Over the last decade, India has developed a significant skilling ecosystem, primarily through the Pradhan Mantri Kaushal Vikas Yojana, which has trained approximately 1.40 crore candidates from 2015 to 2025. Despite this achievement, skilling has not become a favored career option. The employability outcomes remain inconsistent, with data from the Periodic Labour Force Survey (PLFS) revealing limited wage gains from vocational training, particularly in the informal sector where most trainees find employment.
One major issue is the low integration of skilling with educational pathways. India's Gross Enrollment Ratio (GER) stands at 28%, with an ambitious target of 50% by 2035 under the National Education Policy (NEP) 2020. Achieving this goal necessitates embedding skilling within higher education rather than merely expanding standalone vocational programs.
Moreover, only 4.1% of India’s workforce possesses formal vocational training, a modest increase from 2% a decade ago, which remains significantly lower than OECD countries where vocational enrollment is prevalent. In OECD nations, 44% of upper-secondary students engage in vocational education, with figures rising to 70% in certain European countries.
According to the India Skills Report 2025, graduates seldom pursue additional skilling after completing their degrees, highlighting the need to align skilling initiatives with formal education systems.
High attrition rates (30-40%) in industries such as retail, logistics, hospitality, and manufacturing underline the necessity for effective skilling. However, many employers do not value public skilling certifications, often preferring internal training or private platforms. This trend limits the effectiveness of government-sponsored skilling programs.
While the National Apprenticeship Promotion Scheme (NAPS) has increased participation, the benefits remain uneven, particularly among larger firms. There is also a lack of accountability, as industries are not incentivized to co-develop curricula or assessments, leaving skilling disconnected from actual labor-market demands.
Sector Skill Councils (SSCs) were intended to anchor industry-led skilling by defining standards and certifying employability. However, this core mandate is largely unmet. The fragmented accountability across training, assessment, and certification diminishes responsibility, while SSC certifications often carry little weight with employers.
In contrast, global certifications from organizations like AWS, Google, and Microsoft succeed because they prioritize outcomes, conduct graded assessments, and maintain credibility—elements often lacking in SSC certifications.
India's skilling challenge is rooted in weak accountability rather than insufficient funding or policy intent. Integrating workplace-embedded skilling and apprenticeships can enhance job readiness. Programs that embed industry ownership, such as PM-SETU, demonstrate the value of industry responsibilities in program design.
When skills are integrated with degrees and industry takes responsibility for placements, skilling can become a vital pillar of economic empowerment. Effective skilling not only enhances employment outcomes but also fosters dignity in labor and boosts productivity, enabling India to leverage its demographic advantage for sustainable economic growth.
For vocational training to succeed, it must translate into better wages. Skilling policies should align training with sector competitiveness and worker aspirations. Curricula need to be informed by real-time labor market data, ensuring closer collaboration between industry and institutions to minimize skill mismatches.
Additionally, addressing regulatory hurdles and financial constraints is vital for firms to offer competitive wages. Training models that combine rigorous selection processes, quality instruction, and assured placement support through public-private partnerships yield the best results. Finally, creating pathways that provide dignity and clear career progression is essential to shift India's skilling ecosystem from mere statistics to tangible economic impact.
Q1. What are the main challenges facing India's skilling ecosystem?
Answer: India’s skilling ecosystem faces challenges such as low integration with educational pathways, limited formal training reach, and a weak post-degree skilling culture. These factors contribute to uneven employability outcomes.
Q2. How can vocational training improve employability in India?
Answer: Vocational training can enhance employability by aligning training programs with labor market needs, ensuring that the skills taught meet industry demands, and integrating skilling into higher education.
Q3. What role do Sector Skill Councils play in skilling?
Answer: Sector Skill Councils (SSCs) are meant to define industry standards, ensure relevance in training, and certify employability. However, they often face challenges in accountability and recognition by employers.
Q4. Why is industry involvement crucial in skilling?
Answer: Industry involvement is critical because it helps align training with actual labor market needs, fosters accountability in curriculum design, and enhances the credibility of certifications.
Q5. What strategies can enhance India's skilling outcomes?
Answer: Strategies include integrating skilling with formal education, expanding apprenticeships, ensuring industry ownership in training programs, and addressing regulatory barriers to improve wage competitiveness.
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