Even as India has the largest youth population with around 254 million people between the age group of 15 to 24 years, according to the State of the World Population Report 2023, only 46.2% were highly employable, a report by Indian School Finance Company (ISFC) has revealed. This includes 51.44% females and 45.97% males, the report stated.  

According to the Skill Financing Report 2023, there has been dissatisfaction among employers due to lack of employability skills in the Indian youth. Around 78% of young people in the country lack practical skills. Furthermore, India ranks 60th globally in terms of overall skills proficiency, the report added.

Till 2015, just 4.7% of the Indian workforce had undergone skills training as compared to 80% in Japan, 52% in USA, 90% in South Korea and 68% in the UK, the State of the World Population Report highlighted. This is when the global market for vocational education and training is expected to grow to $ 1,585 billion by 2030. The global student loan market is also expected to increase to $ 8,750 billion by 2031, the report shows. 

Furthermore, the report suggested that skill development courses and online education can increase the employability prospects of the Indian workforce. It stated that there is a need for effective funding mechanisms to meet the growing demand for skilled labour across the country.

As per the report, the Indian market for skills and online education is expected to grow to $ 313 billion in 2030 from $ 180 billion in 2020, which will create an impact on the job market of the country. Public-private partnerships and innovative funding models can help in bridging this skill gap effectively.

Meanwhile, the government of India has taken several initiatives to strengthen the country’s skilling ecosystem. In 2023, through the National Skill Development Fund (NSDF) the government allocated Rs 3,513 crore to boost skill development. 
Among the states and union territories (UTs) that exhibit highly employable talent in India include Maharashtra, Uttar Pradesh, Kerala, West Bengal and Chandigarh, the report stated.  The report collected data from the Ministry of Skill Development and Entrepreneurship, Wheebox, Observer Research Foundation, and Opportunity International Edufinance.