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India’s vocational training system needs to reinvent itself to boost employability

22 Aug 2025
3 min

Challenges in India's Education and Vocational Training System

India's education system faces a significant challenge in aligning with the future job market's demands, especially in enhancing workforce productivity and employability. A reevaluation of the current system, particularly Vocational Education and Training (VET), is crucial for addressing these challenges.

Current State of Vocational Education and Training (VET)

  • Only 4% of India's workforce is formally trained, despite a vast network of over 14,000 Industrial Training Institutes (ITIs) and 25 lakh sanctioned seats.
  • Enrollment in VET programs was about 12 lakh in 2022, with just 48% seat utilization.
  • The employment rate for ITI graduates was 63% in 2018, significantly lower than countries like Germany and Singapore, which have employment rates between 80-90% for VET graduates.

Factors Contributing to Low VET Uptake and Employment

  • Stage of Integration: VET is introduced post high-school in India, unlike Germany, where VET is integrated at the upper secondary level, combining education with apprenticeships.
  • Pathway to Higher Education: There's no defined pathway from VET to higher education in India, unlike the dual systems in countries like Singapore.
  • Perception and Quality:
    • India's VET courses often lack alignment with industry needs.
    • One-third of ITI instructor positions are vacant, and monitoring is weak.
    • In countries like Singapore, industry-led curriculum designs and regular feedback systems enhance training quality.

Recommendations for Improving VET in India

  • Integrate VET into Early Education: As suggested in the National Education Policy (NEP), 2020, integrate VET at early schooling stages.
  • Implement National Credit Framework: Fast-track reforms to establish progression pathways recognized nationally.
  • Align Courses with Industry Needs:
    • Conduct regular market assessments.
    • Expand National Skill Training Institutes (NSTIs) and recruit instructors to address capacity gaps.
    • Strengthen ITI grading by incorporating trainee feedback.
  • Public-Private Partnerships: Leverage public infrastructure and private expertise, and involve MSMEs for industry relevance.
  • Increase Public Spending: India currently allocates 3% of education expenditure to VET, compared to 10-13% in countries like Germany and Singapore.

Recent Government Schemes

  • Employment Linked Incentive (ELI) Scheme:
    • Part A: Offers up to Rs 15,000 for first-time EPFO-registered workers.
    • Part B: Provides Rs 3,000 per month for each new hire.
  • Note: These schemes lack skilling components.
  • Prime Minister Internship Scheme: Provides one-year placements in top companies but lacks pathways to permanent jobs.
  • ITI Upgradation Initiative: Focuses on modernizing government ITIs in partnership with industry but doesn't necessarily enhance training quality.

In conclusion, significant reforms are necessary to make VET a viable pathway to employment, contributing towards a prosperous India. This overhaul is crucial to ensure that policy initiatives are not mere afterthoughts but transformative actions for the workforce.

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