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According to the Economic Survey 2023-24, 65% of India’s fast-growing population is under the age of 35, and many lack the skills needed by a modern economy. It also stated that about 51.25% of the country’s youth is deemed employable, according to estimates. This is to say that about one in two graduates are not yet readily employable straight out of college. However, it must be noted that the percentage has improved from around 34% to 51.3% in the last decade.
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The 2022-23 Annual Report of the Ministry of Skill Development & Entrepreneurship (MSDE) notes, “as per National Single SignOn (NSSO), 2011-12 (68th round) report on Status of Education and Vocational Training in India, among persons of age 15-59 years, about 2.2% reported to have received formal vocational training and 8.6% reported to have received non-formal vocational training”.
The same report enumerates the challenges in the skilling and entrepreneurship landscape in the country, such as a low public perception on skilling; an alternative for those who have not completed their formal academic system, unmoderated skill development programmes of the Central Government, multiplicity in assessment and certification systems that cause confusion among the employers, understaffed or untrained faculty, mismatch between demand and supply, limited mobility between skill and higher education/vocational programmes.
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Other challenges include a low coverage of apprenticeship programmes, insufficient skill curriculum, declining women labour force participation, pre-dominant non-farm, unorganised sector employment with low productivity but no premium for skilling, non-inclusion of entrepreneurship in formal education system, lack of mentorship and adequate access to finance for start-ups, inadequate motivation to innovation driven entrepreneurship and a lack of assured wage premium for skilled people.
