India’s youth, stand at a precarious juncture. Armed with degrees but lacking essential 21st-century skills, they would be trapped in low-paying jobs. Unless education reforms, digital access, and skill-building initiatives are urgently scaled, the promise of a demographic dividend would be lost
Ravi, a 22-year-old from Bihar, is the first in his family to graduate from college. He studied hard, passed his exams, and earned a degree in commerce. However, after two years of job hunting in Delhi, he still works as a delivery rider. His issue isn’t a lack of effort; it’s a lack of skills. Employers expect him to be proficient in Excel analytics, problem-solving, and communication in English, none of which were included in his curriculum.
Ravi’s story isn’t unique — it serves as a warning. India boasts the world’s largest pool of young people, but without the right skills, this demographic advantage could turn into a demographic disaster.
Failure to act is not an option. The consequences of inaction will be dire: millions of educated but under-skilled youth will be trapped in low-paying jobs, igniting frustration and deepening inequality. Recently, we have seen unrest in Nepal, as well as earlier in Sri Lanka and Bangladesh, where jobless youth turn their anger against political elites. India must heed these warning signs.
The Employability Dilemma
According to the latest Periodic Labour Force Survey (PLFS) data released on 15 September by the Ministry of Statistics and Programme Implementation (MoSPI), unemployment among young women has increased significantly. The unemployment rate for urban females aged 15-29 has risen to 25.7 per cent, over 10 percentage points higher than the rate for young urban males, which stands at 15.6 per cent.
The India Skills Report 2025 presents a stark reality: only 55 per cent of India’s youth are employable this year. Nearly one in two young Indians entering the job market is unprepared for roles requiring adaptability, digital fluency, and resilience. The National Skill Development Corporation warns of a projected shortfall of 29 million workers in high-demand sectors like artificial intelligence (AI), semiconductors, healthcare and wellness, and green technology.
This mismatch goes beyond technical skills. The World Bank has found that employers value problem-solving, collaboration, and emotional intelligence as highly as they do coding or engineering. Candidates possessing these “human skills” not only find jobs more easily but also tend to earn higher salaries.
The Innovation Gap
The lack of 21st-century skills also contributes to India’s “ingenuity gap.” Despite being the world’s fourth-largest economy, India invests less than 0.7 per cent of its GDP in research and development, compared to 2.4 per cent in China and over 3 per cent in the US.
As a result, while China filed nearly 800,000 patents in 2023, India managed to file barely 30,000.
This disparity is not due to a lack of creativity among Indian youth; rather, it stems from the educational system, which rarely fosters creative thinking. Rote learning and high-stakes exams leave little room for curiosity, design thinking, or problem-solving. Unless India incorporates these skills into its education system, it risks remaining a consumer of global innovations rather than a creator.
Why 21st-Century Skills Matter
The workplace is undergoing rapid transformation, leaving traditional textbooks far behind. As clerical roles decline, jobs in renewable energy, artificial intelligence, fintech, and biotech emerge as dominant forces. The Future Jobs Report 2025 makes it clear: nearly 40 per cent of today’s skills will be obsolete by 2030.
Take Suman, a remarkable young woman from Rajasthan, who seized the opportunity to join a coding bootcamp run by a non-profit organisation. In just six months, she went from learning to write software to successfully leading a project team. Her emotional intelligence and collaborative skills — developed through intensive group work — enabled her to secure a remote position with a US-based company.
Stories like Suman’s unequivocally demonstrate that 21st-century skills transcend mere employability; they embody dignity, confidence, and mobility. Research reinforces this, showing that students equipped with strong social-emotional skills excel academically, enjoy greater well-being, and are less susceptible to stress.
However, achieving these outcomes demands systemic change. Significant infrastructure gaps persist: only 57 per cent of schools currently have access to computers, and a mere 54 per cent are connected to the internet. Rural schools are disproportionately affected; in many villages, children encounter a laptop only for the first time at exam centres. Additionally, teacher preparedness and training are woefully inadequate.
Many educators lack the digital literacy and pedagogical tools necessary to cultivate creativity and critical thinking. Overwhelmed by the need to complete syllabi, they often resort to rote teaching.
Social inequities exacerbate this divide, impacting gender, geography, and disabilities. Only 36 per cent of rural adolescent girls own a smartphone, severely limiting their access to digital learning opportunities. Tribal students and children with disabilities frequently face a lack of accessible content.
Moreover, outdated assessment systems continue to prioritise memorisation over innovation. Until these assessments evolve, schools will have little incentive to focus on problem-solving or collaboration.
To confront these challenges head-on, we must take decisive action on five critical fronts:
Curriculum Reform: 21st-century skills must be treated as foundational — essential, not optional or vocational. They should be integrated across all subjects, rather than tacked on as separate modules.
Teacher Empowerment: We must revise training frameworks, provide ongoing professional development, and equip teachers with the digital and social-emotional learning tools they need to succeed.
Equity and Access: Bridging the digital divide is imperative. We need to implement low-cost innovations such as offline content, peer-led clubs, and multilingual resources.
Assessment Innovation: It is crucial to shift towards project-based evaluations, portfolios, and digital badges that accurately reflect creativity, teamwork, and problem-solving abilities.
Partnerships: We must leverage CSR funds, edtech platforms, and industry collaborations to scale pilot programmes and embed essential skill sets into national initiatives.
A National Imperative
This is not just about making Indian youth employable; it is fundamentally about nation-building. Establishing a robust skilling ecosystem is essential for generating jobs domestically while preparing our youth for employment-linked migration, as Western countries actively seek skilled workers. This “circular flow of talent” will undoubtedly enrich India through remittances, cross-cultural experiences, and global networks, transforming our demographic dividend into a strategic global advantage.
Ravi’s frustration and Suman’s success underscore a critical truth: skills differentiate stagnation from mobility and despair from dignity. If India seizes this moment, our young people can emerge as the world’s most dynamic workforce, propelling not only national growth but also global progress.
The choice is clear, and the path forward is undeniable. The imperative is not whether India can afford to invest in 21st-century skills, but how swiftly and effectively it can do so. The time for action is now. It is our responsibility to ensure that every student is equipped with the skills necessary to thrive in the 21st century.
The writer is Co-Founder and MD of Orane International and Network Member of India International Skill Centres (IISCs), an initiative of GoI
