A recent Bloomberg report warns that India’s education system from schools to vocational training is failing to produce graduates that employers want. Millions of youth enter the job market but lack practical skills, leaving them underemployed or jobless despite having degrees. 

The gap spans many areas. A new Economic Times report shows just 15–20 percent of India’s workforce has adequate AI skills. Tech companies are scrambling to hire, pushing many to retrain staff and rethink hiring processes. Additionally, Mercer-Mettl's Graduate Skill Index finds only 42.6 percent of grads are job-ready, with shortages in digital, data, and soft skills like teamwork and problem-solving. Industry leaders agree urgent action is needed. Experts say internships, industry-backed courses, and internships during studies can bridge the gap between theory and use.

Government efforts like Skill India and the Pradhan Mantri Kaushal Vikas Yojana aim to boost vocational training, but more funding and private-sector linkups are required. 

The skills gap risks India’s growth in a fast-changing global economy. To turn its youth population into an asset, India must urgently revamp education, push industry-academia partnerships, and scale real training pathways for practical, future-ready employment.