Background:The government of Maharashtra; with financing from the World Bank; is implementing Development of Applied Knowledge and Skills for Human Development (DAKSH) in Maharashtra. The program development objective of DAKSH is to improve skills and entrepreneurship training for enhanced employability in Maharashtra. Result area 1 of the program focuses on institutional strengthening for high-quality market relevant training with robust MIS. Skill; Employment; Entrepreneurship; and Innovation Department (SEEID); Government of Maharashtra acts as the nodal agency for skill development initiatives in the state and is the implementing agency for the DAKSH Maharashtra program. The department works towards its objectives largely through three institutions:1. Directorate of Vocational Education & Training (DVET) that directly manages the 400+ government ITIs and regulates 500+ private ITIs in the state. 2. Maharashtra State Skill Development Society (MSSDS) that manages central and state government programs in short-term skilling with training partners.3. Maharashtra State Innovation Society (MSInS) that promotes entrepreneurship and innovation in the state through various programs including training. The program boundary for DAKSH includes training at Industrial Training Institutes (ITIs) as well as short-term training on NSQF compliant programs through accredited training providers. There are several interventions including on improving the infrastructure; training quality; relevance; and job preparedness. The selection of training programs to be offered is currently based largely on centralized planning (for ITIs) and industry demand assessment (for short-term training). While there have been quantitative assessments to estimate the number of jobs for each job role; the state would benefit from a structured; comprehensive; and periodic skill gap assessment in quantitative as well as qualitative terms to inform the program offerings; design; and delivery. To augment the institutional capacity of the department in conjunction with DAKSH Maharashtra program; the International Bank for Reconstruction & Development (IBRD) has received a grant from the Korea - World Bank Group Partnership Facility (KWPF). IBRD plans to utilize a part of this grant to help develop and demonstrate a good model for periodic skill gap assessment in the state. Framework for Skill Gap Assessment:The skill gap assessment should have a robust and comprehensive framework to look at the demand for and supply of skills holistically as well as to forecast the expected changes to prepare the skill ecosystem for the future. Some of the considerations while designing the skill gap assessment framework are as below:1. Skill demand assessment: Current levels of skill demand in the industry can be assessed by surveying a sample of the employers; studying sectoral reports; and intelligent systems analyzing online job platforms. Analyzing various databases; including those on trade and investments; could provide further insights on skill demand. To understand specific skills and skill levels required for various job roles; expert consultations can be held. Big data analytics of job descriptions for jobs posted on various platforms could also provide useful insights.2. Skill demand forecasting: To project the future demand; multiple qualitative and quantitative tools can be utilized to estimate growth rates and employment elasticity. Quantitative methods rely on econometric modeling and statistical analysis and the qualitative methods include use of sentiment analysis using big data and expert consultations using Delphi method; among others.3. Skill supply assessment: The quality and quantity of skill supply in the economy can be assessed by an analysis of enrolment and completion at education and training institutions along with assessment of graduates of these programs on skill competencies. In addition to technical skills; the graduates can also be assessed on platform skills; soft skills; analytical skills; literacy; etc. to provide comprehensive picture. Skill assessment at individual level also provides useful input to the learners on further education and employment pathways. 4. Analysis and insights: Periodic data collection on the above three provides rich data on supply and demand of skills in the economy that can be analyzed to provide useful insights for graduates; institutions; and policymakers. The analysis will provide an understanding of the skill inventory in the state; skill requirement (present and future projected) in the state; and gaps in skills and skill levels.5. Technology tools: Implementation of a regular skill gap assessment should utilize technology tools for collection and analysis of data. Additionally; AI could be used to supplement some of the data collection; cleaning; and analysis activities. A dynamic dashboard could summarize the results and provide insights for consumption