I agree with the views of Saiconsult. Further to these views, I have to state the follwoing:
I have been involved in the training of apprentices in a large petrochemical plant (a few decades ago). I would like to share my views on the topic.
Our education system is old and not relevant to the demands of industry. Students think that acquiring educational qualification with good grades is adequate. There are very few technical institutes (like ITIs), which impart training in basic skills. However, most ITIs do not have competent faculty and facilities. In many ITIs, despite qualified faculty, the teaching quality is very poor. The ITI-passed candidates need to be trained again by industry to enhance their skills to the required level.
There is an Apprenticeship scheme introduced by the Government under the Apprentices Act, 1961. The aim of this scheme is to (1) regulate the programme of apprenticeship training in the industry, and (2) ensure conformance to the prescribed syllabi and period of training by utilising the facilities available in industry for imparting the practical training with a view to meeting the requirements of skilled manpower of the industry. Initially, it was meant for the candidates who have passed 8th, 10th or 12th standard for different industrial trades. At the end of training, the Trade Apprentices have to pass an examination conducted by National Council for Training in the Vocational Trades (NCTVT). NCTVT was established in 1956 by the Ministry of Labour, Government of India, in pursuance of the recommendations of the All-India Council for Technical Education. It was established with a view to ensuring and maintaining uniformity in the standards of training all over the country. NCTVT has been entrusted with the responsibilities of (1) prescribing standards and curricula for craftsmen training, (2) advising the Government of India on the overall policy and programmes, (3) conducting All-India Trade Tests, and (4) awarding National Trade Certificates.
In 1973, the apprenticeship training of engineering degree and diploma holders was also brought under the purview of the Apprentices Act, 1961 by the Apprentices (Amendment) Act, 1973.
There are four categories of Apprentices:
(1) Trade Apprentices [for 8th, 10th and 12th standard passed and ITI certificate holders]
(2) Graduate Apprentices [for fresh engineering degree holders]
(3) Technician Apprentices [for fresh engineering diploma holders]
(4) Vocational Apprentices [for 10 + 2 (Vocational) passed]
The training of Trade Apprentices [serial no. (1)] is monitored by the State Government through the Regional Directorate of Apprenticeship Training. The training of the rest (Graduate Apprentices, Technician Apprentices and Vocational Apprentices) is monitored by the Central Government through the Board of Apprenticeship Training, Ministry of HRD.
The training period for Trade Apprentices varies from 6 months to 3 years, depending on the trade. There are a little more than 250 trades like Fitter, Turner, Welder, Electrician, Operators (Chemical Plant), Maintenance Mechanics (Chemical Plant), Laboratory Technician, etc.
The training period for fresh graduate engineers is one year and for engineering diploma holders 10+2 Vocational candidates, it is 3 years. Basically, this scheme is intended to meet the requirement of the skilled manpower to industry.
The number of apprentices to be trained by an industrial establishment in a certain proportion to the number of employees in different trades as prescribed by the Apprentices Act. All apprentices are paid an stipend by the company as mandated by the Act. There is no obligation on the industry to necessarily give employment to the candidates who complete the training successfully. Idea is to make these people employable in industry.
Usually, large organisations have established good training centres with very good facilities and competent instructors/trainers. However, many industries take the apprentices only to meet the legal obligation, but the quality of training leaves much to be desired. (They follow the Apprentices Act in letter, not in spirit.) Hence, many "trained" apprentices do not possess the required trade skills.
Also, the engineering institutions and industry should collaborate so that curriculum can be modified to make it suitable for the requirements of industry. The engineering institutions have a requirement of internship in industry, but it is generally not taken seriously.
I think these are reasons why there is a skill gap in the market.
A.K. Gupta