
0.1 What India has achieved in skilling, and why that is still not enough
0.1.1 Over the last decade, India has created a very large skilling ecosystem, mainly through government-funded programmes.
0.1.2 Between 2015 and 2025, the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) trained and certified about 1.40 crore candidates, showing strong focus on numbers trained.
0.1.3 However, despite this scale, skilling has not become a preferred or aspirational pathway, meaning young people still see degrees or direct work as more valuable.
0.2 What “poor employability outcomes” actually mean
0.2.1 Employability outcomes refer to whether trained candidates actually get better jobs, higher wages, or stable work after skilling.
0.2.2 Data from the Periodic Labour Force Survey (PLFS) shows that wage gains from vocational training are small and inconsistent.
0.2.3 This is especially true in informal employment, where most skilled workers are absorbed but certificates carry little value, leading to minimal improvement in quality of life.
0.3 Why formal vocational training reaches very few workers
0.3.1 Only 4.1 per cent of India’s workforce has received formal vocational training, meaning most workers learn skills informally on the job.
0.3.2 A decade ago this figure was about 2 per cent, showing progress has been slow despite heavy investment.
0.3.3 In contrast, many OECD countries integrate vocational education into mainstream schooling, which explains much higher participation rates.
0.4 Why international comparison matters
0.4.1 In OECD countries, about 44 per cent of upper-secondary students are enrolled in vocational programmes.
0.4.2 In countries like Australia, Finland, the Netherlands, the Czech Republic, the Slovak Republic and Slovenia, this rises to around 70 per cent.
0.4.3 This shows that vocational training works best when it is socially accepted, education-linked, and employer-recognised, not treated as a fallback option.
0.5 Why skilling lacks aspiration in India
0.5.1 India’s Gross Enrolment Ratio (GER) in higher education is 28 per cent, while the National Education Policy 2020 targets 50 per cent by 2035.
0.5.2 This expansion cannot rely only on traditional degrees, because not all learners benefit equally from academic pathways.
0.5.3 Skilling is not integrated into higher education, so students must choose between “education” and “skills”, making skills appear inferior.
0.6 Why industry participation is weak despite clear benefits
0.6.1 Industry benefits the most from skilled workers, as poor skills lead to high attrition (30–40 per cent), long training periods, and productivity losses.
0.6.2 These costs are common in sectors like retail, logistics, hospitality, and manufacturing.
0.6.3 Yet, most employers do not trust public skilling certificates when hiring and instead rely on internal training, referrals, or private platforms, weakening the public system.
0.7 Why apprenticeship reforms have not fully solved the problem
0.7.1 The National Apprenticeship Promotion Scheme (NAPS) was designed to link training directly with workplaces.
0.7.2 While participation has increased, benefits are uneven, with larger firms gaining more than smaller employers.
0.7.3 This limits apprenticeships from becoming a universal pathway into stable employment.
0.8 Why Sector Skill Councils (SSCs) are a core structural weakness
0.8.1 Sector Skill Councils (SSCs) were created to ensure that training standards match industry demand and lead to jobs.
0.8.2 In practice, responsibility is split: one body trains, another assesses, another certifies, and none are accountable for jobs.
0.8.3 Unlike universities or technical institutes, SSCs face no reputational or financial consequences if certified candidates remain unemployed.
0.8.4 Employer surveys show that SSC certificates send weak hiring signals, reducing employer trust.
0.9 What “failure of accountability” means in skilling
0.9.1 A system has accountability when institutions are judged by outcomes, not just activities.
0.9.2 In India’s skilling system, success is measured by numbers trained, not by employment or wage outcomes.
0.9.3 This turns skilling into a welfare-style intervention, rather than a productivity-driven economic tool.
0.10 What changes can make skilling economically meaningful
0.10.1 Expanding NAPS and pushing skilling into actual workplaces improves job readiness faster than classroom training alone.
0.10.2 Initiatives like PM-SETU and modernisation of ITIs signal a shift towards models where industry has ownership, not just advisory roles.
0.10.3 When skills are embedded in degrees, when industry co-designs training, and when SSCs are accountable for placements, skilling becomes a driver of economic growth, not just certification.
0.11 Core takeaway in the simplest terms
0.11.1 India does not suffer from lack of skilling programmes, but from weak linkage between skills, jobs, and accountability.
0.11.2 Without employer trust and institutional responsibility for outcomes, certificates remain symbolic.
0.11.3 Fixing this can convert India’s demographic strength into sustained national growth.