In the next 20 years, the labour force in the industrialised world is expected to decline by 4 per cent, while in India it will increase by 32 per cent. This implies that India has a huge potential benefit in terms of labour availability and cost which the country needs to encash. However, little has been done so far to tap this structural advantage, which, if not addressed urgently, could cause socio-economic issues.
Only around 10 per cent of India’s workforce is trained which includes 3 per cent formally trained and 7 per cent informally trained. This compares poorly with a more than 50 per cent formally trained workforce in developed countries, including 53 per cent in China. According to the India Skills Report 2016, only 37 per cent of the Employability Skill Test takers (below 30 years) were found employable.
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Source: The Hindu (Business Line)