Syllabus: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
About the Report
- India Skills Report 2026 is an annual nationwide assessment of workforce readiness.
- Prepared by ETS, CII, AICTE, AIU and Taggd through surveys of students, graduates and employers.
- Aims to measure employability, skill gaps and emerging trends in the future of work.
- Helps policymakers and industry align curricula, skilling and hiring with changing economic needs.
Key Trends
- Rising Employability
- National employability increased to 56.35% (from 54.81%), showing steady improvement in job readiness.
- Women Overtake Men
- Women: 54% vs Men: 51.5%, with strong performance in BFSI, education, healthcare and in Tier-2/3 cities.
- Tech and AI Dominance
- Computer Science (80%) and IT engineers (78%) lead employability, driven by AI, data analytics, automation, cloud and cybersecurity roles.
- India holds a significant share of global AI talent.
- Shift to Skills-First Hiring
- Rise of micro-credentials, stackable certificates and experiential learning.
- Industry preference is shifting from degrees to skills-based recruitment.
- Growth of Gig Work
- Gig hiring increased ~38%, forming 16% of all jobs; projected rapid expansion by 2030.
- High Internship Demand
- 92.8% of students seek internships, with highest interest in Karnataka, Madhya Pradesh and Tamil Nadu.
- Strong Hiring Intent
- Firms plan to hire 40% more freshers next year.
- IT leads hiring at 35%, followed by BFSI, manufacturing, pharma and FMCG.
- Improvement Across Streams
- Commerce employability: 62.81% (from 55%).
- Science: ~61%; Arts: 55.55%.
- ITI: 45.95% and polytechnic: 32.92%, indicating stronger vocational pathways.
Opportunities for India
- Potential to become a global talent powerhouse due to youth numbers and digital fluency.
- Strong base for AI and emerging technologies.
- Tier-2/3 cities emerging as new skill hubs.
- Expansion of remote, gig and flexible work enables global participation.
- Strengthening industry–academia linkages reduces skill mismatch.
Challenges Highlighted
- Persistent access gaps in AI and digital skills across regions.
- Weak soft skills including communication, teamwork and problem-solving.
- Curricula lag behind rapid tech changes.
- Digital divide, high cost of devices and uneven infrastructure.
- Dependence on foreign AI tools limits domestic value capture.
- Gig work often lacks social security and income stability.
Way Forward
- Implement skills-first curriculum reforms with interdisciplinary flexibility.
- Strengthen ITI, polytechnic and NSDC skilling aligned to local industries.
- Expand digitised and affordable AI learning, especially in rural areas.
- Deepen industry–academia collaboration through mandatory internships and apprenticeships.
- Continuous faculty upskilling in emerging technologies.
- Integrate soft skills and ethics into all programmes.
- Promote indigenous AI platforms and multilingual EdTech tools.
Q- Examine how AI, automation, and digital literacy are reshaping the future skills landscape in India. (15 Marks)