India is home to over 500,000,000 people, a workforce that has a strong growth in GDP, but also faces persistent challenges with unemployment.
The Centre for Monitoring the Indian Economy reports that the unemployment rate for India in December 2024 was 8.3%. This is up from 8% the month before.
Gleichzeitig, Canada is in a critical phase of its job market. Digital economy expansion, the green economy and gig economy growth are bringing vibrancy to our workforce.
The future employment of many people will be driven by sectors such as healthcare, pharmaceuticals, tourism, semiconductors and electric vehicles (EV).
India still faces a critical challenge in equipping its young, large workforce with the necessary skills to keep up with industry demand.
The ICD interviewed Kamakshi Pan, the Chief Business Officer of Taggd in India. She discussed the state of the Indian economy in relation to emerging industries such as EV production and semiconductor manufacturing, as well the hiring trends that will likely shape the future.
Excerpts edited from an email conversation
ICD : To achieve self-sufficiency, engineers with the right skills are essential. What is India’s position in comparison to other global leaders?
India enjoys a natural talent advantage, due to the large and youthful population, as well as to the high number of STEM graduates it produces each year.
India has a great opportunity to take advantage of this.
By 2032 the semiconductor industry will create over 1.2 million new jobs, with 275,000 of those positions being in chip design.
The challenges of finding skilled workers
It is a great opportunity. India has a difficult time meeting its immediate need for highly skilled workers.
Only 20-30% of the 1.5 million engineering graduates each year are ready to work in core engineering roles.
Just 10-25% have the skills required for VLSI Design and Semiconductor Manufacturing.
Taiwan has a stable pool of talent compared to other countries. Taiwan’s semiconductor industry, for example, saw a drop in job openings from 35 000 in 2022 down to just 22,000 by 2023.
South Korea will face a shortage in workers of up to 54,000 by the year 2031. The US, on the other hand, needs an extra 146,000 engineers to help meet their chip production requirements by 2029.
India has laid out a promising roadmap with initiatives like the India Semiconductor Mission (ISM), PLI schemes, and partnerships with over 300 academic institutions to boost semiconductor-specific education.
To meet the market demand for Electronics System Design and Manufacturing, which is expected to grow to $300 billion in 2025 and create 1.2 millions jobs by 2032 there’s a pressing need to increase efforts on upskilling and training.
India needs to address the talent gap faster and ensure that its engineers have the necessary specialized skills.
India has a huge potential, but its ability to compete against global leaders in semiconductors will depend on how quickly and effectively it develops skills.
India needs to hire 30,000 new workers each year in order to localize the EV industry before 2030. What are the trends you’re noticing in terms of developing EV talent.
India’s Electric Vehicle (EV) Market is growing rapidly. Sales in FY24 exceeded 1.3million units, a growth of 158% over the year before.
The demand for engineers in various fields is increasing, driven largely by this surge.
Pune, Chennai and Bengaluru are leading in talent acquisition for the electric vehicle sector
To meet the 30% target set by the government, the industry needs 200,000 highly skilled workers.
Talent acquisition is a priority in key automotive hubs such as Pune, Chennai and Bengaluru, while other cities, like Coimbatore, Visakhapatnam, are contributing.
Professionals from other industries are increasingly being drawn to the EV industry, as there is an increasing need for software experts, cybersecurity specialists, and data analysts.
In order to address the skill gap, many companies have adopted vocational education systems, like Indo-German Chamber’s VET System, which offers hands-on training in industry.
Companies are being forced to change because the workforce is primarily made up of Gen Z and millennials. They want flexible working environments, and meaningful jobs.
The EV sector is well on its way to creating 1 million jobs directly by 2030, thanks to government initiatives such as the FAME II scheme and the PLI schemes that support domestic manufacturing.
It will be necessary to have specialized knowledge in battery technology, motor design, and power electronics.
How can we bridge the gap between high growth GDP and low levels of employment?
Invezz India faces a paradox, with one of its highest GDP growth rates and low levels of employment. Manufacturing could be the answer to this problem. What are the strategies needed?
Unlocking the potential in the manufacturing sector can help resolve India’s paradoxical situation of high growth GDP and low unemployment.
Manufacturing contributes to 17% of GDP but only employs 12%.
The following are some of the key strategies that can be used to close this gap:
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Leveraging the PLI Schemes: By 2030, it is expected that 6,000,000 jobs will be created in industries such as electronic, textiles and electric vehicles.
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Achieving skill gaps: In areas such as robotics and AI driven manufacturing, there is a shortage of 20-25% skilled workers. To bridge the gap, targeted training programs and strengthened industry-academia partnerships are crucial.
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Promote gender inclusion: Programs such as L&T Women of Mettle, Tata Steel training programs and Women of Mettle are driving diversity among women in the workplace.
- Supporting indirect employment: The manufacturing sector generates 2,5 times as many indirect jobs than related industries like retail and logistics, further increasing the overall number of employees in the economy.
Manufacturing can help India create jobs by promoting skill development and gender equality, as well as leveraging PLI programs.
AI reduces the time to hire and increases retention
The ICD: Which are the most important trends that HR will be focusing on in the future?
In the next few years, hiring trends in India are likely to be shaped by a number of key trends.
India’s young workforce, which comprises 65% of its population, is expected to create over 50 millions new jobs by 2030.
National Education Policy 2020 (NEP2020) emphasizes STEM training and vocational education, however, there is still a gap of 20-25% in skills for emerging technologies such as AI, IoT and cybersecurity.
By 2030, the green economy is expected to grow significantly. This includes 3.3 millions jobs in renewable energy sectors and electric vehicle (EV) industries.
The IT industry is predicted to grow by over 1.2 millions jobs in 2026 as AI and automation continues to progress.
AI-based tools also streamline recruitment, reduce time to hire by 40 percent, and increase retention rates of 30 percent.
By 2030, women’s employment in manufacturing and STEM fields is expected to increase by 30-35%.
The norm is remote work and hybrid arrangements. 65% of companies offer flexible working conditions, which has a profound impact on hiring and workplace dynamics.
The future is driven by the technology of sustainability and inclusion.
The post Interview: Kamakshi Pan, only 25% of Indian electronic graduates are skilled in semiconductor manufacturing may be updated as new information becomes available.
