India is at a crossroads, poised to become a global economic powerhouse. With nearly 68% of its population in the working-age group (15 to 64), India is endowed with a demographic advantage that many nations can only dream of. According to the United Nations Population Fund’s 2024 report, India’s youth will be the key drivers of economic growth in the decades to come. Yet, this immense potential can only be unlocked if we shift from merely creating jobs to fundamentally rethinking education and skill development. This shift must align with the rapid transformation of industries and global job markets in the Fourth Industrial Revolution.
Skilling: The Need of the Hour
India’s challenge today is not the lack of talent but the mismatch between education outcomes and the demands of industry. With a growing economy and a vast youth population, India must urgently address the skills gap that plagues its workforce. While the government's initiatives in skilling, such as the Skill India Mission and increased budget allocations, have shown promise, these efforts must evolve into a more strategic, cohesive, and deeply integrated approach that fosters industry-ready talent.
The 2025 Union Budget of ₹1.28 lakh crore for the Ministry of Education demonstrates the government’s dedication to this cause. Among the highlights are the PM Research Fellowship Scheme, which will offer 10,000 fellowships for cutting-edge research at premier institutions, and the establishment of National Centres of Excellence focused on high-demand industries like AI, manufacturing, and sustainable energy. The introduction of a nationwide internship framework within undergraduate education is a forward-thinking initiative that ensures graduates are not just academically competent but industry-ready, which has been a major missing link in the current educational ecosystem.
According to the India Skills Report 2023-24, only 51% of Indian graduates are considered employable. This statistic is indicative of the structural disconnect between higher education institutions and industry needs. The National Employability Report 2023 further highlights that students who participate in structured internships have a 46% higher placement rate than those who do not. This underscores the importance of hands-on learning in preparing students for the workforce.
International Lessons: Germany, Singapore, and South Korea
To build a robust skilling ecosystem, India must learn from countries that have successfully integrated skill development into their national strategies. Countries like Germany, Singapore, and South Korea provide compelling examples of how skilling, vocational education, and industry-academia collaboration can shape a nation’s workforce.
Germany’s dual education system remains a gold standard globally. Combining academic instruction with on-the-job training, the system produces highly skilled workers capable of meeting industry demands. With nearly 60% of German students entering vocational training programmes, this model ensures that graduates are immediately employable.
The system’s success lies in its collaboration between industry and education providers, ensuring that curricula are directly aligned with real-world needs. Moreover, by fostering close ties between companies and training providers, Germany has created an agile workforce, able to adapt to technological shifts in industries like manufacturing, engineering, and healthcare.
Singapore’s Skills Future initiative, launched in 2015, emphasizes lifelong learning and offers citizens subsidies and grants for continuing education. This commitment to upskilling across all stages of a person's career ensures that Singapore’s workforce remains adaptable in a rapidly changing economy.
A significant feature of Skills Future is its focus on personalized learning paths, allowing individuals to upgrade their skills in areas that align with their career aspirations. The initiative reflects Singapore’s forward-thinking approach, investing not just in training for the present but in preparing citizens for the future workforce.
South Korea’s rise as a technological and industrial powerhouse owes much to its focus on vocational education and skill development. The country’s vocational training programmes are highly tailored to meet the demands of high-tech industries like electronics, robotics, and biotechnology.
The country’s government works closely with industries to ensure that training programmes are regularly updated, reflecting the latest technological advancements. South Korea’s success is a result of its strategic focus on industry-specific education, which ensures that the workforce is ready to take on the challenges posed by an increasingly digital and automated world.
National Education Policy: A Strong Foundation
The National Education Policy (NEP) 2020 provides a robust foundation for transforming India’s education system. By emphasizing flexibility, multidisciplinary education, and skills development, the NEP aligns with both national priorities and the needs of a global economy. Key provisions of the NEP include:
● A target to expose 50% of learners in higher education to vocational education by 2025.
● An ambitious increase in Gross Enrolment Ratio (GER) in higher education from 28.4% (AISHE 2021-22) to 50% by 2035.
● Alignment with SDG 4, focusing on inclusive and equitable quality education for all.
The NEP reflects India’s commitment to adapting global best practices in education, while also ensuring that the workforce is prepared to meet emerging industry demands.
Higher Education Institutions: Strategic Partners in Nation-Building
To ensure that India’s educational institutions contribute to national growth, universities must take a proactive role in aligning their curricula with government skilling initiatives and industry requirements. Higher education institutions (HEIs) must:
1. Align curricula with government skilling initiatives like Skill India Mission and PMKVY, and ensure that students acquire industry-relevant skills alongside academic qualifications.
2. Partner with industries to offer certified short-term skilling programs that complement mainstream academic offerings.
3. Promote innovation through programs like Startup India and Atal Innovation Mission, ensuring that students are not only job-ready but also entrepreneurial.
4. Integrate mandatory internships within academic programs, ensuring that students graduate with practical industry experience.
5. Create lifelong learning ecosystems, providing opportunities for continuous skill upgrading through frameworks like the National Credit Framework (NCrF).
Balancing Skill Development and Research
While skilling is critical, we must also recognize the importance of research, critical thinking, and innovation. India has made strides in research, ranking third globally in publications, yet it still lags in global innovation indices. Building a robust research ecosystem alongside skilling will ensure long-term, sustainable development. India must create not only job-ready graduates but also entrepreneurs, researchers, and innovators who can drive breakthroughs in technology, healthcare, and other vital sectors.
A Demographic Dividend — If We Act in Time
India’s working-age population is projected to peak around 2040. This is a narrow window of opportunity. If properly skilled, India’s youth could contribute up to 2% to the national GDP annually in the coming decades. Without a structured approach to skilling, however, this demographic dividend could turn into a liability, leading to underemployment and social instability.
Conclusion: A Collective Responsibility
India’s demographic dividend is a massive opportunity that requires a collective effort from educational institutions, industries, government agencies, and society. By aligning education with the needs of the workforce and emphasizing lifelong learning, we can create a highly skilled, innovative, and globally competitive workforce.
The government’s initiatives, backed by strategic investments and reforms, provide a strong foundation. However, true success will depend on how these policies are implemented and adapted to India’s diverse needs. Only by collaborating across all sectors will we be able to transform India’s greatest challenge — its youth — into its greatest strength: a skilled, innovative, and globally competitive workforce.
Dr.(Fr.) Jose C. C. is the Vice Chancellor of Christ University
(The opinions expressed in this article are those of the author and do not purport to reflect the opinions or views of THE WEEK)