As India moves forward to become a USD 500 billion electronics manufacturing hub by 2030, TeamLease Degree Apprenticeship, a privately-owned Degree Apprenticeship program from the house of TeamLease Services, has released a report highlighting a significant skills gap in the industry, potentially impacting its growth. With the sector advancing at an impressive compound annual growth rate (CAGR) of 25 to 30 per cent, projections indicate the creation of 12 million jobs, encompassing three million direct and nine million indirect roles.
However, a pressing deficit of 10 million trained professionals underscores the urgent need to bridge this gap to sustain and amplify India's growth in the electronics sector, the report added. As the industry diversifies into areas such as communication and broadcast electronics, consumer electronics, industrial electronics, and aerospace and defence electronics, the demand for specialized skills has surged. The growing requirements for components like semiconductors and electromechanical parts further intensify this challenge.
Despite the government’s extensive support through programs like the production linked incentive (PLI) schemes, SPECS, EMC 2.0, the Electronics Development Fund (EDF), and initiatives under 'Make in India' and 'Digital India,' the talent pool remains underprepared. Many job seekers lack the technical skills, practical experience, and industry alignment essential to meet employer expectations, creating a bottleneck in this otherwise promising sector, the report mentioned.
With a production value reaching USD 101 billion in FY 2023, including USD 86 billion in finished goods and USD 15 billion in components, addressing this skills mismatch is vital to maintain the industry's momentum and enhance global competitiveness.
While India is making strides toward self-sufficiency, especially in electro-mechanical and passive components, challenges remain. The sector’s dependence on imported semiconductors and PCBs elevates costs and exposes supply chains to global risks. With fierce competition from established players like China, which benefits from lower production costs, and a growing domestic skills deficit in advanced manufacturing, India's ambitions face potential threats. Building a robust domestic ecosystem, reducing import reliance, and investing in workforce development are imperative to solidify India's global electronics production and innovation leader position.
A.R. Ramesh, Chief Executive Officer (CEO), TeamLease Degree Apprenticeship, emphasised, “India is on the cusp of becoming a global leader in electronics manufacturing, with domestic production reaching USD 101 billion in FY23, driven by segments such as Mobile Phones (43%), Consumer Electronics (12 per cent%), Industrial Electronics (12 per cent), and Auto Electronics (8 per cent). As demand surges in areas like semiconductors, electronic components, and electronic system design, the industry faces a significant workforce shortfall despite government initiatives like the Semiconductor Mission and the Electronics Development Fund.”
Ramesh added that by FY 2027-28, the industry will require 12 million professionals—3 million in direct roles and 9 million in indirect roles, yet a staggering skills gap of 10 million persists. Bridging this gap demands a robust focus on skill development, blending classroom learning with hands-on training through apprenticeships.
He mentioned, “Scaling the apprenticeship ecosystem, currently growing at a 55 per cent CAGR and projected to reach 1 million apprentices by 2027 to 2 million apprentices, can create a steady talent pipeline to meet industry needs. Additionally, strengthening industry-academia collaboration is crucial to doubling the 2 million graduates entering the workforce annually by FY 2027-28 to 4 million. These efforts will address immediate workforce challenges and accelerate India’s transition into advanced domains like AI, IoT, and Industry 4.0, positioning the country as a global leader in electronics production and innovation.”
