[Answered] “With the rapid pace of technological advancements, the skills required for jobs are continuously evolving.” In this context, discuss the challenges India faces in ensuring its workforce is adequately upskilled to meet the demands of the future job market. What policy interventions are needed to bridge the skill gap?

India faces significant challenges in ensuring employment growth keeps pace with its expanding labor force.

Challenges in Employment Generation

• Labour Market Imperfections: India’s labor market is characterized by rigidities such as wage-setting mechanisms and institutional constraints. Imperfections result in both shortages and excesses of labor, hampering efficient employment growth.
• Skill Gaps: There existsa gap between qualifications and practical skills due to poor training, and a lack of skill training altogether. Both types coexist in India, contributing to high unemployment among educated youth, particularly in sectors like IT, where demand for specific technical skills is high.
• Aspirational Gaps: The mismatch between job seekers’ aspirations and available jobs further complicates the employment scenario. Many youths are drawn to jobs that offer prestige and higher wages, leading to frustration when such jobs are unavailable.
• Technological Displacement and Declining Employment Elasticity: Technological advancements, especially in AI and automation, are reducing the employment elasticity of economic growth.

Policy Interventions to Bridge the Employment Gap

• Sectoral Focus on Labour-Intensive Industries: To generate employment, India should prioritize industrialization in labor-intensive sectors like food processing, textiles, and apparel.
• Promoting Technology-Intensive Industries for Global Competitiveness: Simultaneously, India must enhance the global competitiveness of its technology-intensive sectors, such as pharmaceuticals, electronics, chemicals, and motor vehicles.
• Educational Reforms for Skill Development: The curriculum in schools and higher education institutions should be aligned with industry requirements, with a strong focus on STEM education. Vocational training programs, apprenticeships, and industry-specific certification courses should be expanded to bridge the gap between qualifications and employable skills.
• Adapting to Technological Change: Policymakers must prepare the workforce to cope with the rise of AI and automation. This can be achieved through upskilling and reskilling programs that equip workers with skills relevant to new technologies.

Conclusion

A balance between labor-intensive and technology-intensive sectors, coupled with robust educational and vocational reforms, will be critical in addressing the unemployment challenge. By enhancing coordination between government, industry, and educational institutions, and through targeted policy interventions, India can bridge the employment gap and ensure sustainable job growth in the future.