Micro-credential programmes seek to narrow skills gap in India

Question: While there is a growing number of job seekers in India and elsewhere, many companies are looking for skilled talent and are not able to fill up vacancies in key sectors. Are educational institutes changing their courses and curriculum to suit emerging trends?

ANSWER: Technical institutes, universities and colleges have now started incorporating micro-credentials in their curriculum and are creating hybrid models that blend traditional degrees with skill-focused programmes. This integration enables students to have a holistic education combining deep academic knowledge with practical, job ready skills. Many industries face skill gaps that hinder growth and innovation. Micro-credentials provide a solution by offering efficient pathways for workers to gain the expertise and skills needed to fill the gaps. For example, the technology sector has benefited from micro-credential programmes in areas like cyber security, artificial intelligence and software development. Another instance is of a professional in marketing pursuing a micro-credential in digital marketing or data analytics which helps him to stay relevant in the constantly changing job market. This learning approach ensures that employees can quickly adapt to new technologies and methodologies, enhancing their employability and career progression. As the concept of lifelong learning becomes important, educational institutions in India are seeking to provide continuous development courses. In short, micro-credentials are revolutionising the education landscape by addressing the evolving needs of employees who strive to acquire evolving competencies that are relevant to their careers.

Question: Bank credit and loans given by financial institutions seem to be stagnating. Is this a sign of cooling of the Indian economy?

ANSWER: According to the latest report, aggregate bank credit grew by 4.9 per cent to Rs.172.4 trillion. Credit to industry has increased by 3.3 per cent. Therefore, there is no indication of the economy slowing down. Home loans and personal loans have also increased by 5.6 per cent, showing a rise in real estate construction activity. The highest growth recorded is in the outstanding amount of credit cards by 9.2 per cent. Similar rise is seen in online transactions. However, in one sector there is cause for concern because gold loans have increased by 50 per cent in the past seven months. This is attributed to rise in the price of gold which has provided borrowers an opportunity to secure higher amounts of loans with the same quantity of gold as security. The Reserve Bank of India has therefore directed banks and finance companies to review their gold loan policies and procedures and instructed them to rectify any deficiencies or irregular practices. Such practices pertain to evergreening of bad loans whereby additional funds are provided to enable the borrower to repay the earlier loans. This practice is contrary to RBI regulations. Banks have been directed to set right such irregularities within three months failing which appropriate action would be taken by the regulator. The sudden increase in gold loans has been attributed to the festive and marriage season which is expected to come to an end in the next few months.

HP Ranina is a practising lawyer, specialising in corporate and fiscal laws of India.