Bridging the Skill Gap

As the world grapples with labour shortages, particularly in regions like the Gulf Cooperation Council (GCC) countries and the European Union, the demand for Indian labour, both skilled and unskilled, is set to rise. With aging populations and shrinking domestic workforces, these regions are looking outward to fill gaps in essential sectors like construction, trade, health, and social care. For India, this represents an immense opportunity—if its workforce is adequately prepared. The unfortunate reality is that India is currently ill-equipped to meet this demand due to a massive skills mismatch and a lack of proper vocational training.

The 2020 Global Skill Gap report by the National Skill Development Corporation (NSDC) estimated a growing demand for Indian labour. Yet, while the demand is clear, the capacity of India’s workforce to supply the requisite skills remains in doubt. According to the labour force survey, only a fraction of the Indian working-age population (15-59 years) has received formal vocational or technical training. This alarming shortfall highlights a critical systemic failure—India’s education and training ecosystem has lagged behind in producing job-ready workers.

A major factor in this skill gap is the misalignment between what is taught and what is needed. Even though Indian labour is sought after, it lacks the practical skills demanded by global markets. Vocational training programmes in India are outdated, trainers are often ill-equipped, and curriculums fail to evolve with changing industry needs. This starkly contrasts with countries like Sri Lanka, where workers receive additional training just before departure, ensuring they are familiar with international work practices and standards. It is high time India adopts a similar model, ensuring that its workers are equipped not just with the basics, but with industry-specific competencies that make them competitive on the global stage.

The issue is not confined to those aspiring to work abroad. Indian firms, too, are grappling with a shortage of skilled labour across the spectrum. This indicates a deeper problem—India’s labour force, despite its size, is not being adequately prepared for a modern economy. The country’s failure to provide continuous skills development, especially in an era of rapid technological advancement, threatens its ability to harness its demographic dividend. Without systemic reforms, India risks squandering this once-in-a-lifetime opportunity.

The NSDC can play a pivotal role in rectifying this situation, but only if it focuses on creating an ecosystem that aligns with both domestic and international labour demands. This involves upgrading technical and vocational institutes, investing in trainer development, and revising outdated curriculums. But the responsibility also lies with policymakers and industry leaders, who must push for a more dynamic, responsive skills development strategy.