State of India’s Skill Ecosystem

Context

World Youth Skills Day was observed on 15 July 2026 under the theme “Skills for a Shared Future.” The occasion also marked 11 years of the Skill India Mission, highlighting India’s progress and remaining challenges in building a globally competitive skilled workforce.

India’s Skill Ecosystem

Demographic Advantage

• Around 54% of India’s population is below 25 years, while nearly 62% falls within the working-age group.
• This demographic dividend is expected to remain favourable until 2040, providing a major opportunity for economic growth.

Improving Employability

• Overall employability increased from 46% (2020) to 56.35% (2026).
• The long-term objective is to create a fully employable skilled workforce by 2047.

Limited Formal Skill Training

• Only 4.1% of the workforce (PLFS 2023–24) has received formal vocational training.
• Among youth (15–29 years), formal skill training covers only 4.9%, indicating a large skill gap.

Growing AI Capability

• India contributes nearly 16% of the global AI talent pool.
• It scores 49.3 on the IMF AI Preparedness Index, higher than the emerging economy average.

Global Workforce Opportunity

• India is expected to generate a surplus of nearly 45 million skilled workers, helping bridge the projected global shortage of skilled professionals by 2030.

Rising Women Participation

• Women's employability reached 54%, exceeding male employability (51.5%) for the first time in recent years, reflecting improving gender inclusion.

Value of Vocational Skills

• Strong demand for technical and blue-collar occupations has increased earnings for skilled vocational workers, making many technical careers financially attractive.

Major Challenges

Skill–Employment Mismatch

• Formal certification often does not match industry requirements, resulting in relatively higher unemployment among certified candidates.

Declining Apprenticeships

• Low apprenticeship stipends have reduced participation, as many youth prefer better-paying gig economy jobs.

Quality Concerns

• A growing share of vocational programmes are short-duration courses, reducing practical learning and industry readiness.

Unused Training Capacity

• Many ITIs and training institutes operate below capacity due to low enrolment despite adequate infrastructure.

Limited Financial Support

• Vocational education receives a small share of the education budget, restricting modernization of laboratories and equipment.

Shortage of Trainers

• Large numbers of instructor vacancies continue to affect the quality of technical education and practical training.

Government Initiatives

Pradhan Mantri Kaushal Vikas Yojana (PMKVY)

• Provides short-term industry-oriented skill training for youth to improve employability.

PM-SETU

• Upgrades 1,000 ITIs through a hub-and-spoke model to align training with modern industrial needs.

National Apprenticeship Promotion Scheme (NAPS)

• Supports apprentices through stipend assistance and encourages workplace-based learning.

PM Vishwakarma

• Offers skill training, toolkit support and collateral-free credit to traditional artisans and craftspeople.

Jan Shikshan Sansthan (JSS)

• Provides vocational education to rural youth, school dropouts and neo-literates, promoting self-employment.

Pradhan Mantri Viksit Bharat Rozgar Yojana

• Encourages first-time employment by providing incentives to employers and supporting workforce training.

NAVYA Initiative

• Promotes technical skill development among adolescent girls in aspirational districts, including emerging technologies.

SOAR (Skilling for AI Readiness)

• Introduces AI education for school students and teachers to strengthen future digital skills.

Way Forward

Industry-Linked Training

• Expand apprenticeship-based learning with stronger industry participation and practical exposure.

Better Apprenticeship Support

• Increase stipend levels to make formal apprenticeships competitive with gig employment.

Modern Infrastructure

• Fill trainer vacancies, upgrade ITIs and encourage Public-Private Partnerships (PPP) for advanced training facilities.

Outcome-Based Certification

• Strengthen competency assessment through the National Credit Framework (NCrF) to improve the credibility and employability of vocational qualifications.