Unveiling the India Skills Report 2025: Assessing Youth Employability and Skill Gaps

India Skills Report 2025: Key Highlights

1. What is the Skills Report 2025 and who publishes it?

The India Skills Report 2025 is jointly released by Wheebox, Confederation of Indian Industry (CII), AICTE, AIU, Taggd, and Sunstone. It assesses youth employability across India based on:

• Communication
• Logical reasoning
• Numerical aptitude
• Domain knowledge
• Workplace readiness in 11 sectors

2. Why is the report significant?

It identifies states and cities that are successfully preparing youth for the job market and highlights skill gaps. Policymakers can use the findings to:

• Align training with industry demand
• Guide students toward in-demand skills

3. Top-performing states in 2025

• Maharashtra – 84%
• Delhi – 78%
• Karnataka – 75%
• Andhra Pradesh – 72%
• Kerala – 71%

4. Cities offering highest employment potential

• Pune – 78.32%
• Bangalore – 76.48%
• Mumbai – 72.45%
• Thiruvarur – 72.15%
• New Delhi – 70.22%

5. Broader trends revealed

• Degrees are not always converting into decent jobs
• Skill mismatch remains a major barrier despite training programs
• Female employment is declining in several regions, widening gender disparities
• Migration for jobs is increasing as local opportunities shrink

6. Why are state-level disparities growing?

States with strong linkages between education, training, and industry perform better. Regions focusing more on infrastructure than inclusive job creation show weaker employability outcomes.

7. Concerns about skill schemes

• Many skill centres run by outsourced agencies with minimal quality control
• Certificates often lack real job linkages
• Monitoring and industry feedback are limited in several states

8. Role of SMEs in employment

SMEs are key job creators, especially for semi-skilled youth. Their decline in many states due to financial and policy pressures has directly affected employment prospects.

9. Actions to improve employability

• Integrate vocational training with formal education
• Update training content regularly based on market needs
• Strengthen oversight of training centres
• Focus on high-demand sectors like healthcare, logistics, IT services, and renewable energy
• Promote local job creation through MSME support

10. Future outlook for India’s workforce

India must focus on quality, relevance, and accountability in training. Youth employability will determine how effectively India harnesses its demographic dividend in the coming decade.