Skill Development: A Necessity in India

India has a large and talented young population compared to leading global economies. Around 63% of India's population is between 15-59 years old.  This means that India has the capacity to emerge as one of the largest leading economies of the world. However, this capacity will only be fulfilled if India works towards increasing the efficiency (enhancing the productivity) of the demographic dividend (its workforce). India needs to come up with social and economic policies focussed on improving health and education to unlock the potential of this young population and generate significant economic growth.

Importance of Skill Development

To benefit from its young workforce, India must focus on skill development. Young individuals seeking employment after completing their education should receive proper training, regardless of their caste, class, gender, race, or ethnicity. Skill development is key to empowering them and fulfilling their career aspirations.

Every individual, regardless of caste, class, gender, race, or ethnicity, should have access to skill development programs to fulfill their aspirations and secure employment after completing their education.

Present Scenario of Skill Development

Skills and knowledge are crucial for economic growth. Investing in skill development is more impactful (beneficial ) than investing in any other sector. Unfortunately, only about 4.6% of India's workforce has received formal training, compared to 75% in Germany and over 95% in South Korea.

This mismatch between skills, education, and job requirements results in employers struggling to find skilled workers, while job seekers struggle to find suitable employment. 

Thus, there is a huge mismatch between skills, academic training and employment, as a result of which employers are not able to discover suitably trained people and youth are not able to find the kind of jobs that they aspire for. 

The ICE 360° Survey  on skill level in India categorizes (classifieds) skill into four types:

  1. Level 1 Level 1-skills involving simple and routine physical or manual tasks. For example, hawker, street vendor, gardener, cook, construction worker, etc.

  2. Level 2 Level 2-skills involving operations of machinery and electronic equipment. For example, plumber, electrician, mechanic, etc.

  3. Level 3 Level 3-skills involving written records of work, simple calculations, good personal communication skills. For example, clerical, supervisory level, etc.

  4. Level 4Level 4-skills involving decision making. For example, doctors, lawyers, scientists, engineers, etc.

Levels 1 and 2 are associated with low paid informal jobs while levels 3 and 4 are associated with higher qualifications. Currently, 56% of India’s workforce falls under Level 2, while 30% belong to (is at) Level 1.

However, the 21st-century economy demands higher-level skills, making skill development essential for progress.

Challenges in Skill Development

There are various issues in skill development that need to be resolved. These issues are


Skills Mismatch (No Industry-Academia Linkages) -The skills taught in schools and colleges often do not meet industry requirements due to a lack of collaboration (interaction) between educational institutions and industries. As a result, people are skilled but they do not get suitable employment in the industry.

(Lack of coordination between industries and educational institutions creates a gap in required and available skills.)

Limited Infrastructure (Insufficient Capacity) – India lacks skilled trainers and proper facilities to train youth efficiently.

Unorganized Sector – About 93% of India's workforce is in the unorganized sector, making skill mapping and training difficult.

Poor Quality Training Programs – Many free training programs focus on quantity over quality, leading to skill gaps.(, leaving trainees with inadequate skills.)

Overlapping Government Programs – Multiple government skill development programs exist, but they lack coordination, leading to inefficiencies. (leading to inconsistent norms, curricula, and certifications.)

Low Enrollment:
Despite the availability of training institutes (Although India has many skill training institutes), enrollment remains low due to a lack of awareness about skill development programs.


Solutions for Skill Development
(Resolving the Issues of Skill Development in India)

To address these challenges, the following measures are necessary:


  • Increased Investment in Education and Training: India spends (allocates) only 2% of its GDP on education, far less than developed countries(, which is much lower than developed nations). More funding is needed to integrate vocational training into the education system, introducing students to industry-relevant skills early. ( to introduce students with industry-relevant skills early.)

  • Train the Trainers – More professional trainers are needed to impart skills effectively (India needs skilled trainers to train the youth). Central and State governments should establish (launch) teacher training programs to produce qualified instructors.

  • Conduct Skill SurveysConducting skill surveys in the unorganized sector can help identify skill gaps and design targeted training programs. 

(A survey of the unorganized sector can help identify skill gaps and plan better training programs.)

  • Enhance Industry-Academia Collaboration: Industries and educational institutions must work together to align training programs with industry needs, ensuring trainees acquire relevant skills. (to ensure graduates meet industry needs.)

  • Ensure Inclusivity – Women and marginalized groups should be encouraged to participate in skill development programs to create a more balanced workforce. (to ensure no section of society is left behind)


Government Initiatives for Skill Development

The Indian government has taken several steps to promote skill development:


  • Establishment of Training Institutes: India has 15,154 Industrial Training Institutes (ITIs), 36 Sector Skills Councils, 33 National Skills Training Institutes, and 2,188 training partners registered with the National Skill Development Corporation (NSDC).

  • Pradhan Mantri Kaushal Vikas Yojana (PMKVY): Launched in 2015, this flagship scheme provides short-term training through ITIs  and apprenticeships. Over 10 million youth have been trained under this program.

  • TEJAS Initiative: Launched at the Dubai Expo 2020, TEJAS (Training for Emirates Jobs And Skills) aims to skill, certify, and provide overseas employment opportunities for Indians, particularly in the UAE.


Way Forward

To achieve a skilled India, increased participation from stakeholders, adequate investments, and government support are essential. A coordinated effort involving central and state governments, industries, educational institutions, and trainees is necessary. Embracing emerging technologies will also play a crucial role in transforming India into a global knowledge economy. By focusing on these areas, India can bridge the skill gap and empower its youth to drive economic growth.


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