India’s next phase of economic expansion will depend on its workforce as much as its factories and capital. Recent policy focus reflects the reality that talent readiness is now being treated as economic infrastructure rather than a supplementary activity. India’s workforce is large and young, with approximately 65% of the population under 35, yet a significant segment lacks the skills demanded by industry.
This gap matters. Only nearly 54.8% of Indian graduates are considered job-ready for industry roles, and a large share of the workforce remains in low-competency jobs. HR can no longer be a back-office function focused on hiring and compliance; it must drive skilling, inclusion, and sustainable talent growth.
What policy direction reveals about workforce priorities
India’s formal workforce now exceeds 56 crore people, with participation rising and unemployment trending down. The current budget cycle has sharply increased allocations for skill-building programs, with nearly ₹9,885 crore proposed for national skilling initiatives.
Despite such progress, the workforce still faces a significant skills gap. Only a small percentage of the workforce has formal training, and employers report notable shortages in technically trained talent. Policy now links skilling with job creation and formal employment. Rather than isolated training schemes, there is an emphasis on aligning skill content with real-world roles—an unmistakable signal that capability development is now a core organisational strategy.
Read More at: https://www.peoplematters.in/article/strategic-hr/skilling-inclusion-and-the-rise-of-hr-as-a-growth-function-48675
