Purpose: This study investigates the various themes around the demand-driven approach of vocational education and training (VET). The study focuses on investigating two major aspects of VET. Firstly, the extant literature has been systematically classified based on seven parameters: Geography, Focus on Vocational Education, Research Methods, Economic Sector, Origin of Study, Type of Training and Level of Skill. Secondly, this study has explored various themes around the VET implementation, performance gaps and road ahead. Design/methodology/approach: Thematic analysis with the systematic literature review (SLR) method is applied to 50 research papers on VET, published between 2011 and 2022. Findings: This systematic review has found that experiential compliments VET and VET is the medium of skill development. Further, it was extracted through themes that VET may help ensure alternate employment in rural areas and contribute to micro- and macro-level economic development. Also, there is a requirement to adopt a demand-driven approach to VET by localizing VT content and delivery. Research limitations/implications: The study's findings are directed towards the need for demand-driven and customized VET. This study also explores many potential areas for further empirical research through various themes. Originality/value: This study is a novel effort that extracts the themes constituting the effect of VETs along with the descriptive analysis of the extant literature using the SLR approach. The study has rationalized the findings by providing due coding to various parameters in the previous studies under investigation. © 2023, Emerald Publishing Limited.
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