In News:

India’s statistical architecture is undergoing a major transformation as the Ministry of Statistics and Programme Implementation (MoSPI) moves toward developing a bottom-up District Domestic Product (DDP) framework.

The initiative seeks to address long-standing limitations in district-level economic measurement by integrating two critical datasets—the Annual Survey of Unincorporated Sector Enterprises (ASUSE) and the Periodic Labour Force Survey (PLFS). Beginning January 2025, the combined use of these datasets aims to provide more accurate, granular and timely insights into India’s local economic activity, enabling evidence-based policymaking at the district level.

For decades, most states have relied on top-down allocation methods to estimate DDP, proportionately distributing Gross State Domestic Product based on outdated demographic indicators such as population. This approach produces “near-identical growth rates across districts”, obscuring regional disparities. Recognising this gap, MoSPI has initiated a shift toward a bottom-up estimation model in partnership with state governments. By directly capturing enterprise-level and labour market data from each district, the new framework is expected to radically improve the precision of district economic accounts.

The ASUSE forms the backbone of this strategy. Covering the unincorporated non-agricultural sector—which includes micro, household-based and small enterprises across manufacturing, trade and services—ASUSE produces detailed information on operations, investment patterns, workforce size and value addition. Previously released annually, the survey now offers quarterly data, enhancing frequency and granularity. Given the dominance of the unorganised sector in India’s economy, ASUSE provides an indispensable window into local economic activity.

The PLFS, conducted monthly by the National Statistical Office (NSO), complements ASUSE by capturing labour force participation, employment conditions, earnings and occupational structures in both rural and urban areas. Together, the two datasets reflect the dual pillars of district economies—enterprise activity and labour engagement. MoSPI notes that large enterprises are easy to identify, but district-level output is primarily driven by households, nano units and MSMEs, which both surveys cover extensively.

By combining these datasets, MoSPI aims to compute DDP through:

(a) bottom-up aggregation of district-level enterprise and labour data;

(b) integration of informal sector output; and

(c) alignment of statistical systems with decentralised planning structures.

This marks a paradigm shift in India’s economic measurement, aligning with the government’s emphasis on data-driven governance under Viksit Bharat @2047.

The initiative is part of a broader overhaul of the statistical system. Several complementary efforts are underway:

• The Annual Survey of Service Sector Enterprises (ASSSE), launching in January 2026, will map the incorporated services sector.
• The National Household Income Survey (NHIS), beginning February 2026, aims to measure income distribution and inequality—despite traditional challenges of under-reporting.
• A forward-looking capital expenditure survey has been introduced to track investment trends.
• MoSPI is also expanding public access to over 250 datasets, including GST aggregates, e-Vahan registrations and trade statistics, to strengthen national accounts and support research.

Despite these advancements, challenges remain. Accurate data capture from unincorporated enterprises is difficult, statistical capacity varies across states, and integrating multiple datasets raises risks of double-counting. Yet experts view the reform as a critical step toward improving the granularity, reliability and timeliness of India’s economic statistics. With several states already experimenting with district-level estimation, MoSPI’s framework could soon enable standardised and credible DDP measurement nationwide, transforming local governance and development planning.

In News:

India is grappling with a growing employability crisis, underscored by the fact that only 42.6% of graduates are considered job-ready. This mismatch between academic training and labour market needs has become a structural challenge, affecting productivity, economic growth, and youth aspirations. The crisis signals a systemic misalignment rather than a shortage of talent.

Understanding Employability

Employability today goes beyond academic qualifications. It includes the ability to:

• Acquire and apply knowledge in real-world contexts.
• Adapt to evolving technologies and workplace demands.
• Engage in lifelong learning, unlearning, and relearning.
• Demonstrate soft skills, value creation, and ethical behaviour.

Modern industries require graduates who combine technical capability with communication, teamwork, problem-solving, and a growth mindset.

Causes of the Academia–Industry Divide

Academic Factors

• Outdated Curriculum: Syllabi often fail to match rapid technological changes, new job roles, and automation trends.
• Theory-Oriented Pedagogy: Learning remains exam-centric with limited exposure to practical projects, internships, or problem-solving environments.
• Soft Skills Deficit: Institutions provide little training in communication, adaptability, workplace behaviour, and emotional intelligence.

Industry Factors

• High Expectations: Employers expect “ready-to-deploy” graduates but invest minimally in onboarding or mentoring.
• Rapid Technological Shifts: Industry skill needs evolve faster than academia can adjust, widening the skills gap.
• Weak Collaboration: Companies often view academic institutions as outdated, resulting in minimal engagement in curriculum design or research.
• Short-Term Approach: Recruitment is prioritised over building robust, long-term skill ecosystems.

Government and Institutional Initiatives

• National Education Policy (NEP) 2020: Encourages experiential learning, flexibility, internships, and stronger industry linkages.
• AICTE Internship Mandate: Requires engineering students to undergo industrial exposure.
• Skill India Mission: Strengthens vocational education through Sector Skill Councils aligned with market needs.
• NASSCOM FutureSkills PRIME: Upskills youth in digital technologies such as AI, data analytics, and cybersecurity.

These initiatives aim to modernise learning pathways and improve alignment with industry demands.

Challenges in Implementation

Despite reforms, several structural challenges persist:

• Curricular Inertia: Bureaucratic hurdles delay rapid updates in university syllabi.
• Fragmented Skills Ecosystem: Weak coordination among government, academia, and industry limits policy effectiveness.
• Faculty Skill Gaps: Many educators lack exposure to new technologies and contemporary workplace practices.
• Urban–Rural Divide: Smaller and rural institutions suffer from poor infrastructure and limited corporate linkages.
• Low Industry Investment: Companies underinvest in academia–industry partnerships and long-term talent development.

Way Forward

• Structural Reforms
  • Curriculum Co-Design: Regular, collaborative revision of syllabi with inputs from employers, universities, and policymakers.
  • Dual-Learning Model: Embed apprenticeships, live projects, and work-integrated learning into higher education.
  • Faculty Immersion: Promote faculty internships, industry sabbaticals, and continuous upskilling.
• Skills and Ethics
  • Soft Skills & Ethics Labs: Establish dedicated centres for communication, workplace ethics, and emotional intelligence.
  • Outcome-Based Tracking: Use data to monitor alumni career trajectories and skill relevance.
• Industry Engagement: Incentivise long-term corporate participation in curriculum development, research, and training.

Conclusion

India’s employability challenge is fundamentally an issue of alignment, not ability. Bridging the gap between academia and industry requires shared responsibility, continuous innovation, and sustained collaboration. When education becomes practical, dynamic, ethical, and closely connected to the world of work, India can unlock its demographic potential and build a resilient, future-ready workforce.