“Skills for the Future” Report Charts India’s Path to a Future-Ready Workforce

Speaking at the launch, Shri Jayant Chaudhary emphasized the need to view skilling beyond the traditional lens of supply-side provisioning.

In a pivotal move aimed at reshaping India’s workforce landscape, Union Minister of State (Independent Charge) for Skill Development and Entrepreneurship and Minister of State for Education, Shri Jayant Chaudhary unveiled a landmark report titled “Skills for the Future: Transforming India’s Workforce Landscape” in New Delhi. The report, developed by the Institute for Competitiveness (IFC), provides a deep, data-driven insight into India’s skill ecosystem and lays out a comprehensive roadmap for making the nation’s workforce resilient, adaptive, and future-ready.

A Data-Backed Vision for Skilling India

Prepared independently by the Institute for Competitiveness using publicly available datasets, the report offers a granular analysis of India's skill dynamics—spanning educational attainment, occupational distribution, and technical and vocational education and training (TVET). Central to the report’s findings is an assessment based on the 2023-24 Periodic Labour Force Survey (PLFS), revealing that 88% of India’s workforce is engaged in low-competency occupations, with only 10–12% in high-competency roles.

This skew highlights the urgent need to upgrade the skill base and align educational outcomes with the demands of an increasingly digitized and knowledge-intensive global economy.

Ministerial Endorsement and Strategic Guidance

Speaking at the launch, Shri Jayant Chaudhary emphasized the need to view skilling beyond the traditional lens of supply-side provisioning. “Skilling must be seen as a demand-driven, market-aligned, and outcome-oriented ecosystem,” he remarked. He called for stronger pathways between general education, vocational training, and industry, particularly through the recognition of informal and experiential learning.

The Minister also proposed the creation of a robust Employability Index—a tool to evaluate the real-world impact of educational and skilling interventions on the employment prospects of India’s youth, especially as economic conditions and technological requirements evolve.

Building a Knowledge Base Around Skills

Secretary of the Ministry of Skill Development and Entrepreneurship (MSDE), Shri Atul Kumar Tiwari, praised the report’s academic depth and advocated for building a corpus of literature around skilling that is rooted in data and empirical analysis. He also highlighted the importance of deeper exploration into the structural changes in the education-skilling-employment continuum to foster a truly integrated talent development system.

Five High-Growth Sectors and Regions Identified

Using PLFS (2023-24) data alongside inputs from PMKVY 4.0 dashboards, Sector Skill Councils (SSCs), and the National Apprenticeship Promotion Scheme (NAPS), the report identifies five key sectors accounting for over 66% of vocational training uptake in India:

• Information Technology (IT) and IT-Enabled Services (ITeS)

• Textile and Apparel

• Electronics

• Healthcare and Life Sciences

• Beauty and Wellness

In each of these sectors, five high-potential regions have been mapped using a Competitiveness Framework Analysis, providing a geographically specific lens to align policy and training interventions with local economic realities.

Recommendations for Systemic Transformation

The report calls for a multifaceted reform approach, anchored in the following key recommendations:

• Dedicated and standardized data systems to estimate and monitor evolving skill requirements.

• Evidence-based policy reforms to enhance the responsiveness of the skilling ecosystem.

• Incentivization of industries to recruit from certified skill pools and co-develop market-aligned training programs.

• Wage incentives and career pathways for skilled workers to retain and grow talent within sectors.

Commitment to Collaboration

Dr. Amit Kapoor, Chair of the Institute for Competitiveness, thanked the Ministry for supporting the launch of the report and reaffirmed the organization’s commitment to working collaboratively with MSDE to take India’s skilling agenda to new heights.

“This report is not merely a static document but a call to action for policymakers, educators, and industries alike to forge partnerships that are responsive to the demands of a dynamic workforce,” Dr. Kapoor noted.

Paving the Way to a Skilled Bharat

As India strives to become a global hub for talent and innovation, equipping its human capital with relevant, future-facing skills is critical. The “Skills for the Future” report provides not only a timely analysis but also a forward-looking blueprint for transforming India's workforce to meet both domestic and global opportunities.

This new vision recognizes that the skilling ecosystem must evolve from being reactive and fragmented to proactive, data-informed, and industry-integrated—ensuring that no young Indian is left behind in the journey toward economic empowerment.