India’s Vocational Education Reform for Workforce Growth
India faces urgent challenges in enhancing its workforce productivity amid a volatile global economy. Recent government reforms aim to boost domestic demand and investment. Central to this effort is a critical overhaul of the Vocational Education and Training (VET) system. The existing VET framework struggles with low enrolment and poor employment outcomes. Drawing lessons from global models, India seeks to transform its skill development landscape to prepare youth for future jobs.
Current State
India’s VET system has extensive infrastructure, including over 14,000 Industrial Training Institutes (ITIs) and 25 lakh sanctioned seats. Yet, actual enrolment is only about 12 lakh, reflecting 48% seat utilisation. Only 4% of the workforce is formally trained. Employment rates for ITI graduates hover around 63%, lower than countries like Germany and Singapore where rates reach 80-90%. The system is unattractive and inefficient for ’s youth.
Challenges
The late integration of VET after high school limits hands-on training and skill orientation. Unlike Germany’s dual system that blends schooling with apprenticeships, India offers VET as an afterthought. There is no formal pathway from vocational training to higher academic education. This discourages students who want to keep academic options open. Furthermore, many VET courses are outdated and poorly aligned with industry needs. Instructor shortages and weak quality monitoring further degrade training standards.
International Best Practices
Countries with successful VET systems integrate training early in education. Germany combines school and paid apprenticeships. Singapore offers dual vocational tracks and clear academic progression routes. These countries have industry-led curriculum design, high-quality instructors, regular audits, and continuous feedback mechanisms. Public-private partnerships fund and manage training, with employers sharing costs and shaping curricula. Governments allocate 10-13% of education budgets to VET, much higher than India’s 3%.
Recommended Reforms
India must integrate VET into early schooling as recommended by the National Education Policy 2020. Fast-tracking the National Credit Framework will enable credit transfers and academic progression. Training quality should improve through alignment with local industry demand, expansion of National Skill Training Institutes, and better instructor recruitment. ITI grading needs strengthening with trainee feedback. Public-private partnerships and MSME involvement should be scaled up. Increased public funding linked to performance and autonomy will enhance institutional viability.
Recent Government Initiatives
Schemes like the Employment Linked Incentive (ELI) and Prime Minister Internship Scheme focus on formal job creation and internships but lack integrated skilling components. The ITI Upgradation Initiative aims to modernise infrastructure but does not sufficiently address training quality. These initiatives are incremental and unlikely to transform employability without systemic reform.
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