Skilling and Capacity Development: A Playbook for Success

 

Discussed at the Singapore FinTech Festival, panellists explored India's ambitious strategies to address global skilling gaps, emphasizing vocational education, digital literacy, and the nation's potential as a human capital powerhouse. 

Key highlights 

1. The global opportunity and talent shortage 

  • AI transformation: 
    • According to projections by PwC and Goldman Sachs, GenAI is forecasted to create opportunities worth $7–$15 trillion over the next decade. 
    • Accenture estimates that companies leveraging AI-driven processes could benefit from productivity boosts of up to 2.4 times compared to current levels.  
  • Talent demand and hap: 
    • The EU alone will face a shortfall of 7.8 million skilled workers by 2030. 
    • India, despite producing 2 million STEM graduates annually, sees only 45% employability, highlighting an urgent need to close the talent gap through skilling and capacity development initiatives.  


2. India’s skilling playbook 

  • Policy initiatives: 
    • Around 1.5 lakh crores (US$17 billion) have been allocated for education, skills and employment.  
    • Programs like the Prime Minister’s Internship Scheme, aims to equip 10 million youth with practical experience by matching them with 12-month internships with India’s top 500 coompanies.  
    • An updated national education policy that will be adopted by the state governments will place further emphasis on providing youth with hands-on experience.  
  • Digital infrastructure for skilling: 
    • Portals like DIKSHA , Swayam and and Swayam Prabha provide equal learning opportunities, including access to virtual labs, for remote and underserved communities. 
    • Interventions such as the Smart India Hackathon encourage innovative problem-solving skills.  
    • A high smartphone penetration rate of 95% has also enabled the Government to leverage technology to disseminate information and impart skills to rural areas. Initiatives like e-Kisan enable farmers to receive information on how to take pre-emptive measures for disaster prevention and improve productivity.  


3. Tamil Nadu’s model for success 

  • Strategic investments in human capital: 
    • Tamil Nadu, producing 18–20% of India’s STEM graduates, emphasizes mentorship, career counseling, and industry collaboration. 
    • Electronics exports surged, positioning Tamil Nadu as India's leader in sectors like iPhone manufacturing. 
  • Focus on inclusion: 
    • 42% of women in Tamil Nadu’s formal manufacturing workforce, the highest in India, reflects strategic skilling initiatives. 
  • Business-friendly environment: 
    • By taking a pro-business stance and supplying an available pool of skilled talent, Tamil Nadu has been successful in capturing trade diversions from China.  


4. Preparing for AI’s future impact 

  • Rethinking Education: 
    • A shift from rote learning to fostering reasoning, critical thinking, and creativity is crucial. 
    • Prompt engineering and domain-specific AI knowledge are gaining prominence. 
  • Vocational Focus: 
    • One of the priorities of the national education policy is mainstreaming vocational education. This will be achieved partly through investments in digital public infrFastructure, including the DIKSHA, Swayam and Swayam Prabha learning portals.  


Conclusion: 
India’s targeted skilling initiatives, coupled with Tamil Nadu’s model of inclusivity and innovation, showcase a roadmap for bridging global and domestic talent gaps. By focusing on digital literacy, vocational training, and policy-driven solutions, India positions itself as a hub for global human capital development. 

 

Watch Full Session

 

Speakers:

  • Dr. Palanivel Thiaga Rajan, Minister for Information Technology & Digital Services, Tamil Nadu
  • Dr. Saurabh Garg, Secretary, Ministry of Statistics and Programme Implementation (MoSPI), Government of India

Moderator:

  • Kirti Seth, Ex-CEO Sector Skills Council, NASSCOM

Join the GFTN Network