Union Budget 2024: Only 51% graduates employable, 4.4% young workforce formally skilled, says Economic Survey

Finance Minister Nirmala Sitharaman presented the Economic Survey 2023-24 in Parliament on Monday, which revealed that estimates show 51.25 per cent of the youth is deemed employable. This means about one in two are not yet readily employable after graduation. However, the percentage has improved from around 34 per cent to 51.3 per cent in the last decade.
 
The survey said 65 per cent of India’s fast-growing population is under the age of 35, and many lack the skills needed by a modern economy. It stated that "in order to reap the demographic advantage, it is necessary to equip the workforce with employable skills and knowledge that meet the requirements of the globalised labour market".

With only 4.4 per cent of India's young workforce formally skilled, linking skill development with production linked incentive (PLI) and employment-linked incentive schemes in high-growth potential sectors like toy, apparel, tourism, logistics and textiles would aid upgrading of skills as production moves up the value chain, the Economic Survey further stated. 

Currently, Production-Linked Incentive (PLI) scheme is available for 14 sectors. Industry bodies have been demanding introduction of an employment-linked incentive scheme to promote job creation in the economy, in the face of a growing young population amidst concerns about jobless growth.

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According to the Survey, to maximise the outcomes from skilling initiatives, convergence, and utilisation of synergies with other employment-centric programmes would mutually benefit the two verticals.

"Measures are being taken by government to translate India's demographic dividend into a productivity dividend by enabling job and entrepreneurial opportunities that are in sync with the aspirations and abilities of India's youth. It is partnering with the industry to enhance skilling with employability," said the Survey.

(With inputs from PTI)