India faces a pressing dilemma—rising youth unemployment despite a shortage of skilled workers. The Graduate Skill Index reveals a concerning drop in employability to 42.6% in 2024.

Key Government Initiatives for Skill Development in India

India has launched several programs to bridge the skill gap and enhance workforce readiness across industries.

1. Skill India Mission

• Launched in 2015, it serves as an umbrella initiative for skill training through ITIs, polytechnics, and vocational centers.
• Focuses on industry-driven training and fostering entrepreneurship.
• Skill India Digital Hub is an integrated digital platform designed to connect skill development, education, employment, and entrepreneurship.

2. Pradhan Mantri Kaushal Vikas Yojana (PMKVY)

• Initiated in 2015, this flagship scheme provides short-term training and certification in various trades.
• Targets school dropouts, unemployed youth, and underprivileged groups to improve employability.
• PMKVY 4.0 (2023) focuses on industry-aligned courses, digital skills, and green jobs.

3. National Apprenticeship Promotion Scheme (NAPS)

• Launched in 2016, it promotes on-the-job training through apprenticeships in industries and MSMEs.
• Provides financial incentives to employers hiring and training apprentices.

4. National Skill Development Corporation (NSDC)

• Established in 2008, NSDC is a public-private partnership responsible for executing national skill development initiatives.
• Functions under the Ministry of Skill Development & Entrepreneurship to expand vocational training across industries.
• Engages private players to drive innovation in skill development.

5. Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY)

• A skill development program targeting rural youth, implemented by the Ministry of Rural Development (MoRD).

6. SANKALP (Skills Acquisition and Knowledge Awareness for Livelihood Promotion)

• A government initiative to enhance the quality and accessibility of short-term skill training.
• Aims to strengthen institutions, improve market connectivity, and include marginalized communities in skill programs.

7. STRIVE (Skill Strengthening for Industrial Value Enhancement)

• Focuses on enhancing skill training quality in Industrial Training Institutes (ITIs) and apprenticeships.
• Aims to improve the capabilities of India’s industrial workforce.

8. PM Vishwakarma Yojana

• Launched in 2023, this initiative supports traditional artisans and craftsmen like carpenters, weavers, and blacksmiths.
• Provides financial aid, toolkits, and entrepreneurship training to preserve and promote heritage skills.

Key Challenges in India’s Skilling Initiatives

India’s skilling ecosystem faces several challenges that hinder workforce employability and economic growth.

1. Skill Mismatch with Industry Demand

• Many skilling programs do not align with industry needs, leading to a significant employability gap.
• Traditional trades remain the focus under Skill India Mission, while demand for automation, digital, and green jobs is rising.
• Outdated curricula and lack of practical exposure further reduce market relevance.
• Over 50% of graduates and 44% of postgraduates are underemployed in low-skill jobs due to inadequate vocational training.
• Nearly half of India’s graduates are unemployable, while only 4% of the population has received formal vocational training.

2. Low Female Participation in Skilling Programs

• Women face barriers like social norms, mobility constraints, and lack of childcare support, limiting their participation in skilling initiatives.
• Many skilling courses remain male-dominated, restricting women from accessing high-paying jobs in technology and manufacturing.
• Gender-insensitive policies reduce workforce diversity and limit economic empowerment.
• 43% of STEM graduates in India are women, the highest globally, yet they account for only 14% of STEM jobs.
• Female Labor Force Participation (FLFP) is 37% (PLFS 2023), well below the global average.

3. Weak Apprenticeship and On-the-Job Training Culture

• Unlike Germany and Japan, India lacks a strong apprenticeship model, reducing hands-on experience for workers.
• Employers hesitate to invest in skill training due to attrition risks and high costs.
• Despite the Apprenticeship Act, industries remain reluctant to engage trainees.
• Work-integrated learning can bridge the gap between theory and job readiness.
• Only 27.73 lakh apprentices have been engaged in the last five years under the National Apprenticeship Promotion Scheme (NAPS).

4. Fragmentation and Overlapping Skilling Programs

• Multiple skilling initiatives under different ministries create inefficiencies, duplication, and poor coordination.
• PMKVY 4.0, DDU-GKY, and NAPS often function in silos, reducing their impact.
• Lack of a centralized skills database makes tracking progress and workforce planning difficult.
• A tech-driven, unified skilling system can enhance resource allocation and policy outcomes.
• Despite multiple government schemes, only 16% of young slum residents are aware of job opportunities matching their qualifications.
• PMKVY trained 13.7 million candidates, yet only 18% (2.4 million) secured jobs.

5. Limited Private Sector Participation and Investment

• Private sector involvement in skilling remains low due to bureaucratic challenges, weak incentives, and poor industry-academia collaboration.
• Companies rely heavily on government-led skilling programs like PMKVY instead of investing in large-scale upskilling.
• In many countries, industries drive skilling initiatives, whereas India’s model remains government-dependent, affecting sustainability.
• Skill India Digital Hub (SIDH) aims to integrate skilling with employment, but private participation remains low.

6. Skilling Challenges in Rural and Informal Sectors

• India’s skilling system is urban-centric, leaving out a vast rural and informal workforce.
• Many rural workers lack access to training centers, and migration disrupts continuous skilling efforts.
• Only 10% of the rural workforce has received formal skill training (World Economic Forum).
• Over 90% of India’s workforce is employed in the informal sector, which remains largely outside structured skilling programs.

7. Low Recognition and Certification of Skills

• A large portion of the workforce has informal skills but lacks certification, limiting job mobility and wage growth.
• Recognition of Prior Learning (RPL) under PMKVY aims to certify existing skills, but outreach remains low.
• Employers favor degree holders over vocationally trained workers, reducing the effectiveness of skill-based education.
• In the construction sector, most workers are skilled informally but lack certification, resulting in lower wages and job insecurity.

Addressing these challenges through industry-aligned training, greater private sector involvement, rural outreach, and certification programs is crucial for India’s skilling success.

Strategic Measures to Enhance and Reform India’s Skilling Ecosystem

1. Skilling for Informal and Rural Workforce Inclusion

• A Rural Skilling and Livelihood Mission should focus on agri-tech, food processing, and sustainable crafts to integrate rural populations into the formal economy.
• Mobile skill training centers, village-level skilling hubs, and digital literacy programs should be established to cater to remote areas.
• Collaboration with Farmer Producer Organizations (FPOs), Self-Help Groups (SHGs), and Krishi Vigyan Kendras (KVKs) can enhance agriculture-based skilling in organic farming, precision agriculture, and supply chain management.

2. Industry-Aligned and Future-Ready Curriculum Development

• The skilling ecosystem must transition from a supply-driven to a demand-driven model, aligning courses with Industry 4.0, automation, green jobs, and digital economy skills.
• Sector Skill Councils (SSCs) should partner with tech companies, MSMEs, and gig economy platforms to co-develop skilling modules.
• Work-integrated learning should be promoted through industry apprenticeships and immersive internship programs.

3. Strengthening Apprenticeship and Work-Based Learning Models

• A dual-learning approach, integrating classroom instruction with hands-on training, should be institutionalized across all skilling programs.
• The Apprenticeship Act should be revised to encourage private sector participation through tax incentives and wage support for trainees.
• Expanding the National Apprenticeship Promotion Scheme (NAPS) and linking it with startups, MSMEs, and Industry 4.0 sectors can enhance workforce employability.
• Gig economy-based apprenticeships should be promoted to offer flexible skill-learning pathways.

By implementing these strategic reforms, India can build a more inclusive, industry-driven, and future-ready skilling ecosystem.

To fully leverage its demographic dividend, India must address the skill gap through agile and industry-relevant training. Strengthening apprenticeships, digital skilling, and rural workforce participation is essential. A unified, demand-driven skilling ecosystem, supported by robust private-sector collaboration, can significantly improve employability. By implementing these measures, India can effectively convert its youth potential into long-term economic prosperity.