Opinion: Building a skilled India
Govt must leverage National Education Policy, 2020, to establish an adult education framework that aligns with the needs of future workforce
By Neeraj Kumar, Ramakrushna Baral, Aman Kumar Maurya
The Indian National Policy on Education, first formulated in 1986 and later revised in 1992, emphasised access and equity in education. Over the years, India has achieved significant progress in increasing gross enrollment ratios in schools and higher education. However, these policies’ lack of focus on skill development has resulted in a growing population of unskilled, educated individuals.
According to the Human Development Report (2021-22), only 25 per cent of India’s total labour force is skilled. When it comes to formal skill training, as per the National Policy on Skill Development and Entrepreneurship (2015), only 4.7 per cent of Indians have undergone formal skill training. This figure pales compared to countries like Japan (80 per cent), the US (52 per cent) and South Korea (96 per cent).
Gig Economy
The rise of the gig economy highlights the skill deficit in India. The country has witnessed massive growth in gig-based jobs, with diversification across delivery services, e-commerce, ride-hailing platforms, and emerging opportunities in personal and home services. According to the NITI Aayog report (2020-21), 7.7 million workers were engaged in the gig economy, with 47 per cent classified as medium-skilled and 31 per cent as low-skilled.
Alarmingly, the Boston Consulting Group report (2021) revealed that nearly one in three gig workers had not completed 10th grade. This points to the absence of skill development courses in the early years of schooling, leaving students unprepared for the workforce, especially those who do not pursue higher education.
MSMEs
Micro, Small and Medium Enterprises (MSMEs) are the backbone of India’s economy, significantly contributing to GDP, generating employment and adding value to domestic supply chains. However, the lack of skilled workers remains a critical challenge, especially for micro-businesses that often lack the resources and reputation to attract skilled employees. As a result, the quality of goods and services they offer suffers, limiting their potential for growth and impact.
Addressing this skills gap is crucial to achieving the ambitious goals of initiatives like the Make in India campaign, which aims to create 100 million jobs and raise the manufacturing sector’s GDP contribution to 25% by 2025. However, as per the Department of Economic Affairs, the manufacturing sector’s current contribution is only 17.7%, far short of the target. Prioritising workforce training and skill development is essential to bridge this gap.
MSMEs have the potential to drive social and environmental progress, and by overcoming their inherent challenges through skill-building initiatives and fostering collaborations with educational institutions, India can empower MSMEs to enhance their impact and accelerate economic growth collectively.
Role of NEP
The National Education Policy (NEP) 2020 represents a paradigm shift in Indian education, transitioning from a rigid, content-heavy curriculum to a more integrated, competency-based framework. It emphasises a multidisciplinary approach, combining humanities and arts with STEM (Science, Technology, Engineering and Mathematics) subjects.
To promote skill development, NEP 2020 mandates vocational education exposure for at least 50 per cent of learners through the school and higher education system by 2025. This reimagined curriculum seamlessly integrates vocational education into the mainstream, with hands-on exposure to critical areas like IT, digital skills and emerging technologies. The goal is to equip students with theoretical knowledge and practical abilities to address real-world challenges effectively.
As per the National Policy on Skill Development and Entrepreneurship, only 4.7 per cent of Indians have undergone formal skill training as compared to 80 per cent in Japan, 52 per cent in the US and 96 per cent in South Korea
NEP 2020 also focuses on fostering collaboration between academia and industries. However, its implementation faces hurdles, including teacher training, effective governance, budget allocation and addressing underserved areas. The Ministry of Education aims to bridge these gaps through initiatives like professional teacher training programmes, ensuring a minimum of 50 hours of annual continuous professional development. Additionally, programmes such as NIPUN Bharat, launched in July 2021, aim to achieve foundational literacy and numeracy for students by Grade 3 by 2026-27.
The Samagra Shiksha Scheme (SSS), introduced in 2018 and serving as a precursor to NEP 2020, integrates various interventions, including Early Childhood Care and Education (ECCE), vocational training and digital infrastructure upgrades. Between 2022 and 2024, the government allocated Rs 1.3 lakh crore under this scheme, reflecting its commitment to education reform. Supplementing SSS are initiatives like PM SHRI (Schools for Rising India), launched in 2022, to create model schools with smart classrooms, ICT infrastructure and vocational education.
For higher education, PM USHA (Pradhan Mantri Uchchatar Shiksha Abhiyan), launched in June 2023, targets underserved regions and emphasises quality improvement in state universities and colleges. NEP 2020 introduces foundational reforms like the National Credit Framework (NCrF) and automated student IDs (APAAR) to enhance flexibility in higher education through multiple entry-exit points. These reforms empower students to pursue diverse pathways, making education more adaptable to individual needs.
Future Workforce’s Needs
According to the QS World Future Skills Index 2025, India ranks second globally, behind the US, in terms of preparedness for future job markets and in-demand skills. The report highlights India’s ability to attract venture capital and its readiness to integrate AI into the workforce. It underscores leveraging NEP 2020 to establish an adult education framework aligned with the future workforce’s needs.
India’s demographic advantage, stemming from its young labour force, is expected to last until 2040. This window presents a unique opportunity to harness the potential by building a skilled labour force. Failure to do so could squander this advantage. NEP 2020 is a policy and a strategic blueprint for creating a future where education empowers individuals and drives the nation’s success.
(Neeraj Kumar, Ramakrushna Bara and Aman Kumar Maurya are Research Scholars with the Department of Econometrics, Department of Library and Information Science, and Department of Geography, respectively, University of Madras)
