Skilling India for a future-ready workforce by enhancing skills and employability of the working age population – Part I

Skills and knowledge are the driving forces of economic growth and social development for any country. India, with one of the youngest workforces in the world has significant potential for higher productivity to meet the growing consumer demand aiding the country’s economic growth.

India is one of the youngest nations in the world with more than 54% of the total population below 25 years of age and over 62% of the population in the working age group (15-59 years). This demographic advantage is however predicted to last only until 2040. India therefore has a very narrow time frame to harness its demographic dividend and to overcome its skill shortages.

India currently faces a severe shortage of well-trained, skilled workers & it is estimated that only 2.3 % of the workforce in India has undergone formal skill training as compared to:

1. 68% in the UK;
2. 75% in Germany;
3. 52% in USA;
4. 80% in Japan, and;
5. 96% in South Korea.

Additionally, large sections of the educated workforce have little or no job skills, making them largely unemployable. India therefore must focus on scaling up skill training efforts to meet the demands of the employers and to drive economic growth, it is opined.

Skill Training in the Union Budget 2026-27

The Economic Survey 2025–26 highlights that employment-focused skilling initiatives help bridge skill gaps, improving productivity and expanding opportunities for decent work. Additionally, such initiatives also promote social mobility by enabling upward economic advancement thereby supporting more equitable access to make labour markets inclusive.

In February 2026, the overall Labour Force Participation Rate (LFPR) for persons aged 15 years and above remained stable at 55.9% reflecting a strong recovery in the labour market, marked by increased participation of women and a notable decline in unemployment rates across both rural and urban areas.

Focussing further on the potential of the young population and realising the importance of skilling, the Union Budget 2026–27 positions skill development as a cross-sectoral priority.

A skilled and educated population is key to realising India’s demographic potential. The Union Budget 2026–27 provides further impetus to the education sector with a total allocation of Rs.1.39 lakh crore representing an increase of 8.27% over the Budget Estimates of 2025–26 with a focus on:

1. Expanding access;
2. Strengthening infrastructure, and;
3. Making education more aligned with the industry needs.

It is noteworthy that the recent interventions and initiatives reflect a sustained policy commitment to ensuring that India’s young population is well prepared and empowered to contribute meaningfully to the country’s economic future.

The Union Budget 2026-27 has introduced targeted initiatives to:

1. Expand institutional capacity;
2. Modernise training infrastructure, and;
3. Align skills with emerging industry demands.

These measures aim to:

1.  Enhance employability;
2.  Promote entrepreneurship, and;

III. Create large-scale livelihood opportunities across urban and rural India.

Prioritising Strengthening of Skills

The Government has prioritised strengthening of a range of flagship skilling initiatives to develop a skilled and future-ready workforce, with programmes focussing on:

1. Large-scale training;
2. Apprenticeship promotion, and;
3. Vocational education across sectors.

Together, these aim to:

1. Enhance employability, and;
2.  Align skill development with evolving industry needs.

Skill India Mission 

Skill India Mission (SIM), launched in 2015, provides skill, re-skill, and up-skill training through an extensive network of skill development centres under major schemes.

The mission focuses on all sections of the society across the country and concentrates on enhancing the skills and employability of the working age population.

Under this mission, following schemes are covered:  

1. Pradhan Mantri Kaushal Vikas Yojana (PMKVY);
2. Jan Shikshan Sansthan (JSS);
3. National Apprenticeship Promotion Scheme (NAPS);
4. Craftsman Training Scheme (CTS) in Industrial Training Institutes (ITIs).

Performance of Skill India Mission

1. Pradhan Mantri Kaushal Vikas Yojana (PMKVY)

27.74 lakh candidates have been trained as on 31 March, 2026.

1. Jan Shikshan Sansthan

36.48 lakh+ beneficiaries have been trained until 31^st March, 2026.

1. National Apprenticeship Promotion Scheme (NAPS)

54.41 lakh+ apprentices have been engaged across sectors until 31^st March, 2026.

1. Craftsmen Training Scheme (CTS)

14.70 lakh have been enrolled in FY 2025-26 up by 17.5 % with respect to 2022-23.

Detailing Progress under various schemes

1. Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
2. PMKVY 4.0 has trained 27.24 lakh candidates across 38 sectors, covering 36 States and 737 districts as of 31 March 2026.
3. Between April 1, 2024 and March 31, 2026, more than 10.91 lakh candidates were trained in sectors such as IT-ITeS, aerospace & aviation, agriculture, rubber, leather, apparel, electronics, construction and tourism & hospitality across 34 States and 737 districts.
4. 69 customised courses and 154 future-skill job roles have been introduced to improve employability in emerging domains including AI, Industry 4.0, green jobs and digital services.
5. Over 16,900 institutions are implementing PMKVY 4.0, including more than 6,800 Skill Hubs in schools, higher educational institutions and ITIs as on March 31, 2026.
6. Jan Shikshan Sansthan (JSS)

The JSS Scheme, initially launched as Shramik Vidyapeeth (SVP) in 1967 aims to provide skill training in a non-formal mode at the doorsteps of the beneficiary through registered Societies (NGOs) with 100% grant from the Government. It promotes inclusive, community-based skilling for non-literates, neo-literates and school dropouts.

Progress achieved under JSS

1. A total of 36,48,692 lakh beneficiaries have been trained since 2018 till 31 March 2026.
2. Courses are tailored to local demand including tailoring, embroidery, handicrafts, food processing and health-related services.
3. 26, 720 tribal beneficiaries have been enrolled and 26,519 have been trained as of 31 March 2026.
4. To diversify skilling options, 32 new NCVET-approved (National Council for Vocational Education & Training) courses at NSQF Levels 3, 3.5 and 4 (National Skills Qualifications Framework) have been introduced under JSS.
5. Since December 2024, JSS products are marketed on the Udyam Kart portal, directly connecting artisans and micro-entrepreneurs with buyers.

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