India’s Position in the QS World Future Skills Index

What’s in today’s article?

• Understanding the QS Index
• Key Highlights from the QS Index
• Challenges in Skill Development
• Opportunities for Growth
• Recommendations for Improvement
• Conclusion

Understanding the QS Index

• The QS World Future Skills Index, developed by London-based Quacquarelli Symonds (QS)—renowned for its university rankings—aims to assess how prepared countries are to meet the demands of a rapidly evolving global job market.
• The index evaluates nations across four critical dimensions:
  • Skills Fit: Alignment between workforce skills and job market demands.
  • Academic Readiness: The capability of educational institutions to prepare graduates for the future.
  • Future of Work: Adoption of skills and technologies relevant to emerging industries.
  • Economic Transformation: The capacity of economies to adapt and thrive in new paradigms.
• The inaugural QS Future Skills Index 2025 provides insights into nations' readiness to embrace emerging job trends, including those in Artificial Intelligence (AI), digital transformation, and green technologies.

Key Highlights from the QS Index

• Rank and Classification: India is ranked 25th overall and categorized as a "contender" in the index, reflecting its ongoing progress in future skills readiness.
• Strengths:
  • Future of Work: Scored 99.1, the second-highest globally, demonstrating its preparedness to recruit talent for high-demand digital roles.
  • Youth Advantage: India’s large youth population and robust start-up ecosystem position it uniquely for sustained economic growth.
  • Digital Readiness: Alongside Mexico, India is one of the most ready nations to integrate talent into digital roles.
• Weaknesses:
  • Future-Oriented Innovation: Scored low on metrics for sustainability and forward-looking solutions.
  • Misalignment in Academia and Industry: Gaps in equipping graduates with AI, green, and digital skills remain significant.
  • Limited R&D Investment: India’s spending on research and development (0.6% of GDP) lags far behind the global average of 2.7%.

Challenges in Skill Development

• Skilled Workforce Gap:
  • A National Skill Development Corporation (NSDC) study highlights a demand-supply gap of 29 million skilled workers, with demand at 103 million and supply at 74 million.
  • Key sectors like healthcare, semiconductor manufacturing, green jobs, AI, and food processing face acute shortages of skilled professionals.
• Low Employability Standards:
  • According to the World Economic Forum, only 25% of management professionals, 20% of engineers, and 10% of graduates meet employability benchmarks.
  • The International Labour Organization (ILO) reports that 47% of Indian workers, including 62% of women, are underqualified for their jobs.
• Limited Access to Higher Education:
  • India’s vast youth population faces challenges in accessing tertiary education, especially in skills-intensive fields.

Opportunities for Growth

• Harnessing Demographics: With a large and youthful population, India has the potential to emerge as a global leader in skill-based industries, while many nations grapple with ageing workforces.
• Policy Support:
  • National Education Policy (NEP) 2020: Focuses on modular education pathways and reskilling initiatives.
  • ULLAS (Understanding of Lifelong Learning for All in Society): Aims to make education and skills training accessible across regions.
• Technological Integration:
  • Leveraging advancements in digital learning and AI to align academic curricula with industry demands.

Recommendations for Improvement

• Align Academia with Industry Needs:
  • Universities and training institutions must focus on delivering skills in AI, green technologies, and digital sectors to meet employer demands.
• Enhance R&D and Innovation:
  • Increasing R&D investment is critical to fostering forward-looking innovation and sustainable practices.
• Expand Access to Education:
  • Address regional disparities in tertiary education by creating modular and flexible learning pathways.
• Foster Collaboration:
  • Stronger partnerships between the government, private sector, and academia can drive targeted skilling and innovation.

Conclusion

• India’s performance in the QS World Future Skills Index showcases its potential to lead in the global job market for emerging skills.
• While the country’s youthful population, start-up ecosystem, and readiness for digital transformation are its strengths, bridging gaps in education, sustainability, and innovation is essential to unlocking its full potential.
• By addressing these challenges, India can ensure sustainable growth and establish itself as a global leader in future-ready skills.

Q1. What do you mean by Skill Matrix?

A skills matrix maps employee skills and proficiency levels. It takes the form of a visual framework that can help organisations make more strategic decisions on talent. In general, it provides a comprehensive grid that captures skills information for effective management, planning and monitoring across various levels.

Q2. When was the Ministry of Skill Development established?

The Ministry of Skill Development and Entrepreneurship is a ministry of the Government of India which came into existence on 9 November 2014 and gazetted on 8 December 2014.

Source :ET | BS