With services accounting for 65 percent of the country’s GDP, one would tend to presume that India’s growth must be skill intensive. Facts, however, suggest the opposite. Many developed countries have tertiary enrolment (i.e. vocational training) levels of 60 to 80 per cent in the age group of 15–29, which is as high as 96 per cent for Korea.
The comparable level for India is less than 15 per cent. Expenditure on research and development (R&D) in the developed countries is in the range of 2 to 3 per cent of GDP on an average, which is just 0.8 per cent in India. This probably explains the gap between employment and employability in our country.