G20 Declaration on skill gaps may propel India as global digital talent hub

According to experts, the other significant aspect of the G20 Declaration was committing to work towards creating skills-based migration pathways

In a significant step to address the rising talent gap worldwide, the G20 Declaration committed to development of an international reference classification of occupations by skill and qualification requirements to facilitate cross-country comparability and mutual recognition of skills and qualifications.

Experts believe that this will create a positive impact for India, which has built the narrative of providing the digital talent hub for the world.

Kirti Seth, CEO, sector skills council, Nasscom, pointed out that one of the most significant points on the 'Future of Work' is the cross-country comparison of skills towards India’s ambition of being the digital talent hub for the world.

“This basically means understanding each other's definition and classifications of skills, so that we can compare what one country considers as a credential versus what another country considers as a credential. The moment we have that visibility, it becomes easier for countries to understand and compare each others’ skilling credentials, and address the gaps and differences rather than complete retraining or recertification,” explains Seth.

For India, this is of significance as the country has over the past few years reiterated that it wants to be the digital talent hub of the world. With a demography that supports it, as well as the number of students that opt for formal degrees.

Seth agrees, especially at a time when the entire world has a shortage of the required skill set for digital skills. For instance, Japan, which has 1 million digital workers, is expected to have a shortage of 2.3 million digital workers by financial year 2026, says a report by Nikkei Asia.

According to a report by EY and iMocha that was published in May this year, the shortage of future tech skills is expected to arise from the high demand for application developers and business app users, as indicated by 76 per cent and 62 per cent of the surveyed organisations, respectively. The report highlights India's standing as one of the top tech talent markets, with a market share of 16 per cent, putting it on par with Europe's 16 per cent and the USA's 20 per cent.

The survey was conducted among companies from India, the UK and the EU.

Hence, the G20 focus on skill gaps is crucial. “India is well placed to provide the talent. This is important for all countries because when you have a talent gap, it means that there is an opportunity loss – you demand but cannot fulfil it. Can India be that country where we can provide this talent that is needed? That's actually exciting, because an ability to compare our credentials to theirs means that we can identify where the gaps exist and work to fill them,” added Seth.

Experts also point out that the other significant aspect of the G20 Declaration was committing to work towards creating skills-based migration pathways.

Seth who has been part of some of the discussions happening on skills at the various forums before the G20 said, “The intent of ‘skill based migration’  is about making talent available where it is required? It is a way of coming up with innovative ways of accessing digital skills, maybe, without getting into issues of immigration”. 

She further added, "Our focus of integrating skills with education through the National Education Policy (NEP) will enhance the talent pool that can act as a resource for the world."

Some of the recent announcements made by countries like the UK and France are a step in this direction. France allows Indian students having a Master's degree or a higher degree, and who have completed at least one semester of study in France, to be eligible for a specialised five-year short-stay Schengen visa.