Economic Survey 2023-24: Government's Push for Youth Skill Development and Employment Opportunities

Union Finance Minister Nirmala Sitharaman presented the Economic Survey of India 2023-24 today in both Houses of Parliament. Check highlights on youth skill development and new skilling initiatives here

Union Finance Minister Smt. Nirmala Sitharaman while presenting the Economic Survey 2023-24 emphasised that India's education and skill policies should adopt a laser-like focus on learning and skilling outcomes, ensuring they are aligned with each other. This is highlighted as one of the six major pillars for achieving the collective goal of ViksitBharat@2047 in the medium term.

New Skilling Initiatives and Revamping of Existing Ones

The Economic Survey states that the NEP (New Education Policy) 2020 provides an excellent framework to achieve this objective, emphasising that new skilling initiatives and the revamping of existing ones should remain high priorities for the Government. Skills are acquired on the foundations built by the education system, especially in schools.

Therefore, schooling should focus on foundational literacy and numeracy and the achievement of grade-appropriate learning outcomes, adds the Survey. It also calls upon the industry to take the lead in skill creation, arguing that the industry has much to gain from collaborating with academic institutions rather than leaving the responsibility solely to the government.

4.4% of Indian Youth Receive Formal Training, 16.6% Skilled Through Informal Means

The Economic Survey 2023-24 states that the government is implementing initiatives to align job and entrepreneurial opportunities with the aspirations and skills of India’s youth. The Survey highlights a notable increase in the number of skilled individuals across various socio-economic groups. It notes that 4.4% of youth aged 15-29 have received formal vocational or technical training, while an additional 16.6% have obtained training through informal means.

National Policy on Skill Development & Entrepreneurship (NPSDE)

The Survey says the National Policy on Skill Development & Entrepreneurship (NPSDE) focuses on bridging gaps, improving industry engagement, establishing a quality assurance framework, leveraging technology, and expanding apprenticeship opportunities. This, in combination with the National Education Policy (NEP), holds tremendous potential for bridging the education-employment gap in India, adds the Survey.

India’s Workforce to Expand to 56.5 Crore by 2044

The Survey highlights that 65% of India's rapidly growing population is under 35, with estimates indicating that approximately 51.25% of this youth is considered employable. This represents a significant improvement from about 34% a decade ago. Emphasising the importance of productive jobs for economic growth and inclusion, the Survey notes that India's workforce, currently estimated at nearly 56.5 crore, will continue to expand until 2044.

To accommodate this increasing workforce, the Indian economy will need to create approximately 78.51 lakh non-farm jobs annually. Achieving this will require fostering faster growth in productive employment outside of agriculture, particularly in organized manufacturing and services, while also enhancing productivity in agriculture.

Skilling Initiatives

The Survey advocates for maximising the benefits of various skilling initiatives by fostering convergence and leveraging synergies with other employment-focused programs to enhance mutual advantages. It suggests integrating skill development with Production Linked Incentive (PLI) schemes and employment-linked incentives in high-growth sectors such as toys, apparel, tourism, logistics, textiles, and leather. This approach would support skill enhancement as production advances up the value chain. Additionally, the Survey notes that there is significant potential to introduce more flexibility into the regulatory framework for apprenticeship promotion.

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