An estimated 8.7 crore Indian youth aged 15 to 29 are not studying, working, or receiving training, according to a recent report by Niti Aayog. The findings underscore the urgent need for subsidised training programmes designed to encourage self-employment and align with local market demand and emerging sectors.
Titled 'Reimagining Skilling for Viksit Bharat@2047', the report bases its estimates on data from the 78th round of the National Sample Survey conducted in 2021. To analyse the workforce landscape, Niti Aayog categorised learners and workers into five distinct segments: schooling, tertiary education, formal and informal work, youth classified as not in education, employment and training (NEET), and women.
The report defines NEET youth as individuals between the ages of 15 and 29 who are not engaged in education, employment, or training, alongside those who are unemployed. According to the document, NEET youth face constraints due to a lack of income and the sunk costs associated with prior education, making it difficult for them to afford additional paid skilling alongside financial commitments.
"NEET youth and women require affordable or subsidised training options, alongside dedicated financial support where constraints are most binding. Across segments, the ability to combine learning with earning remains a central requirement," the report stated.
The Aayog noted that students from low-income households are frequently stretched by college expenses and private tuition. Consequently, making further investments in paid skilling alongside a traditional degree is often financially unviable. Many graduates choose to take up immediate formal jobs or income sources to support their families, sometimes accepting low-paying roles, while others struggle to transition and ultimately join the NEET category.
The report also highlighted a gap between education and employment, pointing out that only 8.25 per cent of graduates are employed in roles that align directly with their qualifications. Limited exposure to practical learning and industry-aligned training continues to restrict employability among formally educated youth.
According to the Aayog, realising India's ambition of Viksit Bharat 2047 depends on enabling citizens to continuously learn, earn, and advance, with skilling playing a central role in this objective. The report added that since 2014-15, over 7.67 crore individuals have received training through existing initiatives.
"The data highlighted in the Niti Aayog report points to a critical structural gap between traditional education and industry requirements. With millions of young individuals categorized as NEET, the ecosystem needs affordable, practical training models that allow learners to earn while they upskill. For businesses and emerging ventures, bridging this employability gap is essential to building a sustainable talent pipeline that supports long-term economic growth." — Dr. Shishir Gupta, Founder & CEO, StartupLanes
