A Matter of Skills

The QS World Future Skills Index has ranked India’s job market as second only to the US in terms of readiness to recruit for advanced digital and green technologies. However, the report also highlights significant gaps in India’s ability to harness these new technologies, especially in the education system and its alignment with industry needs.

India’s Market Readiness and Skills Deficit

• High Market Preparedness: India has a near-perfect score of 99.1% in terms of market readiness to recruit for advanced technologies, indicating a strong demand for skills in digital and green technologies.
• Low Capacity to Harness New Technologies: Despite this preparedness, India ranks 25th overall in its ability to harness the opportunities opened by these new technologies, highlighting a critical gap in the workforce’s capabilities.
• Skills Mismatch: India scores poorly (59.1%) in the “skill-fit” parameter, the lowest among 30 countries, reflecting a mismatch between the skills available in the workforce and those demanded by employers in advanced technologies.

Challenges in India’s Education System

• Ineffective Post-Graduate Courses: The fact that two-thirds of post-graduate seats in Indian engineering colleges were vacant last year highlights that M-tech courses are not providing the required value addition to students.
• Curriculum Challenges: Engineering colleges face challenges in updating curricula to keep up with rapid technological advancements, especially at smaller and lower-rung colleges that struggle to attract top faculty.
• Need for Faculty Development: There is a pressing need for faculty training programs, possibly leveraging expertise from top institutes like IITs, to ensure that teachers stay updated with state-of-the-art knowledge in emerging fields.

Insufficient Investment in Research and Development

• Low R&D Expenditure: India’s research and development expenditure is only 0.65% of its GDP, significantly lower than the global average of 1.79%, which hampers the development of new technologies and innovations.
• Policy Response: While the government is aware of the challenge and has mandated the inclusion of courses in advanced technologies like AI, robotics, and cybersecurity, aligning the education system with industry needs will require more comprehensive reforms.
• Long-Term Solutions: The alignment of India’s educational ecosystem with the knowledge economy will require sustained action on improving faculty training, curriculum development, and increasing investment in R&D.

Practice Question

Q: India’s job market is well-prepared to recruit for advanced technologies, yet the country faces significant challenges in terms of aligning its education system with the needs of a rapidly evolving knowledge economy. Critically analyze the factors contributing to this mismatch and suggest measures to address the gaps.