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In the landscape of global economic competitiveness, workforce skill development emerges not merely as a relevant endeavour, but an essential one. This is particularly true for India, poised on the cusp of becoming a powerhouse in manufacturing and services.

As we delve into the top 10 reasons, it becomes apparent that skill development is not just a choice but an imperative for India's sustained growth and competitiveness.

Global Manufacturing and Services hub

India's aspiration to become a global manufacturing & services hub depends on building a highly skilled workforce. With a focus on education & training, the country aims to harness its demographic dividend, fostering innovation and productivity to attract investment, drive economic growth and compete effectively in the global marketplace.

$570 billion Boost to the Economy

Investing in upskilling initiatives can boost the economy by $570 billion and generate 2.3 million jobs by 2030. By focusing on skill development initiatives, the nation can harness its human capital to drive sustainable growth and innovation across various sectors.

The shift towards Industry 4.0

The transition to Industry 4.0 demands immediate workforce upskilling. Advanced technologies like AI, automation and IoT are rapidly reshaping industries and to remain competitive, employees must acquire digital literacy, adaptability and technical skills. Investing in upskilling becomes imperative to bridge the gap between traditional roles and emerging technological demands.

Expansion & Investment in various Sectors

The growth in several sectors including healthcare, IT, renewable energy, and logistics offers significant investment opportunities. However, their growth hinges on robust workforce skill development to build a talented workforce. Focused efforts towards building a sustainable talent pipeline and fostering innovation in these crucial industries is essential.

Initiatives targeting the Emerging Industries

Emerging industries such as green technology project significant job growth. For instance, by 2025, the green industry will add 3.5 million jobs to its existing 18.5 million employees. This surge necessitates extensive workforce skill development to meet industry demands, including specialised training in renewable energy, sustainable practices and green infrastructure, to ensure workforce readiness.

Growing Cost of Hiring

Skill shortage results in an increase in hiring costs. Work-based skill-building programs help companies minimise recruitment expenses and reduce talent acquisition costs by providing a pool of skilled candidates.

The implementation of work-based skill building programs has resulted in a 50% reduction in hiring costs in just 2 years. We can tell you how

Mismatch between the Skills of the Workforce and the Industry Demand

As technology rapidly evolves, industries require new skills. However, the pace of skill acquisition often lags behind technological advancements, leading to a growing disparity between workforce skills and industry needs. This mismatch poses challenges for both employers and employees in adapting to and thriving in the modern economy.

Growing demand for ESG-related job Roles 

The environmental, social and corporate governance (ESG) sector faces a 48% talent demand-supply gap. With the soaring demand, companies are focusing on investing in internal training programs for executives and are also collaborating with workforce skill development centers to develop essential learning modules.

India's substantial Youth Demographic

With over 50% of our population under 25, India's vast youth demographic presents both potential and challenge for businesses. Skill development becomes imperative to harness this demographic dividend effectively, ensuring that the youth are equipped with the necessary competencies to drive innovation, productivity and economic growth in various sectors.

Underemployment

Despite a promising demographic, the country still witnesses unemployment & underemployment, which underscores the critical need for workforce skill development programs.

As India navigates the intricate pathways of economic advancement, the need for a skilled workforce becomes irrefutable. From bolstering economic prospects to mitigating unemployment & underemployment, each facet underscores the significance of investing in skill development programs such as apprenticeships, degree apprenticeships and work-integrated learning.

Interested to know more about skill development programs that can be tailored for your business? Contact us