The conundrum of skilling 4.1 crore youth over the next five years

The India Skills Report 2024 highlights significant employability disparities across states, with urban centers needing high-end tech skills and rural areas requiring more basic skills.

Written by Guest

September 25, 2024 10:46 IST

The conundrum of skilling 4.1 crore youth over the next five years

'Vocational training in India is plagued by issues of quality and accessibility.' (Image: Freepik)

By Aditya Agrawal

Amidst India’s bustling cities and vast rural landscapes, a significant challenge is taking shape—one that holds critical implications for the nation’s economy and the future of its youth. As the world’s fifth-largest economy, India’s aspiration for a ‘Viksit Bharat’ by 2047 depends heavily on equipping its young population with the skills needed to thrive in an ever-changing job market. Despite having one of the largest youth demographics globally, India finds itself in a paradox: millions of graduates remain underemployed, while industries struggle to close critical skill gaps. This challenge is rooted in a cultural and systemic bias that favors higher education over vocational training.

The India Skills Report 2024 highlights significant employability disparities across states, with urban centers needing high-end tech skills and rural areas requiring more basic skills. This disparity, coupled with internal migration, complicates skill mapping and delivery. The latest Economic Survey revealed that almost 50% of Indian youth are unemployable, indicating a mismatch between university education and job market demands. While vocational training is often seen as a fallback option, there is an urgent need to elevate its status. An education system that balances degrees with skill-based training is essential for creating a workforce equipped to thrive, complementing the pursuit of knowledge with practical skills for better employment opportunities.

Quality and Accessibility Issues

Vocational training in India is plagued by issues of quality and accessibility. Many training institutes lack modern infrastructure, updated curricula, and skilled trainers. The National Skill Development Corporation (NSDC) reports that out of the approximately 1.2 million trainers needed, only around 25% are adequately skilled and certified. This gap significantly hampers the effectiveness of skilling programs. Moreover, access to vocational training is uneven. The Periodic Labour Force Survey (PLFS) 2020-21 reveals that rural participation in formal vocational training is a mere 3.1%, compared to 7.2% in urban areas. This urban-rural divide exacerbates existing inequalities and limits opportunities for a significant portion of the population.

Funding and Investment Gaps

The disparity between higher education and vocational training is further highlighted by the allocation of resources. Public expenditure on education in India hovers around 3% of GDP, which is below the global average. Within this limited budget, a substantial portion is directed towards higher education, leaving vocational training underfunded. Insights from the Economic Survey 2024 indicate that while there has been an increase in overall education expenditure, the allocation for vocational training programs remains insufficient.

Budget 2024 Initiatives

The Government of India has made substantial investments and implemented comprehensive policies to enhance both higher education and skilling sectors. In higher education, the government allocated INR 47,619 crore for the fiscal year 2024-25, a 7.68% increase from the previous year. Key initiatives include the Rashtriya Uchchatar Shiksha Abhiyan (RUSA), the establishment of new IITs, IIMs, and central universities, amongst others. These efforts reflect a commitment to fostering a multidisciplinary, inclusive education system that meets 21st-century needs.

Conversely, the government’s skilling initiatives, such as the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) and the Skill India Mission, focus on vocational training to bridge the gap between education and employability. Despite the considerable funding and the training of millions of youths, challenges persist. The demand-supply gap in the job market, lack of reach and scalability, and inadequate monitoring mechanisms continue to remain a hurdle. The Budget 2024 introduced several initiatives aimed at addressing these challenges. A significant allocation has been made to the Ministry of Skill Development and Entrepreneurship, with a focus on upgrading training infrastructure and enhancing trainer capacities. Additionally, the budget includes provisions for the expansion of digital skilling programs, particularly in rural areas, to bridge the digital divide.

Addressing these challenges requires a multi-faceted approach. Firstly, establishing a statutory body to accredit vocational courses would help ensure and maintain high standards of teaching, examination, and research, thereby providing solid backing, accreditation, and recognition, and increasing their value. Secondly, there needs to be a cultural shift towards recognizing the value of vocational training. Awareness campaigns that highlight successful careers built on skills rather than degrees can help change perceptions. Simultaneously, the quality of vocational training institutes must be improved. This can be achieved through enhanced industry, academia and edtech collaboration, ensuring curricula are aligned with market needs and training is practical and hands-on. Continuous feedback from industry stakeholders is essential to keep training relevant and effective. Increased funding and investment in vocational training are crucial. Government policies should prioritize the expansion and enhancement of skilling programs, with a focus on rural areas to bridge the urban-rural divide.