“Skills have become the global currency of the 21st century, but this currency can depreciate if it isn’t used” said Andreas Schleicher, Deputy Director for Education at the OECD Forum (25 May 2012). Our educational system gives more importance to learning of 3 R’s- reading, writing and arithmetic. It is concentrated more on the cognitive dimension rather than on reflective and psychological dimensions. It is achievement oriented than child oriented. But today changes and challenges of fast-growing society demands more contextual approach in education to meet actual use in real life situations. In 21st century India there is raising problem of unemployment, inequality, violence and environmental destruction, etc., demands a new set of skills, and creative problem-solving potential. Life skills are group of psychological competencies and interpersonal skills that help people make informed decisions, communicate effectively and develop coping and self-management skills to lead a healthy and productive life. Life skill learning should be made integral part of the curriculum to promote the well-being of the youth