India's Youth Surge: Millions Trained, Unlocking Massive Economic Growth Potential!

Economy

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Updated on 13 Nov 2025, 08:19 am

India possesses a significant demographic advantage with 371 million young people (aged 15-29). However, a notable challenge is the NEET rate, which stood at 25.6% in 2022-23, with a stark gender disparity showing over 44% of young women in this category compared to about 8% of young men. Encouragingly, NEET rates have been declining for both genders over recent years, with more women entering the labour force. The gender gap is partly explained by women's engagement in household responsibilities, while men are more actively seeking jobs.

Integrating this youth demographic into the productive labour force is seen as a major growth driver, expected to attract investment and boost income levels. The government is actively addressing this through large-scale skilling initiatives such as the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), which has trained over 16 million youth, and the Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU GKY) for rural youth. Strengthening Industrial Training Institutes (ITIs) through public-private partnerships is also crucial for formal vocational training.

Furthermore, the new Employment Linked Incentive (ELI) Scheme, Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY), aims to stimulate job creation by supporting over 30 million jobs with a one-trillion-rupee outlay. Broader macroeconomic reforms, including Ease of Doing Business (EoDB) and Production Linked Incentive (PLI) Schemes, also support youth inclusion and employment generation.

Impact: Enhanced employability and job creation will boost economic productivity, increase consumer spending, and attract domestic and foreign investment. This can lead to higher corporate revenues and profitability, positively influencing investor sentiment and potentially driving stock market performance. Improved skills also open pathways for international labour mobility, further contributing to economic gains. Rating: 8/10.

Difficult Terms: NEET (Not in Education, Employment, or Training): A classification for young individuals who are not pursuing education, are unemployed, or are not engaged in any form of skill development. Pradhan Mantri Kaushal Vikas Yojana (PMKVY): A flagship Indian government scheme focused on providing market-relevant vocational training to the country's youth. Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU GKY): A government initiative specifically designed to provide skill development and placement opportunities for rural youth. Industrial Training Institutes (ITIs): Educational institutions in India that provide vocational training in various technical trades. Employment Linked Incentive (ELI) Scheme / Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY): A recent government scheme designed to encourage job creation by offering wage subsidies and social security contribution support. Ease of Doing Business (EoDB): Refers to reforms and initiatives aimed at simplifying regulatory processes and making it easier for businesses to operate and invest. Production Linked Incentive (PLI) Schemes: Government incentives provided to domestic manufacturers to boost production, encourage exports, and attract foreign investment. National Skills Qualification Framework (NSQF): A nationally recognized framework that standardizes vocational qualifications and skills. Viksit Bharat: A vision and national campaign by the Government of India aimed at the development of the country.