As India Inc. finds itself at the intersection of a talent crossroads, recent reports are waving red flags like a talent crisis parade. It’s not just a gentle tap on the shoulder; it’s more like the talent crisis banging on the door. The severity of the situation emphasizes the urgent need for upskilling and reskilling initiatives across verticles.
The digitalization wave and the widespread adoption of automation and AI technologies across industries have exacerbated the issue.
Over two million jobs in AI, cybersecurity, and blockchain were unfilled in 2023, emphasizing the lack of technically skilled professionals. As per a NASSCOM study, the forecasted demand-supply gap will increase 3.5 times by 2026. Existing professionals lack the expertise for emerging roles, and the need for upskilling is evident.
The urgency of the situation is evident in the statistics – only 35 percent of STEM graduates in 2020-21 were deemed employable, prompting 65 percent to undergo upskilling for better job prospects.
The situation, however, has seen some improvement. The 11th edition of the India Skills Report (ISR) 2024 indicates a positive trend, with the employability rate among final-year and pre-final-year students increasing from 33.9 percent in 2014 to 51.3 percent in 2024.
However, India still has a long way to go in closing the talent gap, as the market disruption continues with the introduction of Artificial Intelligence (AI) and a ready pipeline of entry-level personnel being added to the employment pool daily.
Unemployable to Unstoppable with Upskilling
A 2023 report by the World Economic Forum underscores the economic potential of investing in upskilling, suggesting that it could boost India’s economy by a staggering $570 billion, adding 2.3 million jobs by 2030.
Fortunately, there is a willingness among Indian talent to embrace upskilling and reskilling initiatives. A survey by TeamLease EdTech in 2023 reveals that the prospect of a salary hike, the allure of new job roles, and the fear of job loss are among the primary drivers for upskilling.
As per the report, 53 percent of respondents view upskilling as a means to secure a higher salary hike, while 73 percent believe it enhances their chances of promotion or transitioning to a better role. The report also highlights tangible results, with 31.5 percent of respondents receiving a pay hike of approximately 25 percent post upskilling and 46 percent enjoying a 10 percent salary increase.
Navigating Employability in India
In the continuously changing face of the global economy, India is on the cusp of a transformative period. The introduction of Industry 4.0, defined by digital integration, automation, and data-driven operations, needs a paradigm shift in skills and expertise.
The industrial sector contributes significantly to India’s GDP, employment, and export revenues and is primed for expansion through upskilling efforts. The convergence of smart manufacturing, IoT, data analytics, AI, and other emerging technologies demands a workforce adept at navigating the technological frontier.
Upskilling is a response to technical demands and a catalyst for economic prosperity. By fostering a pool of skilled professionals, the industry can drive innovation, enhance productivity, and contribute significantly to India’s economic growth.
Automation and Industry 4.0 usher in a new era, rendering some existing skills obsolete while creating opportunities to upskill current talents to meet evolving job requirements. Recognizing this dynamic shift, upskilling initiatives become the cornerstone of the skilling ecosystem.
India’s historical commitment to personalized learning now intertwines with cutting-edge technologies, necessitating aligning skills with industry needs. Industry-driven upskilling initiatives emerge as the linchpin for shaping the future of the nation’s workforce, ensuring adaptability, and fostering a workforce capable of thriving in the digital era.
