Views of Sachin Alug, CEO, NLB Services
‘India, with over half its population under the age of 25 and 65% under 35, stands as the world’s largest youth nation, with around 700 million young people. Supporting this demographic is one of the world’s largest education systems—encircling over 1.4 million schools, 9.5 million teachers, and 414 million students—and placing India third globally in higher education. Yet, youth unemployment poses a critical challenge, while graduates experience a jobless rate of 29.1%, only 3.4% of those without formal education face unemployment, according to the International Labour Organization. Women are particularly affected, accounting for 76.7% of educated unemployed. Addressing this issue requires a boost in job creation to outpace youth population growth, and create a highly skilled rather than semi-skilled workforce.
Despite substantial efforts through government programs like the Skill India Mission and the National Education Policy (NEP) 2020, which seeks to raise the Gross Enrolment Ratio (GER) in higher education to 50% by 2035, significant work remains. NEP’s vision involves establishing Indian universities among the world’s top institutions. To support these goals, Union Budget 2024 has allocated Rs 1.48 lakh crore towards education, employment, and skill development, emphasizing the need for a robust network of qualified teachers. With over 11.3 million teachers currently, India must strive for a Pupil-Teacher Ratio (PTR) of 20:1 in elementary and 30:1 in secondary schools to ensure quality education.
The skills gap continues to widen, with the current demand for skilled talent at 103 million versus a supply of only 74 million. Consequently, its impact can be seen in multiple key sectors including healthcare, semiconductor manufacturing, IT, construction, and renewable energy. Bridging this gap involves prioritizing key digital skills like analytics and self-management, alongside advanced technologies such as AI, IoT, and specialized abilities in data visualization, cybersecurity, and coding. Developing expertise in AI, machine learning, cybersecurity, cloud computing, and content creation will support this transition. By focusing on these skill sets, we can help close the skills gap and potentially boost GDP by 2%. This approach would create a workforce equipped with relevant skills and education for the future.’