Skills and knowledge are the driving forces of economic growth 

-Skills and knowledge are the driving forces of economic growth and social development for any country. Countries with higher and better levels of skills adjust more effectively to the challenges and opportunities of world of work.
-Potentially, the target group for skill development comprises all those in the labour force, including those entering the labour market for the first time (12.8 million annually), those employed in the organized sector (26.0 million) and those working in the unorganized sector (433 million) in 2004-05. The current capacity of the skill development programs is 3.1 million. India has set a target of skilling 500 million people by 2022.
As the proportion of working age group of 15-59 years will be increasing steadily, India has the advantage of „demographic dividend‟. Harnessing the demographic dividend through appropriate skill development efforts would provide an opportunity to achieve inclusion and productivity within the country and also a reduction in the global skill shortages.
Major challenge of skill development initiatives is also to address the needs of huge population by providing skills in order to make them employable and help them secure „decent work.‟ Skill development for persons working in the unorganized sector is a key strategy in that direction. This will also inculcate dignity of labour and create greater awareness towards environmental, safety and health concerns.
Planned development of skills must be underpinned by a „policy‟, which is both comprehensive as well as national in character. A national policy response is, therefore, needed to guide the skill development strategies and coordinated action by all stake holders to avoid a piecemeal approach. It is also important that the policies of skill development be linked to policies in the economic, employment and social development arenas.
The country is poised at a moment in history when a much brighter future for its entire people is within its reach. Skill development will help actualize this potential. Development and articulation of a national policy on skill development is a matter of priority. A task of skill development has many challenges which include:- a) Increasing capacity & capability of existing system to ensure equitable access to all. b) Promoting life long learning, maintaining quality and relevance, according to changing requirement particularly of emerging knowledge economy. c) Creating effective convergence between school education, various skill development efforts of government and between government and Private Sector initiative. d) Capacity building of institutions for planning, quality assurance and involvement of stake holders. e) Creating institutional mechanism for research development quality assurance, examinations & certification, affiliations and accreditation. f) Increasing participation of stakeholders, mobilizing adequate investment for financing skill development, attaining sustainability by strengthening physical and intellectual resources

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