From ITIs to AI: Why India needs to rethink skill development

India's skilling landscape is undergoing a transformation, with a shift from generic degrees to more applied, industry-aligned specialisations. The NITI Aayog's report, 'Reimagining Skilling for Viksit Bharat@2047', highlights the need for stronger links between education, skills and actual employment. Currently, only 8.25% of graduates are employed in roles that match their qualifications.

The report proposes integrating vocational education and employability skills from schools to universities, with a focus on applied, industry-aligned specialisations and greater use of apprenticeships and work-integrated degree and diploma programmes. A key challenge is the gap between labour market needs and workforce skills, with only 65% of people aged 15-59 receiving any form of training.

This skill deficit, estimated at 29 million in 2022, has been attributed to the shortcomings of the education sector and the performance of ITIs. The report calls for greater investment in human capital, viewing education and skill development as an investment in the country's vast youth population.