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INDIA’S VOCATIONAL TRAINING SYSTEM: CHALLENGES AND WAY FORWARD

Vocational training system is crucial for achieving the 'Viksit Bharat' vision. Despite government schemes like Skill India Mission and PMKVY, challenges like low participation and poor quality persist. The National Education Policy 2020 aims to integrate vocational and mainstream education, strengthen industry linkages, adopt international models, and ensure quality and relevance.

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Picture Courtesy:  INDIAN EXPRESS

Context

India's vocational training system urgently needs to be reinvented to effectively bridge the skill gap, ensure youth employability, and support the nation's economic growth ambitions.

What is Vocational Training?

It empower individuals with practical, job-specific skills for direct workforce entry.

By providing in-demand skills, vocational training boosts employability and leads to higher earning potential.

Evolution of Vocational training in India

Early foundations (pre-1950s): Before independence, skills were passed informally (apprenticeships in crafts). No formal public training system existed.

1950s: Craftsmen Training Scheme (1950) and the first Industrial Training Institutes (ITIs) were set up.

  • National Council for Vocational Training (NCVT) set up in 1956.
  • Apprentices Act (1961) legally mandated apprenticeships under industry.

Later developments: National Policy on Skill Development (2009) was India’s first comprehensive skill policy.

Current Status

As of July 2025, there are 14,615 ITIs established across the country; 3,316 are Government ITIs and 11,299 are Private ITIs.  About 63.5% of ITI graduates find jobs after passing out.

India has a huge skill gap. Only about 2.2% of Indians aged 15–59 have formal vocational training, far below countries like Germany (over 50% of youth in VET).

Since 2014, the Ministry of Skill Development and Entrepreneurship has empowered more than 6 crore Indians through its various schemes.

Framework for Vocational training in India

Directive Principles: Article 41 (DPSP) directs the State to provide the “right to work” and education. Article 46 urges promotion of education among weaker sections (SC/ST). These support state action on vocational skills.

Education law: Education (including technical and vocational training) falls in the Concurrent List of the Constitution. Both Centre and States can legislate to expand vocational courses.

Skills standards: The National Skills Qualifications Framework (NSQF) defines 8 levels of competencies from school to professional, aligns vocational courses with academic qualifications.

Equal opportunity: Courts have held that equality (Article 14) extends to fair pay and work (e.g. Randhir Singh case 1982, right to equal remuneration).  

International benchmarks: India’s NSQF (8 levels) is broadly in line with frameworks like Europe’s. But India’s vocational coverage is very low, highlights the need for stronger policy.

Initiatives taken by Government to expand Vocational training in India

Skill India Mission (SIP): Provide skill, re-skill and up-skill training through an network of skill development centres / institutes under various schemes.

In February 2025, the restructured ‘Skill India Programme’ was approved, merging Pradhan Mantri Kaushal Vikas Yojana 4.0 (PMKVY 4.0), the Pradhan Mantri National Apprenticeship Promotion Scheme (PM-NAPS), and the Jan Shikshan Sansthan (JSS) Scheme into a single Central Sector Scheme.

Pradhan Mantri Kaushal Vikas Yojana (PMKVY): Provides short-term skill training and upskilling/re-skilling through Recognition of Prior Learning (RPL).

  • As of July 2025, more than 1.63 crore candidates have been trained under PMKVY in diverse sectors, such as, manufacturing, construction, healthcare, IT, electronics, retail and more.
  • Placement rate in STT certified candidates till PMKVY 3.0 was 42.8%.
  • Skill India Digital Hub (SIDH) platform launched to integrate skilling, education, employment, and entrepreneurship ecosystems.

Jan Sikhshan Sansthan (JSS): Offers vocational skills to non-literates, neo-literates, and school dropouts (up to 12th standard), aged 15–45.

National Apprenticeship Promotion Scheme (NAPS): Offering financial support for apprentice stipends.

PM Vishwakarma Yojana: Provide support to artisans and craftspeople of 18 trades.

  • Provide recognition through PM Vishwakarma Certificate and ID Card, Skill Upgradation, Toolkit Incentive, Credit Support, Incentive for Digital Transactions and Marketing Support.

Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY): Part of the National Rural Livelihood Mission (NRLM), provide career aspirations of rural youth. 65% of the candidates placed in employment after completing their training.

Rural Self Employment and Training Institutes (RSETIs): Residential free training and post training follow up with credit linkage for promoting entrepreneurship among the rural youth.  

Challenges in India's Vocational Training System

Skills Mismatch and Outdated Curricula: Disconnect between the skills provided by vocational training institutes (VTIs) and the actual demands of the job market.

  • Economic Survey 2024-25 reveals only 8.25% of graduates are employed in roles matching their qualifications, with over 50% underemployed in low-skill jobs.
    • It highlights the failure of VTI programs to keep pace with the evolving needs of industries, particularly in emerging fields like AI, robotics, and the green economy. 

Low Employability and Quality Concerns: Only about 43% of PMKVY-certified youths reported working in their trained domain, indicating a gap between training and jobs, also raising concerns about quality of training provided. 

  • According to the India Skills Report 2025, only 54.8% of Indian graduates are considered employable, highlighting the skill gaps in both technical and non-technical sectors.

Social stigma: Vocational courses are seen as “second-best” to academics. Families and students favor engineering or medicine over polytechnics/ITIs.

  • Stigma keeps enrollment low – only 2% of the workforce has formal training. Overcoming social bias is key.

Inadequate Infrastructure and Resources: Many VTIs lack the necessary infrastructure, modern equipment, and technology for providing effective and industry-relevant training. 

Weak Industry Linkage and Employer Engagement: Limited industry participation in curriculum design, training delivery, and apprenticeship programs leads to a disconnect between the skills taught and the needs of employers. 

Shortage of Qualified Trainers:  In 15,000 ITIs with seating capacity of more than 35 lakhs, study found only 15% of instructors have formal instructor training, leading to uneven teaching quality. 

  • Over one-third of ITI instructor posts are vacant due to limited training capacity at National Skill Training Institutes.
  • Quality monitoring is weak, with irregular ITI grading and no feedback systems.

Rural disconnect: Access to vocational programs is much lower in rural areas. 

Low Apprenticeship Uptake: India has only about 4.1% of its workforce aged 15-59 with formal technical training, less than 70% in countries like Germany.

Fragmented and Uncoordinated Ecosystem: Leads to duplication of efforts, inefficient resource utilization, and a lack of a cohesive national strategy for skill development, making it difficult to achieve coordinated progress.

Inadequate Funding: Government has increased funding for skill development (Rs.8,800 cr for ‘Skill India Programme (SIP)’ till 2026), however, it is still insufficient for addressing the scale of the challenge.

  • High cost of vocational courses deter students, especially from economically weaker sections.
  • India allocates around 3% of total education expenditure to VET, lower than countries like Germany, Singapore, and Canada, which allocate 10-13%.

Digital Divide and Limited Access to Technology: Insufficient internet access, low digital literacy, and inadequate infrastructure hinder access to online vocational programs and digital learning resources. This limits students' ability to acquire essential digital skills needed in an increasingly digital economy. 

NEP 2020 Reforms

50% target by 2025: NEP mandates that by 2025 at least half of students in school and college should have exposure to vocational education.

Early integration: Vocational courses will be introduced from Grade 6 onward in all schools. NEP plans “vocational exposure at early ages” in middle and secondary school. Every child will learn at least one vocation. 

NCIVE formation: NEP directs formation of a National Committee for Integration of Vocational Education (NCIVE), bringing together experts, ministries and industry.

  • NCIVE will coordinate curriculum, accreditation and scaling up of vocational programs across education and skill sectors.

Credit-based NSQF: NEP provides that NSQF will be credit-linked, so students can move between general and vocational streams.

  • Credits earned in vocational courses will count towards academic degrees. For example, a student could exit after Grade 10, do vocational training, and re-enter higher secondary, carrying forward credits. 

Way Forward for Strengthening India's Vocational Training System

Align Curricula with Industry Demands: Develop a dynamic curriculum process through ongoing industry collaboration and regular market assessments to identify emerging skill demands. 

Scale Up Industry Engagement: Promote and expand PPP models like the Private Training Partner approach, leveraging public infrastructure with private sector expertise. Increase MSME involvement in vocational training. Strategically utilize CSR funding to boost VET program relevance.

Enhance Financial Viability: Increase VET public spending to align with international benchmarks. Link public funding to institutional performance and grant them autonomy to generate revenue, optimizing resource utilization.

Enhance Technology Integration: Promote digital training in vocational programs, integrate technologies like AI, VR, AR, IoT, and robotics into VET curricula. Utilize online platforms like SWAYAM to expand access.

Reform Apprenticeship System: Revamp the Apprentices Act and policies to make apprenticeships flexible, inclusive, and attractive. Expand coverage to the service sector.

Strengthen Assessment and Certification Mechanisms: Ensure that certifications are nationally recognized and also aligned with international standards to enhance credibility and facilitate mobility.  

Promote Entrepreneurship: Integrate entrepreneurship education into vocational training to equip students with skills to start ventures. This will create jobs, and contribute to economic growth.

What India Can learn from other countries?

In Germany, VET is integrated at the upper secondary level through a dual system, combining school education with paid apprenticeships.  

  • Countries that introduce VET earlier in the schooling system show a stronger association with better labour market outcomes.

Singapore offers VET either as technical education at the post-secondary level or via polytechnics at the tertiary level through dual vocational tracks.

  • India offers no formal academic progression from VET to mainstream higher education, which reduces the uptake of VET by many who wish to keep the option of traditional, academic education viable.

Singapore has industry-led curriculum design, high instructor quality, regular audits and a mechanism that seeks constant feedback from employers and trainees. Under SkillsFuture Programme, government offers subsidies to upskill throughout career.

In Germany, Singapore, and Canada, governments fund VET institutions, while employers pay for apprenticeships, share training costs, and also help design curricula. 

Conclusion

India’s demographic dividend can be realized only if youth gain relevant skills. With coordinated government action and industry backing, India can transform its vocational ecosystem into a backbone of its workforce, turning the skill gap into a skilled surplus for inclusive growth.

Source: INDIAN EXPRESS

PRACTICE QUESTION

Q. The 'Earn while you learn' concept is crucial for making vocational training truly meaningful. Critically analyze. 250 words

Frequently Asked Questions (FAQs)

The NSDC, a not-for-profit public limited company, facilitates the creation of large, quality, for-profit vocational institutions.

Launched in 2015, the Skill India campaign is an umbrella initiative to create a skilled workforce and build the vocational training ecosystem.

RPL is a component of PMKVY that provides certification to individuals who have gained a certain skill informally, recognizing their prior experience and knowledge.

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