In an insightful interview with TimesTech, Dhriti Prasanna Mahanta, Vice President and Business Head of Teamlease Degree Apprenticeship, discusses the transformative goals of the Make in India initiative. He highlights the crucial role of skilled labor in enhancing India’s manufacturing sector, emphasizing the importance of industry-government collaboration and targeted skill development programs to meet evolving industry demands.
Read the full interview here:
TimesTech: How does the Make in India initiative aim to transform India’s manufacturing sector, and what role does skilled labor play in achieving this goal?
Mr. Dhriti: Launched by Prime Minister Narendra Modi in September 2014, the Make in India initiative aims to transform India’s manufacturing sector through enhanced infrastructure, foreign investment, and innovation across 25 key sectors, including automobiles, pharmaceuticals, and aviation. 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 liberalizing FDI policies in sectors like defense and railways. Additionally, the initiative promotes technological innovation through hubs and research centers.
To achieve these goals, skilled labor plays a critical role. Skilled workers are essential for operating advanced manufacturing technologies, maintaining high production standards, and driving productivity improvements. The initiative aims to upskill the workforce via programs like the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), thereby fostering economic growth and employment. As manufacturing processes become more sophisticated, the demand for a highly skilled workforce capable of adapting to new technologies and techniques is paramount. This initiative not only emphasizes the importance of upskilling existing labor but also aims to attract foreign investments that can bring advanced manufacturing practices to India.
TimesTech: How has the surge in exports, such as auto components and electronics, highlighted the importance of skilled labor in sustaining growth in these sectors?
Mr. Dhriti: While overall auto exports fell by 5.5%, passenger vehicle exports saw a slight increase of 1.4% in FY24 compared to the previous fiscal year. However, electric vehicle exports are projected to lead the charge, with exports expected to constitute 25-30% of all vehicles shipped from India, despite the lower domestic EV penetration. 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 favorable policies including PLI scheme, the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), etc.
The growth underscores the critical importance of skilled labor in sustaining this momentum. High-quality production that meets international standards is essential for maintaining and expanding market share in global markets. Skilled labor ensures the efficiency and precision required for manufacturing competitive products. For instance, the auto industry relies heavily on skilled technicians and engineers to produce components that meet stringent global quality standards. Similarly, the electronics sector requires a workforce adept in handling complex assembly processes and maintaining quality control. The ability to sustain export growth hinges on the continuous development and availability of skilled labor capable of meeting these high standards.
Our internal projections show a demand for nearly 2.8 million skilled workers in the electronics 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.
TimesTech: How can the government and industry collaborate to promote skill development initiatives tailored to the needs of the manufacturing sector?
Mr. Dhriti: To address the evolving needs of the manufacturing sector, collaboration between the government and industry is crucial for promoting skill development. Public-private partnerships (PPPs) can play a pivotal role in creating and implementing training programs that are aligned with industry requirements. For example, the National Skill Development Corporation (NSDC) has been instrumental in developing vocational training programs in collaboration with industry stakeholders. Companies can also establish in-house training centers or partner with educational institutions to design curriculums that address specific skills required in the manufacturing sector. Government initiatives such as Skill India aim to enhance skill levels across various sectors, ensuring that the workforce is equipped with the necessary competencies to meet the demands of modern manufacturing.
Most importantly, the industry and government realize that apprenticeships and work-based learning programs are crucial for creating a talent pipeline that can accelerate growth. These programs provide hands-on experience and practical skills that are directly applicable to industry needs, ensuring that the workforce is not only qualified but also immediately productive. 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 labor, 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
TimesTech: What are the challenges and opportunities faced by India in developing a skilled workforce capable of meeting the demands of a rapidly evolving manufacturing landscape?
Mr. Dhriti: One major challenge is the skill gap, where the skills imparted by the education system do not align with industry needs. The Indian education system has prioritized formal learning above real skill development to increase employability. Informal work options, which account for 80% of the labour market, are sometimes overlooked in favour of the formal sector. As a result, the students fail to acquire the abilities required by the industry. The future jobs will need both advanced technical skills and softer, transferable skills. This necessitates a shift towards holistic skill-based education, as envisaged in NEP 2020, that prioritizes skill development alongside theoretical knowledge. Additionally, there is a lack of adequate training infrastructure and facilities. 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 industrialized economies of the west, where it’s at 3%-4%.
Despite these challenges, there are significant opportunities. India has a large, young population that can be trained to meet future workforce 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 can be leveraged to create more efficient and effective training methods, such as online learning platforms and simulation-based training. By focusing on skill development, India can enhance its global competitiveness and attract more foreign investments in the manufacturing sector.
TimesTech: What specific technical skills are required for roles in robotics and automation?
Mr. Dhriti: Proficiency in programming languages such as Python, C++, and Java is essential for developing and operating robotic systems. In-depth knowledge of robotics engineering, including the design and integration of sensors and actuators, is crucial. Expertise in automation systems, particularly with PLCs (Programmable Logic Controllers) and SCADA (Supervisory Control and Data Acquisition), is also necessary. Additionally, skills in machine learning and artificial intelligence are increasingly important as these technologies become integral to automated systems. Maintenance and troubleshooting abilities are vital for ensuring the continuous operation of robotic systems and minimizing downtime.
TimesTech: What new job roles are emerging in the manufacturing sector due to the adoption of robotics and automation?
Mr. Dhriti: The demand for skilled professionals in robotics and automation is rapidly growing, with several key roles emerging as critical to modern manufacturing. Robotics technicians are essential for maintaining and repairing robotic systems, ensuring their optimal performance. Automation engineers design and implement automation solutions that enhance manufacturing efficiency. AI specialists develop intelligent systems to advance automation processes, while data analysts play a crucial role in interpreting data from automated systems to optimize production. Additionally, cobot coordinators are responsible for managing collaborative robots that operate alongside human workers, ensuring seamless integration and operation. These evolving roles underscore the necessity for specialized skills and ongoing training, emphasizing the importance of continuous skill development within the workforce.
Among the popular career paths for apprentices are positions such as Automotive Welding Machine Operator (Robotics), Industrial Automation Technician, Industrial Automation Specialist, and Automotive Quality Control Inspector. Careers in automotive mechatronics are also increasingly sought after, reflecting the industry’s shift towards advanced automation and precision engineering.
TimesTech: How can skilled apprentices in robotics and automation contribute to improving productivity and quality in manufacturing?
Mr. Dhriti: Skilled apprentices bring fresh perspectives and are often more adaptable to new technologies and methods. By being directly involved in the implementation and maintenance of automation systems, apprentices can help streamline production processes, reduce downtime, and ensure consistent product quality. A lot depends on the organization to have the training processes & infrastructure in place, as streamlined and well managed apprenticeship programs can give tremendous returns. 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. Moreover, the practical experience gained by apprentices can lead to innovations and improvements in manufacturing techniques, further enhancing productivity and quality.