India needs to bridge the education-employment gap, empower youth: Economic Survey

India is at an advantage in meeting the changing demands of the workplace given its young demographic, but the country needs to bridge the skill gap between the education and labour markets, said the Economic Survey for 2023-24.

“Skill development is at the center of changes happening in education and labor markets amid the global megatrends, such as automation, action against climate change, and the digitalization of products and services, which are changing the nature of work and skills demands," said the Survey, which was tabled in Parliament on Monday. 

“With one of the youngest populations, a median age of 28, India can harness its demographic dividend by nurturing a workforce that is equipped with employable skills and prepared for the needs of the industry,” it added.

Two of the government’s flagship schemes–the National Education Policy (NEP) and the National Policy on Skill Development & Entrepreneurship (NPSDE)–occupy the front seat in achieving educational outcomes and “preparing the youth for participating in the knowledge economy”, according to the Survey.

NEP, launched in 2020, aims for an "education system rooted in Indian ethos that contributes directly to transforming India, that is Bharat, sustainably into an equitable and vibrant knowledge society, by providing high-quality education to all, and thereby making India a global knowledge superpower”.

Experts highlighted the need to raise funds for better adoption of NEP.

“In the subsequent NEP adoption, we need investments in augmenting infrastructure, training of academic and support faculty, management, etc. We need to identify and deploy financial resources to cater to these requirements,” Narayanan Ramaswamy, national leader–education and skill development, government and public services, at KPMG, had earlier told Mint.

As for the National Policy on Skill Development and Entrepreneurship, it’s focused on improving industry engagement, leveraging technology, and expanding apprenticeship opportunities, among other things.

Among its top priorities are targetting marginalized groups, especially women, and empowering them with skill-development and by fostering entrepreneurship.

According to the Economic Survey, other skill development schemes targeting women have seen increased participation in the past eight years. For example, under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) program, the proportion of women trained increased to 52.3% in FY24 from 42.7% in FY16.

Similarly, in the Jan Shikshan Sansthan (JSS) Scheme, about 82% of the beneficiaries were women. 

Additionally, in long-term training institutions such as ITIs (Industrial Training Institutes) and National Skill Training Institutes (NSTIs), the participation of women rose to 13.3% in FY24 from 9.8 % in FY16. 

The National Apprenticeship Promotion Scheme (NAPS) also saw an increase in women’s participation, to 20.8 %in FY24 from 7.7% in FY17.