India is facing a serious skill shortage, with approximately 150 million skilled workers needed, up from 138 million just three years ago[1]. This gap affects all major sectors, creating a shortage of 15% in the organized workforce and leaving jobs unfilled despite high unemployment rates.
High Unemployment Due to Skill Gaps
Despite India’s large number of college graduates, only about half (51.25%) are actually employable, per the Economic Survey 2023-24[2]. The India Skills Report 2024 confirms this, showing just 52.3% of fresh graduates as job-ready[3]. Unfortunately, for many, earning a degree does not translate into being employable. For example, ImaginXP’s research shows that 33% of India’s educated youth are unemployed due to lacking the practical, future-focused skills that jobs require[4].
In fact, over 75% of graduates lack the skills for available jobs, and among the 13 million joining the workforce each year, only one in four MBAs, one in five engineers, and one in ten general graduates are considered employable[5]. With graduates twice as likely to be unemployed compared to the national average, this has become a major issue for India’s workforce and economy[6].
The Economic Impact
This skills shortage is costing India tremendously. Accenture reports that India stands to lose up to 2-3% of its GDP growth—or $1.97 trillion—over the next decade if skill development doesn’t keep up with technological advances.[7]
Why Does This Happen?
India’s education system faces challenges in meeting job market demands. Many courses don’t align with industry requirements, and traditional methods often apply a “one size fits all” approach, which limits students’ readiness for the job market.
How Wadhwani Foundation is Closing the Gap
The Wadhwani Foundation is playing a crucial role in addressing this skills crisis. Using AI, it has created powerful tools to help youth develop employable skills. For instance, its AI interview coach offers personalized practice sessions with real-time feedback, helping job seekers prepare by simulating interview scenarios. This tool allows users to answer questions relevant to the role they want, receive feedback, and refine their answers in both English and Hindi, boosting their confidence and effectiveness.
In addition to the AI interview coach, the foundation’s AI tutor supports online courses in soft skills, business skills, entrepreneurship, and emerging tech. The AI tutor answers learners’ questions in real-time and provides personalized suggestions for improvement. By 2027, the foundation aims to skill 1 crore (10 million) youth, bridging the gap between education and employment.
This Diwali, with initiatives like “Gift a Skill,” the Wadhwani Foundation is helping equip India’s youth with the skills needed to succeed in a competitive job market. By reaching across regions, including remote areas, this effort makes skill-building accessible and helps youth turn degrees into employable careers.
You can also Gift a Skill this Diwali. Just share this link: https://web.opportunity.wfglobal.org/en/login
