A well trained and highly skilled workforce is crucial for accelerating Indias progress
Published on : Monday 08-07-2024
Sumit Kumar, Chief Strategy Officer, TeamLease Degree Apprenticeship.
In what ways does the Make in India initiative seek to revitalise India's manufacturing industry, and how crucial is skilled labour in this transformation?
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With a growing focus on technology, innovation, and skilled labour, India is emerging as a dynamic hub for manufacturing. The sector has evolved significantly, embracing technological advancements and encouraging innovation, growing its contribution to the nation's economic growth. Initiatives such as 'Make in India' have been instrumental in fostering a favourable business environment, stimulating investment and promoting indigenous manufacturing. The initiative focuses on increasing the manufacturing sector's GDP contribution to 25% by 2025. Key strategies include developing industrial corridors and smart cities, such as the Delhi-Mumbai Industrial Corridor, upgrading ports and transportation for efficient logistics, simplifying regulatory processes with single-window clearance, and liberalising FDI policies in sectors like defense and railways. Streamlining of regulatory processes has contributed to the ease of doing business in the country. Furthermore, Production-Linked Incentives (PLIs) are providing a substantial boost to various manufacturing sectors. By incentivising domestic production, India is not only aiming to attract investments but also propel the growth of critical industries.
Skilled labour is fundamental to this transformation. As manufacturing processes become more advanced, the need for a workforce proficient in modern technologies becomes critical. Programs like the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) aim to upskill workers, ensuring they can handle advanced machinery and maintain high production standards. Skilled labour not only enhances productivity but also drives innovation, making Indian manufacturing globally competitive.
How does the recent increase in exports, particularly in auto components and electronics, underscore the significance of skilled labour for growth in these industries?
India's rapidly growing auto market is poised to hit a milestone, with projections indicating it will reach USD 300 billion by 2026. The dominance in the automotive arena is highlighted by our status as the world's largest manufacturer of two-wheelers, with over 21 million units produced annually, and as the largest manufacturer of tractors. India's drive towards electric vehicles (EVs) is gaining momentum. It is projected to become the third-largest EV market by 2025, with 2.5 million vehicles expected to be on the roads. In the case of the electronic goods industry, the sector’s exports have reportedly surpassed US$20 billion. FY24 has been positive for India’s overall export size; the momentum is expected to take the country's electronic exports to US$61 billion by 2030, primarily driven by China+1 strategy adopted by global semiconductor and electronics manufacturing majors, our demographic dividend and our government’s favourable policies including PLI scheme, the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), etc.
These sectors rely heavily on skilled labour to maintain and enhance quality standards, which are crucial for competing in international markets. Skilled labour ensures the efficiency and precision required for manufacturing competitive products. Skilled workers in the auto industry ensure that components meet rigorous global standards, while those in the electronics sector manage complex production processes and quality control.
Our internal projections show a demand for nearly 2.8 million skilled workers in the Electronic sector in the next three years, underscoring the imperative need for continuous efforts in building and enhancing a skilled workforce to sustain the industry's momentum. The auto industry alone is expected to require nearly 7 million additional workers in the next 3-4 years. Integrating skill development programs, apprenticeships, degree apprenticeship programs, and work-based learning programs can help bridge the skill gap.
What strategies can the government and private sector employ to foster skill development programs that address the specific needs of the manufacturing industry?
A well-trained and highly skilled workforce is crucial for accelerating India’s progress toward becoming the leading hub of global manufacturing. In today’s industrial landscape, skill gaps significantly hinder progress. Many companies struggle to meet production targets and maintain quality standards, primarily due to a critical shortage of skilled workers. This challenge underscores the urgent need for comprehensive workforce development. By implementing targeted training programs, companies can significantly enhance worker capabilities, leading directly to higher productivity and greater innovation. These improvements are crucial for maintaining a competitive edge in the global market, as they enable businesses to meet complex demands and adapt to evolving industry standards more effectively.
To effectively address the skill development needs of the manufacturing sector, collaboration between the government and private sector is essential. Public-private partnerships (PPPs) can help design and implement training programs aligned with industry requirements. The National Skill Development Corporation (NSDC) plays a crucial role in this by working with industry stakeholders to develop relevant vocational training programs. Companies can also establish in-house training centers or collaborate with educational institutions to create specialised curricula. Government initiatives such as Skill India aim to enhance skill levels across various sectors, ensuring the workforce possesses the necessary competencies. Apprenticeships and work-based learning programs provide practical, hands-on experience, aligning training with real-world industry needs and reducing the skill gap. By aligning training with industry requirements, these programs help reduce the skill gap, enhance job readiness, and foster innovation. This approach ensures a steady supply of skilled labour, essential for sustaining and accelerating growth in key sectors. This is evident in apprentice engagement with both the auto and electronics industry onboarding apprentices at 48% year-on-year increase
What obstacles and prospects does India face in cultivating a skilled workforce that can keep pace with the rapidly changing manufacturing environment?
The Indian manufacturing sector has witnessed significant growth in recent years, propelled by technological advancements, government initiatives, and increasing domestic and global demand. As the sector teeters on the edge of rapid expansion, it faces challenges that must be addressed. Skill gap is one major challenge that needs to be addressed by a cohesive effort involving industry, government and even academia. There is a significant gap between the education system and industry requirements. The current emphasis on formal education often overlooks the practical skills required in the work. Additionally, there is a lack of adequate training infrastructure and facilities to accelerate skill adoption, especially with new technologies disrupting processes. There is also less awareness amongst our youth about the benefits of apprenticeships and work based learning programs, especially related to skill building, getting education and gaining financial independence. India’s apprenticeship engagement is just 0.14% of the labour force, compared to developed industrialised economies of the west, where it’s at 3%-4%.
However, India also has considerable opportunities. The country’s large, young population represents a vast potential workforce that can be trained to meet future needs. Specifically, apprenticeships can be the ideal pathway for our immense talent pool from Tier 3 & 4 cities as well as rural areas to join the formal workforce. Technological advancements offer new ways to deliver training, such as online platforms and virtual simulations. By leveraging these technologies and fostering stronger industry-academic collaborations, India can enhance its global competitiveness and attract more foreign investment.
What are the essential technical skills needed for careers in robotics and automation?
Careers in robotics and automation demand a variety of technical skills. Proficiency in programming languages like Python, C++, and Java is essential for developing and operating robotic systems. Knowledge of robotics engineering, including sensor and actuator integration, is crucial. Expertise in automation systems, particularly Programmable Logic Controllers (PLCs) and Supervisory Control and Data Acquisition (SCADA) systems, is necessary. Additionally, skills in machine learning and artificial intelligence are increasingly important as these technologies integrate more with automation systems. Maintenance and troubleshooting skills are vital to ensure continuous operation and minimise downtime.
What new job opportunities are arising in the manufacturing sector due to the implementation of robotics and automation?
Technological evolution spurred by advanced robotics, data science and AI/ ML has spurred a host of opportunities in the hardware and software side of the business. Key roles include robotics technicians, who maintain and repair robotic systems, and automation engineers, who design and implement automation solutions. AI specialists are needed to develop intelligent systems that improve automation processes, while data analysts interpret data from automated systems to optimise production.
Cobots, or collaborative robots, require coordinators who manage their integration and operation alongside human workers. These roles demand specialised skills and highlight the need for continuous training and skill development. Careers such as Automotive Welding Machine Operator (Robotics), Industrial Automation Technicians, Automotive Quality Control Inspector and Industrial Automation Specialists are becoming increasingly sought after as the industry shifts towards advanced automation and precision engineering.
How can apprentices skilled in robotics and automation enhance productivity and quality within the manufacturing sector?
Apprentices skilled in robotics and automation bring fresh insights and adaptability to new technologies and methods. By participating in the implementation and maintenance of automation systems, apprentices can streamline production processes, reduce downtime, and ensure consistent product quality.
Apprenticeship programs offer substantial returns on investment by reducing attrition rates and hiring costs. The hands-on experience gained by apprentices can lead to innovations and improvements in manufacturing techniques, enhancing both productivity and quality. Degree -embedded apprenticeship programs have shown to give 3X returns on training investments over a 2-years period, along with 25% reduction in attrition and upto 50% reduction in hiring costs.
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