India's Skilling Conundrum: Economic Survey Calls for Shift from Training to Sustainable Livelihoods
New Delhi: While India boasts a plethora of training programs, the nation faces a fundamental challenge in its skilling ecosystem, according to the latest Economic Survey. The document argues that the country does not suffer from a shortage of training initiatives but rather from a system that fails to reliably convert learning into meaningful livelihoods.
Workforce Growth and Employment Quality Concerns
With a massive workforce exceeding 56 crore, India is witnessing improvements in labour force participation and declining unemployment rates. However, the Economic Survey draws a crucial distinction between merely creating jobs and generating "good jobs". It urges policymakers to shift their focus toward sustainable employment opportunities that offer better earnings and improved retention rates for workers.
The demographic projections underscore the urgency of this shift. India's working-age population (15-59 years) is projected to cross 98 crore in the next decade, with approximately 65% of citizens expected to fall within this age group around 2030. This demographic dividend presents both an opportunity and a challenge for the nation's economic planners.
Critical Assessment of Skilling Ecosystem
The survey reserves its sharpest critique for India's current skilling infrastructure, highlighting several systemic issues:
- Entry-level job perception: Many entry-level positions are viewed as low-paid and low-status, leading to high early dropout rates among trained individuals
- Implementation challenges: Flagship schemes like the PM Kaushal Vikas Yojana have encountered significant hurdles including data gaps, delayed fund releases, and disappointing placement outcomes
- Measurement gaps: The survey notes difficulties in accurately tracking the effectiveness of skilling initiatives and their long-term impact on employment sustainability
Path Forward for India's Skilling Revolution
The Economic Survey emphasizes that simply increasing the number of training programs is insufficient. What India needs is a comprehensive overhaul of its skilling approach that focuses on:
- Quality employment outcomes rather than mere certification numbers
- Industry-relevant skills that match market demands
- Sustainable livelihood creation with proper career progression pathways
- Improved monitoring systems to track long-term employment success
As India prepares for its demographic peak in the coming decade, the survey's findings highlight the critical need to bridge the gap between skill acquisition and livelihood security, transforming the country's workforce potential into sustainable economic advantage.
