Economic Survey 2023-24: 1 in 2 grads not readily employable straight from college

The Economic Survey 2024 noted that India's youth do not have the required skills needed by a modern economy. The survey, released a day before the Union Budget, stated that 65% of India’s fast-growing population is under the age of 35, and many lack the skills needed by a modern economy. 

In recent years, there has been a noticeable decrease in youth unemployment rates in India, specifically among individuals aged 15-29, dropping from 17.8% in 2017-18 to 10% in 2022-23. Despite this positive trend, it is crucial to acknowledge the existing skill gap that persists and requires attention, particularly as India continues to evolve towards becoming a more modern economy.

The survey noted that the numbers have improved as before this employability was at 34%. 

The Economic Survey refers to the 2022-23 Annual Report of the Ministry of Skill Development & Entrepreneurship (MSDE) that stated that among persons aged 15-59 years, about 2.2% are reported to have received formal vocational training and 8.6% have received non-formal vocational training.
The same report had stated the challenges in the skilling and entrepreneurship landscape in India. These included: a low public perception on skilling; an alternative for those who have not completed their formal academic system, unmoderated skill development programmes of the Central Government, multiplicity in assessment and certification systems that cause confusion among the employers, understaffed or untrained faculty, mismatch between demand and supply, limited mobility between skill and higher education/vocational programmes.

Some of the challenges in the current landscape pertain to the following areas:

> Inadequate coverage of apprenticeship programmes.
> Insufficient skill curriculum.
> Declining participation of women in the labor force.
> Dominance of non-farm, unorganized sector employment with low productivity and no emphasis on skill development.
> Absence of entrepreneurship education within the formal educational system.
> Limited mentorship opportunities and insufficient access to financing for startups.
> Lack of motivation towards innovation-driven entrepreneurship.
> Absence of guaranteed wage incentives for skilled workers.

The report highlighted that the government is implementing various initiatives to leverage India's demographic dividend for increased productivity by fostering job and entrepreneurial opportunities aligned with the aspirations and skills of the Indian youth. The collaboration with industry partners is aimed at boosting skill development programs to enhance employability prospects, as stated in the report.

The Ministry of Skill Development and Entrepreneurship (MSDE) has undertaken several actions in this regard. For instance, the latest endeavour was the introduction of the Skill India Digital platform. This platform's primary goal is to establish a robust ecosystem that caters to skill development, education, employment, and entrepreneurial activities.