India’s demographic advantage lies in its large and youthful population. To fully harness this potential, the country acknowledges the importance of equipping individuals with appropriate skills and competencies through Technical and Vocational Education and Training (TVET). TVET plays a critical role in empowering individuals, bridging the gap between education and employment, and promoting inclusive and sustainable development.

India’s workforce comprises approximately 560 million individuals, with nearly 48 percent employed in agriculture, contributing a mere 14 percent to the Gross Value Added (GVA). In contrast, China employs 28 percent of its workforce in agriculture. The industry and services sectors account for 14.82 and 37.2 percent of employment, respectively, while contributing 24 percent and 61 percent to the GVA in 2021. Furthermore, India exhibits a low female labour force participation rate (LFPR) of 24.5 percent in FY 2021, in contrast to 60 percent in China and 55 percent in the USA. Despite having a significant working-age population, only 6.2 percent of India’s workforce has received formal skill training, compared to 70 percent in the UK and 95 percent in South Korea, as reported by the National Skill Development Policy.

India has recently surpassed China as the world’s most populous country, according to UN population estimates, marking the most significant demographic shift since records began. Based on the UN’s projections, which incorporate census data, birth and death rates, India’s population now stands at 1,425,775,850, surpassing China for the first time.

TVET is crucial in India for leveraging its population’s potential and promoting sustainable economic growth. It empowers individuals, bridges the education-employment gap, and fosters inclusive development. TVET is a shared responsibility between the Central and State governments, with private sector participation encouraged for effective skilling.

The challenges in the Indian TVET system can be summarised as follows: Firstly, vocational education needs to be made desirable and aspirational. Secondly, the informal sector, which employs 85% of the workforce, should be integrated into the skill development ecosystem. Active advocacy is required to raise awareness among youth, especially in rural and semi-urban areas, about employment opportunities through skill development. Strong industry linkages, similar to well-established TVET ecosystems worldwide, must be established. Additionally, India is transitioning from traditional job roles to future job roles due to technological advancements and demographic changes. Meeting these complex requirements requires concerted efforts from multiple stakeholders to create a skilled workforce.

Over the years, the Indian skilling ecosystem has evolved through a combination of government and private sector initiatives to address the country’s skill development needs. Apart from conventional long-term skill development programs, various short-term programs and initiatives have been introduced to recognize and formalise existing informal skills.

The Government of India (GoI) plays a dual role in skill development, serving as a policy advocate and a major financier for the majority of skill development initiatives. The Ministry of Skill Development and Entrepreneurship (MSDE) is responsible for creating policies for skill development initiatives and centrally supports their operations through the assistance of the National Skill Development Corporation (NSDC), Directorate General Training (formerly the National Skill Development Agency or NSDA), National Council for Vocational Training (NCVT), National Skill Development Fund (NSDF), State Skill Development Missions (SSDM), and other Program Implementation Agencies (PIAs). Recently, the National Council of Vocational Training (NCVT) and NSDA were merged to form the National Council for Vocational Education and Training (NCVET).

The MSDE is entrusted with scaling up skill development with speed and maintaining high standards to achieve the government’s vision of a ‘Skilled India.’ At the state level, the primary responsibility for program implementation and governance lies with the state governments through their respective State Skill Development Missions (SSDMs).

The Indian government has undertaken various ambitious missions focused on vocational training, entrepreneurship development, and enhancing employability through initiatives like PMKVY, NAPS, and sector-specific skill councils. PMKVY, the flagship program, offers short-term skill training aligned with industry needs, delivered through centres nationwide. It aims to enhance individuals’ employability by providing recognized and certified skills. Public-private partnerships are also recognized as crucial, with sector skill councils bridging the gap between training institutions and industry requirements. These councils design and align skill development programs with the evolving job market needs.

Corporate Social Responsibility (CSR) in India promotes skill development as a strategic approach. The Companies Act of 2013 requires eligible companies to allocate a portion of their profits to CSR activities. Skill development has become a major focus of CSR initiatives, with companies partnering with training institutions, NGOs, and government bodies. Through financial support, infrastructure, and expertise, these companies contribute to the skilling ecosystem.

CSR-driven skill development initiatives in India target marginalised communities, including rural populations, women, and disadvantaged youth. These initiatives empower them with employable skills, promote social inclusion, and break the cycle of poverty. By addressing limited access to education and skill development, CSR programs enable underprivileged individuals to secure better livelihoods. They equip rural populations with relevant skills, foster entrepreneurship, and promote self-sustainability. These initiatives empower women to overcome gender barriers, achieve financial independence, and contribute to gender equality. They also provide disadvantaged youth with valuable skills, improving their employment prospects and enabling them to build sustainable futures. Ultimately, CSR-driven skill development initiatives contribute to long-term social upliftment, creating an equitable and inclusive society where everyone can thrive and contribute to the nation’s progress.

TVET plays a crucial role in India’s inclusive and sustainable growth. Initiatives like Skill India Mission and public-private partnerships strengthen skill development. TVET enhances employability, social inclusion, and economic prosperity. Continued efforts and collaborations are needed to fully leverage India’s demographic advantage and create a skilled workforce. By aligning TVET programs with industry needs, India can build a robust foundation for inclusive growth, tapping into its vast population’s potential. This will drive sustainable economic development, making India a global hub for skilled labour and empowering individuals to thrive in the modern workforce.