Skill Development In India: A Systematic Review Of Policy, Practice, And Outcomes

Abstract

Skill development initiatives in India have grown rapidly over the last decade, yet there is a huge gap between the skills of the workforce and the labour market needs. This systematic review synthesises large volumes of empirical and administrative data on the Indian Technical and Vocational Education and Training (TVET) ecosystem. A total of 1,700 records from international and regional database screenings (2010–2025) were conducted according to the PRISMA 2020 guidelines, leading to a qualitative and structured synthesis of 120 key studies.

The review is mapped against seven main dimensions: policy and institutional frameworks; skill gaps and employer needs; training results and employability; TVET and vocational education; gender and social inclusion; digital skill platforms; and regional/sectoral variations. The Skill India Mission, Pradhan Mantri Kaushal Vikas Yojana (PMKVY) and National Education Policy (NEP) 2020 have significantly boosted the capacity for training but execution is still patchy. Moreover, more than 91% of the Indian workforce is still engaged in the informal sector, where formal RPL serves as a certificate-delivery channel rather than a means of professional progression.

There are still major structural misalignments, including poor returns to wages, significant attrition after placement, sharp gendered hurdles and expanding digital gap. This paper advocates shifts to employer-driven finance models, comprehensive credit accumulation systems, localised training designs, and rigorous outcome-based tracking to unlock India’s demographic dividend.