According to the India Skills Report 2015, it was established that India youth lacks the basic skill and development for employment purpose. Of all the students applying for roles in the labour market, a 30% had the basic skills to match the requirement of employment. Though we have sufficient resources (in terms of community population; people under the working age of less than 35 years) but they are not skilled enough to get a proper job. A skill gap is a significant gap or inadequate linkage between the market-ready skills and those offered by the training and development centers. In India, there this skill gap between the demand from employers(considering the rapid economic growth) and the skills acquired is enormous.
According to 12th Plan Document (Planning Commission, India), less than 85% of the work force in India have educational qualification up to a mere secondary level. Of which, less than 60%possess educational qualification of only up to the primary level. And merely 2% of the workforce has any vocational education and or training.
This gap between the demand and supply, from employment point of view, not only affects the economic growth of the country, but also prevents the inclusive growth of the economy, especially in a growing economy like India, the second largest population. Thus, it becomes the responsibility of the government to bridge this skill gap by taking and adopting newer initiatives for to ensure inclusive growth of the economy.
Newjob opportunities are enormous in engineering, IT, retail, hospitality, and accounting. However, there is an acute shortfall of people possessing the demanding skills needed for satisfactorily performing in these sectors and positions.