The report unveiled by the Ministry of Skill Development and Entrepreneurship examines India's skills landscape against the backdrop of the emerging knowledge-driven global economy. 

Key Highlights

India's Skills Landscape

• Low-competency Occupations: About 88% of the workforce is engaged in low-competency occupations (2023-24).
• Skill Mismatch: Many workers occupy roles that do not correspond to their education levels, either due to over qualification or under qualification. 
• Structural Issues: Over qualification in low-skill jobs reflects the lack of sufficient high-skill job opportunities whereas under qualified workers in high-skill roles reveal gaps in access to education and training, especially for low-income & rural groups.
• Skill Shortages in High-Skill Jobs: As many lacking the requisite education for these roles. 

Impact of Skill Mismatch

• Reduces Economic Productivity: As overqualified workers (underuse of potential) occupy low-skill roles while under qualified workers struggle in high-skill positions. 
• Inefficient Human Resource Allocation: Misaligned skills limit labor market efficiency, hinder innovation, & undercut the country’s ability to harness its demographic dividend.
• Limits Social & Economic Mobility: Mismatches reinforce existing inequalities, limiting upward mobility and widening socio-economic disparities.
• Migration & Brain Drain: Gap in opportunities can spur large-scale migration to other states or even countries.