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Revitalising core manufacturing: Neeti Sharma
Articles- Mar 07,25
To truly emerge as a global manufacturing hub, India must address these issues strategically. Core engineering disciplines—mechanical, civil, electrical, and chemical—are central to unlocking this potential, remarks, Neeti Sharma, CEO, TeamLease Digital.
India is at a pivotal moment in its economic journey. As the world’s most populous nation and a rapidly growing economy, our aspirations are bold—targeting a $7 trillion economy by 2030. This goal is not just an economic benchmark; it reflects a broader vision of enhanced living standards, technological innovation, and global leadership. Achieving this vision hinges on manufacturing, a sector that has historically been a cornerstone of economic progress. From creating jobs to driving innovation, manufacturing remains critical to India’s growth story. The question, however, is whether our current trajectory is sufficient to realise these ambitions.
India's demographic advantage, as one of the youngest nations globally, further amplifies its potential. With over 65 per cent of the population under the age of 35, India has a unique opportunity to prepare a future-ready workforce not only for domestic requirements but also for global manufacturing needs. This entails equipping talent with cutting-edge skills, fostering innovation, and building resilience to meet dynamic global demands.
Currently, manufacturing contributes approximately 17 per cent to the GDP, with an ambitious goal to raise it to 21 per cent within the next 6-7 years. To achieve this, several measures and policies are being implemented, including the ‘Make in India’ initiative to attract foreign investment, Production-Linked Incentive (PLI) schemes to boost domestic manufacturing, and a focus on improving infrastructure, skilling programs, and research and development (R&D) capabilities. Initiatives like ‘Make in India’ and Production-Linked Incentive (PLI) schemes have laid a strong foundation. However, challenges such as skill gaps, outdated infrastructure, and underinvestment in research and development (R&D) persist. To truly emerge as a global manufacturing hub, India must address these issues strategically. Core engineering disciplines—mechanical, civil, electrical, and chemical—are central to unlocking this potential.
Core engineering
Core engineering fields form the backbone of India’s industrial landscape. While emerging technologies such as Artificial Intelligence (AI), Internet of Things (IoT), and blockchain are driving modernisation, they rely on the foundational expertise provided by traditional engineering disciplines.
Contributions:
- Mechanical engineering: Central to the transition toward electric and autonomous vehicles, robotics, automation, and renewable energy systems.
- Civil engineering: Integral to designing sustainable urban spaces and infrastructure aligned with India’s Smart Cities Mission.
- Electrical engineering: Enabling advancements in smart grids and renewable energy, contributing to clean energy goals.
- Chemical engineering: Essential for innovations in pharmaceuticals, petrochemicals, and sustainable manufacturing processes.
Despite growing demand, employability rates in core engineering fields remain concerning. For instance, mechanical engineering graduates show an employability rate of only 54.86 per cent, compared to 68.44 per cent in information technology (IT). This gap stems from several underlying factors, including a lack of exposure to industry-relevant technologies, insufficient practical training, and outdated curricula in many engineering programs. Addressing these challenges through targeted interventions is crucial to unlocking the full potential of core engineering talent. Bridging this gap requires urgent attention.
Bridging the skill gap
The skill gap in India’s core engineering sector poses a significant challenge, threatening to limit the manufacturing sector’s potential. Reports indicate that only about half of mechanical and civil engineering graduates are employable. This contrasts starkly with higher employability rates in IT and computer science, highlighting a disconnect between academic training and industry requirements.
Root causes include:
- Outdated curricula: Many engineering institutions fail to incorporate advancements like robotics, 3D printing, and green construction, leaving graduates unprepared for modern roles.
- Limited academia-industry collaboration: A lack of partnerships restricts access to hands-on exposure, internships, and industry-driven projects.
- Gender disparity: Although women constitute over 50 per cent of STEM graduates, only 29 per cent join the workforce, limiting the talent pool further.
Solutions to bridge the gap:
1. Revamp curricula: Integrate Industry 4.0 technologies such as IoT, AI, and automation into engineering programs.
2. Foster academia-industry partnerships: Establish stronger collaborations to provide internships, apprenticeships, and exposure to real-world challenges.
3. Promote gender diversity: Implement mentorship programs, scholarships, and workplace policies that encourage greater participation of women.
India has the talent; it needs the frameworks to nurture and align it with industry demands. Addressing these gaps can position core engineering as a driving force for India’s manufacturing resurgence.
Driving job creation
India’s manufacturing sector is poised to create substantial employment opportunities, particularly in core engineering fields. According to estimates by the National Skill Development Corporation (NSDC), the sector is expected to generate 100 million jobs by 2030.
Key growth drivers:
1. Infrastructure development: Large-scale projects like the Smart Cities Mission and mass housing schemes demand skilled civil, mechanical, and electrical engineers. For instance, the Smart Cities Mission alone involves an estimated project outlay of ?2.05 lakh crore, with significant potential to generate thousands of engineering jobs. Additionally, mass housing initiatives aim to construct millions of affordable housing units, further boosting demand for expertise in core engineering disciplines. For instance, the Smart Cities Mission has an estimated project outlay of ?2.05 lakh crore.
2. Renewable energy: India’s target of 500 GW of renewable energy capacity by 2030 is driving demand for electrical engineers specialising in solar, wind, and smart grid technologies.
3. Industry 4.0: Emerging technologies are redefining roles, creating opportunities in automation engineering, digital manufacturing, and predictive maintenance. By 2025, 75 per cent of manufacturing jobs will require digital skills alongside traditional expertise.
4. MSMEs as job creators: Micro, Small, and Medium Enterprises (MSMEs) account for 45 per cent of industrial output and employ 110 million people. These enterprises are fostering innovation and providing opportunities for engineers to work on technologies.
Competitive salaries, future-ready roles, and transformative projects are gradually shifting talent preferences back to core engineering, solidifying its importance in India’s economic growth.
Preparing India for global needs
India, as one of the youngest nations globally, has a unique advantage in meeting global manufacturing talent requirements. With a median age of just 28 years, the country’s demographic dividend is unmatched. However, leveraging this youthful workforce for global manufacturing demands requires focused strategies.
Steps:
- Skill mapping for global standards: Indian engineering programs must align their curricula with international benchmarks such as ISO, ANSI, and EU regulations. This ensures that graduates are equipped to work on global projects seamlessly.
- Expanding apprenticeships: Structured apprenticeships in collaboration with multinational corporations can bridge the gap between academic knowledge and practical skills. Germany’s dual education system serves as a model for integrating classroom learning with hands-on training.
- Focus on emerging sectors: Global manufacturing is increasingly driven by clean energy, electric vehicles, and advanced robotics. Training initiatives should emphasise these areas to prepare Indian talent for high-demand roles internationally.
- Government support for exportable talent: Programs like ‘Skill India’ should include a focus on making Indian engineers competitive for overseas opportunities, addressing language skills, cultural adaptability, and advanced technical training.
Making India ready for global demand:
- Global manufacturing demand: The International Federation of Robotics projects a need for over 4 million industrial robots globally by 2030, requiring engineers skilled in robotics and automation.
- India’s exportable talent: A 2023 report by NASSCOM highlights that India produces 2.5 times more STEM graduates annually than the US, indicating its potential to fill global skill shortages.
- Collaborative efforts: Partnerships with countries like Japan and Germany under bilateral agreements have already opened pathways for Indian engineers to contribute to global manufacturing ecosystems.
By aligning its talent pool with global manufacturing requirements, India not only strengthens its position as a domestic manufacturing hub but also becomes a key player in addressing international skill shortages.
The path forward
India produces 1.5 million engineering graduates annually, yet only a fraction secures meaningful employment. The missing link is often the lack of upskilling and reskilling, which have become imperative in today’s fast-evolving industries.
- Upskilling: Equips professionals with advanced expertise to excel in their current roles.
- Reskilling: Enables workers to transition to entirely new roles aligned with emerging technologies.
Successful initiatives:
1. National Apprenticeship Promotion Scheme (NAPS): Encourages industries to offer apprenticeships, bridging theoretical knowledge with practical experience.
2. Short-term training programs: Pradhan Mantri Kaushal Kendra (PMKK) centres offer industry-aligned courses in advanced manufacturing and green construction.
3. Industry-led programs: Companies have launched initiatives combining classroom learning with on-the-job training in areas like digital manufacturing and smart infrastructure.
Future trends:
- Engineers must acquire skills in robotics, IoT, and AI to remain competitive.
- Continuous learning programs ensure workforce agility and retention. Surveys reveal that 61 per cent of employees value upskilling for long-term career growth.
By prioritising these efforts, India can future-proof its workforce, ensuring sustainable growth and innovation in manufacturing.
Importance of gender diversity in engineering
Encouraging women to pursue careers in engineering can significantly enhance innovation and problem-solving capabilities in the sector. Despite comprising over 50 per cent of STEM graduates, women’s workforce participation remains low.
Benefits of gender diversity:
1. Diverse perspectives: Gender-diverse teams are better at innovation and addressing challenges through a broader range of ideas.
2. Enhanced product design: Industries like automotive and healthcare benefit from inclusive engineering teams that cater to diverse consumer needs.
Initiatives to promote gender diversity:
- Mentorship and scholarships: Programs tailored to support women in engineering.
- Workplace policies: Flexible work arrangements and equal opportunities foster inclusion.
- Role models: Women in leadership positions inspire younger generations to pursue engineering careers.
By fostering diversity, the engineering workforce can unlock its full potential, contributing to equitable growth and innovation.
Conclusion
India’s manufacturing sector is not just an economic imperative but a pathway to a more prosperous, equitable, and innovative society. The stakes are high, and the opportunities immense. With its young demographic, growing manufacturing sector, and a strategic focus on core engineering, the country has the potential to become a global manufacturing powerhouse. Through updated curricula, robust academia-industry partnerships, and targeted upskilling initiatives, India can bridge the skill gap and align its workforce with industry needs. Addressing gender disparities and fostering diversity will further strengthen our talent pool, creating a more inclusive and dynamic ecosystem.
Looking ahead, the synergy between traditional engineering expertise and emerging technologies holds the key to transforming India into a global manufacturing leader. As we navigate this crucial decade, the steps we take today will define our place in the global economic order. By embracing these challenges and opportunities, India can fulfil its vision of becoming not only a $7 trillion economy but also a beacon of innovation, resilience, and sustainable growth for the world.
About the author:
Neeti Sharma is a seasoned leader in the learning and staffing industry. Currently serving as the CEO of TeamLease Digital, Neeti has been a compelling leader in the TeamLease Services Group over the past 20 years, and has led multiple businesses including TeamLease EdTech and TeamLease Skills University - India’s first Skills University. With over three decades of experience, she guides the group companies with a clear focus on strategic growth and operational excellence. Recognised by HolonIQ as one of the ‘Top 200 Women Founders in EdTech,’ Neeti has played a significant role in shaping TeamLease's trajectory through various leadership roles.
Blurb: Structured apprenticeships in collaboration with multinational corporations can bridge the gap between academic knowledge and practical skills.
Photo credit: Freepik
To truly emerge as a global manufacturing hub
India must address these issues strategically. Core engineering disciplines—mechanical
civil
electrical
and chemical—are central to unlocking this potential
remarks
Neeti Sharma
CEO
TeamLease Digital.
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