Explore how to bridge the skill gap for Indian graduates in emerging new technologies. Provide students with the essential skills that employers truly need.
Imagine you have a big box of colorful crayons, but you don’t know how to draw a picture. Something similar is happening. Many students are graduating with degrees, but most of them lack the skills that companies truly need, especially in emerging new technologies.
The Problem: Graduates vs. Employability
According to the International Labour Organization’s (ILO) 2023 Global Skill Gap Measurement and Monitoring Report, 47% of workers in India, especially 62% of women, are underqualified for their jobs.
A recent McKinsey study found that 87% of executives consider skill shortages as a major challenge. India produces over 1.5 million engineering graduates annually, making it one of the largest pools of technical talent in the world.
. However, according to a report by Aspiring Minds (now SHL), only 2.5% of these graduates have the technical skills required for jobs in AI, and only 15% are employable in core engineering roles. This means only 15 out of 100 engineering graduates are ready for the job market, and even fewer are equipped to handle emerging technologies.
The situation is similar in other fields as well. For example, India has over 5 million graduates annually in arts, science, and commerce, but only a small percentage have the skills needed for modern jobs. According to the World Economic Forum (WEF) report, 54% of employees in India will need to reskill by 2022 to meet the demands of the Fourth Industrial Revolution.
This skill gap is a major challenge for India’s economic growth and global competitiveness. According to the WEF report, 44% of workers’ core skills will change by 2027. If we do not upskill our employees, we will face even greater problems.
Why is there a Skill Gap?
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Rapid Technological Changes:
Think of things like Artificial Intelligence (AI), Data Science, Cybersecurity, and Cloud Computing. These are the Technologies that are changing the world. Companies in India are growing rapidly in these areas, but they need people who know how to use these Technologies.
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Outdated Educational Methods:
Many colleges and Universities in India still follow old curricula that focus on theoretical knowledge rather than practical skills. For example, while AI and Data Science are transforming Industries, many Engineering Colleges do not offer specialized courses in these areas.
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Focus on Theory, Not Practice:
Many courses focus on memorizing information rather than applying it. Students need more hands-on experience and practical training.
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Lack of Soft Skills:
In addition to technical skills, companies need people who can communicate well, work in teams, and solve problems. These “Soft Skills” are also lacking in many graduates.
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Lack of Industry-Academic Collaboration:
There is a disconnect between what is taught in classrooms and what the industry needs. Companies often complain that graduates lack real-world experience and problem-solving skills, which are critical for roles in emerging technologies.
The Impact: What Does It Mean for India?
The skill gap has significant implications for India’s economy and job market:
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Slower Economic Growth:
The skill gap is slowing down India’s economic growth. According to McKinsey, if the skill gap is not addressed, India could lose $1.97 trillion in GDP by 2030.
Unemployment:
Despite having degrees, many graduates remain unemployed or underemployed. According to the Center for Monitoring Indian Economy (CMIE), India’s unemployment rate was 7.6% in March 2023, with youth unemployment being particularly high. Many young people struggle to find good jobs despite having degrees, leading to frustration and social issues.
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Missed Opportunities in Emerging Technologies:
India has the potential to be a global leader in emerging technologies, but the skill gap is holding it back. For example, the global AI market is expected to reach $190 billion by 2025, but India’s share is small due to a shortage of skilled professionals.
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Dependence on Foreign Talent:
Due to a lack of skilled professionals, many Indian companies are forced to recruit talent from abroad. This not only increases costs but also limits opportunities for Indian graduates.
Rapid Technological Changes:
Bridging the Skill Gap: What Can Be Done?
To tackle the skill gap crisis, India needs a multi-faceted approach involving the government, educational institutions, and industry. Here are some steps that can be taken:
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Update Educational Methods:
Colleges and universities need to update their curricula to include courses on emerging technologies like AI, machine learning, and data science. Practical training and internships should be mandatory to give students hands-on experience.
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Promote Industry-Academic Collaboration:
Educational institutions should partner with industries to design courses that meet job market needs. Companies can also offer training and mentorship to students.
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Focus on Soft Skills:
The education system should give equal importance to soft skills like communication, leadership, and teamwork. Workshops and training programs can help students develop these skills.
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Promote Lifelong Learning:
As technology evolves rapidly, professionals need to continuously update their skills. The government and private sector should promote lifelong learning through online courses, certifications, and training programs.
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Government Initiatives:
The Indian government has launched several initiatives like Skill India, Digital India, and the National Education Policy (NEP) 2020 to address the skill gap. These initiatives need to be effectively implemented to ensure students are equipped with the skills required for the future.
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Role of Startups and EdTech Companies:
Startups and EdTech companies play a crucial role in bridging the skill gap. Platforms like Coursera, Udemy, and UpGrad offer online courses in emerging technologies, making it easier for students and professionals to upskill.
Success Stories: Hope for the Future
Among the adversity, there are success stories that are a source of hope. For example, the Indian Institute of Science (IISc) and the Indian Institute of Technology (IITs) have introduced special courses in AI and Data science. Numerous students graduating from these institutions now work at top technology firms across the world.
Similarly, companies such as Zoho and Flipkart are investing heavily in training programs to develop competent professionals. Zoho, for instance, has its own training school, Zoho Schools, which offers free education and employment to rural students.
The Crux
The skill gap crisis is a challenge, But it is possible to overcome. By working together, we can ensure that the youth of India have the skills needed to succeed in the future. We need to focus on practical skills, continuous learning, and strong ties between education and industry. By bridging the skill gap, India can unlock its full potential and become a global leader in innovation and technology.
As the saying goes, “The future belongs to those who prepare for it today.” India must now focus on preparing its youth for the future by bridging the skill gap and generating opportunities for growth and success.