10 mn skilled workers needed: India must tackle shortage for electronics

With the sector advancing at an impressive CAGR of 25-30%, projections indicate the creation of 12 million jobs, encompassing 3 million direct and 9 million indirect roles.

Even though India's electronics sector is projected to create 12 million jobs by 2027-28—3 million direct and 9 million indirect roles, there is a severe shortfall of skilled professionals, according to a report by . TeamLease Degree Apprenticeship. 

 

Projections by Teamlease show a talent deficit of eight million workers and an additional 10 million skills gap, exacerbating the challenge of meeting industry needs, despite government initiatives like the Production Linked Incentive (PLI) Scheme and the Electronics Development Fund (EDF).  The gap is particularly critical in core technical areas, including electronics manufacturing, electrical engineering, and cutting-edge fields like AI and ML.

 

 

As India moves into high-tech areas like Artificial Intelligence (AI), the Internet of Things (IoT), and Industry 4.0, the demand for highly skilled professionals has surged, particularly in core manufacturing, electronics design, and technical troubleshooting. Yet, there is a growing misalignment between educational outcomes and the skills required by the industry. Many academic programs have not evolved quickly enough to keep pace with advancements in electronics technology, leaving graduates without the practical skills needed to thrive in a high-tech environment. 

 

By 2027, the electronics industry will need highly skilled workers in areas such as Communication and Broadcast Electronics, Consumer Electronics, Industrial Electronics, and Automotive Electronics, the report said.  The need for expertise in semiconductors, electromechanical parts, and other critical components is rising, but the supply of trained talent is lagging behind. This talent gap is particularly acute in advanced roles in semiconductor manufacturing, electronic system design, and energy management for electric vehicles, it added. 

 

Current employability rates in specialized streams such as Electronics & Electrical Engineering stand at only 60%, while ITI-qualified candidates have an even lower employability rate of 40%. For general education streams, the employability rate ranges between 38% and 55%, underscoring a persistent mismatch between the skills industry requires and what the current workforce offers. With these trends expected to persist, the demand for skilled workers in India’s booming electronics industry will remain unmet unless significant interventions are made.

 

 As demand for professionals in semiconductors, automotive electronics, and consumer tech continues to rise, India’s electronics industry must focus on building a skilled, adaptable workforce. This can be achieved through a combination of upskilling, reskilling, and apprenticeship programs, which have proven to be effective in closing the skills gap.

 

TeamLease’s report advocates for scaling the apprenticeship ecosystem, which is currently growing at a 55% CAGR and is expected to reach 1 million apprentices by 2027, with potential to scale to 2 million by 2030. By increasing the number of apprenticeships and improving the quality of vocational training, India can provide the hands-on, practical experience needed to meet the complex demands of the electronics sector.

 

“India is on the cusp of becoming a global leader in electronics manufacturing, with production value already reaching $101 billion in FY23. However, without a skilled workforce, this potential cannot be realized. By scaling apprenticeships and strengthening industry-academia partnerships, we can close the talent gap and accelerate India’s transition into advanced manufacturing domains like AI, IoT, and Industry 4.0," said AR. Ramesh, CEO of TeamLease Degree Apprenticeship.

 

Addressing the skills gap in India’s electronics sector requires a multi-faceted approach. The report highlights the following:

 

Apprenticeships and Hands-On Training: Scaling apprenticeships and integrating practical training into educational programs will provide the industry with a steady pipeline of skilled professionals.

 

Industry-Academia Collaboration: Strengthening partnerships between educational institutions and the electronics industry will ensure that curricula align with industry needs, better preparing graduates for the job market.

 

Government Policies: Leveraging government initiatives like the PLI Scheme and Semiconductor Mission to foster job creation, talent development, and investments in R&D will be crucial in meeting the sector’s growing demands.

 

Increasing ITI Enrolment: With 40% employability among ITI-qualified candidates, expanding access to ITI programs and improving training quality is key to filling critical manufacturing roles.