India’s youth unemployment remains alarmingly high despite strong GDP growth. One key issue is the mismatch between education and industry demands—many graduates lack practical skills, leaving them unemployable in today’s market. Reports indicate that 75% cannot attach emails and most can't use spreadsheets effectively, reflecting an education system not aligned with workplace needs.

At the same time, the economy’s low labor absorption exacerbates the problem. The manufacturing sector contributes just 11.4% to employment, while agriculture still employs nearly half the workforce—despite contributing far less to GDP. Automation and capital-intensive growth further reduce opportunities for young job-seekers.

Data reliability also clouds the issue: while official unemployment stands at 5.6%, economists estimate the real figure may be between 10% and 35%, driven by underemployment and flawed metrics.

Addressing this crisis requires urgent reform. Despite initiatives like PMKVY and the new Prime Minister Internship Scheme, achieving youth employment depends on aligning skills with market needs, bolstering labor-intensive sectors, and ensuring accurate data to guide policy.