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Teacher-2-Teacher

Action plan for bridging

India's yawning skills gap

HARSHIL SHARMA

NDIA’S DEMOGRAPHIC DIVIDEND STANDS ON A India's skilling challenge is not
narrowing ledge. It’s a generational windfall that could
slip away by 2040. Despite years of policy focus and insurmountable. But its success hinges
Irising allocations for VET (vocational education and on shifting from reckless certification
training) institutions, the prospect of higher wages and
formal employment for millions of VET graduates remains to well-developed VET programmes to
a mirage. The real test of our skilling ecosystem is not the support students at key transition points
number of certificates issued, but how well they support
individuals at “moments that matter” — during the crucial
transition from VET completion to entry into the formal sure that vocational stream graduates are not left in the
jobs market. lurch.
After independence, India prioritised higher education Breaking low-wage, low-growth trap. The stark real-
over vocational training. The latter only gained policy atten- ity is that 90 percent of the country’s 640 million workers
tion after 2007 through initiatives like the National Skills slog in the informal economy with limited chances of up-
Policy (2015) and flagship schemes such as Skill India, PM- ward mobility. To break this cycle, the country’s youth must
KVY, DDUGKY, and NAPS. Consequently, during the past acquire marketable skills to access better-paying jobs in the
two decades enrolment in vocational education has risen formal sector. To realise this objective, a radical mind shift
significantly. is required, especially within educators and policy planners.
However, the critical ‘job market graduation’ moment Quality over quantity. VET institutes must provide lon-
remains uncertain for too many youth. While the share ger, industry-aligned programs. Short-term courses fail to
of formally vocationally trained individuals in the total secure stable, well-paying jobs.
workforce (2023) has grown from 2.2 percent in 2011 to Academy-industry collaboration. VET curricula and
3.7 percent, unemployment has nearly tripled — from 2.59 apprenticeship programs must be jointly developed with
million in 2004-05 to 6.97 million in 2023-24. Compared industry leaders to ensure relevance and job-readiness.
with developed nations such as South Korea and Germany DPG-driven job matching. Open, interoperable digital
where the percentage of workers with formal VET exceeds platforms that link training, certification, and job place-
75 percent of the workforce, India trails far behind. ment — modeled on systems like Harambee and Indus Ac-
Yet even as government and industry’s attention to tion’s RTE MIS — need to become widely accessible.
skilling has improved, the depth and quality of skilling Integrated social protection. Entitlements like schol-
programmes being offered under the alphabet soup of arships, free transport, and basic income must be provided
Skill India is inadequate. The rise in individuals enrolled to VET students to enable the transition to formal work.
in short-term vocational training — under six months — has India’s skilling challenge is not insurmountable. But
doubled from 22 percent in 2017 to 44 percent in 2023-24. its success hinges on shifting from reckless certification to
But, quality is compromised with graduates unprepared for well-developed VET programs to support students at key
formal sector jobs. Bridging the gap between certified skills transition points. The Union ministry of Labour & Employ-
and actual job market demand is vital for realising the true ment’s partnerships with private job platforms like Apna,
potential of vocational education and training. Foundit, and Swiggy are steps in the right direction. But
Digital Public Goods the missing link. One of the they need to be replicated in states across the country.
most promising solutions to this challenge is provided It should also be borne in mind that as AI and automa-
by digital public goods (DPGs) programs for job match- tion rapidly reshape the workforce, there’s a danger that
ing and skills discovery. In South Africa, the Harambee current skilling systems and programs may train youth for
Youth Employment Accelerator has shown how AI-driven jobs that may soon become obsolete. Therefore, leveraging
job matching platforms can dramatically improve youth DPGs for inclusive and dynamic job matching is critical to
employment. Harambee’s DPGs use real-time data, geo- ensure vocational education and training enables access to
location, and skills mapping to connect job seekers with dignified employment with living wages and social mobility.
opportunities that match their profiles. As a result, place- As NEP 2020 is being implemented, policymakers and
ment efficiency has increased by 40 percent to benefit 4 educators must ensure that VET programs prioritise depth
million youth. over breadth, quality over speed, and outcomes over output.
India Inc and policy formulators can learn from this The Indian economy requires not just more skills, but the
model. Our current job matching systems are fragmented right skills, delivered at the right time, to the right people.
and often inaccessible to those who need them most. By
investing in interoperable, open-source DPGs that connect (Dr. Harshil Sharma is Director-Government Relations of the Delhi-based
training providers, employers, and job seekers, we can en- not-for-profit Indus Action)

74 EDUCATIONWORLD JULY 2025