Mapping the Trajectory of Skill Development in India: The Precursor to Leverage the Demographic Dividend

Abstract

India, is a young country with 62 per cent of population aged between 20 and 59, stands at the brink of harnessing the world largest human resource pool. Despite the demographic advantage, the nation faces a substantial skill gap, with only 4.7 per cent of the workforce having received formal skill training as compared to higher percentages in developed nations. The establishment of skill development frameworks and institutions, alongside initiatives like the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), SANKALP, STRIVE, and the integration of the National Skill Development Agency (NSDA) into the National Council for Vocational & Education Training (NCVET), marks significant efforts towards closing this gap. However, challenges such as high ITI seat vacancy rates, policy uncertainties, and over-reliance on district committees for skill development persist. The corporate sector’s engagement through CSR initiatives and international projects like TEJAS indicates a recognition of the need for skilled human capital for sustainable growth. Despite these efforts, there is an urgent need for a more aggressive, coordinated, and inclusive approach to skill development, focusing on quality, relevance, accessibility, and alignment with global standards to fully leverage India’s demographic dividend and secure its position as a global talent hub.