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Shaping skills: A qualitative dive into India's evolving skill development policies

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  • Dipika Dhiman
  • Ajay Solkhe

Abstract

Motivation In India's rapidly evolving economic landscape, skill development is essential for fostering socioeconomic progress. Despite the vast working‐age population, significant gaps persist between the skills available and those demanded by industries, particularly within the informal sector. Understanding the evolution and effectiveness of India's skill development policies is crucial to bridging these gaps and ensuring a workforce that meets contemporary economic demands. Purpose This study explores the evolution of India's skill development policies, examining the factors driving these changes and their alignment with the changing socioeconomic context of the country. It also identifies implementation gaps, investigates challenges in policy execution, and analyses strategic priorities shaping their development and delivery. Approach and Methods Using a qualitative content analysis, this study examines 25 key policy documents through the Walt and Gilson policy triangle framework, focusing on context, content and process. The analysis employs a deductive coding approach using NVivo software, involving an in‐depth examination of national policy documents, strategic frameworks, government reports, and guidelines. Findings The findings revealed that India's skill development policies have evolved to emphasize flexibility, with adaptable training models increasing from 1% focus in NSP 2009 to 12% focus in Pradhan Mantri Kaushal Vikas Yojana 3.0. However, inclusivity has declined, dropping from 13% frequency in NSP 2009, and the initial focus on entrepreneurship (40% frequency in NSP 2015) has diminished in subsequent policies. Fragmented initiatives, unrealistic skill projections, and poor digital adaptability continue to hinder the effectiveness of these programmes. Policy Implications Holistic reforms are needed to improve co‐ordination among stakeholders and integrate soft skills into training. Investments in infrastructure, skilled trainers, expanding the private sector's role in skill development, and awareness campaigns will enhance accessibility and relevance. Addressing informal sector needs and aligning training with technological advancements will ensure an inclusive, future‐ready workforce.

Suggested Citation

  • Dipika Dhiman & Ajay Solkhe, 2025. "Shaping skills: A qualitative dive into India's evolving skill development policies," Development Policy Review, Overseas Development Institute, vol. 43(3), May.
  • Handle: RePEc:bla:devpol:v:43:y:2025:i:3:n:e70006
    DOI: 10.1111/dpr.70006
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    References listed on IDEAS

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    1. David Card & Jochen Kluve & Andrea Weber, 2010. "Active Labour Market Policy Evaluations: A Meta-Analysis," Economic Journal, Royal Economic Society, vol. 120(548), pages 452-477, November.
    2. Mehrotra, Santosh & Parida, Jajati K., 2017. "Why is the Labour Force Participation of Women Declining in India?," World Development, Elsevier, vol. 98(C), pages 360-380.
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