Skill development is an important driver to address pov - erty reduction by improving employability, productivity and helping sustainable enterprise development and in - clusive growth. It facilitates a cycle of high productivity, increased employment opportunities, income growth and development. However, this is just one factor among many affecting the productivity whose measurement differs for individuals, enterprise and economy. The increase in productivity could be due to availability of skilled & healthy manpower; technological up gradation and innovative practices; and sound macroeconomic strategies. The manifestations of improved productivity can be in the form of improvement in real gross domes - tic product (economy), increased profit (enterprises) and higher wages (workers). In this section, we are looking into the relationship between skill development and productivity with focus on India.