Context
India witnesses consistent hurdles in integrating these graduates into meaningful, stable employment, despite the large talent pool of graduates across India every year.
Current Scenario in India
(i) Youth Employment Crisis: According to the India Employment Report 2024 by the International Labour Organisation (ILO) and the Institute for Human Development (IHD), youth account for 83% of India’s unemployed population.
(ii) Economic Survey 2023–24: It highlights by stating that only half of India’s youth are job-ready post-graduates. A large number lack the required digital and professional skills, at a time when AI and technological advances are destroying traditional job roles, particularly in the tech sector.
(iii) Formal vs Informal Work: EPFO data shows a consistent increment in formal sector participation, particularly among youth aged 18–25. More than 85% of employment remains informal, with negligible social protection. (India Employment Report 2024).
(iii) Digital Deficiencies Among Youth: Inadequate digital literacy is a major roadblock:
(a) Around 75% of youth are not able to send an email with an attachment.
(b) Close to 60% can’t perform basic file operations.
(c) Approximately 90% don’t possess spreadsheet skills such as using formulas.
(iv) Structural Challenges:
(a) Growth without jobs continues despite India becoming one of the world’s largest economies.
(b) Automation and AI endanger conventional roles, particularly in tech and services.
(c) Gender disparity and social inequities remain there, with a large no. of SC/ST community workers in low-paid, informal jobs.
Key Efforts & Initiatives
(i) Skill Development & Training:
(a) Pradhan Mantri Kaushal Vikas Yojana (PMKVY): Provide short-term skill training consistent with industry demands.
(b) National Apprenticeship Promotion Scheme (NAPS): Incentivises employers to engage apprentices.
(c) Jan Shikshan Sansthan (JSS): Give informal skill training to deprived groups.
(d) Craftsman Training Scheme (CTS): Operates through ITIs to build technical skills.
(ii) Employment Generation Schemes:
(a) MGNREGS: Ensure a hundred days of wage employment yearly to rural households.
(b) Prime Minister’s Employment Generation Programme: Gives patronage to micro-enterprises and self-employment.
(c) Deen Dayal Antyodaya Yojana (DAY-NULM & DDU-GKY): It emphasises urban and rural livelihoods respectively.
(iii) Production-Linked Incentive (PLI) Scheme: ₹1.97 lakh crore outlay across 14 sectors to boost manufacturing and create 60 lakh jobs over five years.
(iv) Budget 2024–25: A lakh crore package to support around 4 crore youth over five years. Internship scheme for 1 crore youth with ₹5,000 monthly allowance. Skilling of 20 lakh youth and upgrading 1,000 ITIs.
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Suggestions / Recommendations
(i) Industry-Academia Collaboration: Mandate formal industry partnerships for every higher education institution to bridge the gap between theoretical education and job skills.
(ii) Accountability in Higher Education: Institutions must be held accountable for student placements, not only academic output. Accreditation systems should be linked to employment outcomes.
(iii) Curriculum Modernisation: Confluence of humanities, foreign languages, and soft skills at every level of education is imperative. These skills are essential for global employability and adaptability in a fastly changing job market.
(iv) Global Skilling Strategy: Formulate skilling programmes consistent with international demand, specifically in ageing Western societies witnessing a labour crunch.
(v) Establish Indian Education Services: A dedicated Indian Education Services should be constituted to bring top talent into education policy and administration. Also, professionals from the industry should share the responsibility of teaching, ensuring students benefit from both the academic and the practical aspects.
Conclusion
Demographic dividend (esp. youth dividend) may turn into a demographic burden if urgent and strategic steps in education and employment systems are not taken. Plugging the skill-employment gap is not just an economic must-do step but a national priority for sustained economic stability and prosperity.