In a recent study conducted by TeamLease Degree Apprenticeship, a startling revelation has surfaced: India is on the brink of a significant skills gap that could seriously jeopardize corporate growth plans across industries.
With the global economy undergoing rapid transformation due to digitalization, automation, and new-age technologies, companies in India are facing a shortage of skilled talent that is threatening their expansion and innovation strategies.
According to our study, the skills gap in India is projected to reach 30-32 million by FY25.
Key Findings from our Study
- The skills gap in India is projected to reach 30-32 million by FY 2025, escalating to 47-49 million by FY 2027.
- Sectors such as Automobile, Healthcare, Real Estate, Pharma, Textile, and Construction will be most affected.
- Emerging sectors, including Renewable Energy, Semiconductors, Electronics Manufacturing, and Electric Vehicles, are also facing a potential manpower shortage of 2 million in the next 2 years.
Speaking to The Economic Times about this, our Chief Strategy Officer Sumit Kumar said that the lack of employability is the key reason for the widening skills gap in India. He also added that organizations have started focusing on investing in fixing the employability issues and creating a sustainable channel for capacity and capability building.
Why This Matters: The Risk to Economic Growth
The skill shortage poses a double-edged sword for India’s economy. On one hand, there is a high unemployment rate among graduates, while on the other, industries are struggling to find talent with the right skills.
Our study emphasizes that this mismatch is more than just an HR challenge - it is an economic issue that could slow down the country’s growth momentum.
Enhancing Apprenticeship Programs
To mitigate these challenges, many organizations are turning to apprenticeship programs as a strategic solution. These programs are seen as an effective way to bridge the gap between academic learning and industry requirements, providing hands-on experience and building a pipeline of job-ready talent.
The Way Forward: Investing in Skills Development
Given the urgency of the situation, businesses, educational institutions, and policymakers must work together to address the skills gap in India.
Degree Apprenticeship programs, which involve a partnership between industry, academic institutions, and youth, offer a highly effective solution to address India’s skills gap. This collaborative approach enhances youth employability and helps businesses develop a skilled workforce that can meet the evolving demands of the global market.
For more insights on Degree Apprenticeships, talk to us
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