The transformative aspirations of India’s National Education Policy (NEP) 2020 have initiated a paradigmatic shift in higher education—from rote-based and teacher-centered instruction toward learner autonomy, flexibility, and holistic skill formation. In this evolving landscape, self-directed learning (SDL) emerges as a pivotal pedagogical approach that empowers learners to take responsibility for their academic growth while cultivating the competencies essential for success in the twenty-first century. This conceptual paper critically explores the intersection of SDL, twenty-first-century skill development, and student engagement within the NEP 2020 framework. Drawing upon existing global and Indian scholarship, it synthesizes theoretical perspectives, policy objectives, and empirical insights to propose a coherent model linking SDL to enhanced engagement and skill acquisition. The paper underscores how fostering SDL can operationalize NEP 2020’s learner-centric vision by integrating reflective practice, digital literacy, and experiential learning into higher education curricula. It concludes by outlining institutional strategies, policy implications, and research directions necessary to embed SDL as a sustainable educational philosophy for empowering the next generation of learners and educators in India.