BUILDING THE NEXT-GENERATION WORKFORCE

India’s manufacturing sector, which contributes nearly 17 percent of GDP, is entering a defining phase. With the right interventions, it can expand its share to 25 percent and create more than 100 million new jobs, positioning the country among the world’s leading advanced manufacturing hubs.

Achieving this potential will require a workforce ready for rapid technological change. As factories modernize with automation and digital systems, the gap between industry needs and workforce readiness is widening, putting both new and existing roles at risk.

Skills Shortfall Threatening Industrial Growth

New opportunities in solar cell production, electric vehicles, batteries, electronics, and advanced machinery are expanding faster than the available talent pool. Even traditional shopfloor roles now demand the ability to work with robotics, AI tools, and connected factory systems. As India moves toward a one-trillion-dollar manufacturing economy, an estimated 2.4 million specialized roles remain unfilled. Only 5 percent of the workforce has formal vocational training, and nearly two-thirds lack essential technical skills. Without timely action, productivity will suffer and industrial growth will slow.

Building a Future-Ready Workforce

Strengthening India’s manufacturing workforce requires an integrated approach across skilling, reskilling, upskilling, apprenticeships, and degree apprenticeships. Workers need digital, mechanical, and data-handling abilities to operate in modern factories. Reskilling helps them adapt as technologies evolve, while upskilling improves efficiency in roles linked to quality, automation, and maintenance. These pathways ensure workers stay relevant as production systems become more complex.

Apprenticeships play a central role by enabling young people to learn directly on the shopfloor while continuing their education. Many companies began with the mandatory 2.5 percent apprentice engagement requirement under the Apprentices Act, 1961, and later expanded it to the higher limit of 15 percent upon realizing the clear benefits in productivity, retention, and workforce continuity. Degree apprenticeships further combine academic learning with extended industry exposure, ensuring graduates enter the workforce with practical, job-ready capability. These models shorten the time it takes for new talent to contribute meaningfully and help organizations build steady internal pipelines.

A major shift is also underway in workforce inclusivity. As manufacturing becomes more skills-based and less dependent on physical strength, opportunities for women are expanding in technical, operational, and supervisory roles. Although women currently make up only 16.5 percent of the manufacturing workforce, participation is rising as companies adopt gender-neutral hiring and invest in safe, supportive environments. Greater gender diversity strengthens talent availability and improves overall performance.

Government Measures Strengthening Workforce Readiness

Government initiatives are creating training ecosystems aligned with industry needs. The National Manufacturing Mission is helping build technical skills and embed advanced manufacturing practices across learning pathways. National apprenticeship programmes such as the National Apprenticeship Promotion Scheme (NAPS) and the National Apprenticeship Training Scheme (NATS) enable students and workers to learn through real-world experience while helping employers create structured training pipelines.

Future Outlook

To sustain long-term growth, India will need coordinated workforce planning supported by training infrastructure that reaches smaller towns and industrial regions. Public-private partnerships involving employers, training institutions, and state skill missions will be central to this effort. As manufacturing becomes more technology-driven and gender-neutral, expanding access to specialized skills and deepening industry–education linkages will be essential. A future-ready workforce built through continuous learning and apprenticeship pathways will power efficiency, innovation, and global competitiveness, laying a strong foundation for India’s rise as a globally competitive manufacturing hub.

Dr Nipun Sharma CEO TeamLease Degree Apprenticeship