Answer

Introduction

India continues to struggle with high unemployment and low employability among graduates. The Economic Survey 2023–24 reveals only 51.25% of graduates are job-ready, posing a critical challenge to harnessing the country’s vast youth potential and achieving sustainable economic growth.

Challenges in India’s Employment Landscape

• Skills Mismatch: Many graduates lack skills in emerging technologies like AI and cloud computing.
  Eg: According to the study “Hero Skills of the Future – Vision 2030”, 77% of professionals believe they lack the necessary skills to meet future job demands.
  Eg: As per AlphaBeta- Amazon Services(AWS) study, India will be needing 3.9 million cloud professionals by 2025.
• Limited Vocational Training: Very few young people receive formal training to improve their job readiness.
  Eg: The Economic Survey 2023-24,  states only 2.2% of youth have access to formal vocational training.
• Low Graduate Employability: Less than half of Indian graduates possess the skills needed by employers.
  Eg: As per India Graduate Skill Index 2025 finds only 42.6% of graduates are considered employable in 2024, down from 44.3% in 2023.
• Urban Youth Joblessness: Youth unemployment in urban areas is rising sharply due to limited job availability.
  Eg: 83% of jobless Indians are youth, says International Labour Organisation Report (2024)
• Dominance of Informal Jobs: The formal sector cannot absorb all graduates, leading many to informal work.
  Eg: Over 90% of India’s workforce is employed in the informal sector, contributing to over 50% of the country’s GDP.
• Gender and Regional Disparities: Female youth face significantly higher unemployment rates than males.
• Declining Rural Employment Programs: Government schemes like MGNREGS have faced reduced funding and implementation challenges, impacting rural employment.

These challenges show the urgent need for focused policy reforms to improve employability and job growth.

Policy Measures to Enhance Youth Employability

• Expand Vocational Training: Increase formal skill development through programs like PMKVY and  Deen Dayal Upadhyaya Grameen Kaushalya Yojana(DDU-GKY).
  Eg: DDU-GKY trains rural youth aged 15–35 for better global employment opportunities.
• Update Curriculum for Emerging Technologies: Integrate skills in AI, cloud, and other new technologies into education.
  Eg: According to People Matters India report, 81 per cent of organisations are encountering a shortage in “power user or developer” tech skills.
• Strengthen Industry-Academia Linkages: Encourage internships and curriculum design involving industries to bridge skill gaps.
  Focus Beyond National Borders: India should design skilling and training programs aligned with labor market needs of ageing Western nations to expand employment opportunities internationally.
• Establish Indian Education Services:  An Indian Education Services (IES), similar in stature to the Indian Administrative Services (IAS), should be established.
• Mandatory Idea Labs and Tinker Labs: Innovation labs must be established across schools and colleges to foster creativity and hands-on learning.
  

Conclusion

Enhancing youth employability through targeted skill development and inclusive job creation is critical for India to harness its demographic dividend. These reforms will pave the way for India to achieve its vision of becoming a ₹30 trillion economy by 2047, ensuring equitable prosperity.

DOWNLOAD PDF