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