One strategic programme at a time; Upskilling the youth for economic prowess will elevate India’s future
India has seen a notable evolution in workforce dynamics over the last decade, marked by the convergence of five generations. With over 53 per cent of India’s population under the age of 30, a demographic dividend brimming with the potential to propel the nation towards becoming a $5 trillion economy by 2025.
In 2023, blue-collar hiring soared by 7.40 per cent (Indeed), organisations embraced gig workers to improve employability and the demand for niche skills skyrocketed. A Manpower Group report placed India at the top of the global employment outlook amongst 41 countries, with 79 per cent of companies planning to expand their headcount in the upcoming half-year (TeamLease). This positive employment outlook was largely influenced by multiple factors, including strategic global collaborations, economic policies aimed at fostering growth, increased integration of technology into various industries and the rise of new-age job profiles.
However, a critical challenge lurks beneath this seemingly boundless advantage – a yawning skill gap that is threatening to turn this demographic treasure into a possible ticking time bomb. Despite the job surge, a staggering 13 million individuals join India’s workforce annually; 25 per cent of management professionals, 20 per cent of engineers and 10 per cent of graduates are considered truly employable (World Economic Forum). Even with the influx of fresh talent every year, the majority of candidates lack the necessary skills for their jobs. The mismatch between traditional education and industry requirements, coupled with the fast pace of technological change, exacerbates the skill gap challenge. This also cripples productivity, hinders innovation and ultimately, casts a long shadow on India’s economic aspirations.
Thankfully, India Inc is rising to the challenge with mandatory CSR spending by corporates as per the new corporate law, most companies are prioritising Upskilling as a focus area to enhance employability of the youth in the country so it remains a demographic dividend. Upskilling initiatives are mushrooming across industries with organisations investing in advanced tech training programmes (AI, ML, PRA, Cloud Computing amongst others), green job skill development for both urban and rural youth and even expanding the female workforce in STEM fields.
Many organisations are extensively focusing on augmenting the education framework and significantly investing in youth upskilling as a part of their larger corporate social responsibility goals. Under the CSR purview, India Inc has been undertaking structured vocational training and digital upskilling imperatives, especially to enable the transition of women and underprivileged youth into the formal workforce. A report by KPMG in 2021, indicated an investment of Rs 1,653 crore by around 328 companies, towards 775 skilling and training projects under their CSR mandates. Moreover, a World Economic Forum report highlighted that investment in upskilling is not only likely to boost India’s economy by $570 billion by 2030 but also has the potential to add 2.3 million jobs in India.
On the other hand, the government is playing its part. The visionary New Education Policy (NEP) 2020 that embeds skilling into elementary education equips youth with real-world skills from a young age. This is crucial in bringing the youth skill gap in the country.
But these efforts while commendable require further scaling and refinement. The need of the hour is to create a new archetype in youth upskilling, Customising training programmes to specific industry needs and individual learning styles will maximise the return on investment in upskilling, Embracing alternative employment models like the gig economy and degree apprenticeships can provide valuable on-the-job experience and bridge the gap between education and formal employment. Leveraging technology through online learning platforms and adaptive learning solutions can democratise access to quality education and training.
Ultimately, capitalising on India’s demographic dividend necessitates a multi-pronged approach:
- Develop creative skilling solutions that cater to diverse needs and learning preferences, such as gamified learning experiences, immersive virtual reality training and micro-credentialing programmes.
- Foster partnerships between government, industry, academia and civil society organisations to create a robust skilling ecosystem.
- Fast-track the implementation of initiatives like NEP and ensure effective resource allocation, monitoring and evaluation.
- Encourage greater public and private investment in upskilling programmes and infrastructure.
- Ensure equitable access to quality education and training opportunities for all, regardless of gender, socioeconomic background or geographic location.
- Create an equitable ecosystem to create awareness & promote entrepreneurship and innovation across the country’s urban and rural belt through upskilling.
- Align more of India’s Inc’s CSR efforts towards systematic upskilling for the youth, women and the underprivileged.
- Introduce tax reforms such as exemption of GST on CSR programmes will further enable more companies to undertake upskilling initiatives under their CSR vision.
By forging ahead with unwavering commitment and strategic action, India can transform its youth from a potential liability into the bedrock of an unstoppable economic powerhouse. The time to act is now as the future of India’s economic engine hangs in the balance.
The author is Sr Director, Corporate Communications & CSR, Honeywell
