Analysis of Skill Development in India

There has been an increasing emphasis on skill development and vocational education in India marked by a steady increase of government spending and the broadening of the skill ecosystem in India. Despite this, the unemployment problem remains glaring.

With a total workforce of 476.47 million (World Bank, 2021), it has been shown that only 4.7% had undergone formal skill training in India as against 80% of the workforce of Japan, 52% in the US, 68% in U.K. 75% in Germany, and 96% in South Korea (MSDE, GOI, 2015). While it is safe to assume that the share of skilled labour force to India has increased from 2015, it can’t be concluded that the addition has been significant.

It is useful to note the changing employment patterns in the economy, with a steady revival of the manufacturing sector, and the attempts at integrating the informal and unorganised sectors which comprise up to 69% of the economy. It was also estimated that 109.73 million workers will be required to sustain the impetus on 22 key manufacturing subsectors by 2022 (British Council, 2016). It was also estimated that an additional 29.8 crore farm workers needed to be skilled (MSDE, GOI, 2015).

This paper aims to understand the growth of skill education in India and the challenges facing skilling and subsequent employability. The study will be based on secondary data analysis published in various reports, policy documents issued by various ministries of Government of India.