Adding 100 million skilled Indians to the workforce can increase GDP by 20%: Report

Bringing 100 million skilled people to the Indian workforce has the potential to increase the country's GDP by 20 per cent and propel the economy towards $4 trillion, a report showed on Tuesday.

Almost 50 per cent of India's young informal workforce and those outside it are willing to upskill to bridge India's employability gap, according to the report by investment firm Omidyar Network India with research partner Redseer.

"The ministry has undergone a tectonic shift, moving away from a one-size-fits-all approach to integrate the DNA of crafting targeted solutions that cater to the diverse needs of different industries," said Atul Kumar Tiwari, Secretary, Ministry of Skill Development and Entrepreneurship.

"Our focus is directed towards nurturing digital skills, fostering innovative thinking and cultivating problem solving abilities," he added.

The report studied 580 million individuals who require skilling and employability support by dividing them into 8 personas based on annual household incomes (ranging from Rs <1.5 lakh to 8 lakh) and type of employment.

Five out of the 8 people -- representing 230 million people -- are willing to upskill in search for better jobs.

Entrepreneurs can tap into a $1.5 billion market of 100 million young workers who are highly willing to upskill and pay for those skills, the findings showed.

"Support from government and non-profit organisations can impact a further 130 million individuals who are willing to upskill but don't have the means to pay for skilling opportunities," the report noted.

"Our goal is to enable collaborative solutions to address skilling gaps and improve the state of employability, especially for the underserved," said Siddharth Nautiyal, Partner at Omidyar Network India.

The report highlighted that entrepreneurs stand face-to-face with a massive opportunity for a 100-million strong market of young workers with skilling solutions.

"The most important skill area that entrepreneurs can build solutions for are basic business management skills in addition to digital marketing, communication and enhanced vocational skills," said the report.