In the globalized economy, with the increase in competition, workers are required to possess higher levels of skills and knowledge which can enable them to complete their tasks efficiently so on meet the specified quality standards and increase the efficiency of the worth chain process as an entire. Due to the rapid technological changes, and rising complexity of economic activity, jobs are increasingly becoming skill-intensive resulting in skill shortages and thus unemployment. Thus it's required to reform the training and education system so on upgrade the abilities of the workforce so as to facilitate them in applying and diffusing the newly adopted technologies. Such challenges are greater for developing countries like India, which needs more skilled workforce to draw in foreign direct investments (FDI), expand foreign trade, and thereby stimulating industrial and economic development. India has witnessed rising in recent years, driven by the event of new-age industries. The increase in the purchasing power has resulted in the demand for a replacement level of quality of service. With the changing economic environment, it's essential to specialise in imparting and promoting the skill sets of the young population of India because the countries with advanced and improved levels of skills adjust more effectively to the opportunities and challenges of world of labor. In spite of the emphatic stress laid on education and training in India, there's still a shortage of skilled manpower to handle the rising needs and demands of the economy. This study attempts to come back up with the suggestions to attenuate the present differences in the demand and provide of skills in the Indian economy. The approach adopted involves analyzing the skill gap and appraising the prevailing skill development initiatives in India. It further explores the challenges facing the abilities development system in India & proposes solutions that might be adopted to resolve such challenges.

KEYWORDS: Employment, Development, Economy, Skill, Population, Strategies.