India’s prowess in the field of management is globally acknowledged and respected. The talent pool of managers has become CEOs of big multinational giants like PepsiCo, Google, Microsoft, etc. Many others are contributing meaningfully, adding dynamism and virtue to their roles globally. However, when it comes to the availability and quality of engineers, the picture is dismal. This is impacting the ‘Make in India’ dream, especially in the area of defence and aviation manufacturing on which India is pinning high hopes.
According to studies, more than 3,500 engineering colleges in India produce about 1.5 million engineering graduates annually, of which only 7.5 per cent are fit for jobs in the core engineering sectors. Also, employability decreases with increase in the number of engineering colleges in a particular state, showing that opening more engineering colleges will not solve the problem of shortage of quality engineers.
As per the National Employability Report for Engineers, less than 20 per cent of those graduating from college are employable in the software sector while a minuscule 7.49 per cent are fit for core engineering jobs. Lack of adequate domain knowledge and practical exposure makes them unfit for core engineering jobs. In the area of aviation and defence manufacturing, challenges are significant, as foreign suppliers often cannot find candidates with the requisite training and experience, due to a lack of specialised courses in defence and aviation manufacturing. Companies have to train their own people from scratch.
To help remedy India’s skills crunch, the government announced two skill development plans in July 2016, involving a total spending of Rs 220 billion to train 15 million people by 2020, with the goal of providing thrust to ‘Make in India’. Global companies, seeing the need for training, are also stepping up investments.
What’s needed is a radical change in engineering pedagogy. High cost of training; lack of quality trainers, standardisation of courses for non-regulated roles, assessment practices specifically for non-regulated positions, enhanced practical training and sensitisation to apply the concepts learnt, etc. are the big bottlenecks.
The current skill landscape in India has undergone a sea change in the preceding decade, with the establishment of the Sector Skill Councils, adherence to the National Skills Quantification Framework, formulation of the National Occupational Standards and the Aerospace and Aviation Sector Skill Council, etc. India is a key defence and aviation market. It is expected to become the third-largest aviation market by 2020 and the largest by 2030.
While the liberalised FDI regime in the defence sector might not have seen big ticket investment flow, excitement remains palpable in the industry. Players believe the next five years will be crucial as global companies are seeing India as a lucrative sourcing hub, in order to remain globally competitive.
Removal of structural and regulatory bottlenecks by the government can go a long way in achieving the goal. The journey of India to become a global defence and aviation manufacturing hub, as of now, is long but an adequate and sustainable crop of quality engineers can be a game changer.