Source: The post India must overhaul vocational education for broad-based job growth has been created, based on the article “The skills check” published in “Indian Express ” on 22nd August 2025. India must overhaul vocational education for broad-based job growth.
UPSC Syllabus Topic: GS Paper 2- Issues Relating to Development and Management of Social Sector/Services relating to Education.
Context: With a volatile external sector, the Prime Minister announced reforms on August 15. Beyond GST recalibration, the article urges overhauling vocational education and training (VET) to raise productivity and employability. A rote-heavy system cannot supply a future-ready workforce.
Scale and outcomes of India’s VET
- Low formal training and seat utilisation: Only 4% of India’s workforce is formally trained. The system has 14,000+ ITIs and 25 lakh seats, but enrolment was 12 lakh in 2022—just 48% utilisation.
- Modest employment after training: In 2018, only 63% of ITI graduates were employed. VET systems in Germany, Singapore, and Canada achieve 80–90%.
- Demand-led growth needs skills: GST may lift demand, but job-rich growth needs skills; the weak VET pipeline restrains productivity and formal jobs.
Structural reasons for weak performance
- Late integration in schooling: Germany integrates VET at upper-secondary via a dual system with paid apprenticeships. India adds VET after high school, reducing hands-on time and early orientation.
- No academic progression or credit transfer: Singapore provides clear pathways from technical education and polytechnics to university. India lacks formal progression and credit transfer, deterring students who want academic options open.
- Quality and perception deficits: Many courses are outdated; over one-third instructor posts are vacant due to limited NSTI capacity. Irregular gradingand absent feedback weaken quality.
- Thin employer engagement and PPP gaps: Employer participation is limited; ITIs depend on government funds; MSMEs have capacity limits; Sector Skill Councils lack state presence.
International practices that work
- Germany’s dual system: Early embedding with paid apprenticeships improves employability and smooths school-to-work transitions.
- Singapore’s quality and lifelong upskilling: Industry-led design, strong instructors, and routine audits ensure relevance. SkillsFuture supports continuous learning.
- Shared financing and co-design: Governments fund institutions; employers pay apprenticeships, share costs, and co-design curricula. This aligns training with labour demand.
Reform priorities for India
- Integrate VET early and create pathways: Implement NEP 2020 school integration. Fast-track the National Credit Framework with recognised certifications and progression routes.
- Raise training quality and capacity: Align courses with local demand via market assessments. Expand NSTIs, hire instructors, and strengthen ITI gradingwith trainee feedback.
- Build strong partnerships with industry: Scale the Private Training Partner model. Engage MSMEs and use CSR funding.
Financing and current schemes—what’s missing
- Invest more and link funding to performance: India spends ~3% on VET vs 10–13% in Germany, Singapore, Canada. Improve viability via lower per-student costs, revenue autonomy, and performance-linked funding.
- Scheme design focused on jobs, not skills: ELI Part A gives up to ₹15,000 to first-time EPFO-registered workers. ELI Part B pays employers ₹3,000/month per new hire. Both promote formalisation but lack skilling components.
- Internships and upgrades without clear outcomes: The PM Internship Scheme offers one-year placements but no route to permanent jobs. The ITI Upgradation Initiative modernises 1,000 ITIs with industry partners, not necessarily training quality. These measures tinker at the margins; a system overhaul is essential for VET to become a reliable path to jobs and a Viksit Bharat.
Question for practice:
Examine the reasons for low VET uptake and employment in India and the reforms proposed to improve outcomes.
