The Prime Minister, in his Independence Day speech, announced a target to formally train 10 million youth in Artificial Intelligence skills this coming year. The target is an ambitious one and will need a well-coordinated skill system across the country to be successful. Unfortunately, that is where India faces an obvious lacuna.
India’s Artificial Intelligence talent pool holds about 600,000 AI professionals, and nine of ten employees in enterprises use GenAI tools, according to the India Skills Report 2026. Demand for AI talent is on the rise across sectors such as manufacturing and BFSI, and the need for AI skills enhancement is definitely the need of the hour.
However, the workforce is lacking when it comes to skills in general, and that is a well recognised fact; only about 5% of those in the age group of 15 to 29 years have received formal vocational or technical training, as per the annual Periodic Labour Force Survey for 2025.
Why is that the case is the obvious next question. For, over the years, the government has not only accorded high priority to skilling but also instituted multiple missions and schemes starting with setting up a dedicated Ministry for Skill Development and Entrepreneurship (MSDE) and its Skill India Mission in 2015.
The National Skill Development Corporation, Sector Skills Councils, PM-SETU for Industrial Training Institutes (ITI) and Jan Shikshan Sansthans form the institutional architecture, along with regulatory bodies. These are supported by programmes such as the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), PM Vishwakarma scheme, Skill India Digital Hubs (SIDH) and others. The Ministry of Education also runs the National Apprenticeship Training Scheme (NATS) while the MSDE operates the National Apprenticeship Promotion Scheme (NAPS).
An online programme of Skilling for AI Readiness (SOAR) hosted on the SIDH is underway for teacher and student training, covering 50 AI and AI-application courses. YUVA AI for All, another free online programme for AI basics, was introduced in November 2025. At the secondary school level, the National Education Policy 2020 has introduced AI from class III in CBSE schools, which is expected to reach about 21 million students by 2027.
In this potpourri of different programmes and schemes, it is challenging to quantify the collective outcomes.
A December 2025 report by the Comptroller and Auditor General of India (CAG) points out gaps in Pradhan Mantri Kaushal Vikas Yojana’s short term courses, stating that while the scheme achieved over 80% of its skilling target between 2015 and 2022, there appeared to be no strategy to its operations. Moreover, skills delivered were not really aligned to job requirements, and hence, only 40% of the trainees could be placed.
PMKVY 4.0, announced in the Union Budget 2023-24, offers over 600 new age courses, including AI. The programme has thus enhanced employment and self-employment, and contributed to higher incomes.
NITI Aayog’s report on skills states that 77 million persons have been trained in the last 12 years, but the outcomes are uneven. Another paper points out inadequacies in the apprenticeship scheme.
The India Skills Report, which captures hiring intent from over 1,000 organisations, has found only 46% of students from ITI and 33% from polytechnic courses are employable, and flagged AI literacy as a key factor in sustaining the growth of a multidimensional workforce including gig, AI-assisted and entrepreneurial options.
What ails the skilling sector
Structural issues such as inadequate fund allocations, poor skilling infrastructure, gaps in trainer capacities, and low alignment with industry requirements make the skill ecosystem far from the robust system that it was envisioned to be.
When it comes to AI, the skill development promise is more difficult to fulfill as this is a new and evolving sector, characterised by rapid changes. Computers, a basic requirement, are available in 70% of schools, but one in three schools does not have access to the internet.
Also, unless the government is contemplating more online AI courses, which are already heavily promoted by various private players, the target of 10 million beneficiaries might be a stretch.
With a youth population estimated at 345 million by 2036, India’s skill ecosystem requires consolidation and coordination among stakeholders, rather than a proliferation of new programmes.
There is need for localised skill mapping and skill courses, which would include opportunities for upskilling, reskilling and lifelong learning across districts. AI training can be integral to many of these courses. The focus should be on the metrics of outcomes in terms of placements, not inputs in terms of certifications granted.
Most importantly, the budget for skill development must be enhanced and work to ensure that the right infrastructure and quality trainers are in place.
It may be appealing to announce an ambitious target for AI skilling in the light of current issues being raised by Gen Z, but a real push for job-linked skill development will matter to the youth of the country much more.
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