Economic Survey 2025–26 on Skilling: What Will It Take to Skill India for Viksit Bharat?

Introduction: Workforce Size Is Not Enough

The Economic Survey 2025–26 places skilling at the heart of India’s ambition to become a Viksit Bharat by 2047. While India’s workforce of over 560 million people is often projected as a demographic advantage, the Survey makes a crucial clarification: economic growth depends not merely on workforce size, but on workforce capability.

The Survey identifies systemic gaps in vocational education, industry alignment, and outcome measurement, and proposes wide-ranging reforms spanning school education, apprenticeships, institutional training, financing, and digital governance.

Constitutional Framework Governing Education and Skilling

India’s skilling ecosystem draws legitimacy from several constitutional provisions:

Article 21A – Right to Education

Guarantees free and compulsory education for children aged 6–14 years. While primarily focused on schooling, courts have increasingly interpreted education to include quality and meaningful learning outcomes, forming the foundation for vocational integration at the secondary level.

Article 41 – Right to Work and Education

Directs the State to make effective provisions for securing the right to work, education, and public assistance. Vocational education and apprenticeships directly operationalise this directive principle.

Article 46 – Promotion of Educational and Economic Interests

Mandates the State to promote the educational and economic interests of weaker sections. Skilling programmes under Skill India, ITIs, and apprenticeships are policy instruments fulfilling this constitutional duty.

Article 51A(j) – Fundamental Duty

Encourages citizens to strive for excellence in all spheres of individual and collective activity, reinforcing the policy emphasis on continuous skill development.

Statutory and Policy Architecture of India’s Skilling Ecosystem

National Education Policy (NEP) 2020

The Survey’s recommendations closely align with NEP 2020, which mandates:

  • Vocational education from Class 6 onwards

  • Integration of education with employability

  • Emphasis on learning outcomes over rote learning

Apprentices Act, 1961

Provides the legal foundation for apprenticeship training in India. The Survey’s call to expand apprenticeships into gig economy, green manufacturing, logistics, and digital services builds upon this statute and highlights the need for regulatory modernisation and unified governance.

Skill India Mission & National Skill Qualification Framework (NSQF)

These initiatives standardise skill levels, certification, and industry relevance. However, the Survey notes that certification without employability has limited value, calling for outcome-based assessment models.

Alarming Data: Skilling Deficit Among Adolescents

The Survey flags a critical statistic:

  • Only 0.97% of individuals aged 14–18 have received institutional skilling

  • Nearly 92% have had no formal vocational exposure

This gap undermines India’s demographic dividend and increases dropout rates and unemployability.

Proposal: Embedding Skilling in Secondary Education

The Survey recommends structured skilling pathways in Classes 9–12, supplementing existing CBSE initiatives such as:

  • Kaushal Bodh modules (Classes 6–8)

  • Skill electives in secondary and senior secondary education

Industry Disconnect and the Failure of Supply-Driven Skilling

The Survey acknowledges a long-standing issue:
Local skilling programmes are poorly aligned with industry needs.

Key problems identified:

  • Weak Technical and Vocational Education and Training (TVET) quality

  • Limited hands-on exposure

  • Certified candidates failing to meet employer expectations

Shift to Industry-Driven Skilling

The Survey advocates:

  • Industry participation in curriculum design

  • Employer-led assessments

  • Apprenticeship-linked certification

This marks a move away from compliance-based metrics (enrolments, certificates) to labour-market outcomes such as employability, earnings, and job retention.

Apprenticeships as the Core Employment Bridge

The Survey places apprenticeships at the centre of India’s skilling strategy.

Key recommendations include:

  • Expansion into emerging sectors (AI, logistics, green economy)

  • Unified governance of apprenticeship schemes

  • Incentives for MSMEs to increase participation

  • Stronger district-level implementation

This aligns with global best practices where apprenticeships serve as the primary transition from education to employment.

Reforming Industrial Training Institutes (ITIs)

ITIs are identified as institutions requiring urgent modernisation.

Proposed reforms include:

  • Smart classrooms and modern laboratories

  • Digital course content

  • Industry-aligned training modules

The objective is to reposition ITIs as industry-integrated, demand-driven vocational institutions, rather than last-resort educational options.

Financing Skilling: From Inputs to Outcomes

The Survey recommends a shift towards outcome-based financing, where funding is linked to:

  • Placement outcomes

  • Employer partnerships

  • Post-training earnings and retention

This approach incentivises training providers to prioritise quality over scale.

Digital Infrastructure as a Policy Enabler

The integration of:

  • Skill India Digital Hub (SIDH)

  • National Career Service (NCS)

  • e-Shram portal

has created a unified digital skilling ecosystem.

According to the Survey, this infrastructure enables:

  • Real-time monitoring of training outcomes

  • Linking skilling records with employment data

  • Evidence-based policymaking

  • Tracking individual skilling trajectories across sectors

Learning Outcomes Over Years of Schooling

The Survey strongly endorses a learning outcome-based education framework, identifying uneven competencies despite improved enrolment.

Key Proposals:

  • Strengthening the National Achievement Survey (NAS)

  • Introducing a PISA-like competency assessment at Class 10

  • Creating a NIRF-like ranking framework for schools

The focus is on measurable competencies in:

  • Literacy and numeracy

  • Digital skills

  • Problem-solving and communication

  • Job-specific technical skills

Judicial Perspective on Education and Employability

The Supreme Court has consistently held that education must be meaningful and effective, not merely formal:

  • Unni Krishnan v. State of Andhra Pradesh (1993) – Education is intrinsic to dignity and development

  • Modern Dental College v. State of MP (2016) – Emphasised regulation in education to ensure quality

  • Avinash Mehrotra v. Union of India (2009) – Linked education to safety, infrastructure, and outcomes

These judgments reinforce the Survey’s emphasis on quality, accountability, and outcomes.

Conclusion: Skilling Is the Real Infrastructure of Viksit Bharat

The Economic Survey 2025–26 makes one thing clear:
India’s growth trajectory will depend less on population and more on preparedness.

Skilling must move:

  • From enrolment to employability

  • From certificates to competencies

  • From fragmented schemes to integrated governance

If implemented effectively, the reforms outlined in the Survey can transform India’s demographic advantage into sustainable economic strength—and bring the vision of Viksit Bharat 2047 within reach.

Location: Pune, Maharashtra, India

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