Author : Arpan Tulsyan

Occasional PapersPublished on Sep 12, 2025 From Demographic Dividend To Workforce Readiness 21st Century Skills For Viksit BharatPDF Download
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From Demographic Dividend To Workforce Readiness 21st Century Skills For Viksit Bharat

From Demographic Dividend to Workforce Readiness: 21st-Century Skills for Viksit Bharat

  • Arpan Tulsyan

    India’s demographic advantage presents a strategic window of opportunity to build a globally competitive and future-ready workforce. This demands that traditional education systems evolve to equip young learners with transferable and job-relevant competencies, commonly referred to as ‘21st-century skills’. Anchored in the context of India’s socio-economic and policy landscape, this paper outlines a strategic framework for integrating 21st-century skills into the education and skilling ecosystems, aligned with the vision of a Viksit Bharat (Developed India) by 2047. The paper draws on global models, national policy initiatives, and emerging labour market trends to highlight how these skills can bridge the growing employability gap in India, while also enhancing educational outcomes. It advocates for ecosystem-wide reform and underscores that equipping India’s youth with 21st-century skills is foundational for fostering employability, closing the ingenuity gap, and promoting inclusive growth.

Attribution:

Arpan Tulsyan, “From Demographic Dividend to Workforce Readiness: 21st-Century Skills for Viksit Bharat, ORF Occasional Paper No. 492, Observer Research Foundation, September 2025.

Introduction

In January 2025, a McKinsey report estimated that India has only a 33-year window to optimise its resources, before its young population starts ageing.[1] The report assessed that between 1997 and 2023, this advantage will shrink to just 0.2 percentage points.[2] (Figure 1)

Figure 1: The Shrinking Window of Demographic Dividend in India

From Demographic Dividend To Workforce Readiness 21st Century Skills For Viksit Bharat

Source: Author’s own, using data from McKinsey, 2025[3]

To make the most of this window, integrating 21st-century skills into the education systems is an imperative. These are job-relevant, transferable skills that are widely recognised as essential investments to equip the workforce for the foreseeable demands of a globalised and technology-driven world.[4] The Economic Survey of India 2024-25 notes that every rupee spent in social and emotional learning (SEL) gives a long-term economic return of INR 11, with outcomes spanning mental health, education, and employability.[5] Besides immediate educational and behavioural benefits, they yield long-term productivity gains and wage growth of up to 30 percent in per capita income.[6]

Although India has made progress in promoting 21st-century skills over the last five years, gaps remain. By addressing them through targeted policies, collaborative efforts, and innovative approaches, India can unlock the potential of its youth, paving the way for innovation, sustained economic growth, global competitiveness, and a thriving, future-ready workforce. Against this backdrop, this paper outlines a strategy for integrating 21st-century skills into India's education system, with the following objectives:

  • Define and contextualise 21st-century skills within India’s evolving policy landscape and socio-economic priorities.
  • Map the ecosystem of key stakeholders, initiatives, and innovations that are advancing these competencies through education, skilling, and technology.
  • Illustrate how specific skills align with key growth sectors of the global and national economy.
  • Identify systemic barriers and gaps in integrating 21st-century skills.
  • Recommend policy levers and cross-sectoral strategies to institutionalise these skills in a scalable, equitable, and contextually relevant manner— from foundational learning education to vocational and lifelong education.

‘21st-Century Skills’: Definitions

The Central Board of Secondary Education (CBSE) Handbook references the definition from the ‘Glossary of Education’, which states that 21st-century skills are “a broad set of knowledge, skills, work habits, and character traits that are believed—by educators, school reformers, college professors, employers, and others—to be critically important to success in today’s world.”[7] Similarly, the Organisation for Economic Co-operation and Development (OECD) defines it as “those skills and competencies young people will be required to have in order to be effective workers and citizens in the knowledge society of the 21st-century.”[8] Both the CBSE and OECD call for including the following domains of skills as 21st-century skills:

Table 1: Domains and Skills of the 21st Century

Domains Examples of skills
Cognitive Skills Critical Thinking, Creativity, Problem-Solving, Scientific Temper, and Decision-Making
Social and Interpersonal Skills Communication, Collaboration, Teamwork, Empathy, Conflict Resolution, and Negotiation
Intrapersonal Skills Adaptability, Resilience, Growth Mindset, Mindfulness, and Self-Regulation
Career & Life Skills Leadership, Financial Literacy, Time Management, and Global Citizenship
Future Ready Skills Technological and environmental skills like  AI, data science, and cybersecurity, Climate resilience and sustainability knowledge/skills

Note: These skills are fluid, reflecting the interconnected nature of competencies needed in the 21st century.

Source: Author’s own, drawn from the OECD (2018),[9] Winthrop and McGivney (2016),[10] the P21 Framework for 21st Century Learning (2019),[11] and the CBSE Handbook for Students (2020).[12]

Although these skills have always been considered important, they have gained increasing relevance in today’s era of complexity and uncertainty, defined by technological disruptions and global interconnectedness.[13] Therefore, the education system needs to consciously incorporate them in curricula and assessments.

The National Education Policy (NEP) 2020 acknowledges the significance of 21st-century skills and aims to “create a new system that is aligned with the aspirational goals of 21st-century education.”[14] It emphasises gearing curricula, developing standards, and piloting new assessments to nurture learners who are not only academically proficient but also equipped with the transformative skills necessary for lifelong success.

While there are many models[a]  to understand 21st-century skills, the one developed by the Partnership for 21st-Century Learning (see Figure 2) is perhaps most comprehensive. It emphasises three core skill areas essential for 21st-century life: learning and innovation skills; digital literacy skills; and life and career skills.[15] Each of these focuses on equipping learners with critical competencies to thrive in complex work and life environments:

  • Learning and Innovation skills include the 4Cs—i.e., critical thinking, creativity, communication, and collaboration—aimed at preparing students to tackle complex challenges and innovate in dynamic environments.
  • Digital Literacy skills encompass information literacy, media literacy, and technology literacy vital to navigating the digital age.
  • Life and Career skills focus on adaptability, accountability, multicultural interactions, productivity, and leadership. These competencies enable individuals to manage workplace changes and engage effectively in diverse teams.

Figure 2: P21 Framework for 21st-Century Skills

From Demographic Dividend To Workforce Readiness 21st Century Skills For Viksit Bharat

Source: Battelle for Kids. Framework for 21st Century Learning: A Comprehensive Guide to Learning Outcomes and Support Systems, 2019.[16]

Figure 3: How 21st-Century Skills Relate to Life Skills and SEL

From Demographic Dividend To Workforce Readiness 21st Century Skills For Viksit Bharat

Source: AI-based image generation by author, using DALL·E

21st-century skills also closely relate to two other concepts—life skills and social emotional learning. Life skills are foundational abilities such as decision-making, communication, and emotional regulation that help individuals navigate everyday challenges. SEL, on the other hand, is a more focused framework that promotes the development of emotional intelligence and interpersonal competencies like empathy and mindfulness. 21st-century skills also encompass a broader set of competencies that cover crucial cognitive skills like critical digital and financial literacy, adaptability, and analytical skills essential for employability and economic growth.

Why 21st-Century Skills Matter for India

Global labour markets are undergoing transformations primarily as a result of two shifts. The first is the demographic shift, where the supply of skilled workers in developed nations is declining due to the ageing population. While there is surplus labour in developing countries, they need to be appropriately skilled to become engines of global economic growth.[17] The second consequential shift is through technological disruption, where certain skills and roles like data specialists, fintech engineers, and renewable energy engineers are fast-growing, while clerical and secretarial roles are seeing a decline.

The Future Jobs Report 2025 estimates that by 2030, 39 percent of current workforce skills will be outdated, although increased upskilling is helping slow the rate of disruption.[18] Employers now value analytical thinking, resilience, and leadership skills, coupled with AI, cybersecurity, and lifelong learning capacities. Meanwhile, there has been a notable decline in skills like manual dexterity, endurance, and precision.[19]  In this context, 21st-century skills are not only vital to achieving better educational and labour market outcomes for the learner, but they are also key to closing the ingenuity gap, boosting productivity, and enhancing national competitiveness in the global economy. More specifically, 21st-century skills matter for the following:

  1. Bridging the Skills Gap

According to India Skill Report 2025, only 54.81 percent of the country’s youth will be employable in 2025.[20] This means that four out of every nine Indians of working age do not have skills that match available jobs. These broader challenges of employability are not merely due to a lack of technical expertise, but also because of poor digital fluency, adaptability, and social-emotional competencies.

A 2022 study by the National Skill Development Corporation (NSDC) revealed a significant deficit of 29 million between the demand and supply of skilled workers in India.[21]  It cites the changing requirements of the Indian economy as a key reason for this gap, with sectors such as healthcare, semiconductor manufacturing, green jobs, waste management, food processing, drone technology, and AI emerging as key growth areas.  Table 2 summarises the top emerging skills and the industries where they are increasingly becoming in-demand:

Table 2: Emerging 21st-Century Skills and Their Sectoral Demand

Skill Key Sectors / Job Domains
Digital Literacy Information Technology (IT) & Information Technology Enabled Services (ITeS), Financial Technology (FinTech), E-commerce, Remote Work, Telecom, Banking, Financial Services, and Insurance (BFSI). Also essential for almost all sectors including education, healthcare, and public services.
Artificial Intelligence and Machine Learning EdTech, HealthTech, AgriTech, Manufacturing, and Media. Increasingly used in political campaign planning and governance, environmental monitoring and climate science, and many non-tech industries.
Data Analytics, Interpretation and Reasoning Retail, Logistics, Public Health, E-commerce, and BFSI. Crucial for decision-making in urban planning, smart cities, sports & performance analysis, media, non-profit development sectors.
Cybersecurity IT, BFSI, Critical Infrastructure, and E-Government. Rising importance in healthcare, education, and critical services such as banking due to increasing digital vulnerabilities.
Critical and Analytical Thinking AI/ML, Consulting, Policy Research, Manufacturing, and Research & Development (R&D). Valued across all industries, including non-technical fields. Particularly in ESG (environmental social governance) analysis, corporate ethics, pedagogy, and curriculum design.
Creativity and Innovation Media (including social media), Advertising, Product Design, Start-ups, and Green Technology (GreenTech). Driving new product development for entrepreneurship & startup ecosystem—for example,  wearable tech or mental health-wellbeing solutions.
Adaptability and Flexibility Gig Economy, Freelancing, Startups, Entrepreneurship, and Services. Increasing significance for management roles in corporate transformation, career transition & lifelong learning ecosystems.
Problem-Solving Engineering, Urban Planning, Supply Chain Management, and Sustainability. Expanding use in: climate tech & sustainability startups, social innovation labs & think tanks, interdisciplinary R&D in bioengineering, nanotech, among others.
Emotional Intelligence Elder Care, Education, Mental Health, Human Resources (HR), and Conflict Resolution. Also essential for: technical projects for positive team dynamics and leadership; remote workforce & cross-cultural teams, customer success, UX strategy and community management.
Digital Ethics and Responsible Tech Use AI Governance, Educational Technology (EdTech), Social Media, Management, Cyber Law, Public Policy, bioethics, and Corporate Ethics
Sustainability and Climate Literacy Renewable Energy, Urban Development, ESG Compliance, Corporate Social Responsibility (CSR), and the Development Sector
Financial Literacy BFSI, FinTech, Microfinance, Gig Economy, Self-Employment, and Startups
Entrepreneurial Mindset Startups, Micro, Small and Medium Enterprises (MSMEs), Incubators, Rural Enterprises, and Innovation Hubs, climate adaptation solutions.
Design Thinking and Human-Centred Design User Experience/User Interface (UX/UI) Design, HealthTech, EdTech, Public Service Innovation, and Civic Technology

Source: Author’s own, using various global and national reports.

Note: While many 21st-century skills are increasingly becoming cross-cutting, with demand rising in sectors where they were previously underutilised or undervalued. For instance, emotional intelligence is now integral to engineering leadership and remote STEM teams, while design thinking is shaping innovation in healthcare, civic services, and education.

While many of these skills hold value across a wide range of professions, they are particularly critical for success and advancement within the industries highlighted above, where their application directly drives innovation, productivity, and competitive advantage.

Therefore, with the right investment in 21st-century skills, India has the opportunity to not only create job-filled growth at home but also to prepare a strategic pathway of employment-linked migration for its youth to meet the growing demand for skilled labour worldwide. As Western countries such as the US, UK, Germany, and Australia, for example, face ageing populations, it can be an opportunity for promoting skill-based employment for Indian workers.[22] For host countries, it will ensure access to a wider talent pool, while Indian migrants will benefit from career advancement, better wages, and cross-cultural experiences. Such circular movement of talent will drive global economic growth and innovation, enhancing people-to-people ties and resulting in benefits for both sending and receiving nations.

This dual approach allows India to address internal skill mismatches and, at the same time, ensure that its vast and dynamic workforce becomes a valued contributor to the global economy.

  1. Enhancing Employability

The Economic Survey 2024–25 underscores a pressing challenge in India’s labour market: the presence of many low-skilled workers across qualification levels, leading to poor employability outcomes.[23] Inadequate skills lead to a mismatch between academic qualifications and job market demands, resulting in over 53 percent of Indian graduates and 36 percent of postgraduates struggling with underemployment.[24] Studies suggest that new skill requirements, specifically advanced digital skills, are emerging with the changes in the economy (see Figures 3 and 4).

Figure 3: Emerging Workplace Skills in India 

From Demographic Dividend To Workforce Readiness 21st Century Skills For Viksit Bharat

Source: Economist Impact, 2023[25]

Figure 4: Demand for Advanced Digital Skills

From Demographic Dividend To Workforce Readiness 21st Century Skills For Viksit Bharat

Source: Economist Impact, 2023[26]

Meanwhile, the World Bank highlights that non-technical skills are as equally important as technical ability to gain advantageous labour market outcomes. A policy paper by the World Bank found that job seekers who showcase higher 21st-century skills, such as conscientiousness and emotional stability, were more likely to receive job offers and negotiate higher wages.[27]  More global studies by the World Bank and OECD highlight that individuals with strong 21st-century skills tend to have better life outcomes, including higher employment rates, improved performance, increased earnings, and greater adaptability in the workplace.[28],[29] These skills also enhance self-efficacy and are associated with a 10-percent increase in educational aspirations and a 15-percent rise in employment aspirations.

Therefore, the evidence strongly suggests that scaling access to 21st-century skills can enhance employability, narrow income disparities, and unlock economic potential for India’s vast and young workforce.[30]

  1. Improving Educational Outcomes

A growing body of global and national research shows that 21st-century skills help in improving academic outcomes,[31] promoting holistic development,[32] and strengthening the well-being of learners.[33] A meta-analysis of 207 school-based studies in the US, with over 288,000 students evaluated revealed substantial benefits including: a 23-percent improvement in social and emotional skills; 11-percent increase in academic achievement test scores; nine-percent enhancement in school and classroom behaviour; nine-percent improvement in students’ attitudes towards self, others, and school; and a 10-percent reduction in emotional distress, including anxiety and depression.[34]

In India too, many studies have reported the effectiveness of 21st-century skills across age groups and geographical locations. The evaluation of Delhi’s Happiness Curriculum[b] reported improved student-teacher relationships​, increased classroom participation​, increased focus, and mindfulness among students.[35] Another study based on the CASEL framework concluded that 85 percent of the children surveyed showed improvement along the parameters of curiosity, participation, energy level, and collaboration with others – all of which indirectly improved their academic performance.[36] A 2002 study published in the Indian Journal of Social Psychiatry revealed measurable improvements in adolescents’ emotional intelligence, specifically in areas such as empathy, self-awareness, and decision-making.[37]

  1. Closing the Ingenuity Gap

The ingenuity gap[38] is evident in the mismatch between India’s largely younger population and its ability to provide widespread opportunities for creative, high-impact innovation. While the nation is now the world’s fourth-largest economy, over half of its labour force earns less than US$1,250 per year, and deep divides persist between high-tech urban centres and struggling rural regions.[39] These disparities are evident in the domains of health, education, governance, and social security. Therefore, even as India’s innovation ecosystem is improving, it still trails global leaders in both input (investment, infrastructure) and output (patents, breakthrough technologies) measures (see Table 3).

Table 3: International Comparison of Innovations 

Country R&D Spend (% of GDP) Global Innovation Index (GII) 2024 Rank Patents Grants (2023)
India 0.64 39 30,490
China 2.41 11 798,347
US 3.47 3 323,410

Source: World Intellectual Property Organization (WIPO), 2024[40]

21st-century skills are also crucial for closing the ingenuity gap[41] and generating scalable, innovative solutions to address complex problems and deep inequalities that the country faces. Bridging these gaps can help India enhance its ability to address its own developmental needs and offer global leadership.

These findings underscore the urgency for education systems to move beyond traditional academic metrics and intentionally integrate 21st-century skill development into curricula, pedagogy, and assessments, starting from the early years.

The Current Landscape

Although values education and life skills education have a long tradition in educational philosophies of India, the contemporary notion of 21st-century skills was shaped by global educational trends. Its roots can be traced to the early work (in the 1990s-2000s) of NGOs like The Teacher Foundation, Dream a Dream and Butterflies, which piloted 21st-century skilling programmes among marginalised communities across India. Since 2010, states began experimenting with 21st-century skill-aligned curricula. Notably, Delhi launched the Happiness Curriculum (2018), which emphasised mindfulness, self-awareness, and emotional regulation. The curriculum's success inspired other states, such as Andhra Pradesh and Uttarakhand, to adopt similar programmes.

Several components of 21st-century skills, like SEL, became prominent in the early 2000s. The Teacher Foundation developed the Indian Social and Emotional Learning Framework (ISELF) in 2019, contextualising CASEL’s competencies for Indian schools, and addressing the lack of localised SEL standards.[42] Around the same time, several studies like the Learning Curve Life Skills Foundation’s study demonstrating SEL’s impact[43] and Pratham’s ASER (Annual Status of Education Report) report arguing for SEL for early-year education were published.[44]

​During the COVID-19 pandemic, 21st-century skills gained further prominence in India as educators and policymakers recognised their critical role in developing resilience, empathy, effective communication skills and digital skills, which became prominent during the crisis. This set the stage for its more structured integration into education through the NEP, aligning it with the Sustainable Development Goal 4 (SDG 4) that emphasises inclusive and equitable education. Building on NEP 2020, the NCF (National Curriculum Framework) 2022 incorporates 21st-century skills, promoting experiential learning and the development of social and emotional competencies from early childhood through secondary education.

Currently, 21st-century skills are promoted through a variety of initiatives led by the government, private sector, and civil society at both the central and state levels. Key programmes include:

  1. Central government initiatives like Atal Innovation Mission (AIM) to foster innovation and entrepreneurship through tinkering labs and PM SHRI (Schools for Rising India) to model holistic education, and the Skill India Mission to enhance employability skills.
  2. Technology-driven programmes like DIKSHA (Digital Infrastructure for Knowledge Sharing), SWAYAM (Study Webs of Active Learning for Young Aspiring Minds), and NISHTHA (National Initiative for School Heads' and Teachers' Holistic Advancement) that provide online resources for the capacity-building of both teachers and students.
  1. State-level initiatives like the Happiness Curriculum and Entrepreneurship Curriculum in Delhi, Anandam Pathyacharya in Uttarakhand, and Little KITEs in Kerala.
  2. Institutional Programmes like the CBSE’s Manodarpan and National Council for Educational Research and Training’s (NCERT) SEL programmes aim to enhance emotional well-being and resilience among students.
  3. Multi-organisation coalitions such as the Life Skills Collaborative (LSC), YuWaah! (Generation Unlimited), and the Future Rights Skills Network (FRSN) that focuses on research, curriculum development, piloting assessment practices, and youth empowerment.
  4. Equity-focused initiatives targeting rural and tribal communities in Telangana, and gender equality programmes such as UDAAN in Jharkhand and Taaron ki Toli in Haryana.
  5. Corporate initiatives where companies like Reliance, Infosys, and Tata are supporting 21st-century skills through digital labs, teacher fellowships, and other community-based efforts.
  6. NGO programmes like NalandaWay, which leverage arts-based SEL and Kaivalya Education Foundation’s Future-ready schools, which train school leaders to deliver 21st-century skills.

Over the last five years, with the help of the above initiatives, 21st-century skill education in India has evolved from isolated programmes to more systemic integration, driven by policy mandates, tech integration, and partnerships.

Several stakeholders are involved in delivering 21st-century skills education at various levels. The following is a mapping of various stakeholders, their primary responsibilities, incentives, capacity constraints, and coordination mechanisms:

Table 4: Stakeholders, Their Responsibilities and Coordination Mechanisms for 21st-Century Skills

Stakeholder Primary Responsibility Incentives Capacity Constraints Coordination Mechanisms
Ministry of Education (MoE) - Policy framing (e.g., NEP 2020) - Design of national programmes like NISHTHA, DIKSHA, SWAYAM - Funding oversight Political visibility through flagship schemes Limited ground-level monitoring ability - with NCERT - Samagra Shiksha Mission Steering Group
NCERT / CBSE / National Bodies - Curriculum development - Teacher training modules (e.g., NISHTHA) - Textbooks and digital resources Central authority and expertise One-size-fits-all content may lack contextual sensitivity - Regular consultation with SCERTs, Boards, and subject expert groups
State Education Departments - Localisation and implementation of national programmes - Teacher recruitment and training - School governance Ownership over schools and teachers Varying fiscal capacity, administrative readiness - Project Approval Boards (PABs) under Samagra Shiksha - Joint Review Missions with MoE
SCERTs / State Boards - Adaptation of curriculum and training modules - Assessment reform - Monitoring learning outcomes Mandated nodal agency at the state level Often under-resourced and overburdened - Collaboration with NCERT, DIETs (District Institutes of Education and Training), and DEOs (District Education Officer) - State Curriculum Framework Committees
DIETs / BRCs / CRCs - Teacher mentoring and support - Training facilitation - Resource dissemination Proximity to teachers Inconsistent quality and resourcing across districts - Feed into SCERT planning - Linked to cluster-level review meetings
District Education Officers (DEOs) - School-level monitoring -Implementation of training programmes - Reporting on performance Evaluated on school performance Pressured by board exam metrics, limited autonomy for innovation - Convergence meetings with Block Officers, DIETs, and State Departments
Teachers - Classroom instruction - Integration of 21st-century skills in pedagogy Students' success reflects on the teacher Exam-focused accountability discourages innovation - Participate in NISHTHA, DIKSHA - Cluster and block-level teacher forums
Students - Participation in skill-building activities - Learning new-age skills like digital literacy Aspirational value of tech and employability Unequal access to resources and guidance - Limited voice in the system - Indirectly represented via assessments and feedback surveys
Parents and SMCs - Supporting learning environment Invested in the academic outcomes of students Equate success with board results, may resist pedagogical shifts - Part of School Management Committees - Limited formal role in skill-related decision-making
EdTech Providers / NGOs - Supplement curriculum - Provide digital content, teacher training, and community outreach Innovation-driven, flexible Dependent on government partnerships, limited scale and resources - PPP models under Samagra Shiksha - MOU-based collaboration with state governments
Private Schools / Institutions - Autonomous curriculum adaptation - Can pilot 21st-century skill programmes Incentivised by parent demand, branding Regulatory oversight and equity concerns - Limited formal coordination with the government unless affiliated with CBSE/State Board

Table 4 indicates that while policy is centralised, the implementation of 21st-century skills is deeply decentralised, requiring multilayered coordination between the centre, state and districts. It also shows that several stakeholders, like SCERTs, DIETs, and DEOs need more resources, capacity building and guidance to support the implementation of 21st-century pedagogy.

Several other challenges like a lack of uniform understanding, common frameworks, standardised assessment tools, resource constraints in rural schools, and the ongoing need for continuous teacher training persist.

Barriers to 21st-Century Skill Education in India

Despite progress, efforts to integrate 21st-century skills into India’s mainstream education system are still at an early stage, often facing critical challenges related to awareness, institutional preparedness, and a lack of coordination among stakeholders.[45] The most noteworthy among them are:

  1. Lack of a Comprehensive Framework - While the NEP and NCF have discussed the significance of 21st -century skills, and handbooks have been released by CBSE (2020)[46] and UNDP (2023),[47] India continues to lack a unified and comprehensive national framework that combines life skills, digital literacy, financial literacy, and SEL into a coherent system. This has resulted in fragmented approaches between various stakeholders and inconsistent implementation across states and schools.
  2. Digital Divide and Infrastructure Gaps - According to UDISE+ (Unified District Information System for Education Plus) (2023-24), only 57.2 percent of schools have computers and 53.9 percent have internet, with access in government schools further reduced by a gap of 25 and 28 percentage points, respectively.[48] Although the 2025-26 Union Budget proposes providing broadband to all government secondary and primary schools,[49] current disparities continue to hamper the delivery of digital literacy and other 21st-century skills.​

    Likewise, the government has introduced the target to establish 50,000 Atal Tinkering Labs (ATLs) over the next five years to 2030 in government schools. However, only a fraction of the schools currently have access to such hands-on, tech-enabled spaces. Interstate disparities also persist where some states like Maharashtra have 1,033 ATLs, compared to 242 in West Bengal as of February 2024.[50]  Modern learning infrastructure, like smart classrooms, virtual labs, and STEM (Science, Technology, Engineering, and Mathematics) labs, is also available only to a small proportion of urban, elite schools.
  1. Teacher Preparedness and Pedagogical Challenges - The NCFTE (National Curriculum Framework for Teacher Education) 2009 remains the latest standalone national framework for teacher education in India.[51] While it focuses on child-centred, inclusive pedagogy, it lacks specific recommendations and discussion points for 21st-century skills, SEL skills or digital literacy in the classroom. A revised NCFTE aligned with the NEP is anticipated but has not yet been formally released. Therefore, most teacher training programmes lack structured exposure to principles, methods and assessments for 21st-century skills, leaving teachers underprepared.[52] Adding to this are large class sizes and the academic pressure to complete the syllabus, meet performance indicators tied to exam results, and adhere to rigid academic calendars. This leaves little room to build emotional connections, reflection, or collaborative activities that foster 21st-century skills like critical thinking.[53] Continuous professional development (CPD) is often generic, inadequate and lacks contextual relevance. Additionally, teachers also face emotional burnout themselves, making it hard to model SEL.
  2. Social equity and Inclusion: Significant disparities in access and quality of 21st-century skill education exist across gender, geography and socio-economic background, each compounding to limit opportunities for skill acquisition and holistic learning. For instance, data from the Telecom 2025 survey among young people (aged 15–29 years) reveals that only 56 percent of females own a mobile phone versus 84 percent of men. Smartphone ownership is even more skewed—58 percent for adult men, and 36 percent for women. For adolescent girls, this translates into less frequent use of internet-connected devices and reduced opportunities to build digital competencies. The survey also found that nearly 50 percent of young rural women were unable to send or receive emails or perform online banking operations. An overwhelming 74 percent could not make electronic presentations, compared to much higher proportions of young men, who were able to do all these tasks. It also reveals how the urban-rural divide compounds the gender gap.[54] Sociocultural factors like family restrictions, prioritisation of device access for men or boys, and fears around girls' internet use perpetuate these gaps, making digital skill acquisition even more challenging for adolescent girls, especially in rural and marginalised communities.

    Tribal children, often residing in remote and under-resourced regions, confront challenges including poor school facilities, language barriers, and inadequate pedagogical materials aligned to their cultural contexts, hampering the effective delivery of 21st-century skill curricula.[55] Moreover, children with disabilities face higher exclusion due to a lack of accessible learning environments, assistive technologies, and teacher training in inclusive pedagogy, resulting in pronounced barriers to acquiring both cognitive and socio-emotional 21st-century skills.[56] Without deliberate and data-driven focus on these layered inequities, initiatives to mainstream 21st-century skills risk reinforcing existing divides rather than bridging them.
  1. Assessment Challenges - Educational assessments in India continue to prioritise rote learning and content recall, with little room for evaluating skills like problem-solving or emotional regulation. There is a lack of age-appropriate, culturally-rooted tools in India that can capture 21st-century skills meaningfully across diverse classroom settings.[57] Teachers are rarely trained in observational or formative assessment methods suited to these skills, and current national surveys like NAS (National Achievement Survey) capture only cognitive outcomes. Without robust metrics, tracking learner progress and scaling successful interventions remain a challenge.
  2. Parental and Community Awareness - Many parents continue to associate quality education solely with academic performance and exam results, undervaluing 21st-century skills. This lack of awareness can result in scepticism of participatory, project-based, or SEL approaches. Without family and community support, efforts to nurture these skills risk being undermined at home, affecting both continuity and impact. While some surveys have indicated positive shifts in parental support for certain skills, like digital literacy, communication (public speaking) or entrepreneurial mindsets, there is still a long way to traverse for many other skills.[58]
  3. Resource Constraints - Despite an increase in absolute terms, India's education spending remains below six percent of GDP, as has been repeatedly recommended. In the latest budget, the education sector allocation was registered at INR 1.28 trillion (US$15.4 billion) for 2025-26, a6.5-percent nominal increase from 2024-25. Several initiatives of the 2025-26 budget aligned with the development of 21st-century skills, such as plans to establish 50,000 ATLs in government schools over the next five years, allocation of INR 500 crore to set up AI-driven Centres of Excellence, and a target to achieve universal internet access in all secondary schools in India.[59] While these allocations indicate an emphasis on integrating 21st-century skills into the educational framework, implementation may face hurdles due to persistent underfunding.

Addressing these challenges requires a multifaceted approach, including infrastructure development, teacher training, standardised curricula, and targeted interventions to bridge socioeconomic and gender gaps, as will be recommended in the following section.

Recommendations and Conclusion

Strengthening 21st-century skill integration in Indian education requires ecosystem transformation spanning curriculum, pedagogy, assessment, infrastructure, and community engagement across all levels of education. This paper makes the following recommendations:

  1. 21st-century skills need to be embedded within existing subjects and contextually reinforced across the curriculum. A clear, grade-wise progression rubric to track and support students' development in these competencies from pre-primary through senior secondary levels must be designed to allow for continuity and consistency in student learning trajectories. India can learn from existing models in countries like Finland, Singapore, and South Korea, which have institutionalised 21st-century skills through diverse approaches (Table 5).

Table 5: Global Best Practices on 21st-Century Skills

Model Approach Insights for India
Finland’s Transversal Competencies The national core curriculum identifies 7 transversal competencies as broad, cross-cutting skill domains o   Embed 21st-century skills across curricula, not as add-ons. o   Empower teachers with autonomy, training, and resources for innovative pedagogy. o   Shift focus from rote to experiential, project-based learning. o   Use formative and portfolio assessments to track holistic development.
Singapore’s SkillsFuture   A lifelong learning initiative that provides sector-specific mapping and targeted upskilling programmes o   Align learning pathways with growth sectors (e.g., green economy, digital jobs) using skill demand forecasts. o   Build a culture and infrastructure for lifelong learning o   Establish a dedicated agency to coordinate lifelong learning and skills development.
South Korea’s EdTech-Driven Personalised Learning Integrated AI-driven adaptive learning systems in public schools for remote learning. It uses national platforms (like Educational Broadcasting System - EBS) for equity in digital learning. o   Invest in digital infrastructure and teacher digital literacy, especially in rural and underserved areas o   Strengthen platforms like DIKSHA and SWAYAM to deliver interactive, adaptive 21st-century learning content at scale. o   Use of AI to adapt content to the student level can help India address diverse classroom readiness.

Source: Author’s own

Studying and contextualising such examples can help India strengthen its own frameworks while ensuring alignment with global trends in education reform.

National institutions like CBSE, NCERT, and the National Testing Agency (NTA) can be leveraged to contextualise internationally recognised frameworks such as CASEL or UNESCO SEL frameworks or project-based or performance tasks from in P21 or ATC21S models, and develop age-appropriate assessment tools to assess 21st-century competencies.

  1. Expanding high-quality teacher training on 21st-century skills and digital pedagogy through platforms such as NISHTHA, PM eVidya, and SWAYAM must be prioritised. These training initiatives should go beyond one-time sessions and focus on practical strategies and interactive pedagogies for teaching 21st-century skills in classrooms, along with hands-on experience of digital tools and modules on aspects such as peer learning, mentorship, and reflections to build teacher ownership and confidence. These must be integrated into the mandatory 50 hours of CPD (Continuous Professional Development) as outlined in the NEP.
  1. Expanding DIKSHA, SWAYAM, Bharat Skills, and PMKVY e-platforms to provide self-paced, micro-learning modules on diverse 21st-century skills like communication, decision-making, and critical thinking will improve access. There is a need to design adaptive, gamified experiences for students with varying literacy levels to teach reasoning, collaboration, and problem-solving. These could be personalised with the help of AI.
  2. States can institutionalise the appointment of skill officers who will be responsible for coordinating teacher capacity-building, facilitating classroom integration, continuous monitoring and managing community sensitisation campaigns on the importance of 21st-century skills. Their roles should be institutionally integrated within the District Project Office (DPO) under Samagra Shiksha, and they should work in close coordination with DEOs, BEOs (Block Education Officers), Cluster Resource Centres (CRCs), and teacher-mentors.
  3. To ensure equitable access to 21st-century learning, interventions must be tailored for learners from diverse backgrounds. Targeted support like remedial mentors, assistive technology, and digital literacy kits should be provided to disadvantaged students so they can actively participate in peer-supported, tech-enabled, experiential learning opportunities. Digital learning materials must be converted into multilingual, sign language, and audio-based formats to support children with disabilities or low literacy, ensuring that no child is left behind.
  1. To address M&E gaps, India must invest in a phased, multi-tiered framework for measuring 21st-century skills. In the short term, states can embed proxy indicators, such as project-based assessments, peer evaluations, and digital portfolio submissions. In the medium term, NCERT, in partnership with NIEPA (National Institute of Educational Planning and Administration) and international assessment bodies (e.g., PISA, ASER), can design sample-based national surveys and longitudinal studies that focus on key skill domains like critical thinking and collaboration. Measurements must gradually evolve alongside capacity-building to ensure fair, actionable, and context-sensitive implementation.
  2. A central dashboard tracking the implementation of 21st-century skills outcomes at the state level, which could be linked to UDISE+ or PARAKH (Performance Assessment, Review, and Analysis of Knowledge for Holistic Development), can be developed. Monitoring must go beyond inputs to include both quantitative and qualitative insights that capture state-level implementation, teacher readiness, and student outcomes related to key skills.

    SCERTs and DIETs must be empowered to conduct periodic field-based audits and provide real-time feedback loops to inform policy and programmes. To operationalise the central dashboard on 21st-century skills, the Ministry of Education should designate NCERT and NIC as technical leads, with state SCERTs and Samagra Shiksha offices responsible for data reporting. Data should be collected through UDISE+ extensions, DIKSHA analytics, classroom observations, and sample-based student assessments. Underperforming states should trigger targeted support missions and improvement plans, ensuring that the dashboard drives accountability, not just visibility.
  1. Performance indicators aligned to 21st-century skill development can be integrated with school performance frameworks or university accreditation, teacher awards, and additional funds. These should also be considered for rankings and ratings.
  2. Central and state governments must also prioritise research and evidence-building through partnerships with academic institutions, civil society, and industry. This includes:
    1. Commissioning longitudinal studies through bodies like NCERT, NIEPA, and UGC to assess the long-term impact of 21st-century skills education on academic performance, employability, and life outcomes.
    2. Conducting need assessments and evaluations of implementation effectiveness across regions and demographic groups.
    3. Supporting regular large-scale national surveys, modelled on NAS or ASER—to track correlations between skill acquisition, academic success, reduced dropout rates, and socio-emotional well-being.
  1. To ensure that the integration of 21st-century skills is not limited to urban or well-resourced schools, it is essential to explore scalable, low-cost models of delivery. Approaches such as peer-led learning clubs, training of community volunteers, use of offline digital content, and mobile-first EdTech platforms can help bridge gaps in infrastructure and teacher availability, especially in underserved and rural regions.
  1. Toolkits to improve parental awareness and engagement for 21st-century skill development can be created. Anganwadi networks, parent-teacher meetings, and community radio can be used to simplify skills like empathy, resilience, and digital responsibility. Finally, aligning parent and community awareness on 21st-century skills with existing campaigns like Poshan Abhiyan and Samagra Shiksha can help position skill awareness into broader child development efforts.
  2. In addition to parental and community involvement, involving youth in the design, piloting, and feedback processes ensures the relevance of learning content and pedagogies. Their experiences and aspirations can inform more engaging, responsive, and impactful strategies for skill development, especially in areas such as digital citizenship, peer mentorship, and entrepreneurial thinking.
  3. Research on 21st-century skills could be funded through ICSSR (Indian Council of Social Science Research), DST (Department of Science & Technology), and other national research agencies to develop and continuously update contextual frameworks and pedagogies. CSR and CSR-backed Public Private Partnership (PPP) models can be used to scale NGO-led and edtech-driven innovations. It is also important to ensure that research agendas reflect the diversity of Indian learners—urban and rural, tribal and coastal, formal and non-formal.
  4. To ensure every Indian learner gains 21st-century skills, India should adopt innovative and sustainable funding mechanisms that go beyond traditional budget allocations. These may include asset monetisation or outcome-based financing models like social impact bonds. Governments can encourage pooled CSR funding for skill development and digital literacy, and expand PPPs for establishing edtech labs and innovation centres in schools. Instituting state-level education venture funds and integrating the NEP’s skilling agenda with existing national missions can further amplify the impact.
  5. Partnerships with edtech firms, CSR programmes, and non-profits to pilot and scale innovations in skill-building are also crucial. As partners, they could set up district-level ‘Skills Innovation Labs’ for educational institutes to test and showcase pedagogical innovations, peer learning models, or tech-enabled solutions.

As India navigates a critical juncture in its demographic and economic trajectory, embedding 21st-century competencies across education systems by aligning them with emerging industry demands, and ensuring equitable access through innovative, context-driven models, can drive inclusive human capital growth for a resilient and future-ready Bharat.


Arpan Tulsyan is Senior Fellow, Centre for New Economic Diplomacy (CNED), ORF.


All views expressed in this publication are solely those of the authors, and do not represent the Observer Research Foundation, either in its entirety or its officials and personnel.

Endnotes

[a] These include UNESCO’s ‘Four Pillars of Learning’, the OECD’s ‘Learning Compass 2030’, and World Economic Forum’s ‘Skills for the Future’.

[b] The Happiness Curriculum was introduced by the Government of the National Capital Territory (NCT) of Delhi in July 2018 for students from Nursery to Grade 8 in all government schools. It was designed to go beyond academic learning by focusing on mindfulness, emotional intelligence, empathy, critical thinking, and relationship-building skills. Classes last around 30–45 minutes daily and are integrated into the regular timetable.

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Arpan Tulsyan

Arpan Tulsyan