Economic Survey 2026 Pitches Skills as the Backbone of India’s Demographic Dividend

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Tabled in Parliament on Thursday by Union Minister for Finance and Corporate Affairs Nirmala Sitharaman, the Economic Survey 2025–26 outlines how a reimagined, industry-aligned skilling ecosystem is becoming central to India’s labour market transformation.

Prime Minister Narendra Modi, reacting to the survey on X, said, ‘The Economic Survey tabled today presents a comprehensive picture of India’s Reform Express, reflecting steady progress in a challenging global environment.” 

He highlighted strong macroeconomic fundamentals, sustained growth momentum, and the expanding role of innovation, entrepreneurship, and infrastructure in nation-building.

At the core of the survey’s employment narrative is a clear message: skills policy cannot operate in silos. Positioned at the intersection of education, labour markets, and industry, skilling requires close coordination among ministries, institutions, employers, educators, and workers to remain relevant in a rapidly evolving economy.

That coordination, the survey notes, is beginning to show results. According to the Periodic Labour Force Survey (PLFS) 2023–24 data, the share of individuals aged 15–59 with some form of vocational or technical training has jumped sharply, from 8.1 per cent in 2017–18 to 34.7 per cent in 2023–24. The rise reflects the cumulative impact of India’s skilling initiatives over the past decade, particularly as new-age sectors begin to absorb trained talent.

A major thrust of the current skilling push is preparing workers for emerging technologies. Under the National Skills Qualifications Framework (NSQF), training has expanded to 169 trades, including 31 future-skills courses spanning areas such as artificial intelligence, the internet of things (IoT), renewable energy, and 3D printing. These programmes are being delivered through a nationwide network of Industrial Training Institutes (ITIs) and National Skill Training Institutes.

The survey also highlights a large-scale revamp of ITIs to improve training quality and industry relevance. The National Scheme for Upgradation of ITIs proposes upgrading 1,000 government ITIs, including 200 hub ITIs and 800 spoke ITIs, with smart classrooms, modern laboratories, digital learning content, and industry-aligned long- and short-term courses.

Industry participation emerges as a recurring theme across the survey. From curriculum design and apprenticeships to assessments and programme oversight, deeper employer involvement is seen as critical to making skilling market-responsive.

Under PMKVY 4.0, training is being imparted in NSQF-aligned job roles developed by industry-led Sector Skill Councils, with several courses conducted directly within industrial premises. 

Trainers are increasingly sourced from the employer ecosystem, lending credibility and real-world relevance to skilling programmes. Regular Rozgar Melas and National Apprenticeship Melas are further strengthening the interface between employers and job seekers.

The sectoral focus of current skilling efforts, ranging from digital technologies and green energy to healthcare, advanced agriculture, financial services, and e-commerce, signals a calibrated attempt to align workforce development with India’s long-term growth engines and global economic opportunities.

The survey also flags the growing importance of digital infrastructure in tracking outcomes. The integration of SIDH, the National Career Service (NCS), and the eShram portal has created a unified platform that links training records with employment outcomes, employer demand, and individual skilling trajectories, enabling real-time monitoring and policy course correction.

Meanwhile, India’s apprenticeship ecosystem has undergone significant policy and structural transformation. Under the National Apprenticeship Promotion Scheme (NAPS) and National Apprenticeship Training Scheme (NATS), coverage has expanded across sectors and enterprise sizes. 

More than 43.47 lakh apprentices have been engaged under PM-NAPS across 36 states and Union Territories, with participation from over 51,000 establishments and female participation touching 20 per cent. The NATS programme alone recorded 5.23 lakh apprentice engagements in FY25, reflecting the growing maturity and scale of India’s apprenticeship framework.

Looking forward, the Economic Survey calls for deeper institutional convergence and a whole-of-government approach to ensure skilling and employment initiatives operate as a cohesive system. 

A sharper focus on industry-driven skilling, it argues, will be crucial to building job-ready talent, strengthening skill–industry linkages, and ensuring India’s demographic dividend translates into sustained economic gains.