Skill Development and Employment Generation Strategies for Enhancing Per Capita Income in India


The current economic landscape in India presents a pressing concern, a steadily increasing unemployment rate, which reached its peak last year. Escalating this issue is a significant disconnect between the skills imparted by the education system and the skillsets sought after by the industry. This disjuncture serves as the focal point for our research, as we look to scrutinize the prevalent challenges within India’s employment sector and propose viable policy adjustments and implementations to address them. The Indian Employment sector encompasses organized, unorganized, and formal segments, our paper narrows its focus to the public sector and the issue of unfilled job vacancies. We conduct a comprehensive analysis of the unemployment problem and suggest some pragmatic solutions. Thus, the research yields a spectrum of recommendations aimed at bridging skill gaps, empowering marginalized communities, and fortifying India’s economic standing. These recommendations encompass methods for job creation and entrepreneurship, initiatives for seamless school-to-work transitions, and enhancements in higher education quality. Although recognizing the rich diversity of India and its economic intricacies, we emphasise the need for policy adaptations tailored to regional specificities.


The contemporary discourse on India’s economic growth trajectory has prominently positioned the nation as a potential global economic giant. This perspective has been strengthened by economic dynamism, underscored by statistics such as  India’s equivalence to entire continents like Australia in absolute terms, with predictions of surpassing the US economy within a few decades. On nominal GDP and per capita income, India is 15 years behind China. Between 2011 and 2019, the country is estimated to have halved the share of the population living in extreme poverty – below $2.15 per person per day (2017 PPP) (World Bank Poverty and Inequality Portal and Macro Poverty Outlook, Spring 2023). In recent years, however, the pace of poverty reduction has slowed, especially during the COVID-19 pandemic, but has since moderated in 2021-22. In FY 22/23, India’s real GDP expanded at an estimated 6.9 percent. Growth was supported by robust domestic demand, strong investment activity bolstered by the government’s push for investment in infrastructure, and buoyant private consumption, particularly among higher-income earners. These achievements, while laudable, invite critical scrutiny regarding their impact on inequality and poverty, particularly within the context of employment outcomes, encompassing job volume, quality, wages, and social security coverage.

India’s per capita income, as per the latest study by SBI Research economists, is projected to surge from Rs 2 lakh ($2,500) in FY23 to Rs 14.9 lakh ($12,400) per annum by FY47. The government has set the ambitious target of becoming a developed economy by FY47. This aspiration was underscored by Prime Minister Narendra Modi in his Independence Day address, emphasizing that achieving a developed India in 2047 is a collective goal of 140 crore Indians.

Despite India’s $ 10 trillion economy in terms of PPP-based GDP estimates, it ranks as the poorest among G20 nations in terms of per capita income. This paradox emphasises the necessity for India, considering its population, to become the largest and the most economically prosperous country in the world. Achieving this goal is not merely about economic growth but also about elevating the standard of living for the majority of its citizens.

This research aims to investigate the link between per capita income, skill development, and employment generation within the Indian context. It seeks to address the pressing issues of skill development, the challenges it faces, and its implications for income disparities. Furthermore, it delves into the intricacies of employment generation, considering its significance as a means to alleviate poverty. By exploring these facets, this study endeavours to shed light on the complex relationship between economic growth, skill enhancement, and employment creation in India.

Click Here To Download The Paper

Author: Drishti Dahiya