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In the first decade of this century, India became one of the world's fastest growing large economies, and began to face serious skill-related shortages of workers. Its TVET system has not responded adequately to the growth in demand for semi-skilled and skilled workers. This article describes six sets of reforms that India's educational planners and policy-makers must put into place if these shortages are not to constrain India's ability to benefit from the demographic dividend.

Abstract: This paper reports on findings from a large sample survey in the states of India that account for two thirds of the children out of school. It then examines the feasibility of the central government''s goals to ensure all children complete 5 years of school by 2007, and 8 years by 2010. These goals—more ambitious than the global EFA goals—are unlikely to be achieved without significant reforms by the central and state governments. It examines key reform options: in the public spending pattern; improving teacher accountability and work environment; incentives to improve demand for schooling; and the private sector. It argues that central to universalising elementary education will be improving the level, equity and efficiency of public spending. However, even with these reforms, improving teacher accountability will still remain key to the achievement of the goals. [Copyright &y& Elsevier]