An estimated 8.7 crore Indians aged 15 to 29 were neither in education, employment, nor training, according to a NITI Aayog report released in August 2026. The figure, drawn from the 78th round of the National Sample Survey conducted in 2021, represents nearly 11% of Indians in that age group.
The report, titled ‘Reimagining Skilling for Viksit Bharat@2047,’ classifies this group as NEET, meaning not in education, employment, or training. It divides India’s young population and workforce into five broad groups covering school education, tertiary education, formal and informal work, NEET youth, and women.
Only 8.25% of graduates work in roles that match their qualifications, the report found, while around 88% of NEET youth are engaged in domestic work and caregiving, with women accounting for the largest share. Among women, only 3% are in formal jobs, while 71% are either in informal employment or in the NEET category.
The report noted that India has trained more than 7.67 crore people since 2014-15, and that the Union Budget for 2025-26 allocated ₹34,000 crore towards skilling-related expenditure across central ministries. Despite this, it observed that outcomes remain uneven, and that higher enrolment in training has not translated into employment because of weak links with the job market.
To close the gap, NITI Aayog recommended universal employability and entrepreneurship skills from Class 6, structured vocational pathways called Kaushal Tracks from Class 9, and a unified digital system to track a learner’s education, certifications, and work experience. It also proposed shifting higher education towards industry-aligned specialisations, making apprenticeships a mandatory part of training, and offering flexible, subsidised options for women and NEET youth.
Separately, the State of Working India 2026 report by Azim Premji University found graduate unemployment close to 40% among those aged 15 to 25, and around 20% among those aged 25 to 29, underscoring the transition challenge the NITI Aayog report describes.
The recommendations are expected to shape state skilling programmes and feed into the Union Budget cycle, with states such as Maharashtra already reviewing their frameworks in response.
