During Nirmala Sitharaman’s speech to the Lok Sabha on February 1st, 2026, the Finance Minister did more than recite monetary figures; she initiated a shift in Indian perspectives of education and work. The education budget saw an approximately 8.27% increase from the previous year. The budget also stipulated that all spending on education would now be linked to future workforce/ job opportunities; in other words, there would be no use of educational funding without regard to the employment opportunities it would create for future workers. This emphasis on linking educational outcomes to labour market opportunities will allow Australians to move toward real careers with real skills.
A significant part of this linkage will come through the creation of an “Education to Employment and Enterprise Committee,” which will serve as a high-level committee comprised of education, employer, policy, and industry representatives whose purpose will be to better align workforce skillset needs with the potential skills of newly educated (university/college) workers. This education and employment committee will be charged with bringing educators, employers, policymakers,s and industry leaders together to bridge the gap between what students have been taught and what employers are looking for in terms of skills needed within the growing, fast-track, labour-intensive industries of Building and Construction, among others.
The construction industry in India continues to experience growth at an unprecedented level. With the government allocating record amounts of money towards infrastructure projects (₹12.2 trillion) between 2026 and 2027 in order to support economic development and job creation, the need for skilled labour has never been greater than it is today. However, there is a disturbing trend that complicates the positive story surrounding economic growth and jobs; only approximately 5% of the total budget allocated toward flagship employment and training programs was actually spent within FY 2025-2026. This represents a significant lack of efficiency—and highlights substantial systemic problems relating to India’s ability to turn promises made through government policy into actual results felt on the ground.
The Indian economy relies heavily on construction and, as such, employs tens of millions of people, directly and indirectly, across various allied industries, including shipping, manufacturing, and providing materials for the construction industry, as well as providing transportation services. A construction site is the epitome of progress; with all sorts of construction activities going on at once, such as cranes moving building materials, cement mixers preparing to pour concrete, welders dressed in their safety gear completing the connections on steel beams, so they will be ready for carpenters and other construction workers to finish the project.
Unfortunately, when observing all the construction activity happening at one time on a construction site, there is also a sad reality: most of those working on that construction site do not possess the necessary skills to perform their work in accordance with the construction industry’s standards or regulations.
The construction sector skills conundrum
The construction industry is an engine of economic development in India, providing direct employment for tens of millions of people and indirectly supporting many more through related businesses such as the supply of materials, transport services, and infrastructure support. The dynamism of a construction site, represented by ongoing crane operations, mixing equipment, and workers performing welding and carpentry, is a representation of how far we have come. However, this fast-paced, active environment also reveals a sobering reality: most of the construction workforce continues to lack formal vocational training that is relevant to the industry.
Industry studies found that, while there are approximately 70 million workers in the construction sector, only a small portion of them are formally trained. Recent research indicates that approximately 83% of all labourers employed in construction can be classified as unskilled or informally trained. Unskilled or informally trained labourers are typically self-taught through observational learning and on-the-job experience as opposed to through a structured training program.
This gap is important to note because workers who have been trained informally tend to have no standard set of competencies regarding safety training, how to use technology, and use modern construction techniques, which negatively affects productivity and quality. Projects today are becoming more complex by combining digital tools, machinery, and safety protocols, so this gap will result in slower completion of projects and increased risk.
Objectives of the Education-to-Employment Committee
The Education-to-Employment Committee (E-to-E) has been created not as a new organisational structure but rather as an integrated approach toward solving an emerging structural issue; namely, the fact that education and training have previously functioned within silos from their respective industries that need trained workers (especially construction), even as industry sectors rapidly change and grow in size and number.
As defined in terms of the mandate from official sources, the E-to-E will have the following primary objectives:
- Identifying high-growth sectors that have strong export and job creation. Possible Skills Development Gaps within the Industry
- Identifying specific skill development/training pathways for those sectors
- Integrating future-oriented skill sets into all curriculum areas and developing digital capabilities for students
- Improving standards of accreditation, recognition of skills by employers, and mobility of skills
- Developing opportunities for reskilling and upskilling within the informal sector
In the context of the construction industry, this will result in much more than just discussing vocational education in general terms. It will result in certification frameworks that align with the Construction Industry, developing safe working environments, creating career paths, and giving visibility to construction workers who are highly skilled but have no credentials to show for it.
Success looks like
This type of committee will also create visibility and recognition of the informal workforce that currently exists in the construction industry, which could create access to pay and or benefits that would allow these workers access to resources, develop a career and have the ability to move through the construction industry.
The following outline provides an overview of how to make a real impact in the construction industry as it relates to education’s journey from education to employment:
- Certifiable skills that count: There is a need for uniform and/or standard industry-based skill certification for all trades, particularly: welding, formwork construction, concrete placement, and operating construction-related equipment.
- Safety and productivity standards that are the same: Training must have a mandated level of skill competency to reduce the number of accidents and increase quality construction.
- Pathways to include informal workers: To assist informal workers get upgraded through Recognition of Prior Learning (RPL) systems and Modular Training.
- Employers working with educational institutions to develop curriculum and provide apprenticeship opportunities leading to full-time employment.
- Accountable results: Track results related to skilling with clear and valid measures (i.e., number of individuals skilled, number placed, increase in earnings, path for each movement).
Road Ahead
The idea of a committee focused on the transition from education to employment is an encouraging step forward. All those involved in shaping skill development have understood that developing the required skills to perform jobs does not just involve the provision of funds. The development of skills involves aligning the various stakeholders in the process; ensuring that the skills being developed are relevant to employers; and creating a sense of purpose for both workers and employers.
The importance has been placed upon the transition between policy and implementation, between the real world of construction and the implementation of national policies. Construction workers in India should not only represent a statistic on a sheet of paper used to describe the workforce, but rather be recognised as certified professional workers who are provided with a pathway that leads to long-term employment, are provided with safety training, and are compensated with a wage that is commensurate with their skills and experience. The need to redesign/transform the skill pipeline for construction in India is not an option; it is essential to the future of the country’s economy and economic growth.
