Education coupled with skill constitutes the backbone of innovation and economic growth. Skilled individuals not only contribute more efficiently and productively but also improve social welfare. Firstly, the linkages between education, skill, innovation, and employment have been examined in the Indian context since independence. Secondly, the indirect impact of education, skill, and employability on social capital and peace in society has been examined. It is observed that the share of the organized sector was high in the beginning, but it began to decline gradually. The labour-intensive sectors could control unemployment, but later the labour force began to grow more rapidly than the increase in employment. An augmented framework of education, peace, and social capital is presented to map the role of skills, innovation, and education in determining social capital. A thematic review of the literature is adopted to examine the objectives. It is observed that there is a two-way relationship that education as one of the components of human capital increases economic growth on one side, but at the same time exacerbates income inequality. The nexuses between education, skill, and employability consequently affect social capital by transforming the systems towards social development, political stability, and justice. The policies must promote a more ethical and inclusive education system coupled with the required skill and employability to ensure equitable access to education and knowledge base. Thus, a more just and equitable social capital would foster a more peaceful and non-violent society.