India shows eagerness to upskill as it aims at a $4 trillion economy

• 73% of skilled aspirers and 59% of home-based entrepreneurs express a strong readiness to pay for skill development.
• The gap between skill demand and the willingness to invest in acquiring those skills presents a huge opportunity for entrepreneurs to develop solutions
• Governments and nonprofit organisations hold the potential to address the employability-skilling gap for around 130 million individuals through skill enhancement endeavours.

Almost 50% of young workers in India show a strong willingness to learn new skills for improved job opportunities. This enthusiasm is observed within distinct segments, including moderately high-skilled blue/grey-collar workers under 30 (skilled aspirers), those engaged in low to semi-skilled jobs (tenacious strivers), and females under 30 pursuing or desiring to initiate home-based businesses (home-based entrepreneurs), reveal the findings of report titled ‘The Next Frontiers: Skilling and Employability Solutions for the Next Half Billion', by Omidyar Network India (ONI), an impact-focused investment firm.

The report delves into the prospect within the Indian market to provide skill development and employment opportunities for a substantial segment of unskilled, low-skilled, and moderately-skilled workers. The research partnership for this project was with Redseer. The launch event occurred on Tuesday and was graced by Atul Kumar Tiwari, Secretary at the Ministry of Skill Development and Entrepreneurship, Government of India, along with Ved Mani Tiwari, Chief Executive Officer of the National Skill Development Corporation (NSDC).

Adding 100 million workers to the workforce can boost GDP by 20%

The report highlights prospects for entrepreneurs, government bodies, and nonprofit organisations to create solutions or encourage technology-driven skill development and job opportunities.

It studies 580 million Indian workers needing skill enhancement and employment aid and pinpoints specific groups with a strong desire to upskill and invest in those abilities, potentially positively impacting 230 million individuals. The findings reveal that adding 100 million workers to the workforce can boost GDP by 20%, steering India's economy towards a $4 trillion mark.

Huge prospects for entrepreneurs in skill development

The report emphasises a substantial opportunity for entrepreneurs in the form of a market consisting of 100 million young workers seeking skilling solutions. Among these segments displaying eagerness to acquire new skills, a significant portion also exhibit a high willingness to invest financially.

Specifically, 73% of skilled aspirers and 59% of home-based entrepreneurs express a strong readiness to pay for skill development that promises better employment prospects, stability, and growth opportunities. Among the skilled aspirers, 45% of men show keen interest in entrepreneurship, while 33% of women are more inclined towards advancing in their current roles. These segments represent untapped potential that could significantly enhance employability and positively impact a substantial part of India's workforce.

The gap between skill demand and the willingness to invest in acquiring those skills presents an estimated opportunity for entrepreneurs to develop solutions valued at approximately $1.5 billion to $2billion (₹12,570 crore to ₹16,760 crore). Notably, the key areas for skill development where entrepreneurs can contribute include fundamental business management skills, digital marketing, communication, and advanced vocational skills.

Government and nonprofit entities can help bridge the skills gap

Governments and nonprofit organisations hold the potential to address the employability-skilling gap for around 130 million individuals through skill enhancement endeavours. The report highlights that although certain segments exhibit a strong willingness to acquire new skills, their readiness to invest financially in learning opportunities remains relatively low. As a result, these segments are excluded from the pool targeted by entrepreneurs and profit-driven initiatives.


To cater to such populations, the government and nonprofit entities can bridge the disparity between the desire to acquire skills and the readiness to invest. This can be achieved through initiatives like subsidised skill development programs, bolstering apprenticeship initiatives, and providing capital support programs. Moreover, policy reforms in areas such as paid childcare and parental leave can significantly contribute to the inclusion and retention of workers within the employability spectrum, particularly among women seeking to enter or continue in the workforce.