Focus on training & changes in education system are required to bring India back on track
First of all why do you think that we should compete with every other country in terms of technological progress? Its not at all necessary since we know where we stand and what things we need to take to improve our conditions.
Thing will happen since they take time. India is already competing with the world and has proved that it can do things efficiently.
You are right that the government has some initiatives under its belt to support skill development or the startup ecosystem but the problem lies beyond these factors in place.
The education system is not aligned with what industry is demanding. I understand the fact that the basic principles of engineering or commerce do not change but the change in technology or commerce is very fast paced which means that the learning should go beyond these basic principles.
This is not happening in our country which has resulted into skills gap between what is being taught and what is practically expected by the industry and the initiative should be taken by schools and colleges to support the whole system.
Along with skill improvement, training should also be given importance so that many can enter the workforce where skills play a major role.
Many other fields should be given importance and various allied aspects such as entrepreneurship, design thinking, artificial intelligence. creativity, general problem solving and many more should be taken up to make the overall cultural shift.
With such a huge population, you just cannot implement the Swedish education system but things can be guaged, needs can be identified and steps can be taken starting from schools and colleges which Delhi government has quite successfully implemented since past few years. Implementation is the key here.