According to NITI Aayog's report 'Reimagining Skilling for Viksit Bharat@2047', an estimated 8.7 crore Indians aged 15-29 are not studying, working, or undergoing training as of 2021. The report, based on data from the 78th round of the National Sample Survey conducted in 2021, reveals that nearly 88% of this group is engaged in domestic duties, highlighting a major workforce participation challenge beyond traditional unemployment issues. This finding points to a wider challenge than unemployment alone and raises questions about access to education, training and opportunities to enter or return to the workforce. As per the latest NITI Aayog report, NEET youth are constrained by the absence of income and the sunk cost of prior education, with students often unable to layer paid skilling onto existing financial commitments.
NITI Aayog has now proposed comprehensive Public-Private Partnership (PPP) models to address the workforce participation crisis. The report identifies three approaches for technical and higher education reform: dedicated PPP skilling institutes or universities (greenfield model), PPP skilling hubs within existing universities and colleges, and brownfield approaches involving PPP models to reform existing institutions. For industrial training institutes (ITIs) and polytechnics, NITI Aayog recommends sustainable industry partnerships under PPP models, accompanied by greater academic and administrative autonomy. The proposed framework includes outcome-linked financing, industry participation in curriculum updates, contract-based hiring of trainers and simpler procurement processes for tools and equipment.
The proposed architecture rests on three principles: non-linear learning pathways, lifelong skilling and outcome-based measurement. Success would be assessed through employability, career progression and livelihoods rather than training numbers alone. The government has allocated ₹600 crore to the Ministry of Skill Development and Entrepreneurship for FY27 under the Integrated Scheme in Skilling Architecture. State Skills Transformation Pilots have been proposed in Andhra Pradesh, Odisha, Uttar Pradesh, Bihar and Assam to implement this approach. The report emphasizes that NEET youth and women require affordable or subsidised training options, alongside dedicated financial support where constraints are most binding, with the ability to combine learning with earning remaining a central requirement.
States are expected to play a central role in implementing this flexible skilling approach, with NITI Aayog proposing alignment of education, skilling and employment systems with local labour markets and district-level needs. The reforms aim to make India's skilling system more flexible and closely linked to actual employment opportunities, as the country targets Viksit Bharat by 2047. NITI Aayog notes that many existing programmes continue to prioritise "enrolment and completion over placement, progression, or income outcomes" - a weakness the PPP models are designed to address through greater private-sector participation and industry-linked curricula. The report highlights that only 8.25% of graduates are employed in roles aligned to their qualifications, with limited exposure to practical learning and industry-aligned training continuing to constrain employability.
