NITI Aayog Report Flags Skilling Gaps in India

NITI Aayog’s Skill Development, Labour and Employment Division released the report Reimagining Skilling for Viksit Bharat@2047 in August 2026. The report examined India’s vocational training system, youth employability, labour market alignment, and skilling finance.

NEET Youth and Labour Market Mismatch

The report placed 8.7 crore Indian youth aged 15 to 29 in the NEET category, which stands for Not in Education, Employment, or Training. The estimate used findings from the 78th round of the National Sample Survey conducted in 2021. The report also stated that only 8.25% of college graduates in India work in roles aligned with their qualifications.

Skilling Finance and Programme Delivery

The report stated that India has trained over 7.67 crore people since 2014–15. It also noted a skilling-related expenditure of ₹34,000 crore in the Union Budget for FY 2025–26. The report called for a shift from enrolment-based funding to outcome-linked financing in standalone skilling programmes.

Outcome-linked financing is linked to verified job placements, wage gains, and long-term career retention. The report also referred to industry-backed financing as a model for vocational training systems.

Education Pathways and Gender Participation

The report recommended introducing General Employability and Entrepreneurship Skills, or GEES, from Grade 6. It also proposed Kaushal Tracks from Grade 9 as structured vocational pathways within the school system. These terms relate to employability skills and vocational education in India.

The report stated that only 3% of Indian women have formal jobs. It also placed 71% of Indian women in informal work or the NEET category.

Important Facts for Exams

• NEET stands for Not in Education, Employment, or Training.
• The National Sample Survey is a large-scale household survey system in India.
• Pradhan Mantri Kaushal Vikas Yojana is a flagship skill development scheme of the Government of India.
• The Comptroller and Auditor General is the constitutional audit authority of India.

Audit Findings and Placement Data

A performance audit by the Comptroller and Auditor General cited in the report covered 56.14 lakh certified candidates under Pradhan Mantri Kaushal Vikas Yojana. The audit found that 41%, or 23.18 lakh candidates, were placed in jobs.