India’s Skilling Ecosystem: Challenges, Reforms and the Road to Viksit Bharat@2047

Subject: GS 03: Economy 

Context: NITI Aayog’s report Reimagining Skilling for Viksit Bharat@2047 highlights the mismatch between the skills acquired by India’s workforce and those demanded by the labour market.

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Key Highlights

• Education–Employment Mismatch: Only 8.25% of graduates are employed in roles aligned with their qualifications, highlighting the gap between education and labour market requirements.
• Limited Training Coverage: Nearly 65% of people aged 15–59 remain without any form of training, despite over 7.67 crore people having undergone skill-based training since 2014–15.
• Weak Industry Linkages: Only around 8% of Indian firms provide on-the-job training, limiting practical learning and the transition from education to employment.
• Changing Skill Requirements: The report recommends specialised training in Artificial Intelligence (AI), green industries and electric vehicles (EVs), alongside upskilling and reskilling for workers affected by technological and occupational changes.
• Underperforming ITIs: Despite the expansion of Industrial Training Institutes (ITIs), vacant seats, outdated curricula, instructor shortages and weak placement outcomes undermine their effectiveness.

Understanding Skilling in a Changing Labour Market

• Skilling: Refers to acquiring specific competencies required to perform a job or occupation effectively.
• Upskilling: Involves acquiring advanced or updated skills within an existing occupation to adapt to technological changes and new responsibilities.
• Reskilling: Involves learning new skills to transition into a different occupation or job role, particularly when existing jobs decline or become automated.
• Human Capital Development: Economists Gary Becker and Theodore Schultz emphasised that investment in education and training enhances productivity, earning potential and long-term economic growth.

India’s Skilling Journey

• Policy Evolution: The 11th Five-Year Plan (2007–2012) strengthened the policy focus on skill development, followed by the National Policy on Skill Development (2009) and the National Skill Development Mission (2015).
• Expansion of Training Infrastructure: The number of ITIs increased from 9,776 in 2014 to 13,888 in 2026, alongside the expansion of skill development centres and vocational training programmes.
• Major Government Initiatives: Programmes such as Pradhan Mantri Kaushal Vikas Yojana (PMKVY), Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) and National Apprenticeship Promotion Scheme (NAPS) aim to improve employability and practical training.
• Persistent Outcome Gap: Despite expanded infrastructure and training coverage, limited industry linkages, outdated curricula and inadequate placement opportunities have constrained the translation of training into gainful employment.

Why is skill development important for India?

• Demographic dividend: Around 65% of India’s population is below 35 years of age. Equipping young people with relevant skills is essential to convert this demographic advantage into economic growth.
• Employment generation: Skill development can improve employability, facilitate transitions into formal employment and support entrepreneurship.
• Industrial competitiveness: Industry-aligned training can address shortages of skilled workers and improve productivity.
• Technological transformation: AI, automation, electric mobility and green technologies are changing occupational requirements, making continuous learning necessary.
• Inclusive development: Accessible vocational education can expand livelihood opportunities for women, rural youth and disadvantaged communities.
• Viksit Bharat@2047: A productive and adaptable workforce is essential for achieving the vision of a developed India by 2047.

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Major Challenges in India’s Skilling Ecosystem

• Education–Employment Mismatch: A degree-centric education system often prioritises theoretical knowledge over practical competencies and industry-relevant skills, leaving graduates inadequately prepared for available jobs.
• Outdated ITI Curriculum: Many ITIs remain concentrated on traditional manufacturing trades, with inadequate emphasis on services, AI, automation, electric vehicles and green technologies.
• Vacant Seats and Weak Placement Outcomes: Poor industry linkages, low perceived prestige of vocational education and limited employment prospects contribute to vacant seats and weak placement outcomes.
• Inadequate Industry Participation: Limited apprenticeships and on-the-job training reduce opportunities for experiential learning, while employers often prefer already-trained workers rather than investing in training.
• Social and Gender Barriers: The perception that vocational education is less prestigious than conventional degrees, along with caste-based occupational hierarchies and gender stereotypes, restricts participation and occupational mobility.
• Inadequate Investment and Training Quality: Low expenditure on vocational education, shortages of qualified instructors and excessively short training courses can undermine the depth and quality of skill acquisition.
• Rapid Technological Transformation: The emergence of AI, automation and digital technologies requires continuous upskilling and reskilling, which existing training systems may struggle to deliver at the required pace.

Measures Needed to Strengthen India’s Skilling Ecosystem

• Integrate Vocational Education into Schooling: Introduce specialised Kaushal Tracks from Class 9 onwards, as proposed by NITI Aayog, to expose students to practical skills and career pathways based on local and national employment demand.
• Modernise ITIs and Curricula: Align training with industry requirements by introducing courses in AI, robotics, automation, electric vehicles, financial services and green technologies, supported by regular curriculum updates.
• Strengthen Industry–Academia Partnerships: Expand apprenticeships, work-integrated degrees, industry-led training and on-the-job learning, with incentives for employers to participate in workforce development.
• Improve ITI Quality and Placement: Upgrade infrastructure, recruit qualified instructors, establish industry partnerships and link funding with training quality, certification and employment outcomes.
• Promote Lifelong Learning: Develop accessible programmes for upskilling and reskilling, enabling workers to adapt to emerging technologies, changing occupations and evolving labour market needs.
• Make Vocational Education Inclusive: Improve access for women and disadvantaged communities through scholarships, safe training facilities, career counselling and gender-neutral trade choices, while improving the social recognition of vocational careers.
• Increase Investment and Accountability: Enhance public and private investment in vocational education, strengthen monitoring of training outcomes and ensure that courses develop marketable competencies rather than merely providing certificates.
• Learn from Global Best Practices: Adapt elements of Germany’s dual vocational education model, which combines classroom learning with structured workplace training, to India’s institutional and labour market conditions.

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Conclusion

India must move from a degree-centric approach to an employment-oriented, skills-based education system that integrates vocational learning, industry participation and lifelong reskilling. Strengthening this ecosystem is essential to harness the demographic dividend, improve workforce productivity and achieve Viksit Bharat @ 2047.

News Source: Indian Express

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