New Delhi: India needs to shift its focus from training more people to ensuring skilling leads to jobs, higher wages and career progression, NITI Aayog said in its latest report Wednesday, proposing an overhaul of the country’s skilling architecture.
The federal think tank has recommended introducing courses on employability and entrepreneurship skills from Class 6 onwards, making apprenticeships (on-the-job training) a primary route to employment and moving towards skills-first hiring where a formal degree will not be essential.
The recommendations are part of NITI Aayog’s latest report ‘Reimagining Skilling for Viksit Bharat@2047’, which says more than 7.67 crore people have undergone skills-based training since 2014-15.
The Union Budget had allocated Rs 34,000 crore for FY 2025-26 in skilling-related expenditure across central ministries.
However, the report notes that “outcomes remain uneven”.
It maps India’s workforce and learners across five segments, together representing around 60 crore citizens—school students; tertiary education; formal and informal workers; not in education, employment or training youth; and women.
It says the system should allow people to move between education, skilling and work without restarting their learning journey at every transition.
Start skilling in schools
The first major reform proposed by NITI Aayog is to integrate skills into school education early.
“Skilling must begin early and be embedded,” the report said, noting that fewer than one in 12 secondary schools currently offer vocational subjects.
It proposes General Employability and Entrepreneurship Skills or GEES, for all students from Class 6 to Class 12. The report also proposes that students from Class 9 onwards can choose “Kaushal Tracks” for specialised vocational training based on local and national job demand.
NITI Aayog also calls for greater industry involvement in higher education through public-private partnerships and degrees and diplomas that include apprenticeships. It wants universities to offer more job-focused, industry-linked courses instead of generic degrees, along with flexible courses that allow students to learn while working.
For standalone skilling programmes, the federal think tank wants a shift from enrolment-based delivery to models linked to actual outcomes such as job placements, wage gains or long-term employment.
It says courses should focus on high-growth areas such as green industries and electric vehicles, while helping workers reskill for changing job markets and move from declining occupations.
The report also recommends flexible courses, including evening, weekend, hybrid and part-time options, to make skilling easier for workers and women facing time or mobility constraints.
Apprenticeships for all
NITI Aayog has identified apprenticeships as a critical bridge between education and employment, but said participation remains limited and fragmented.
Despite several government schemes, only about 32,000 of nearly six crore registered micro, small and medium enterprises (MSMEs) had engaged apprentices under the National Apprenticeship Promotion Scheme (NAPS).
Only 8.5 percent of ITI (industrial training institute) trainees took up apprenticeships in 2018. The report also says 80 percent of higher education students cite lack of practical experience and industry exposure as a major gap in their resume. “Apprenticeships must be repositioned as a mainstream and trusted pathway,” the report said.
To address this, the think tank proposes a State Apprenticeship Platform that would bring together NAPS, the National Apprenticeship Training Scheme (NATS) and state programmes through a single-access window. The platform would provide verified information about roles, eligibility, locations and stipends, while using demand data to align training capacity with industry requirements.
NITI Aayog also proposes financial incentives and simpler contracting processes to encourage MSMEs to take on apprentices.
Shifting from degree-based to skills-based hiring
The federal think tank has in its latest report also called for changing how companies recruit for jobs where a college degree is not essential.
The report recommends piloting a “skills-first” hiring model in select public sector undertakings (PSUs) and high-volume roles, where candidates would be assessed on their skills, ITI or apprenticeship credentials and work experience rather than degrees.
It also suggests removing degree requirements from job advertisements where they are not legally necessary.
The aim is to increase demand for vocational training and make skills-based qualifications more valuable in the job market. “Select by skills, not degrees,” the report said.
The think tank also proposes allowing workers to take one to three months of unpaid leave for certification courses, bootcamps or other industry-recognised training while retaining job security. It says this could help workers acquire new skills and move into higher-paying roles or new sectors.
The proposal aims to make skilling a regular practice by allowing workers to upgrade their skills to keep pace with changing technology, industries and labour-market requirements.
(Edited by Amrtansh Arora)
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