- India has formally skilled over 7.67 crore individuals since 2014-15 with Rs 34,000 crore budgeted for 2025-26
- Only 8.25% of graduates have jobs aligned with their qualifications, with graduate unemployment at 13% overall
- Fewer than 1 in 12 secondary schools offer vocational subjects, far below the 50% target for 2025
India has spent years building one of the world's largest skilling ecosystems. Since 2014-15, more than 7.67 crore individuals have been formally skilled. The Union Budget for 2025-26 also allocated around Rs 34,000 crore towards skilling-related expenditure across key Central ministries.
But a new NITI Aayog report says the numbers tell only part of the story. In its report, Reimagining Skilling for Viksit Bharat@2047, NITI Aayog says skilling outcomes remain uneven despite the expansion of programmes and investments. The problem, it says, is not simply the scale of training. It is the weak link between learning, employment and career progression.
Degrees Are Not Translating Into Jobs
NITI Aayog cites data showing that only 8.25 per cent of graduates are employed in jobs aligned with their qualifications.
Graduate unemployment is also high at 13 per cent. Among graduate women, it rises to 20.4 per cent. This compares with an overall unemployment rate of 3.2 per cent.
At the same time, generic degrees continue to dominate higher education. Of the 3.4 crore students enrolled in undergraduate programmes, 1.13 crore are studying for a BA degree. Combined enrolment in BA, BSc and BCom exceeds 2 crore.
The pressure for government jobs shows how disconnected the system can become from the wider labour market. Between November 2024 and July 2025, 1.86 crore applications were received for just 55,000 government posts. That works out to roughly 338 applications for every post.
Pravesh Dudani, Founder & Chancellor, Medhavi Skills University, told NDTV that the focus now needs to move away from counting enrolments and certificates. "Look past the Rs 34,000 crore spent and 7.67 crore Indians trained, and the question we must ask is: what changed for the learner?" Dudani said.
"NITI Aayog's observation that skilling outcomes remain uneven is not a verdict on the intent or scale of India's effort, it is a signal that the architecture needs immediate change."
According to Dudani, the real test should be whether a young person can "secure, perform and grow in meaningful work".
He said apprenticeships, work-integrated degrees and outcome-linked skilling need to become mainstream rather than being treated as interventions after graduation. "India's demographic dividend will not be secured by producing more graduates. It will be secured by producing graduates who are ready to work, adapt and create value," he added.
The Problem Starts Much Earlier
NITI Aayog's diagnosis goes beyond colleges. Fewer than one in 12 secondary schools currently offer vocational subjects. This remains well below the National Education Policy's target of exposing at least 50 per cent of learners to vocational education by 2025 and all students by 2030.
The report argues that employability and vocational skills need to enter mainstream education much earlier. It proposes General Employability and Entrepreneurship Skills, or GEES, for all students from Grade 6 to 12. These would include communication, digital skills, financial literacy, teamwork, problem-solving and entrepreneurship.
It also proposes structured vocational tracks from Grade 9 onwards. The idea is to ensure that students don't have to wait until graduation to discover what the workplace demands.
NITI Aayog Wants Apprenticeships To Become Mainstream
The report also puts apprenticeships at the centre of its proposed overhaul. NITI Aayog says apprenticeship opportunities remain uneven and fragmented across multiple platforms. It proposes an integrated State Apprenticeship Platform that can bring together NAPS, NATS and state-level programmes.
The platform could provide a single window for learners and employers, with verified openings, eligibility criteria, stipends and role information. The report also suggests incentives to bring more MSMEs into the apprenticeship system.
For colleges, NITI Aayog wants greater industry participation. It recommends apprenticeship-embedded degrees, work-integrated degrees and more flexible programmes that allow students to earn while they learn.
From Enrolment To Employment
One of the biggest changes proposed by NITI Aayog is how skilling programmes should be measured. At present, much of the funding is linked to enrolment and course completion. The report argues that this needs to change.
Funding should increasingly be linked to verified outcomes such as job placement, wage improvement and sustained employment. It also suggests tools such as skill vouchers, placement-linked loans and Skill Impact Bonds.
The report also proposes a Digital Skills Passport. It would bring together verified credentials, skills and work experience, allowing people to carry their learning across education, skilling and employment.
For India, this shift could be critical. The country has a median age of 28 and a huge young population entering or moving through the workforce. But the report warns that demographic strength will work only if skilling is closely tied to actual labour-market demand.
NITI Aayog's proposed architecture rests on three ideas: learning should not be linear, skilling should be lifelong, and outcomes such as employability, career progression and sustainable livelihoods should be the primary measures of success.
