A skills training revolution with no govt investment

The urgent need for accessible and affordable training to bridge India’s skills gap It has been recognized that India has a massive skills gap. Crores of youth need job-oriented training, but quality training centers are far and few between, scattered, expensive, and folded up as they find it hard to market their services. What if […] The post A skills training revolution with no govt investment appeared first on PGurus.

Feb 17, 2025 - 05:46
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A skills training revolution with no govt investment
India needs a scalable, self-sustaining training model to replace scattered, costly, and slow-growing centers—training plazas could be the solution

The urgent need for accessible and affordable training to bridge India’s skills gap

It has been recognized that India has a massive skills gap. Crores of youth need job-oriented training, but quality training centers are far and few between, scattered, expensive, and folded up as they find it hard to market their services.

What if we could radically transform skill development in an order of magnitude with no investment by the government?

The idea is to simply create training plazas (or training courts, like food courts) across India, providing shared spaces where independent trainers and training institutes can provide diverse courses under one roof.

This model already works in China, where training streets and plazas bring together various trainers, creating a thriving skill development ecosystem.

If implemented in India, it could multiply training availability by an order of magnitude, reduce costs, and create millions of job-ready professionals, at no cost to the Government, in fact, add to the GDP and bring in revenues by way of taxes.

The training plaza model: Nationally scalable

Instead of scattered, standalone training centers struggling to survive, imagine a network of high-visibility Training Plazas in every major Indian city and town. These plazas would:

  • Offer shared infrastructure (classrooms, labs, digital boards, online booking systems).
  • Allow multiple trainers to operate under one roof, reducing overheads.
  • Create organic footfall, making it easier for trainees to find the right course.
  • Enable rapid scaling of training programs without needing government subsidies.

The best part? The government doesn’t need to fund it.

Property developers and private investors can build these on a BOOT (Build, Own, Operate, Transfer) or BOO (Build, Own and Operate) basis, ensuring a sustainable, market-driven solution.

Who will own the land for training plazas?

There are many main approaches to how the land for Training Plazas is acquired and managed.

1. Private developers buy and own the land (purely market-driven model)

How it works: Real estate developers or investors buy land and construct training plazas, then lease spaces to trainers.

Why it’s viable: Developers see this as a profitable commercial real estate venture (similar to co-working spaces or malls).

Government’s role: Limited to ensuring fast-track approvals and encouraging investment under a BOO (Build, Own, Operate) agreement.

Best for: Major cities and towns where private investors already operate commercial properties.

2. Government provides land on a lease model (Public-Private Partnership – PPP)

How it works: The government leases land at concessional rates to private developers under a BOOT (Build, Own, Operate, Transfer) agreement.

Developers build and operate training plazas for 20-30 years, after which the government may take over or re-lease.

Why it’s viable: Reduces entry barriers for private investors in smaller towns where land prices might be a constraint and developers may not have enough experience in such models of working.

Government’s role: Providing land on long lease as a facilitator, without much subsidies.

Best for: Tier-2 and Tier-3 cities/ towns, where private developers might hesitate to invest in training infrastructure without incentives.

3. Land owned by educational/ industrial trusts or large corporates (CSR & Institutional Model)

How it works: Large educational institutions, corporate CSR initiatives, or industry associations (like CII, FICCI, or Nasscom) set up training plazas on their own land.

They lease spaces to individual trainers and skill providers, ensuring alignment with industry needs.

Why it’s viable: Corporates get job-ready employees through targeted skilling.

Institutions diversify revenue by leasing spaces to trainers (individuals and organizations).

Government’s role: Policy support and industry collaboration.

Best for: Specialized training hubs (IT, manufacturing, healthcare, etc.).

Which model is the best?

Any model that works in a particular city/ town should be right.

In metro cities and commercially strong areas, private developers can drive the model without government involvement.

In smaller towns, a PPP approach with government-leased land can help attract private investors.

In sector-specific training, corporates and institutions can use their land for skill development.

Ultimately, a mix of these models can rapidly expand training infrastructure across India without government expenditure.

Why property developers will be interested

Training plazas offer an entirely new category of commercial real estate. Developers can:

  • Lease spaces to multiple training providers, ensuring steady rental income.
  • Use underutilized properties (like old malls, and large office spaces) to create profitable training hubs.
  • Once the model is found to work in some places, they will invest on their own without being prodded.
  • Benefit from government facilitation (not funding) through fast-track approvals and zoning relaxations.

This model incentivizes private investment, reducing the need for government spending while rapidly expanding access to quality training.

How training plazas benefit trainers, trainees, and the job market

1. Making training centers viable almost instantly

The biggest challenge for trainers is getting enough students fast enough to be profitable. A Training Plaza solves this problem by:

  • Creating natural footfall: passers-by and students coming for one course discovering others.
  • Providing shared marketing: trainers get free exposure from plaza-wide promotions.
  • Eliminating infrastructure costs: trainers rent only when needed, reducing risk.

This means a trainer can break even instantly or within weeks, not months or years, making training more accessible, scalable, and profitable.

2. Cost-effective marketing for trainers

Instead of each trainer struggling to market individually, Training Plazas allow for shared, low-cost promotion:

  • Cross-promotion: Trainers can bundle courses (e.g., coding + soft skills), offer discounts, and refer students to each other.
  • Centralized digital platform: A common website ranks high on Google, bringing in organic traffic.
  • Shared social media ads: A joint advertising budget means every trainer gets exposure at a fraction of the cost of running separate ads.
  • Corporate tie-ups: Companies and colleges can enroll trainees in bulk, reducing reliance on individual sign-ups.

These strategies make each training center dramatically more viable than if it operated alone.

3. Exploding training availability (not just incremental growth)

The current laissez-faire training model grows slowly because every new center requires a huge upfront investment. Training plazas change the equation completely:

  • Trainers no longer need to set up full-fledged centers. They can start instantly in a shared space.
  • With low-risk entry, thousands of new trainers can launch, increasing training availability 10X or even 100X faster than today.
  • Students get more choices under one roof, leading to higher enrollments and better skill diversification.
  • This is not just incremental growth; it’s a complete transformation of the training ecosystem.

Why the government’s role should be limited to facilitation

Unlike traditional skill development schemes that require heavy subsidies, Training Plazas can be a fully private, self-sustaining model. The government only needs to:

  • Fast-track approvals for property developers.
  • Ensure flexibility to allow training hubs in commercial areas.
  • Enable digital integration (e.g., linking plazas with Skill India, and NSDC programs).
  • Promote awareness so trainees and trainers know where to find these hubs.

This keeps the taxpayer burden low while enabling massive private-sector-led expansion of training.

How training plazas will boost the economy

This model will:

  • Rapidly increase skilled workforce availability, making India more attractive to investors.
  • Bridge the industry-academia gap, ensuring companies get job-ready employees.
  • Create thousands of trainer-entrepreneurs, reducing dependency on government jobs.
  • Unlock new real estate value, turning underused properties into thriving business hubs.
  • Make training viable even for extremely small niche skills training

With minimal government involvement and maximum private-sector efficiency, training plazas can create a national training revolution.

A new path for India’s skills economy

India needs a massive, scalable, and self-sustaining training model, not scattered, expensive, and slow-growing centers. Training plazas could be the answer.

If implemented, this model can revolutionize India’s skilling ecosystem, creating millions of job-ready professionals and making India a global leader in workforce development.

This project needs initiative by the government to bootstrap it, inviting bids from property developers, investors, corporates, etc. Left to themselves, no one will take the initiative.

It’s time for India to think big, and build the training infrastructure of the future.

Note:
1. Text in Blue points to additional data on the topic.
2. The views expressed here are those of the author and do not necessarily represent or reflect the views of PGurus.

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