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Apprenticeships have emerged as a pivotal strategy for building a future-ready workforce. Despite its potential, however, apprenticeship programs have failed to gain traction in India as anticipated.

According to a recent report by the International Labour Organization (ILO), India stands to leverage its demographic dividend for at least another decade, with the youth projected to constitute 23% of the total population by 2036. This underscores the critical need for embracing skill development initiatives like apprenticeships to capitalize on this demographic advantage.

Skill-building initiatives such as apprenticeships enhance the employability of our youth, thereby enriching our companies' ability to forge a future-ready talent pool.

To bolster industry involvement in apprenticeships, the Indian government has mandated compliance with the Apprenticeship Act of 1961. The regulation stipulates that any organization with 30 or more employees (contractual or regular) must engage with apprentices in the range of 2.5% to 15% of their workforce.

Non-compliance with the Apprenticeship Act carries penalties outlined in Section 30, with fines starting at ₹500/- per apprentice for the initial three months, escalating to ₹1,000/- per month until the required positions are filled.

Despite its efficacy as a workforce development strategy, apprenticeship programs have failed to gain significant traction in India.

In a conversation with Business Standard, our Chief Strategy Officer, Sumit Kumar, highlighted that apprenticeships represent a highly efficient means of meeting industry's skilled human resource needs, leveraging existing training infrastructure without incurring additional costs.

Current estimates suggest that only 1% of India's annual workforce entrants participate in apprenticeships, a stark contrast to the 3-4% seen in modern economies. This equates to approximately 20 million apprenticeships nationwide.

Sumit also addressed common misconceptions surrounding apprenticeships, including the belief that they are predominantly for the manufacturing and production sectors. He noted the disconnect between education and apprenticeship, which diminishes the perceived value of apprenticeship among students. Additionally, the fragmented regulatory landscape, encompassing schemes like NAPS, NATS, and railway apprenticeships, encourages both individuals and organizations from engaging in apprenticeships.

Sumit further emphasized a notable disparity between India and European countries, where apprenticeships are integrated into higher education curricula and extend to small and medium enterprises (SMEs). In India, however, the MSME sector remains largely disconnected from the apprenticeship framework, limiting participation primarily to larger firms.

For more insights from Sumit on why apprenticeship programs have not quite taken off in India, Read the Business Standard article 

Our subject matter experts can help you understand the long-term Returns on Investment from apprenticeship programs and the different work-based skill development programs offered by us Contact us