Syllabus: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
Context and Background
- India built one of the world’s largest skilling ecosystems over the last decade.
- Pradhan Mantri Kaushal Vikas Yojana trained and certified about 1.40 crore candidates between 2015–2025.
- Despite scale, skilling has not emerged as a first-choice career pathway for youth.
- Periodic Labour Force Survey shows modest and uneven wage gains from vocational training.
- Informal employment absorbs most trainees, offering limited skill recognition and livelihood improvement.
Why Skilling Lacks Aspirational Value
- India’s Gross Enrolment Ratio stands at 28%, targeted to reach 50% by 2035 under National Education Policy 2020.
- Only 4.1% of India’s workforce has formal vocational training, marginally up from 2%.
- OECD countries show far higher vocational enrolment, reaching 70% in several European economies.
- India Skills Report 2025 indicates post-degree skilling is not mainstream among graduates.
- Skilling remains disconnected from formal education pathways and degree structures.
Limits to Industry Participation
- Industry faces high attrition and productivity losses, with 30–40% attrition rates in key sectors.
- Employers rarely use public skilling certifications for recruitment decisions.
- Hiring relies on internal training, referrals, or private platforms.
- National Apprenticeship Promotion Scheme improved participation but unevenly across firm sizes.
- Industry lacks incentives or obligations to co-design curriculum, assessments, or certification standards.
Credibility Crisis of Sector Skill Councils
- Sector Skill Councils (SSCs) were mandated to anchor industry-aligned skilling and employability.
- Skilling responsibilities are fragmented across training, assessment, certification, and placement agencies.
- Absence of reputational accountability weakens outcomes compared to higher education institutions.
- Employer surveys show SSC credentials carry limited signalling value in labour markets.
- Unlike global industry certifications, SSCs do not own placement or employability outcomes.
Way Forward for Sustainable Growth
- Skilling failure reflects accountability gaps, not funding or intent deficits.
- Expanding apprenticeships and embedding skills within degrees can improve job readiness.
- Initiatives like PM-SETU and ITI modernisation strengthen industry ownership models.
- Holding SSCs accountable for placements can convert skilling into economic empowerment.
