Through comprehensive planning, a revitalized education system could become the catalyst for national prosperity and social stability.

In today’s industrialized economy, formal education has become the backbone of personal and national development. Initially introduced around 1830 by Lord Macaulay, formal education gained momentum after independence, facilitating India’s transition from an agrarian to an industrialized economy. However, as the labor market has evolved, a worrying 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 some sectors experience a shortage of skilled labor. Thus, India’s education policy requires significant reform to better meet employment needs and support the country’s development goals.

Human capital is undoubtedly the most valuable resource for the growth and development of a nation. However, to harness this asset, it must be channeled appropriately into the economy. Failure to do so could lead to increased poverty rates and possible social unrest. To achieve 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, increase income levels and improve overall economic efficiency.

According to a survey by the Center for Monitoring Indian Economy (CMIE), in the third quarter of the financial year 2022-23, only 12% of job holders were graduates. The majority, 40%, had only completed high school (10th grade), 28% had not completed high school, and the remaining 20% ​​had an education level below 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 levels of education. This data reveals that India’s education policy is not geared towards job demands, underscoring the urgent need for change.

The first step of this reform should involve carrying out a comprehensive survey to assess current and future labor demand in 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 and responsive education system that evolves with changing market needs. First, completion of basic education, up to graduation, should be universally encouraged. Financial assistance programs could be offered to those who need it. Physical activities, such as yoga and sports, should be made compulsory to promote physical health. Ancient teachings on humanity, ethics and nationalism could also be integrated to build a responsible and compassionate society.

After completing their registration, students should have access to short, specialized courses (2-4 years) in fields such as engineering, nursing and hotel management. This model could be expanded to cover a wider range of areas depending on market demand. These courses should combine formal education and professional training, with course length varying depending on job requirements.

For students pursuing higher education, programs should be adapted to reflect the skills demanded by the job market, and mandatory internships should be introduced to provide practical experience. Developing soft skills, like communication and problem solving, is also essential. With India’s growing population, the opening of new educational institutions, supported by both the public and private sectors, is necessary to meet the growing demand.

Research and innovation are crucial to the future of a nation. India needs to support a select group of students pursuing research to meet the long-term needs of the country. However, given the limited market for research positions domestically, many researchers are forced to seek opportunities abroad. Governments, both at the central and state levels, should invest in research institutions, providing more funding to retain qualified researchers and encouraging innovation in India.

Self-employment makes up almost 50% of India’s workforce, a large portion of which is made up of farmers and small business owners. However, these individuals often earn less than those in salaried positions and may have moved into self-employment due to a lack of alternative opportunities.

Beyond the industrial sector, there is significant demand for skilled and semi-skilled workers, including drivers, electricians, masons, cooks and security guards, among others. Many self-employed workers, such as artisans and repairers, learned their trade informally, often without pay. Vocational training combined with formal education could significantly improve 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 salaries.

(The writer is an author and writes about education; opinions are personal)