Introduction

In his Independence Day address on August 15, the Prime Minister emphasised a shift toward demand-driven reforms, the recalibration of GST, and the critical need to enhance productivity through robust education and skill development. Despite having one of the world''s youngest populations, India grapples with a significant challenge: a workforce that remains largely low-skilled. To bridge this gap, vocational education and training (VET) emerges as an indispensable tool for improving both employability and economic output.

The Present State of India’s VET Framework

·       India’s VET infrastructure appears formidable on paper, boasting more than 14,000 Industrial Training Institutes (ITIs) and 25 lakh sanctioned seats. However, the real picture reveals a system underutilised and underperforming. In 2022, actual enrolment in ITIs stood at merely 12 lakh, reflecting just 48% seat utilisation. More concerning are the employment outcomes: in 2018, only 63% of ITI graduates were employed. This pales in comparison to countries like Germany, Singapore, and Canada, where employment rates for vocational graduates range between 80% and 90%.

·       The issue of formal skilling also paints a stark picture. Only 4% of India’s workforce has formal vocational training, a figure dramatically lower than global standards. These indicators point not just to inefficiencies, but to a broader perception problem, with vocational training remaining unattractive and disconnected from actual employment needs.

Key Challenges in India’s VET System

·       A major shortfall lies in the delayed integration of vocational education into the mainstream educational journey. In India, VET is typically introduced only after high school, drastically reducing the time available for practical training before young people enter the job market. This late exposure also leaves little room for students to develop job-ready skills early on.

·       Compounding this is the absence of academic mobility between VET and higher education. Unlike many international systems, India lacks structured pathways that allow for credit transfers or progression from vocational institutes to universities, leaving many learners trapped in a cul-de-sac of limited opportunities.

·       Quality concerns further erode the effectiveness of the system. Curricula are outdated and misaligned with contemporary industry needs. One-third of instructor positions in ITIs remain vacant due to limited training capacity at National Skill Training Institutes (NSTIs). Quality control is inconsistent, with irregular grading of ITIs and little or no feedback mechanisms from trainees or employers.

·       The limited involvement of private enterprises represents another structural weakness. While successful international VET models thrive on strong public–private partnerships (PPPs), India’s ITIs remain heavily reliant on government funding. Micro, Small, and Medium Enterprises (MSMEs)—which have high local employment potential—rarely engage with ITIs due to their own capacity constraints. Furthermore, Sector Skill Councils, intended to serve as a bridge between training and industry demand, are notably absent at the state level, curtailing their reach and influence.

International Best Practices for VET Reform

·       Models from countries like Germany, Singapore, and Canada offer instructive comparisons. Germany’s dual system incorporates VET at the upper secondary level, combining school education with paid apprenticeships to ensure real-world experience. Singapore ensures academic progression by offering VET through both technical education and polytechnics, enabling seamless movement into university-level programs.

·       Singapore’s success also lies in its commitment to quality. Curricula are developed in consultation with industry leaders, instructors are highly qualified, and training institutions undergo regular audits, supported by feedback loops from both students and employers. Programmes like “SkillsFuture” further allow for continued upskilling throughout one’s career, supported by government subsidies.

·       These countries also demonstrate strong PPP models, where governments fund vocational institutions, and employers contribute by financing apprenticeships, helping design course content, and absorbing trained graduates into the workforce. This shared responsibility ensures both relevance and accountability.

What India Must Do to Reform Its VET Ecosystem

·       India must begin by integrating vocational training much earlier, as proposed under the National Education Policy (NEP) 2020. Introducing VET at the school level would familiarise students with employable skills and expand their options post-secondary education.

·       Equally important is the need to fast-track the National Credit Framework, which would enable academic progression between VET and higher education systems. This would not only raise the status of vocational training but also ensure that learners are not left in a professional dead-end.

·       The quality and relevance of training must be significantly improved. Curricula must align with local industry demands. NSTIs should be expanded, more instructors recruited, and ITI grading made regular and transparent. Feedback from trainees should be institutionalised to drive continuous improvement.

·       Public–private partnerships must be deepened. Scaling up the involvement of private training partners and leveraging Corporate Social Responsibility (CSR) funds for skilling initiatives would ensure better industry alignment. MSMEs should be actively engaged through incentive structures that support their participation in apprenticeship and training programs.

·       Funding for VET also needs a radical rethink. Currently, India allocates only 3% of its education budget to vocational education, far below the 10–13% allocated by countries like Germany, Singapore, or Canada. India must adopt a performance-linked funding model and provide revenue autonomy to ITIs, encouraging both efficiency and innovation.

Evaluating Recent Government Initiatives

·       Several recent schemes show intent but lack systemic coherence. The Employment Linked Incentive (ELI) scheme, for instance, promotes job formalisation by offering financial incentives to both workers and employers. However, it fails to integrate any skilling component, thereby missing a crucial link in the employment chain.

·       The PM Internship Scheme, which promises one-year placements in top firms, also falls short by offering no clear pathway to permanent employment. Similarly, the ITI Upgradation Scheme focuses on infrastructure modernisation for 1,000 government ITIs but does not necessarily guarantee improvements in the quality or relevance of the training provided.

The Way Forward

·       India’s current efforts are fragmented and insufficient for the scale of transformation required. What is needed is a systemic overhaul that makes vocational training not just a fallback option, but an attractive, effective, and aspirational pathway to quality employment. This transformation must anchor VET within the broader framework of economic mobility, formal employment, and industrial growth.

·       To achieve the vision of Viksit Bharat by 2047, vocational education must be reimagined as a powerful lever for national development—equipping the youth with future-ready, globally competitive skills while aligning closely with industry needs.

Conclusion

A truly future-ready India hinges on transforming its vocational education and training system into a vibrant, industry-linked, and aspiration-driven ecosystem. Only by creating a system that is not just functional but empowering can India fully capitalise on its demographic dividend. Such a transformation will be pivotal in realising the larger national vision of Viksit Bharat @2047, where economic growth, social equity, and global competitiveness are grounded in the skills and potential of every citizen.