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India’s GDP is growing at a rate of 8% per annum, and more than 500 million job opportunities are expected to be created by 2022, the majority of which will be skill based. Accordingly, it is critical to increase the capacity and improve the utilization and quality of Technical and Vocational Training (TVET) being imparted to new job entrants in India. Leveraging the Dividend addresses issues of low employability in India, sets out the key action areas for skill development, and discusses the high impact interventions of non-governmental organizations in the sector.
Despite the fact that a significant portion of India’s population falls within the employable age bracket, there exist various causes for low employability of Indian youth. 90% of the workforce is engaged in the informal sector and has low levels of productivity due to inadequate technical, vocational, and soft skills. The vocational training system in India has the capacity to train only 25% of the estimated 12.8 million new entrants expected to join the workforce every year.
As the report explains, this gap can be bridged by improving the capacity, utilization and quality of technical and vocational education and training (TVET) in India. Improved TVET could help millions access a decent livelihood. To do this, it is essential to increase capacity, improve utilization and quality of technical and vocational training (TVET) being imparted to new job entrants in India. Promoting TVET could have a major impact on the development of the Indian economy; by investing 10% of current GDP on increasing skills training for youth there would be, by some estimates mean extra income for such workers amounting to 61% of current GDP.