Recent government initiatives in India strongly underscore the need for skill development also referred to as ‘skilling’, at different educational levels. Education can greatly aid nation building process as it develops the mental and physical qualities of people thereby increasing their skills, knowledge and attitudes required for utilizing the natural resources needed for economic development of the nation and for their own self-employment. Present paper attempts to focus the role of education in present day scenario not only as a mean to individual empowerment of youth by development of intellectual venture but also as a mean to empower them for development of skills needed to adjust in fast changing world of work. Prime Minister of India has also emphasized skilling 150 million people by 2022 to make India the ‘skills capital of the world’ which reflects crucial role of education for skill development.