This paper examines India’s evolving skill development ecosystem in the context of rapid technological change and shifting labor market demands. Drawing on secondary data primarily the Periodic Labour Force Survey (PLFS) 2023-24 and various government reports it assesses the educational composition of the workforce and identifies critical mismatches between education levels and occupational skills. Findings reveal that 90.2 percent of workers possess secondary education or less, with 88.2 percent engaged in elementary or semi-skilled roles. Moreover, 65.3 percent of the workforce has received no vocational training, underscoring a significant skills gap. The study highlights major government initiatives, including the Craftsmen Training Scheme (1.24 crore long-term trainees), Pradhan Mantri Kaushal Vikas Yojana (1.57 crore trained, 1.21 crore certified), and the PM Internship Scheme (1.27 lakh placements in pilot phase), which have expanded training access and improved female participation from 6.9 percent to 24.5 percent in vocational programs. Despite these gains, mismatches persist: only 4.2 percent of highly educated and skilled workers earn between ₹4 lakh and ₹8 lakh, while 46 percent of lower-skilled workers earn less than ₹1 lakh annually. The paper argues for deeper integration of Technical and Vocational Education and Training (TVET) into secondary and higher education, targeted upskilling through new-age courses, and strengthened industry-academia partnerships. It concludes that scaling digital platforms, dual training systems, and credit facilitation schemes (₹7.5 lakh loan limit under CGFSSD) will be vital to bridge skill mismatches, boost employability, and fully leverage India’s demographic dividend in an AI-driven economy.