With coordinated action, innovative strategies and a commitment to scalable skill development, India can emerge as a global economic and workforce leader
With a staggering 1.44 billion people 68 per cent of them between the ages of 15 and 64, India stands to gain from an immense, globally unmatched, demographic dividend that presents an unprecedented opportunity for economic growth amidst global challenges of declining birth rates and labour shortages. The vast labour force positions India to realise the government’s vision of becoming the world’s third-largest economy and the skills capital of the world.
This, coupled with the global shift towards diversifying talent supply chains – particularly to countries like India - can significantly enhance our geopolitical standing. East Asia offers compelling evidence of reaping the demographic dividend. UNFPA reported that Korea saw its per-capita gross domestic product grow about 2,200 per cent between 1950 and 2008, and Thailand’s GDP grew 970 per cent.
The pressing question now is whether India can fully capitalise on this demographic dividend, and can the skills ecosystem be the key to unlocking this potential. The Challenge Effectively leveraging the demographic dividend requires addressing several critical challenges. The primary challenge is the need to create sufficient job opportunities to absorb the increasing number of young people entering the workforce.
Another key challenge is to bridge the ‘skills gap’ - the discrepancy between the skills that job seekers possess and the skills that employers require, thereby creating opportunities for meaningful employment. This must be achieved on a large scale as the country is already home to 103 million youth categorised as NEET (not in education, employment or training) and millions of youth enter working age annually. Crafting Scalable Solutions To leverage India’s demographic dividend effectively, scalable solutions for skill development are imperative. This involves creating an ecosystem – support large-scale skill enhancement initiatives. Firstly, systemic change cannot occur in isolation; therefore, it is vital for government bodies and private companies to collaborate and pool resources, expertise and funding.
Therefore, fostering public-private partnerships (PPPs) is essential for expanding skill development initiatives. It is important to align training programs with market demands, focus on outcome-based skilling, leverage technology and design effective, replicable, and adaptable programs. This collaboration can significantly contribute to creating a more resilient and practical skill development ecosystem.
Several initiatives in the realm of skill development highlight the transformative impact of targeted training and strategic partnerships. One such initiative is Project AMBER, a unique public-private partnership (PPP) where each stakeholder—government, training partners, and the private sector (philanthropy)—contributes to the model. This initiative aims to enhance overall employment and retention outcomes by prioritising the quality of training, mentoring, and retention. Such initiatives not only help achieve success at an individual level but also lay the groundwork for broader systemic changes that can redefine the impact of the skilling ecosystem.
Secondly, aligning skilling programs with market demand is crucial. Collaborating with businesses provides valuable input on course content which ensures that learners are trained on skill sets that are relevant for the industry. Employer feedback mechanisms enable continuous adjustments to training programs, which are in sync with industry requirements. This approach addresses the skills gap by equipping learners with relevant skills, helping them adapt effectively to the workplace. Ultimately, this strategy offers a solution to talent scarcity and unemployment by bridging the gap between workforce skills and market demands.
To ensure training programmes remain dynamic, it’s important to integrate data-driven insights to evaluate the progress of the trainees. Thirdly, focusing on outcome-based skilling is essential as it prioritises employment and retention rather than just training. Outcome-based skilling is an approach to training that focuses on achieving specific, measurable outcomes rather than merely completing a set curriculum or an instructional programme.
Finally, with the right use of technology, we can design skill development programmes that are both effective and scalable and create significant impact. Technology can greatly expand the reach and accessibility of these programmes through online learning platforms, virtual classrooms, and mobile-friendly resources, even in remote areas. At the same time, standardised models like ‘train-the-trainer’ programmes ensure that rapid expansion does not come at the cost of quality, maintaining consistency across different regions.
(The writer is CEO, Generation India Foundation with inputs from Sourabh Anand, views are personal)
