July 22, 2025

India's demographic dividend holds the key to economic growth, with a significant population of working-age individuals. However, the country struggles with a mismatch between job opportunities and the skillsets of its workforce. Prime Minister Narendra Modi's government has introduced an employment-linked incentive program to tackle this issue. Nevertheless, the root of the problem lies in the deficiencies of the educational system and vocational training institutes. There is a clear disconnect between the skills taught and those required by employers, leading to underemployment and unrest among jobseekers. The low returns on skilling investments deter individuals from pursuing vocational education, exacerbating the skills gap. Additionally, the lack of a robust social safety net discourages individuals from taking risks in the job market, as private-sector employment often fails to provide job security and adequate benefits. To address these challenges, India must prioritize educational reforms, enhance vocational training programs, and establish a comprehensive social safety net to incentivize skill development and job creation. By aligning education with industry demands, leveraging digital platforms for skill dissemination, and enhancing job security measures, India can empower its workforce and drive sustainable economic growth.

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Tags: India, Employment, Skills gap, Government incentives, Vocational training, Social safety net, Economic prosperity,