The Indian Industrial Scene and NEEM scheme


The sole purpose of writing this article is to establish a positive link between the Industry & Neem Scheme. The Indian Industrial scene has always being a very dynamic one. Right from the dawn of Industries in India, there has been some issue or the other cropping up. Well, In a way that’s what doing business in a global competitive perspective has been all about. Every nation has some unique challenges when it comes to Industrial growth. India and Indians also have their own and some very unique issues when it comes to the development of Industries.

It’s a well-known fact that Industries and business, in general, are run by the humans and for the humans. No matter how much our technology develops, there would never be a replacement for human skills and intelligence.

“Humans are characterized by the different natural qualities that include thinking, emotions, feeling, acting, etc. That is what makes us humans in a distinctive way. Our nature is completely different from the rest of the creatures in this world. We all have the individual natures that make us behave in a certain way. While it helps us in leading a comfortable way of life, it also becomes an obstacle or constraint at times.” Quote source:


Coming back to the topic, India as an industrial nation has some unique issues when it comes to skilled labor in general. The first issue is having the surplus labor force. Yes, it might sound a little offbeat but we have a surplus labor force. The Industries are not able to sustain and utilize this excess owing lack of adequate skills. What it means is that although we have lots of people lying idle for work, we still can use them as they don’t have the requisite technical knowledge.

Secondly, the labor dynamics of this country are a bit weird. Labors are unskilled, they have unions which make it even more difficult for the corporates to handle them. Whatever skilled workforce is there in the national gamut is highly volatile. They switch jobs easily, leaving the parent company with the skilled labor shortage.

Thirdly, there is a big discrepancy in labor skill sets, some skills are highly acquired by the labor force creating a surplus whereas some skills are hardly sought after creating a shortage. This leads to flawed employability patterns across the industry. Also, the work culture that these labor force have is not something to be admired. There are ethical and trust issues between management and the labor force and the management.

As a remedy to these issues, the government of India along with AICTE has come up with NEEM Scheme. A perfect synergy between Industry & Neem Scheme is what will bring forth a great positive industrial growth for our economy. NEEM Scheme offers some great incentives for the industries too.

You see, NEEM scheme works in an apprenticeship model. Here the companies hire On the job trainees for their organizations. They get paid a good stipend. Since the trainees hired under neem scheme do not come under the purview of Labor Laws, hence the problem of labor union turmoil can also be curbed to a greater extent.

The companies get to choose on from where to hire the trainees from. Typically the companies will do a tie-up with a NEEM agent, who would be responsible for adhering to the government guidelines and due compliance. He would raise a monthly bill for the same, the companies financial liability is reduced due to this arrangement. The organization now has a more disciplined and able labor workforce which can be trained according to the needs of the organization. The organization has an open option to hire the trainees as full-time employees at the end of the OJT period. They also have the option of letting go of the surplus labor force. Hence the NEEM scheme creates a win-win situation for both the workforce and the company management.

The way we see it, a perfect marriage between Industry & Neem Scheme is the best way to move ahead in this competitive manufacturing world.

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