Context: 

According to the QS World Future Skills Index 2025, India emerged as the second most preferred country under the ‘future of work’ category just behind the US.

Key Highlights of Report 2025:

• India ranks 25th with an overall score of 76.6 in the QS World Future Skills Index 2025, positioning the country as a “future skills contender.”
• The top five countries on the index include the US (97.6), UK (97.1), Germany (94.6), Australia (93.3) and Canada (91.0); are classified as “future skills pioneers.”
• India excels in the ‘future of work’ indicator, scoring 99.1 out of 100, indicating strong preparedness for the jobs of tomorrow, especially in digital, AI, and green skills.
• India has maintained its status as the second-largest destination for Venture Capital funding and growth funding in the Asia Pacific region.
• India’s economic transformation has been driven by the interplay of growth, workforce efficiency, and the evolving role of higher education

Areas of Concern:

• India scores just 59.1 in the ‘skills fit’ parameter, the lowest among the top 30 countries. This indicates a mismatch between the skills of the workforce and the needs of fast-changing industries.

• India scored poorly in the parameter of future-oriented innovation in sustainability (sub-parameter in economic transformation), earning only 15.6 out of 100. 

• In contrast, G7 countries scored 68.3, emphasizing the need for more investment and innovation in sustainable practices.

• The report highlights that India’s higher education system is not evolving quickly enough to meet industry needs. Graduates are often not equipped with the relevant skills required by employers.

Recommendations for Improvement:

• The report suggests universities should prioritize embedding creativity, problem-solving, and entrepreneurial thinking into their curricula.
• Stronger collaborations between academia and industry are needed to ensure that educational programs are better aligned with real-world job demands.
• Reskilling and upskilling initiatives, supported by policies like the National Education Policy (NEP) 2020 and ULLAS (Understanding of Lifelong Learning for All in Society), are also critical.

About the QS World Future Skills Index

• The QS World Future Skills Index is a comprehensive evaluation launched by Quacquarelli Symonds (QS), a London-based higher education firm. 
• The index measures how well countries are positioned to meet the evolving demands of the global job market.
• The assessment covers: Over 190 countries, 280 million job postings, 5,000 universities, five million employer skill requirements, and 17.5 million research papers were analysed to compile the rankings.

Four main indicators of the Index: 

1. Skills Fit: How well the education system aligns with industry needs.

2. Academic Readiness: The ability of a country to deliver skills necessary for future industries.

3. Future of Work: Readiness of a country's job market to recruit for future in-demand skills.

4. Economic Transformation: How ready a country's economy is to leverage skills-led industrial growth.

Countries are categorized into four groups: 

• Future Skills Pioneers
• Practitioners
• Contenders
• Aspirants

Other Reports on Skilled Workforce Gap in India

• National Skill Development Corporation (NSDC) study revealed a significant shortfall in skilled workers in September last year, with demand at 103 million compared to the current supply of 74 million. 
• The World Economic Forum reported in November last year that only a fraction of India’s workforce is employable. Of the 13 million people entering the workforce annually, just 25 per cent of management professionals, 20 per cent of engineers, and 10 per cent of graduates meet employability standards. 
• The International Labour Organization’s (ILO) 2023 Global Skills Gap Measurement Report further revealed that 47 per cent of Indian workers, including 62 per cent of women, are underqualified for their jobs.