India economic outlook, August 2025 – Deloitte

Report on India’s Workforce Development and its Contribution to Sustainable Development Goals

Advancing SDG 4: Quality Education

India is making significant progress toward SDG 4 by enhancing inclusive and equitable quality education and promoting lifelong learning opportunities. This is demonstrated through several key developments:

• High Output of Skilled Graduates: The nation produces approximately 2.5 million graduates in Science, Technology, Engineering, and Mathematics (STEM) fields annually, directly contributing to SDG Target 4.4, which focuses on increasing the number of youths and adults with relevant skills for employment and decent jobs.
• Focus on Emerging Technology Skills: In alignment with the need for future-ready skills, India is rapidly advancing in emerging technology training. A Stanford University study notes the country’s growing proficiency in artificial intelligence, data science, and cybersecurity.
• Excellence in AI Skilling: India’s AI skill penetration is among the highest globally and second only to the United States, positioning its workforce at the forefront of technological innovation and ensuring access to quality technical education.

Driving SDG 8: Decent Work and Economic Growth

The development of a tech-driven talent pool is a primary driver for promoting sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all, as outlined in SDG 8.

1. Leveraging the Demographic Dividend: With over half of its population under the age of 30, India is harnessing its young, digitally adept workforce to achieve higher levels of economic productivity (SDG Target 8.2) through technological upgrading and innovation.
2. Growth in High-Value Employment: The expansion of Global Capability Centers (GCCs) provides high-quality, decent work opportunities in research, data analytics, and product design for a growing segment of the population.
3. Strengthening the National Economy: The strategic shift toward a tech-enabled workforce has substantially increased India’s services exports. This growth, rising from 33% of total exports in FY 2014-2015 to a projected 46% in FY 2025-2026, contributes directly to sustained economic growth (SDG Target 8.1) and helps stabilize the national economy by offsetting goods import costs.

Fostering SDG 9: Industry, Innovation, and Infrastructure

India’s strategy directly supports the goals of SDG 9 by building resilient infrastructure, promoting inclusive and sustainable industrialization, and fostering innovation.

• Creation of Innovation Hubs: The establishment of over 1,700 GCCs for Fortune 500 companies serves as a critical infrastructure for innovation, hosting advanced research and development units that enhance scientific research and upgrade technological capabilities (SDG Target 9.5).
• Powering Industrial Transformation: The highly skilled STEM and AI-proficient workforce is powering the robust growth of these centers, transforming India from a low-skill outsourcing hub into a global powerhouse for technology and innovation.

Strengthening SDG 17: Partnerships for the Goals

The successful scaling of India’s skilled workforce exemplifies the multi-stakeholder collaboration central to SDG 17, which seeks to strengthen the means of implementation and revitalize the global partnership for sustainable development.

• Synergistic Collaboration: The country’s ability to skill its population at scale and speed is the result of a powerful synergy between government policy support, significant private sector participation from global companies, and innovation within the ed-tech sector. This partnership model is crucial for achieving sustainable development objectives.

Analysis of the Article in Relation to Sustainable Development Goals (SDGs)

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 4: Quality Education
   • The article emphasizes India’s role as a top producer of science, technology, engineering, and mathematics (STEM) talent and its growing focus on skilling in emerging technologies like artificial intelligence (AI) and data science. This directly relates to providing inclusive and equitable quality education and promoting lifelong learning opportunities.
2. SDG 8: Decent Work and Economic Growth
   • The text discusses India’s young workforce, the creation of tech-enabled jobs, the robust growth of Global Capability Centers (GCCs), and the substantial increase in services exports. These points are central to promoting sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.
3. SDG 9: Industry, Innovation, and Infrastructure
   • The article highlights India’s transformation into a powerhouse of tech-driven talent, the establishment of over 1,700 GCCs hosting research and development (R&D) and innovation units, and its high AI skill penetration. This aligns with building resilient infrastructure, promoting inclusive and sustainable industrialization, and fostering innovation.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Target 4.4 (under SDG 4): “By 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship.”
   • The article directly supports this target by stating that India “generates approximately 2.5 million [STEM] graduates annually” and is “catching up fast in emerging technology skilling, with a growing focus on artificial intelligence, data science, cloud, and cybersecurity.”
2. Target 8.2 (under SDG 8): “Achieve higher levels of economic productivity through diversification, technological upgrading and innovation…”
   • This target is reflected in the article’s description of India’s shift from low-skilled outsourcing to a “powerhouse of tech-driven talent.” The growth in services exports, powered by this skilled workforce, from “33% of total exports… to 46%” demonstrates increased economic productivity through technological upgrading.
3. Target 8.5 (under SDG 8): “By 2030, achieve full and productive employment and decent work for all women and men, including for young people…”
   • The article points towards this target by mentioning India’s “young, digitally adept population” and the “expected addition of 100 million by 2030” to the workforce. The growth of over 1,700 GCCs signifies the creation of productive employment opportunities.
4. Target 9.5 (under SDG 9): “Enhance scientific research, upgrade the technological capabilities of industrial sectors in all countries, in particular developing countries…”
   • The article shows progress towards this target by noting that GCCs in India host “research and development, data analytics, product design, and innovation units for Fortune 500 companies.” Furthermore, India’s high “AI skill penetration” indicates an upgrade in technological capabilities.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Indicators for Target 4.4:
   • Number of STEM graduates: The article explicitly states India produces “approximately 2.5 million graduates annually” in STEM fields.
   • Proportion of population with specific skills: The article mentions that “AI skill penetration is among the highest in India, compared to developed and developing nations, and second only to the United States.” This serves as a direct indicator of relevant skill acquisition.
2. Indicators for Target 8.2 & 8.5:
   • Growth in services exports: The increase in services exports “from 33% of total exports in fiscal year 2014 to 2015 to 46% in fiscal year 2025 to 2026” is a clear indicator of economic productivity and diversification.
   • Growth in skilled employment centers: The number of Global Capability Centers (GCCs) reaching “over 1,700” is an indicator of job creation in high-value sectors.
   • Workforce growth: The “expected addition of 100 million by 2030” to the workforce is an indicator related to employment potential.
3. Indicators for Target 9.5:
   • Investment in R&D and innovation: The presence of “research and development, data analytics, product design, and innovation units” within the 1,700+ GCCs implies significant investment and activity in this area.
   • Technological capability ranking: India’s high ranking in “AI skill penetration” serves as a proxy indicator for its advanced technological capabilities relative to other nations.

4. Table of SDGs, Targets, and Indicators

Source: deloitte.com