manufacturing technologies from these emerging and sunrise sectors, is further adding pressure on industry to constantly adapt and update its workforce requirements. As the most populous country in the world and with more than 65% of the population below the age of 35, India has massive workforce potential. India's labor force participation rate stands at 60.1%, notably below the Organization for Economic Co-operation and Development (OECD) average of 74.0%. The gap in labor force participation is primarily driven by lower participation rates among women, which stood at 41.7%, for those aged 15 and above (footnote 9), compared to the OECD average of 67.0%. Many youths, not in education, employment, or training amount to around 30% or 100 million are also growing concerns.
Impact
TBD
Outcome
TBD
Outputs
TBD
Geogr
