Skill Development Through Vocational Education and Training in India: A Cross-state Study

Abstract

Skill development has emerged as a policy priority in India in the last few years, owing to its demographic dividend, and accordingly, various skill initiatives have been adopted in the country. Inclusive skill development has crucial implications for sustainable economic development through reducing disparities across regions and various social groups. Hence, the present study aims to examine skill development through vocational education and training (VET) in India with a focus on its inclusiveness and the employment status of the trainees. Analysis of Periodic Labour Force Survey unit-level data depicts that the skilling of people in India through VET is not substantial and predominantly informal in nature. Substantial variations exist in accessing VET in terms of gender, caste, rural–urban areas and across states and union territories. Regarding employability, it is found that the employment rate of VET trainees is 86.9%, nearly double of those without such training, while skill mismatch in labour market is an important issue of concern. The findings of the study have important policy implications for extending the participation in VET that align with the labour market demand and in reducing the disparities in its access across regions and various social groups to achieve sustainable development goals.