GS 3 – Economy
Context
- Rabindranath Tagore once said, “Don’t limit a child to your own learning, for she was born in another time.”
- The quote resonates strongly with the present education-employment mismatch in India.
- While India has one of the largest youth populations in the world, the outdated education system and inadequate skilling threaten to convert the demographic dividend into a demographic liability.
Current Status of India’s Demographic Dividend
- Population profile: Over 800 million Indians are below 35 years of age.
- Youth potential: India is often projected to benefit from a demographic dividend window till 2055.
- Paradox: Instead of being an economic growth driver, this youth bulge risks turning into a demographic time bomb if unemployment and unemployability persist.
Challenges
- Education–Employment Mismatch
- Curricula operate on slow update cycles (3 years), whereas technologies like Artificial Intelligence (AI) are disrupting jobs rapidly.
- Up to 70% of current jobs globally may be impacted by AI; 30% tasks may be fully automated.
- Despite more students graduating, 43% of graduates are considered job-ready (Graduate Skills Index 2025).
- Engineering graduates also face employability crisis – 40–50% remain unplaced.
- High School Awareness Deficit
- 93% students (classes 8–12) aware of only 7 career options (doctor, engineer, teacher, lawyer, etc.).
- Over 20,000 career paths exist in modern economies, but only 7% students receive formal career guidance.
- 65% of students pursue degrees misaligned with aptitude or job market demand.
- Technology Access vs. Analog Mindsets
- Smartphone penetration has improved, and government has initiated computer/AI labs.
- Yet, most schools continue exam-centric learning.
- EdTech platforms focus on test preparation & rote learning, not on career discovery or skill-building.
- Policy Gaps
- Flagship skilling initiatives: Skill India Mission, PMKVY, PMKK, PMYY, SANKALP, etc.
- Despite large investments, Skill India Mission fell short of its 400 million training target.
- Fragmentation of multiple schemes (“acronym soup”) and lack of coordination weakened outcomes.
Opportunities
- World Economic Forum predicts: By 2030, AI & new technologies will create 170 million jobs.
- But ~92 million jobs will be displaced → Net job creation depends on reskilling.
- India can still leverage its youth bulge by focusing on up-skilling, cross-skilling, and re-skilling.
- Collaboration between government, private sector, and educational institutions can create an industry-aligned skill ecosystem.
Risks of Inaction
- Creation of a large pool of educated but unemployable youth.
- Risk of youth unrest (historical precedent: Mandal Commission protests of 1990).
- Breakdown of the social contract due to unfulfilled aspirations.
- “Where Has All the Education Gone?” (Lant Pritchett, World Bank Economic Review) captures the paradox of education without employability.
Way Forward
- Curriculum Modernisation – Introduce career readiness frameworks in all state boards.
- Skill Development – Shift from rote learning to experiential, industry-linked skilling.
- Policy Cohesion – Consolidate fragmented schemes under a single national skill strategy.
- Career Guidance & Awareness – Introduce career counselling in schools (classes 8–12).
- Public-Private Collaboration – Partner with industry for dynamic curriculum design and training modules.