RETHINKING INDIA’S SKILLING OUTCOMES

Despite massive government investment and large numbers trained, skilling has not become a first-choice pathway for Indian youth, nor has it translated into strong employability or wage gains.

India’s flagship programme, Pradhan Mantri Kaushal Vikas Yojana, trained ~1.40 crore candidates (2015–2025), yet:

• Skilling lacks aspiration value
• Industry does not trust public certifications
• Most workers remain in informal jobs with limited returns to skills

Why skilling fails to inspire aspiration among youth

• Low penetration of formal vocational training
• Only ~4.1% of India’s workforce has formal vocational training
• (Data: Periodic Labour Force Survey, World Bank)
• This is only a marginal rise from ~2% a decade ago

Global comparison

• OECD average: ~44% of upper secondary students in vocational education
• Countries like Austria, Netherlands, Finland: ~70%

Disconnect between education and skilling

• India’s Gross Enrolment Ratio (GER) in higher education is 28%
• National Education Policy 2020 targets 50% GER by 2035

This target cannot be met by expanding degrees alone

Key insights:

• Skilling must be embedded within formal education, not treated as a parallel welfare programme.
• India Skills Report 2025 shows post degree skilling is not common
• Unlike global best practices, skilling does not “travel with” education in India

The structural failure of Sector Skill Councils (SSCs)

SSCs were meant to:

• Define industry standards
• Ensure relevance
• Certify employability
• Act as industry-facing institutions

But lagging:

• Extreme fragmentation
• Training: one agency
• Placement: optional / unclear
• No single institution owns employment outcomes

SSC certifications lacks credibility

SSC certificates have low signaling value since employers prefer:

• Degrees
• Work experience

Certification is often: Binary (pass/fail) or Not competency-graded

Contrast with industry-led certifications

Key reforms suggested

• Embed skills in degrees: Improve mobility between education and work
• Deepen industry ownership: Industry must Co-design curricula, Influence assessment standard
• Make SSCs answerable for: Placement outcomes and Employability metrics
• Push skilling into the workplace, not just classrooms

Skilling is not just about employment

It affects:

• Dignity of labour
• Productivity
• Demographic dividend
• Long-term economic growth

Without credible skilling, India risks converting its demographic advantage into a demographic burden.