With comprehensive planning, a revitalied education system could become the catalyst for national prosperity and social stability
In today’s industrialised economy, formal education has become the backbone of personal and national development. Originally introduced around 1830 by Lord Macaulay, formal education gained momentum post-independence, facilitating India’s shift from an agrarian to an industrialized economy. However, as the job market has evolved, a concerning mismatch has emerged between the skills provided by the education system and the needs of the workforce. This disparity has led to high unemployment rates, particularly among educated youth, while certain sectors experience a shortage of skilled labor. Thus, India’s education policy requires significant reform to better align with employment needs and support the country’s development goals.
Human capital is undoubtedly the most valuable resource for a nation's growth and development. However, to leverage this asset, it must be channeled appropriately into the economy. Failure to do so could lead to an increase in poverty rates and potential social unrest. For meaningful employment and economic improvement, the workforce must be equipped with skills relevant to market demands. By bridging the gap between education and employment, India can reduce unemployment, enhance income levels, and improve overall economic efficiency.
According to a survey by the Centre for Monitoring Indian Economy (CMIE), in the third quarter of fiscal year 2022-23, only 12% of job-holders were graduates. The majority, 40%, had completed only high school (10th grade), 28% had not completed high school, and the remaining 20% had education levels below the 5th grade. Surprisingly, the unemployment rate among graduates was 17.2%, compared to 10.2% for high school graduates and 1.6% for those with lower education levels. This data reveals that India’s education policy is misaligned with its employment demands, underscoring the urgent need for change.
The first step in this reform should involve conducting a comprehensive survey to assess current and future labor demands across various sectors. Such a survey would help young people make informed decisions about their education and career paths. Using this data, policymakers could create a dynamic, responsive education system that evolves with changing market needs. Firstly, completing basic education, up to matriculation, should be universally encouraged. Financial assistance programs could be provided for those in need. Physical activities, like yoga and sports, should be made compulsory to promote physical health. Ancient teachings on humanity, ethics, and nationalism could also be incorporated to build a responsible, compassionate society.
After completing matriculation, students should have access to short, specialized courses (2-4 years) in fields such as engineering, nursing, and hospitality management. This model could be expanded to cover a broader range of fields based on market demand. These courses should blend formal education with vocational training, with course duration varying according to job requirements.
For students pursuing higher education, curricula should be adapted to reflect the skills demanded by the job market, and mandatory internships should be introduced to provide hands-on experience. Developing soft skills, like communication and problem-solving, is also essential. With India’s growing population, opening new educational institutions, supported by both public and private sectors, is necessary to meet increasing demand.
Research and innovation are crucial for a nation’s future. India must support a select group of students pursuing research to meet the country’s long-term needs. However, given the limited market for research roles domestically, many scholars are compelled to seek opportunities abroad. Governments, both central and state, should invest in research institutions, providing more funding to retain skilled researchers and encouraging innovation within India.
Self-employment accounts for nearly 50% of India’s workforce, with a large portion comprising farmers and small business owners. However, these individuals often earn less than those in salaried positions and may have entered self-employment due to a lack of alternative opportunities.<
Beyond the industrial sector, there is a significant demand for skilled and semi-skilled workers, including drivers, electricians, masons, cooks, and security guards, among others. Many self-employed individuals, like craftsmen and repair technicians, have learned their trades informally, often without pay. Vocational training combined with formal education could significantly enhance their earning potential. For example, an educated driver with certification in vehicle maintenance and traffic regulations would have better job prospects and could command higher wages.
(The writer is an author and writes on education; views are personal)
