India’s strategy to harness its demographic dividend and respond to rapidly evolving labour-market requirements rests on building a well-integrated, forward-looking skilling ecosystem, according to the Economic Survey 2025-26 tabled in Parliament by Union Finance Minister Nirmala Sitharaman.
The Survey underscores that skills policy sits at the intersection of education, labour markets, and industry, requiring close coordination across ministries, institutions, States, employers, trade unions, educators, and learners. Strengthening this ecosystem is central to ensuring that India’s workforce remains adaptable, productive, and globally competitive.
Rising Participation in Vocational/Technical Training
The Survey highlights significant progress in expanding access to skills training. Findings from the Periodic Labour Force Survey (PLFS) 2023-24 indicate that the share of individuals aged 15-59 years who have acquired some form of vocational or technical training rose sharply from 8.1 per cent in 2017-18 to 34.7 per cent in 2023-24.
This increase reflects the cumulative impact of sustained public investment and policy focus on skilling initiatives across sectors.
Future-Skills Courses Driving the Skill Revolution
To align training with emerging technologies and future demand, NSQF-compliant training has been expanded through the development of 169 trades, including 31 future-skills courses. These courses span high-growth areas such as:
- Artificial Intelligence (AI)
- Internet of Things (IoT)
- Renewable energy
- 3D printing
They are delivered through the nationwide network of Industrial Training Institutes (ITIs) and National Skill Training Institutes, strengthening India’s capacity to prepare workers for technology-intensive and green-economy roles.
Strengthening the Skilling Ecosystem Through ITI Reforms
The Survey notes that reforms at the ITI level are focused on improving training quality, industry relevance, and institutional capacity.
Under the National Scheme for Upgradation of ITIs, the government proposes to upgrade 1,000 government ITIs, comprising:
- 200 hub ITIs
- 800 spoke ITIs
Upgradation measures include:
- Smart classrooms and modern laboratories
- Digital learning content
- Industry-aligned long-term and short-term courses
These reforms aim to reposition ITIs as high-quality, industry-responsive skilling institutions.
Connecting Skilling with Industry Demand
Industry participation is being embedded across curricula design, training delivery, apprenticeships, and assessments to ensure market-responsive skilling. Under PMKVY 4.0:
- Training is imparted in NSQF-aligned job roles developed by industry-led Sector Skill Councils (SSCs)
- Several courses are delivered directly within industrial premises
- Trainers are increasingly sourced from the employer ecosystem
In addition, Rozgar Melas and National Apprenticeship Melas are being organised regularly to strengthen linkages between employers and job seekers.
Digital Platforms Linking Skills and Employment
The integration of the Skill India Digital Hub (SIDH), National Career Service (NCS), and e-Shram portal has created a robust digital infrastructure for skilling and employment. This integrated platform enables:
- Real-time monitoring and assessment
- Linking training records with employment outcomes
- Better matching of employer demand with worker skills
- Tracking individual skilling and career trajectories
India’s Expanding Apprenticeship Framework
The Survey highlights a major expansion of India’s apprenticeship ecosystem.
- Under the National Apprenticeship Promotion Scheme (PM-NAPS), over 43.47 lakh apprentices have been engaged across 36 States and UTs
- Participation spans more than 51,000 establishments
- Female participation has reached 20 per cent
In addition:
- The National Apprenticeship Training Scheme (NATS) recorded 5.23 lakh apprentice engagements in FY25
These trends point to the growing scale, diversity, and institutional maturity of India’s apprenticeship framework.
Way Forward: Convergence and Industry-Driven Skilling
Looking ahead, the Survey stresses the importance of:
- Advancing institutional convergence
- Adopting a whole-of-government approach to skilling and employment
- Deepening industry-driven skilling models
Stronger alignment between skilling initiatives and labour-market demand will be critical to building job-ready talent, strengthening skill-industry linkages, and supporting India’s long-term growth and competitiveness. (Source: PIB PR ID 2219938)
Economic Survey of India 2025-26 dated 29/01/2026