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India, with more than 1.4 billion people and the world’s largest population, boasts of a demographic dividend that will position the country as a global economic powerhouse. However, this potential is tied to a serious challenge: a shortage of employable talent among its vast labor force. Despite having a young and dynamic population, many Indians are not adequately equipped with the necessary skills to meet the demands of a rapidly evolving job market.
Peoplefy works closely with large GCC and IT companies for their specific talent requirements. This will shed light on the details highlighted by the article Mr Rajesh Bharatiya,
As per the 2023 report of India Skills Report 48.7% of the Indian workforce is considered employableHighlights a huge gap between the requirements of academia and industry. The report also emphasizes that India’s literacy rate is around 77.7%, but literacy does not equate to employability. Due to outdated curriculum and inadequate training, a large section of the youth are unprepared for professional challenges.
more than this 12 million people entering the workforce annuallyThe problem of unemployment becomes even more acute. The manufacturing sector, driven by initiatives like Make-in-India, faces a paradox: there are jobs to fill, but not enough skilled people to fill them. Furthermore, as automation and artificial intelligence are transforming industries, there is a growing demand for tech-savvy, cognitively skilled employees who can adapt to changing roles and environments.
Why is there a need for radical change in India’s education system?
India’s education system has for centuries focused more on theoretical education than practical knowledge, leaving graduates unprepared for the practical world outside the campus. More than 60% of Indian graduates cannot think critically and solve problems required to find jobs in technical and managerial positions.
This requires a complete change in the orientation of the education system to focus more on job-oriented technical and cognitive skills. It needs to include modules of digital literacy, artificial intelligence and critical thinking in school and college curriculum. Programs like the Skill India Mission, which aims to train 400 million people by 2025, should be scaled up and tailored to the needs of the industry.
While higher education reforms are indeed necessary, it is vocational education that can truly solve India’s employment crisis. According to the World Bank, only 5% of the Indian workforce has received formal vocational training, compared to 68% in the UK and 75% in Germany.
There is a need to deepen government-to-private sector relationships and collaborate closely to work through a nation-level network of training centers to develop skills in the key areas of construction, manufacturing, healthcare and information technology. Relevant special education can be provided. Suitable incentives like tax holidays, subsidies as well as funds for setting up all such infrastructure can be encouraged in every area including small towns and rural areas.
policy-level intervention
1. Public-Private Partnership (PPP): Establish collaboration between educational institutions, industry leaders and government to ensure that training programs meet industry standards.
2. Skill-Based Scholarship: Provide financial assistance to students from economically weaker sections to pursue skill-based courses.
3. Digital Learning Platform: Expand access to online learning platforms like eSkill India to overcome geographical and socioeconomic barriers.
India stands at a critical juncture. By addressing the employment challenge, the nation can unleash its full economic potential and cement its place as a global leader. A well-rounded education system, coupled with a strong vocational training framework, can empower millions of young Indians to contribute meaningfully to the workforce. With sustained efforts and collaboration among stakeholders, India can convert its demographic dividend into demographic dividend.
The time to act is now.
