In a move to bolster global employment opportunities for its youth, the Indian government has signed a Memorandum of Understanding (MoU) with the International Labour Organisation (ILO) to collaborate on the 'International Reference Classification of Occupations'. The agreement aims to create a standardized framework for classifying occupations based on skills and qualifications, thereby facilitating the seamless integration of Indian workers into the international labor market.

The virtual signing ceremony was attended by key figures including Union Minister for Labour & Employment and Youth Affairs & Sports, Dr. Mansukh Mandaviya, and ILO Director-General Gilbert F. Houngbo. Shri Arindam Bagchi, Ambassador and Permanent Mission of India, Geneva, and Mr. Gilbert F. Houngbo, Director General, ILO, signed the MoU in Geneva, Switzerland.

Dr. Mandaviya highlighted the significance of the partnership, emphasizing the shared commitment of India and the ILO to shaping the future of work amidst rapid global transformations. He noted that the International Reference Classification would enhance data comparability and promote mutual recognition of skills, which is essential for a globalized workforce. Gilbert F. Houngbo, ILO Director General, also noted the far-reaching impact of this collaboration for countries across the globe and underlined the good work India has been doing in matters related to labor mobility and social protection.

The collaboration is particularly timely, given the significant skill shortages faced by many countries due to demographic deficits and increasing digitalization. G20 leaders, during India's presidency in 2023, recognized this challenge and committed to developing skills-based migration pathways, a commitment that this MoU directly supports.

Secretary (L&E), Vandana Gurnani, emphasized that the MoU provides a framework for undertaking a feasibility study and pilot exercise in crucial areas such as the green, digital, and care sectors and that it presents an opportunity to develop a robust, internationally comparable classification system.

This initiative aligns with India's broader vision of becoming a skill capital for the world, providing a trusted source of talent to nations facing workforce shortages. By enhancing the global competitiveness of Indian graduates and professionals, the MoU is expected to position India as a hub for high-quality, future-ready education and skilling.

Several initiatives are already underway in India to address skill development and enhance employability. The Skill India Mission, including programs like Pradhan Mantri Kaushal Vikas Yojana (PMKVY), and the National Skill Development Mission (NSDM), aims to provide vocational training and improve employability. The Skill India Digital Hub (SIDH) is also being implemented to digitally transform skill development initiatives, improving their efficiency, accessibility, and global reach. Furthermore, the "IndiaAI Future Skills" initiative aims to train 1 million professionals in AI by 2026, with new AI labs being established in Tier 2 and 3 cities.

The partnership between India and the ILO reflects a strategic effort to leverage demographic dividends, address skill gaps, and promote sustainable economic growth through enhanced skill development and global mobility.