NEP’s Role in Igniting India's Entrepreneurship Spark

India's National Education Policy (NEP) is fostering entrepreneurship among students, aiming to grow the economy to $30 trillion by 2047 through education reforms.

The National Education Policy (NEP) 2020 is changing how young people think about jobs in India. Instead of just looking for jobs, they are becoming fearless innovators and entrepreneurs in schools and colleges.This is how India plans to grow its economy from $10 trillion in 2034 to $30 trillion by 2047. It's not just about policy, schools and colleges teach entrepreneurship as part of their regular classes to help students learn how to take risks, be creative, and be strong. NEP 2020 works well with big projects like Startup India and Skill India. It also fits perfectly with the United Nations' SDG 4, which aims to improve skills for decent jobs and self-employment. The agenda of the NEP has been well supplemented and substantiated by the Viksit Bharat ShikshaAdhishthan (VBSA) Bill, 2025, which was once called the Higher Education Commission of India (HECI) Bill. This historic law aims to break down regulatory silos by bringing together the University Grants Commission (UGC), the All India Council for Technical Education (AICTE), and the National Council for Teacher Education (NCTE) into one organization. Like NEP's multidisciplinary approach, VBSA gets rid of the arbitrary lines between the social sciences, sciences, and teacher preparation. This makes it possible for full-fledged entrepreneurial ecosystems to grow.

The Pre-NEP Trap: Rote Learning and Siloed Dreams

Prior to 2020, the Indian education system based on 1986 National Policy on Education was elitist, focused on rote learning and vocational education and training was given the run-of-the-mill treatment. This systemically sabotaged critical thinking and problem solving aptitude among the students. The NSSO data of 2017-18 claimed that only 2-3.3% of the population underwent formal vocational training, which is abysmally low when compared to other countries. This left graduates with degrees in theory but no practical skills behind. The unemployment rate for people aged 15 to 29 was 17.8% in 2017–18. The situation worsened due to massive gap between urban and rural population because of the poor infrastructure and resources.

New ideas were sure to fail because national programs like Startup India had no connection to schoolwork. The "redundant teaching methodology" created a generation that was not ready for a changing global economy. They were innovators waiting for the right time, but they were also dreamers without the right tools.Things took a turn after the introduction of NEP 2020. It believes that education should be hands-on and therefore vocational traininghas been made part of the curriculum from Grade 6. Under this new education policy, attempts have been made to do away with the hierarchies within our education system.The National Skills Qualifications Framework (NSQF) lets dropouts who have already learned something come back and get credit for it. Multidisciplinary universities can give out certificates in soft skills and innovation by adding vocational courses to their bachelor's degree programs. Pedagogical Changes: Experiential Learning Takes Center Stage

The main change that NEP brings about is the shift from lectures to life labs. The policy says that students must learn by doing, through projects, apprenticeships, and internships. There is balanced focus on both soft skills and hard skills. In a world economy full of uncertainties, this kind of education system serves as a potent weapon.

Lot of game-changing courses were introduced under the Ability Enhancement Courses (AEC), Value Addition Courses (VAC), and Skill Enhancement Courses (SEC). These electives give you 2 to 4 credits each, which count toward the 28 to 30 credits you need to graduate. This means they are not just random electives; they are interdisciplinary bridges. For the first time, students majoring in the arts and sciences are encouraged to become entrepreneurs by taking classes like "Innovation and Entrepreneurship" or "Business Analytics." SECs teach digital marketing, blockchain, big data analytics, and aquaculture entrepreneurship—all of which are important for getting a job. Internships and hands-on simulations can count for credit instead of classes. NEP wants to meet its 50% vocational goal by 2025. When pooled through the Academic Bank of Credits (ABC), they lower the risk of entrepreneurial deviations by validating industrial stints. On the Ground: From Labs to Launches

NEP’s emphasis on entrepreneurship and innovation is eventually paying off. As per the 2023 Parliamentary Standing Committee report, there are now 6,503 Institution's Innovation Councils (IICs) across India. IIC’s mentor prototypes, organize hackathon and incubation programs. Research and Development Cells (RDCs) have come up to support interdisciplinary research.The new Research and Innovation Index from NIRF 2024 highlights competitive institutions, with 12 Institutions of Eminence leading the way in tech transfer.

Atal Tinkering Labs (ATLs) and School Innovation Councils (SICs) should be credited for encouraging research and innovation among the students. The National Innovation and Entrepreneurship Promotion Policy (NIEPP) , a joint initiative of CBSE and the Ministry of Education, is helping students become more creative, better at solving problems, and better at starting their own businesses. In line with NEP 2020, it provides framework for building robust innovation ecosystem in schools. Schools teachers are also being trained to keep pace with the evolving ecosystem,Entrepreneurship Development Institute of Indiahas been training CBSE teachers to equip them with new pedagogical tools. While in rural areas, the Mahatma Gandhi National Council of Rural Education (MGNCRE) is turning schools into centers for entrepreneurship by working with gram sabhas to create vocational manuals. In order to ensure that nobody is left behind in this journey, NIESBUD (National Institute for Entrepreneurship and Small Business Development) is focussing on promoting entrepreneurship among marginalized groups, including women and tribal communities, as has been mandated under the Ministry of Skill Development and Entrepreneurship (MSDE). It seeks to address barriers like skill gaps, access to resources, and economic empowerment. NIESBUD's UdyamDisha e-mentoring helps first-time entrepreneurs, and SVEP gives women, tribal people, and migrants more power through its extension centers. Private players are also doing their bit, Tata Motors' CSR labs have been teaching coding and AI atJawaharNavodayaVidyalayas.

The HECI Game-Changer

The VBSA Bill 2025 is a new set of rules that speeds up NEP's goals. It combines the oversight of the UGC (general higher education), AICTE (technical streams), and NCTE (teacher training) into the Higher Education Commission of India (HECI). Instead of the confusing bureaucratic systems that disincentives innovation, HECI brings in single system for funding, standards, and accreditation. There will be a real multidisciplinary environment where the social sciences, sciences, and education all work together. This goes against the silos that NEP fights against. Think about a teacher-trainee starting an ed-tech company or a physics student minoring in ethical AI entrepreneurship. These are both smooth, credit-recognized paths. Under VBSA the aim is to put a lot of emphasis on "enabling, differentiated, and globally competitive" education. NEP 2020 has ignited a transformative spark in India's education landscape, shifting from rote learning to experiential, entrepreneurial pedagogy. By integrating vocational training, innovation councils, and multidisciplinary approaches, it empowers youth to become job creators, aligning with Startup India, Skill India, and SDG 4. The VBSA Bill 2025 further dismantles regulatory silos, fostering inclusive ecosystems. As India marches toward a $30 trillion economy by 2047, this policy synergy cultivates resilient innovators, bridging urban-rural divides and unleashing untapped potential. Ultimately, NEP heralds a self-reliant, creative generation driving sustainable growth and global competitiveness.

(Prof. Rajeev Sijariya is Professor and Former Dean at the Atal Bihari Vajpayee School of Management and Entrepreneurship (ABVSME) at Jawaharlal Nehru University (JNU) specializing in Consumer Behaviour and Marketing Management.  Co-author, Dr Pavan Chaurasia is a  Research Fellow at India Foundation. Co-author, Dr. Ajay Pratap Singh, is a PhD from School of International Studies JNU and currently teaches as Guest Faculty (Political Science) at University of Delhi.)