As unemployment remains a pressing concern and job creation a top priority, India’s focus on education and skill development has emerged as a cornerstone for national progress. The 2024 budget laid the groundwork for several key initiatives, and expectations are high for further advancements in Budget 2025.
Skill Development: A National Priority
Under the Skill India Mission, the government has rolled out several schemes to enhance employability and bridge the skills gap. Prominent among them are:
- Pradhan Mantri Kaushal Vikas Yojana (PMKVY): Offers short-term skill training.
- Pradhan Mantri Kaushal Kendras (PMKK): Standardizes quality training across India.
- Jan Shikshan Sansthan (JSS): Focuses on non-literate and rural populations.
- Pradhan Mantri YUVA Yojana: Promotes entrepreneurship.
- PM Vishwakarma Yojana: Supports traditional artisans by modernizing skills and integrating them into global markets.
Despite progress, challenges persist. Government data shows that only 52% of final-year students and graduates were employable in 2024, a marked improvement from 31% in 2014, but highlighting the need for further interventions.
Modernizing ITIs for Workforce Development
The government has allocated ₹60,000 crore over five years to modernize 1,000 Industrial Training Institutes (ITIs) under a hub-and-spoke model. This initiative involves contributions from the Centre, state governments, and industry partners.
Key aspects include:
- Redesigning courses to align with industry demands.
- Introducing specialized short-term programs.
- Enhancing training infrastructure and instructor quality.
“These interventions aim to transform ITIs into centers of excellence, addressing challenges in student mobilization, training quality, and industry connect,” said Kamlesh Vyas, Partner, Deloitte India.
Budget Allocations and Financial Support
The 2024 budget allocated ₹73,498 crore for school literacy, a 19.5% increase over 2023, and ₹47,619.77 crore for higher education. Initiatives like the revised Model Skill Loan Scheme, offering loans up to ₹7.5 lakh, and financial support for higher education loans up to ₹10 lakh aim to make education more accessible.
Additionally, the internship program introduced in 2024 targets 1 crore youth, providing real-world business exposure and financial assistance.
Higher Education: A Global Perspective
India’s higher education landscape is witnessing globalization with the establishment of foreign university campuses under the National Education Policy 2020. Notable examples include:
- Deakin University and University of Wollongong in GIFT City, Gujarat.
- University of Southampton, the first UK university to set up an offshore campus in India.
“International campuses will create jobs across fields and enhance education quality, making India a global learning hub,” said Bhupender Kumar Som, Director, GNIOT Institute of Management Studies.
Vision for the Future
As Budget 2025 approaches, stakeholders emphasize the need to increase education spending from the current 4% to 6% of GDP. This is crucial to support initiatives that enhance access to education and technology, particularly in rural areas.
By fostering an ecosystem that integrates digital tools, physical infrastructure, and practical learning, India aims to equip its youth with the skills needed for a dynamic global economy. The emphasis on education reform and skill development underscores a commitment to inclusive and sustainable growth.
