Around 60% of the country’s population will be in the working age group by 2020. This can reap a rich demographic dividend, but without a clear road map, it could turn horribly wrong. A clear vision is a key first step and, so, the government’s target to skill and employ 500 million people by 2022 is a step in the right direction.Both the central and state governments need to work in tandem. The former has sponsored the National Skills Development Corporation (NSDC), which has made significant progress at a pan-India level by promoting, sponsoring and financing skill development programme implementation agencies, and facilitating the creation of nearly 30 industry-led Sector Skills Councils (SSCs) that are laying down sector-specific national occupational standards. The NSDC provides a robust framework for states to take the work forward.The states are keen to meet the aspirational targets, but few are geared to succeed. So, first, governments need professional and technical assistance to develop a comprehensive end-toend institutional and operational delivery model, and then to monitor and evaluate the rapidly scaling programmes at the district and block levels.Second, given the limited capacity in government institutions, private entities need to be encouraged to take up vocational training and skilling activities. The incentives for such partners have to be carefully structured and should be linked to assessment and employment outcomes with sound monitoring and evaluation mechanisms.Employment and skill development institutions of state governments have to actively assist partnering implementation agencies to achieve targets by ensuring infrastructure availability, social mobilisation of trainees, day-to-day support and assistance in assessment and employment linkages.Madhya Pradesh has launched a programme, for instance, where private sector agencies have been entrusted with zonal assessment and placement assistance for students passing out of its ITIs.Third, employment exchanges in districts need to be overhauled and transformed on a public-private partnership mode. Odisha’s skill development programme is a fine example of this approach. The state has been among the early few to attempt converting district employment exchanges into Career Development Centres (CDCs) through the PPP route. The CDCs will not only screen candidates for their aptitude and skills but will also counsel and assist them in selecting the most suitable skill development programme being offered by the private sector training providers.Fourth, it is imperative that states align with the rapidly evolving national skill development ecosystem being shaped by the emergence of the National Skills Qualification Framework (NSQF). The NSQF aims at a common lingua franca for course curriculum, skill assessment and recognition through National Occupational Standards (NOS) and Qualification Packs that are essentially common job roles. Critically, this is formulated by an industry body, the Sector Skills Councils (SSC), and, therefore, endorsed by the industry.Kerala stands out for its skill development delivery model whereby it has integrated vocational skills training into the state’s higher secondary and undergraduate curriculum via a programme called Advanced Skills Acquisition Programme (ASAP).While state governments will continue to work on the skilling agenda, there are sound initiatives, such as the one by the ministry of MSME, central government’s initiative to design and establish Technology Centres (TC) across the country. These TCs are designed to improve access to technology, provide skill upgradation and advocacy support to specific industry clusters with high growth potential.It is important to comprehend the magnitude of effort required if one appreciates that states like UP and Bihar have a skilling target over 15-20 times the number of people actually skilled in the recent past in these states.There is hope and India can still achieve the rich demographic dividend, but all stakeholders must come together and work in a holistic way.The writer is partner and national leader, EY’s government practice. Co-authored with Siddhartha Das, director, EY