Employability is ‘biggest challenge’: FM

India’s “biggest challenge… is the employability level,” Finance Minister Nirmala Sitharaman said on Monday (local time) in New York.

Answering a question over demographic dividend, she, “The biggest challenge that we had is the employability level or the skill set which is so required.”

She was speaking at the Economic Club of New York to discuss the success of the unified payments interface or UPI.

The Finance Minister talked about the government’s role in improving the employability level: “Many of them [students] coming out of universities have the qualification or the certificate from the university, but employers think there is a gap between the degree that he has and the employability that is expected of them. For being employed, they need something more. And it is that gap that government of India is trying to now fill.”

She also highlighted the government’s efforts to equip the youth with skills in emerging technologies like artificial intelligence (AI).

Digitalization of the Indian economy has allowed government to formalize the economy, Sitharaman said, adding that India’s digital transformation has enabled large segments of the population to be included in formal financial systems and allowed citizens to participate in economic growth.

“The transition from using plastic cards... to the QR code has been so rapid... the smallest vendor of vegetables or seasonal fruits uses QR code,” she said, adding that the shift has democratized payments, reduced reliance on cash, and increased transparency.

She also highlighted the proactive steps undertaken by the country towards its ambitious commitment to net zero by 2070. She said that the country is rapidly transitioning away from thermal power plants toward renewable energy sources like solar. India has already surpassed its solar energy targets well before deadlines, despite not receiving the promised $100 billion global fund for transitioning to green energy.

The Finance Minister asserted that India has invested in solar, wind, and hybrid renewable projects and is driving initiatives like green hydrogen and ammonia production, advanced battery storage systems, electric mobility, and modular nuclear energy plants.