– Nirmal Singh is CEO of the Gurugram-based Wheebox ETS and author of Leadership Style: World’s Top 8 Leaders (2023)

Can India match the skilling success of nations like China? The answer lies in honest assessment of our training ecosystem, academy-industry collaboration, and changing the cultural mindset toward vocational education

India stands at an inflection point, poised to harness its demographic dividend and emerge as a global talent powerhouse. With an expected jump in employability rate of 54.81 percent in 2025 — up from 33.95 percent in 2014 — the nation is making significant strides. But is it enough? Can India match the skilling success of nations like China? The answer lies in honest assessment of our training ecosystem, academy-industry collaboration, and changing the cultural mindset toward vocational education.

Promise and paradox. India’s booming IT industry with an aggregate revenue of $245 billion (Rs.20 lakh crore) in 2023 and projected to hit $350 billion this year, is testament to its potential. The objective of the National Education Policy (NEP) 2020, Skill India Mission, and Digital India is to align education with industry demand. More than 50 percent of secondary and tertiary students are scheduled to receive VET (vocational education and training) by end 2025. Yet, the ground reality tells a different story — of mismatched skills, indifferent VET quality, and persistent social stigma surrounding vocational careers.

It is becoming painfully apparent to the majority of young engineering graduates from the hinterland that theoretical knowledge isn’t enough. Employers want graduates with hands-on experience and industry-ready skills.

Lessons from China & Germany. China’s rapid economic ascent has been driven by a strong national VET framework with large and small industrial companies actively shaping curricula and providing real-world experience to students. Germany’s renowned dual education system seamlessly blends classroom learning with apprenticeships, ensuring graduates are job-ready. These models highlight the importance of practical, work-centric education, a stark contrast to India’s predominantly theoretical education in schools and higher education institutions (HEIs).

For instance, China’s huge 11,000 VET institutes with an aggregate enrolment of 35 million students partner directly with tech giants like Huawei and Alibaba, ensuring that students graduate with skills in high demand. In Germany, nearly half of all high school-leavers opt for formal VET and acquire early experience of workplace realities. If India is to compete globally, it must urgently promote academy-industry collaboration, modernize VET, and remove the stigma attached to vocational and skills education.

Bridging the skilling gap. While a 54.81 percent youth employability rate is an improvement over 33.95 percent a decade ago, it also highlights that almost half of the country’s huge youth population is unemployable. The path forward necessitates a multi-pronged strategy.

Industry-relevant training. Corporate India including MSMEs (micro, small and medium enterprises) must work closely with educational institutions to design school and HEI curriculums aligned with industry needs. Faculty training and reorientation, multiplying the number of VETs and upgrading their infrastructure are of critical importance.

Tech-enabled learning. Integrating AI, virtual reality, and online platforms into school and HEI curriculums will not only modernize but also democratise Indian education with rural youth learning online.

Entrepreneurship and innovation. Encouraging skills-based entrepreneurship can transform job seekers into job creators. The success of startups like Zoho and Zomato proves that innovation thrives when skills meet opportunity.

Changing perceptions. Vocational education is still regarded as a fallback option for dropouts of conventional academic programmes. Changing this mindset through awareness campaigns and integrating skilling programs into mainstream education is essential.

Countrywide skills census. The annual India Skills Report (ISR) plays a crucial role in shaping the skilling landscape by providing data-driven insights to policymakers, industry leaders, and educators. For corporate India, the annual ISR should be a guide to understanding the availability of skilled talent and shaping recruitment strategies. For education institutions, it highlights areas where curricula need to be tweaked to meet industry demands. Policymakers are also enabled to leverage the report to craft initiatives that address emerging skill requirements and ensure a future-ready workforce. By connecting job seekers, employers, and training institutions, ISR, if properly utilised, could prove a vital handbook.

The road ahead. To sum up, to harness the latent talent of the world’s largest — and most high potential child and youth population — government, industry and academia should cooperate to strategically invest in high quality VET; universalise apprenticeships through industry-academia collaboration; reach education and VET particularly to the underserved rural hinterland; integrate AI, machine learning, and renewable energy studies into higher education and foster a culture of lifelong learning. With data-driven policies and public-private partnerships, India can harvest its demographic dividend and develop it into a workforce that’s not merely employable but a highly productive national resource.