8.7 crore young Indians out of school and work: NITI Aayog’s plan to fix the gap

A staggering 8.7 crore youth in India aged between 15 and 29 were found to be neither studying, employed, nor undergoing any form of training in 2021, as reported by NITI Aayog's Reimagining Skilling for Viksit Bharat@2047. This figure highlights a significant disconnect between education and employment, with a large segment of young people not transitioning smoothly from academic pursuits to the job market.

The data, drawn from the National Sample Survey's 78th round, categorises these individuals as NEET, meaning not in education, employment, or training, including the unemployed.

According to the report, this NEET youth group, particularly women, requires accessible or subsidised training along with financial backing. Skill development initiatives should align with local market demands, entrepreneurial opportunities, and emerging sectors. The report also points out a troubling trend where only 8.25% of graduates find employment roles matching their qualifications, despite their formal education.

Factors such as insufficient practical exposure and training that doesn't match industry needs continue to hinder employability even among those with college degrees.

Low-income households often struggle to afford additional paid training alongside academic expenses and private tutoring. Following graduation, some young people accept low-paying jobs just for stability, while others remain unemployed, becoming NEET. In response to these challenges, NITI Aayog has proposed integrating skilling into the school curriculum starting from Class 6, moving away from it being considered an option post-education.

It suggests providing universal General Employability and Entrepreneurship Skills throughout school years up to Class 12, along with structured vocational training known as Kaushal Tracks from Class 9, offering deeper specialisation based on local and national needs.

The report criticises the lack of vocational subjects in secondary schools, noting that fewer than one in 12 secondary schools currently offer such subjects, despite the National Education Policy 2020 and National Curriculum Framework advocating for their inclusion from Class 6 onwards. For higher education, NITI Aayog recommends shifting from generic degrees to applied, industry-aligned specialisations, and incorporating more apprenticeships and work-integrated learning paths.

It also pushes for flexible, modular, and earn-while-you-learn options, alongside expanding apprenticeship opportunities with financial incentives for small and medium enterprises (MSMEs) and a unified platform to connect learners with viable employment opportunities.

The report also emphasises focusing on sectors expected to drive demand, such as green industries and electric vehicles, while promoting reskilling for workers in declining occupations. Training programs should increasingly align with measurable employment outcomes rather than just participation rates. Since 2014-15, more than 7.67 crore individuals have been trained, with Rs 34,000 crore allocated in the Union Budget 2025-26 for skilling initiatives across various ministries.

However, the report cautions that simply increasing spending and training numbers may not suffice without better integration between education, skills, and actual employment opportunities.