Why Is Half of the Indian Workforce Unskilled in FY24-25?

indian workforce

Indian Workforce Faces Skilling Crisis, Says upGrad Report

The upGrad Enterprise report, released on May 22, 2025, reveals that 50% of the Indian workforce remained unskilled in FY24-25, with 75% training only when mandated.

Based on insights from 12,300+ professionals, the report highlights a lack of formal skilling strategies in nearly half of Indian workplaces, causing capability gaps.

Barriers include irrelevant training (51%), limited access (43%), and time constraints (42%). While organizations prioritize technical skills, the Indian workforce seeks leadership and soft skills.

Generational differences—Gen X favoring expert-led formats, Gen Y wanting flexibility, and Gen Z preferring on-demand learning—are ignored by 63% of HR leaders.

With 60% of HR budgets allocating under 5% to skilling, the report urges personalized, AI-focused training to align with the workforce’s needs and organizational goals.

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