As of a 2014 report, India’s formally skilled workforce is just 2%. Additionally, there is a huge problem of employability among the educated workforce of the country. Lack of vocational or professional skills makes it difficult for the youth to adapt to changing demands and technologies of the marketplace. The high level of unemployment is due to the failure to get jobs and also due to a lack of competency and training.

• A study by the Skill Development Council (NSDC) indicates that there will be a need for around 12 crores of skilled manpower by 2022 across 24 key sectors.
• Casual workers, who constitute about 90% of the labour force, are poorly skilled as they do not get adequate training. Current vocational training programmes do not meet their demands.
• There is a problem of social acceptability when it comes to vocational education. Vocational courses are looked down upon and this needs to change.
• Another factor that acts as an obstacle to skill development in India is the myriad labour laws. However, the government has started simplifying and codifying the labour laws. With simpler laws, practising skill development should be easier.
• Changing technology is a big challenge and opportunity for the labour force. Employees will have to constantly upgrade their skills if they are to remain relevant in the job market.
• There is a problem with the lack of infrastructure in the current training institutes.
• Another problem is the poor quality of trainers available. Students trained by such trainers are not employable in the industry.
• There is a big issue with the standardisation of skills in the country. New schemes are designed to resolve this issue by having nationwide standards that also stand up to international benchmarks.