Since 2014-15, more than 76.7 million individuals have undergone skills-based training, backed by several central and state initiatives. The Union Budget for FY 2025-26 alone allocated ₹34,000 crore for skilling-related expenditure across central ministries. However, the outcomes of these efforts have “remained uneven,” NITI Aayog said.
In its report, “Reimagining Skilling for Viksit Bharat@2047”, the government’s think tank suggested that India needs to move beyond simply expanding higher education and training more people and instead build a system that better connects education, skills and employment.
To achieve this, NITI Aayog proposed measures ranging from introducing employability skills in schools to expanding apprenticeships and encouraging skills-first hiring.
The report also maps India’s workforce and learners into five broad segments, together representing around 600 million citizens: school students; those in tertiary education; formal and informal workers; those not in education, employment and training (Neet) youth; and women.
Where does the gap lie?
According to NITI Aayog, the mismatch is particularly evident in higher education and the labour market. More than 20 million students are enrolled in BA, BSc and BCom programmes, while 18.6 million people over a period of eight months between November 2024 and July 2025 applied for just 55,000 government posts.
The report also flags challenges beyond college graduates, identifying Neet youth as a distinct group requiring targeted interventions. Formal and informal workers, meanwhile, need greater opportunities to upgrade or acquire new skills as the nature of work changes, while women continue to face barriers to participation in education, skilling and the workforce.
What does the report propose?
NITI Aayog, in its report, pitched five core reforms to “transform how India learns and works”, supported by four key system enablers aimed at driving the policy, institutional and technological shifts required at both the Centre and state levels.
These core reforms are mainly:
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Skill integration in schools -
Viable public-private partnership (PPP)/private sector engagement (PSE) models in technical and higher education -
Outcome-linked, industry-backed programmes -
Apprenticeships for all, and -
Guidance and perception building
Through these reforms, NITI Aayog proposes changes across the education-to-employment pipeline, from introducing foundational and employability skills in schools to integrating academic learning more closely with vocational training, apprenticeships and work-based learning. It also called for greater industry participation in designing courses and expanding apprenticeship opportunities.
The report further proposes a shift towards lifelong learning and skills-first hiring, supported by tools such as a Digital Skills Passport that would record an individual’s qualifications, training and work experience. It also wants skilling programmes to be measured by outcomes such as placements, wage progression and retention, rather than simply the number of people trained or certified.
The report’s proposed architecture is reflected in the Integrated Scheme in Skilling Architecture (ISSA), introduced in the Union Budget 2026-27, with an outlay of ₹600 crore. The scheme aims to strengthen convergence across education, skilling, employment and lifelong learning, with state-level transformation pilots proposed in Andhra Pradesh, Odisha, Uttar Pradesh, Bihar and Assam.
At the heart of the proposed architecture is a shift away from a linear education-to-job model. The report envisages “non-linear learning pathways”, allowing individuals to move between education, skilling and work as their circumstances and labour market needs evolve, while treating skilling as a lifelong process.
It also calls for a shift in how success is measured—from the number of people trained or certified to outcomes such as employability, career progression and livelihoods.
