India's goal of becoming a developed country by 2047 is far from a reality, as millions of youth are out of jobs, education and learning opportunities. A survey by NITI Aayog indicates that between 15 and 29 years of age, an estimated 8.7 crore Indians are not employed, not enrolled in school and not trained.
The numbers are highlighted in NITI Aayog’s Reimagining Skilling for Viksit Bharat 2047. The estimate is based on the 78th round of the National Sample Survey conducted in 2021. The report also shows the vast majority of young people are not in the mainstream education system and workforce and that there is a need for urgent policy interventions to improve employability and skill development.
The group identified in the report is commonly referred to as "NEET" - meaning Not in Employment, Education or Training. Economists and policymakers use this indicator to identify the proportion of youth at risk of long-term economic exclusion. A high NEET population can make life difficult for individuals, but more importantly for national productivity and economic growth.
India has one of the youngest populations in the world, and many believe it is one of the major economic drivers in the country. The population is so large that we can also expect great innovation, entrepreneurship and significant economic growth. But experts have repeatedly warned that such demographic advantage can only be achieved when young people have access to quality education, relevant skills and opportunities for jobs (e.g., in the fields of social work, education, etc.).
The NITI Aayog report also notes that fast-paced technological change and changing industry needs have made traditional education qualifications insufficient in many sectors. In today’s job market, employers are looking for professionals who possess specialised skills, digital skills and practical experience. And so, many students who have completed their formal education still find jobs that are not in line with their qualifications - and others leave the education system without any employable skills.
The report argues that India’s skilling system must be reorganised in order to meet the economic demand in the future. And the country should focus on training the workforce to be ready for emerging sectors like artificial intelligence, advanced manufacturing, green energy, data analytics and digital services. As such, vocational education, industry partnerships and apprenticeship programs would be a useful way to bridge the gap between education and jobs.
Experts also say that there is a very uneven divide in opportunities in different regions and social groups. In rural areas, no good educational institutions or training institutes exist. Women and other economically disadvantaged groups also have to face such barriers in terms of job and training opportunities. We need to solve this problem if India is to develop a workforce of diversity and productivity.
The findings also come at a time when policymakers are working towards the vision of “Viksit Bharat 2047,” which is to make India a developed country by the centenary of independence. This will require huge investment in human capital—education reform, skill development and job creation. Young people who are disconnected from employment and learning opportunities could block the progress towards this goal.
Industry leaders have always emphasised the need for education curricula to be aligned with the needs of the market. If we work in partnership with business and government to make sure that students graduate with skills that are relevant to the modern economy, then internships, apprenticeships and applications in the workplace can increase employment prospects for young people.
The NITI Aayog report also reminds us that India’s young population is still one of its greatest strengths but also is a big responsibility. The challenge is not only to educate young people but also to give them the skills and opportunities necessary to survive in a very fast-changing world. To meet the demands of the estimated 8.7 crore youth who are currently outside employment, education and training systems will be needed for the country’s development to continue and to achieve its development and prosperity goals in the long run.
As India is on the cusp of its 2047 vision, the shape of its workforce policies and skilling initiatives will be crucial in determining whether the country can truly take full advantage of its demographic advantage and create opportunities for millions of young citizens.
