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Skilling, Jobs, and Shift Toward Entrepreneurship: World Youth Skills Day 2025
India doesn't lack talent. It lacks an ecosystem that believes in the power of its young builders. World Youth Skills Day 2025 is a reminder: the future isn't just about finding jobs; it's about creating them.
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As India marks World Youth Skills Day 2025, one thing is clear: the traditional narrative of skilling youth to fit into pre-existing jobs is no longer enough. In the shadows of expanding digital economies and a transforming MSME landscape, a deeper shift is underway, one where the real challenge is not just creating job seekers, but enabling job creators.
The transition from classroom to workplace has long been broken for India's youth, particularly in Tier-II and rural areas. But now, that gap is being filled not just by vocational training or digital literacy programs, but by a growing ambition among young people to build something of their own.
According to Husain Tinwala, president, upGrad Rekrut, "Skilling alone isn't enough. To truly enable young people to become job creators, we must seed an entrepreneurial mindset early—during their school and college years." He emphasizes a shift from the "train and place" model to a more forward-thinking "train and create" approach.
This year's World Youth Skills Day arrives against a backdrop of micro-enterprises popping up across India's heartland; from D2C brands born in small towns to hyperlocal services using digital platforms to reach customers. There is momentum, but also friction. The skills gap isn't just technical; it's structural. Tinwala points to a lack of executional capability, noting, "The intent is there, but the playbook is missing." He calls for new support systems: accelerators tailored for Tier-II and Tier-III cities, access to micro-grants, and mentorship rooted in local contexts.
Praveen Nijhara, CEO of Hansa Research, echoes the sentiment, but from a data-driven lens. "While skilling initiatives enhance employability, the lack of access to market intelligence remains a significant barrier to entrepreneurship." For many aspiring young entrepreneurs, especially outside metro regions, understanding demand trends or viable business models remains out of reach. Nijhara argues that skilling must be coupled with opportunity mapping and localized incubation ecosystems to close the loop between skills and sustainability.
Even where skilling programs are reaching rural India, challenges remain. Initiatives like PMKVY and NATS have created a baseline, but delivery is uneven. Dr. Nipun Sharma, CEO of TeamLease Degree Apprenticeship, explains, "While India's skilling initiatives have expanded beyond metros, rural skilling remains hindered by limited infrastructure and low awareness." He notes that mobile training units and localized skilling hubs are showing promise, especially when they leverage technology like AI-based adaptive learning.
But scaling that success requires policy shifts; ones that better reflect the dynamism and demands of MSMEs. Sharma warns that current apprenticeship utilization in India is dismally low compared to global benchmarks. He proposes a "unified, tech-driven skilling framework" with AI-powered dashboards, stackable micro-credentials, and co-designed curricula involving both MSMEs and tech players. Incentives matter too: tax breaks, CSR alignment, and streamlined regulation could draw deeper private sector participation.
On the ground, young people are finding ways to navigate the system despite its cracks. Nijhara cites a recent Hansa Research initiative where local youth were trained to run field surveys and basic analytics. The effort created a double dividend: enhanced employability for participants and deeper market reach for the company. This kind of targeted, outcome-based skilling, where the skill feeds directly into the local economic ecosystem is where the sector is beginning to gain traction.
Still, formalization remains one of the most urgent, and least addressed, transitions. Over 90 per cent of India's workforce remains in the informal sector. Tinwala argues that this is not a problem skilling alone can solve. "Employers, particularly MSMEs, must be nudged and at times incentivised to formalise hiring," he says. At the same time, youth must be made aware of the long-term value of formal employment, from financial security to upward mobility. Hybrid platforms that bridge gig work to formal apprenticeships could be instrumental in building that bridge.
Sharma agrees that fostering entrepreneurship in rural and semi-urban regions demands more than just intent. "Less than 5 per cent of India's workforce receives formal skills training," he says, pointing to the urgent need for mentorship, incubation, and access to innovation hubs. Equally critical are emerging tech skills, (AI, blockchain, automation) that are becoming foundational to even micro-enterprise success.
The stakes couldn't be higher. India is sitting on a demographic edge: a massive youth population ready to work, innovate, and lead, if given the right tools. The real test for India's skilling ecosystem is not just to teach coding or machinery operation, but to inspire risk-taking, equip problem-solving, and foster resilience in the face of volatile markets.
And while skilling remains a crucial first step, what follows must be bold, contextual, and ambitious. As Tinwala puts it, "Imagine a national portal or a 'Shark Tank'-style initiative tailored for India's heartland—that's the kind of ambition we need."
India doesn't lack talent. It lacks an ecosystem that believes in the power of its young builders. World Youth Skills Day 2025 is a reminder: the future isn't just about finding jobs; it's about creating them.
