India, poised to become one of the world’s largest economies, faces a paradoxical challenge—while the demographic dividend offers immense potential, skill development remains a critical bottleneck. This paper critically examines the intersection of demographic advantage, skill development, and national economic ambitions in the context of the National Education Policy (NEP) 2020 and other governmental initiatives. It identifies key policy gaps and explores strategic opportunities to strengthen India’s workforce capabilities for global economic competitiveness. Through detailed case studies, policy analysis, and data-backed insights, this paper argues that strategic alignment of education with industry, inclusive skill programs, and robust implementation mechanisms are essential to realize India's economic aspirations.