India’s vision for investment in its people is built upon three foundational pillars—education, skill development, and healthcare. As emphasized by Hon’ble Prime Minister Shri Narendra Modi, these pillars serve as the backbone for empowering the nation’s youth and equipping them with the capabilities needed to compete globally. The Ministry of Skill Development & Entrepreneurship (MSDE) has taken significant strides in this direction by organizing a pivotal breakout session on “National Centres of Excellence for Skilling,” as announced in the Union Budget 2025-26.
National Centres of Excellence for Skilling: A Transformational Initiative
The breakout session, moderated by Shri Atul Kumar Tiwari, Secretary, MSDE, convened experts from government, industry, academia, and international organizations to discuss the roadmap for implementing the National Centres of Excellence for Skilling. Panelists included esteemed professionals from institutions such as the World Skills Centre, Tata Indian Institute of Skills, Reliance Foundation, and Singapore Education Consulting Group, among others. The discussions underscored the need for fostering stronger industry collaboration, leveraging global expertise, and integrating advanced technological competencies within India’s skilling ecosystem.
Government’s Commitment to Skill Development
Since 2014, India has made significant progress in skill development, with over 3 crore youth receiving skill training. Plans are in motion to upgrade 1,000 Industrial Training Institutes (ITIs) and establish five Centres of Excellence (CoEs) in partnership with global leaders. The Prime Minister also highlighted the importance of the PM Internship Scheme, which bridges the gap between academic learning and industry requirements by offering practical exposure to students.
Minister of State Shri Jayant Chaudhary reaffirmed the government’s commitment to equipping India’s youth with future-ready digital skills. A major step in this direction is the launch of the Skilling for AI Readiness (SOAR) Program, designed to introduce AI literacy and vocational training from as early as Class 6. This program aligns with the National Education Policy (NEP) 2020 and aims to nurture computational thinking, problem-solving abilities, and industry-aligned AI competencies among students.
Leveraging Public-Private Partnerships and Global Collaborations
Shri Atul Kumar Tiwari emphasized the necessity of forging strong partnerships with industries and academia. To ensure a future-ready workforce, the government is focusing on Public-Private Partnerships (PPP) to enhance curriculum quality, provide industry-aligned training, and establish robust skill development ecosystems. Moreover, collaborations with global tech leaders will enable the seamless integration of AI and emerging technologies into vocational education.
India’s Rapidly Growing AI Talent Pool
India is witnessing an unprecedented rise in AI skill penetration. According to the Stanford AI Index 2024, India ranks first globally in AI skill penetration with a score of 2.8, surpassing the US (2.2) and Germany (1.9). AI talent in India has grown by 263% since 2016, positioning the country as a leading global hub for AI-driven industries. With a dedicated focus on AI skilling, initiatives like SOAR will ensure that India not only prepares its workforce for the future but also emerges as a hub for AI innovation.
Empowering Women Through Skill Development
As we approach International Women’s Day, the government is reinforcing its commitment to expanding opportunities for women in education, skill development, and entrepreneurship. India leads in AI Skill Penetration for Women, with a score of 1.7, outpacing the US (1.2) and Israel (0.9). Special provisions are being introduced to ensure that women receive equitable access to digital training and AI skilling programs.
Key Recommendations for Strengthening India’s Skilling Ecosystem
India’s commitment to creating a globally competitive workforce is reflected in its emphasis on skill development and AI readiness. The National Centres of Excellence for Skilling (CoEs) announced in the Union Budget 2025-26 aim to revolutionize vocational training and equip youth with future-ready skills. To achieve this, several key focus areas have been identified:
1. Enhancing Trainer Quality
A highly skilled workforce begins with well-trained instructors. Establishing high standards for trainers ensures the effective transfer of knowledge and skills. This requires continuous professional development programs to help trainers stay updated with industry advancements. Additionally, industry exposure is essential for trainers to gain hands-on experience with evolving technologies. Certification programs can further standardize and benchmark trainer competencies, ensuring high-quality skill transfer.
2. Greater Autonomy and Accountability
Empowering Centres of Excellence (CoEs) with operational flexibility while maintaining accountability is crucial for their success. Decentralized decision-making will allow CoEs to adapt to regional industry needs, making skill development more relevant. Implementing outcome-based monitoring systems will help track the impact of training programs. Performance-linked incentives can also be introduced to reward institutions based on training outcomes and employability metrics, ensuring a focus on quality education.
3. Stronger Industry Engagement
Stronger partnerships with industries are essential to align training programs with real-world job requirements. Apprenticeship and internship programs in collaboration with industry leaders can provide hands-on learning opportunities for students. Joint curriculum development with industry experts will help bridge skill gaps and make training more practical. Additionally, placement support and mentorship programs can enhance employability by connecting students with potential employers and industry mentors.
4. Global Collaborations
Bringing international best practices in skill development to India is crucial for making the country a global hub for skilled talent. Twinning programs with global universities can facilitate knowledge exchange and resource sharing. Adoption of global skill certification standards will enhance international employability, allowing Indian professionals to compete on a global scale. Industry-academia collaborations with leading global companies can further introduce best practices, ensuring that India remains at the forefront of skill development.
5. Increased Public-Private Partnership (PPP) Initiatives
Greater private sector participation ensures the sustainability of skill development programs. Co-investment models, where industries contribute to infrastructure and curriculum design, can create a more effective skilling ecosystem. Private sector-led training programs aligned with future job trends will help meet industry demands. Establishing skill hubs within corporate ecosystems can also facilitate hands-on learning, bridging the gap between academia and industry.
6. Industry-Aligned Curriculum
Updating curricula to keep pace with evolving industry needs and emerging job roles is a priority. Regular syllabus revisions based on market demand and technology advancements will ensure that students learn the most relevant skills. The integration of workplace-based learning models will enhance practical exposure, making students job-ready. Additionally, modular and stackable credentials will allow learners to upskill progressively, enabling a more flexible and adaptable learning approach.
7. Focus on New-Age Courses
To future-proof India’s workforce, skill training must include emerging technologies such as AI, blockchain, data science, cybersecurity, and cloud computing. Artificial Intelligence (AI) and Machine Learning (ML) will prepare youth for AI-driven industries, while blockchain technology will become essential for finance, supply chain, and data security sectors. Data Science and Analytics will equip professionals for the digital economy, and cybersecurity along with cloud computing will strengthen India’s digital infrastructure. By introducing these courses, India can ensure that its workforce is prepared for the jobs of the future.
The National Centres of Excellence for Skilling represent a significant step towards making India a global leader in human capital development. By integrating quality training, industry partnerships, global collaborations, and future-oriented curricula, India is not only preparing its workforce for the AI era but also ensuring inclusive growth, innovation, and economic resilience. These measures will empower millions of Indian youth with skills that are not just relevant today but will define the future of work globally.
India stands at the cusp of a transformative shift in its skilling and education ecosystem. By investing in people, enhancing digital competencies, and fostering AI readiness, the nation is paving the way for an empowered and globally competitive workforce. The establishment of the National Centres of Excellence for Skilling marks a significant milestone in this journey, ensuring that India’s youth are equipped with the necessary skills to drive innovation and economic growth in the years to come. Through collaborative efforts between government, industry, and academia, India is set to lead the 4th Industrial Revolution and emerge as a global powerhouse in skill development and AI-driven industries.
