India is endowed with surplus workforce, around 10 million people enter the workforce each year thereby surging the issue of unemployment and jobless growth. Transformation of this huge workforce into human resource may create an opportunity for India as the prevailing socio – economic condition, macro – economic condition and demographic dividend are imperative for India in relation to the other developed countries, thus, it will help to rejuvenate the economy and avail the opportunity of 21th century Knowledge Based Economy. Hence, human resource development has become prerequisite to achieve economic development of the nation which requires investment in the Education Sector more specifically the Higher Education Sector and Skill Development that increase productivity of labour force and reduce the demand – supply gap of labour and increase employment opportunity both in domestic labour market and in abroad. This paper end eavours to make a conceptual study regarding the opportunity of investing in higher education and skill development in Indian context. It also makes an attempt to reveal the prevailing demand – supply gap in the labour market and the actions recently undertaken to mitigate the employment issue over the future.