Indian states are divergent in terms of pursuing their own economic policies linked to education, employability and employment. States significantly differ in terms of resource endowments, especially on endowments related to skill. This is reflected in the unequal distribution of educational capabilities, employability and skill intensity in workforce, employment and other key indicators. In effect, skills go much beyond formal certifications, especially in a culturally and geographically diverse nation like India. It is in this context, the 3E (Education, Employability and Employment) Index is planned and reconnoitred. The dimensions of the 3-E index are education, employability and employment in a comprehensive framework as an indication to Indian policymakers to highlight gaps between the three dimensions across states and within states. The focus of 3E index is from the labour market perspective and linking up supply and demand of labour. While traditionally one just links up education, we have included the added dimension of employability to gain insight on the supply side strength of each of the states in the labour market. The present attempt is an indicative assessment with the available data from NSS (61st and 68th Round) to have a holistic viewpoint on skills from a 3E perspective.