“By aligning skilling efforts with international standards, embedding global certifications, and facilitating structured mobility programs, India can not only meet domestic industry needs but also emerge as a trusted global source of skilled manufacturing talent—truly leading the way in bridging global skill gaps.” Nirmal Singh, CEO, Wheebox- An ETS Company
Given the theme of ‘Global Skills Mobility – India’s Decade’ for the India Skills Report 2025, how do you see India’s manufacturing sector specifically contributing to bridging global skill gaps?
The manufacturing sector plays a crucial role in realizing the vision of “Global Skills Mobility – India’s Decade” as outlined in the India Skills Report 2025. As we strive to become the global hub for talent, our focus on building capabilities in key manufacturing domains such as semiconductors, electronics, automotive, and Industry 4.0 technologies is strategic and timely.
With major global players investing in India’s semiconductor ecosystem and electronics production surging—from $37 billion in 2015–16 to over $115 billion in 2023–24—we are witnessing an unprecedented demand for skilled professionals in chip design, cleanroom operations, quality assurance, and automation. Similarly, the automotive sector, projected to create over 45 million jobs by 2026, is transforming with smart manufacturing, offering cross-sectoral opportunities for our youth trained in AI, robotics, and IoT. Our vast MSME base—comprising 90% of our factories—has the potential to become a powerhouse of skilled blue-collar talent, provided we strengthen vocational training, certification programs, and industry partnerships.
At the same time, with global markets like the GCC, Europe, and Australia facing manufacturing talent shortages, India is uniquely positioned to supply a future-ready workforce. Our young population, with 65% under the age of 35 and over 2.5 million STEM graduates annually, is our biggest strength. By aligning skilling efforts with international standards, embedding global certifications, and facilitating structured mobility programs, India can not only meet domestic industry needs but also emerge as a trusted global source of skilled manufacturing talent—truly leading the way in bridging global skill gaps.
The report highlights an increase in employability among Indian graduates. What are the key drivers behind this positive trend?
The India Skills Report 2025 highlights a notable rise in employability among Indian graduates, and this positive trend can be attributed to several key drivers:
- Industry-Academia Collaboration: There has been a growing alignment between academic institutions and industry requirements. Companies are increasingly collaborating with colleges through curriculum co-design, internship programs, and industry-led projects, ensuring that graduates are more aligned with real-world demands.
- Growth of Online and Hybrid Skilling Platforms: The widespread availability of digital learning platforms has enabled students to access skill-based, job-oriented training beyond the classroom. Platforms offering certifications in coding, analytics, digital marketing, and domain-specific skills have significantly enhanced employability, especially in tech and service sectors.
- Focus on Soft Skills and Communication: Employers are increasingly prioritizing communication, problem-solving, and interpersonal skills. The report notes that students who invest in soft skills training are more likely to be job-ready, particularly in client-facing and global roles.
- National Skilling Initiatives: Government programs like PMKVY (Pradhan Mantri Kaushal Vikas Yojana), Skill India, and the National Apprenticeship Promotion Scheme (NAPS) have played a critical role in creating a culture of structured skill development. These schemes also encourage youth to pursue vocational and domain-specific training, directly boosting their employment prospects.
- Sectoral Demand in Emerging Industries: India’s growing sectors such as renewable energy, electric vehicles, semiconductor manufacturing, and AI-driven tech are creating fresh opportunities. Graduates entering these domains with relevant skills and certifications are seeing higher employability rates.
- Regional and Gender Inclusivity: The report also notes a rise in employability among candidates from Tier 2 and Tier 3 cities, indicating improved access to quality education and digital learning resources. Additionally, a growing number of employable women graduates suggests positive movement toward gender inclusivity in the job market.
“Together, these drivers reflect a maturing education-to-employment ecosystem in India, where policy support, industry demand, and student adaptability are collectively shaping a more employable workforce.”
Could you elaborate on the most critical skills shortages identified in the India Skills Report 2025 for manufacturing, and what emerging skills are now in high demand that manufacturers should prioritize?
The India Skills Report 2025 has surfaced a few critical skill shortages in the manufacturing sector that demand urgent attention. These include:
- Mechatronics and Robotics: With automation becoming the norm, there’s a growing need for professionals who understand the integration of mechanical systems with electronics and intelligent control.
- Digital Proficiency in Manufacturing Tools: Skills in CAD/CAM, ERP systems like SAP, and digital twin technologies are still scarce.
- Predictive Maintenance and Industrial IoT: As equipment becomes more connected, the ability to interpret sensor data and implement predictive maintenance is highly valuable.
Emerging high-demand skills that manufacturers must now prioritize include:
- AI and Machine Learning for Production Optimization
- Data Analytics for Operational Efficiency
- Cybersecurity for Industrial Control Systems
- Sustainability and Green Manufacturing Practices.
These skills not only support day-to-day operations but also enhance global competitiveness. There’s a pressing need to reimagine workforce training not as a one-time exercise, but as a continuous capability development journey.
What are the most actionable recommendations for educational institutions, especially those catering to engineering and vocational training for manufacturing, to better align their curricula with industry needs?
To better align their curricula with industry needs—especially in the context of engineering and vocational training for the manufacturing sector—educational institutions must implement a set of actionable and high-impact recommendations:
- Embed Industry-Relevant Curriculum
Update course content regularly based on emerging technologies like automation, robotics, IoT, additive manufacturing, and Industry 4.0 practices.
Co-create curriculum with input from industry partners, Sector Skill Councils (SSCs), and manufacturing leaders to ensure relevance.
Introduce elective modules aligned with high-growth areas like semiconductor fabrication, electric vehicles, CNC programming, and smart factories.
- Strengthen Hands-On Learning & Infrastructure
Set up Industry Simulation Labs, Centres of Excellence and Maker Spaces to give students real-time exposure to tools and machinery.
Make internships, apprenticeships, and on-the-job training mandatory and credit-bearing, ideally in collaboration with MSMEs and large manufacturers.
Partner with NSDC and the National Apprenticeship Promotion Scheme (NAPS) to scale structured on-ground exposure.
- Embed Soft Skills and Digital Literacy
Integrate communication, teamwork, problem-solving, and project management modules into the engineering/vocational syllabus.
Introduce digital tools training—such as ERP software, AutoCAD, SCADA systems, and basic data analytics—that are used on modern factory floors.
- Offer Dual Certification & Global Credentials
Tie up with industry bodies (e.g., ASDC, MeitY, NASSCOM) to offer joint certifications recognized by both national and global employers.
Encourage stackable micro-credentials and NSQF-aligned certifications to allow flexibility and mobility in career progression.
Provide pathways for international certifications that improve global employability (e.g., IPC for electronics, AWS for welding).
- Invest in Faculty Development
Conduct regular Faculty Immersion Programs in industry settings so educators stay current with trends and tools.
Enable cross-learning through faculty-industry exchanges, and provide exposure to smart manufacturing and automation technologies.
- Build Industry-Led Advisory Boards
Form active Industry Advisory Boards at both institutional and departmental levels to guide curriculum, labs, placement strategy, and faculty training.
Invite industry mentors to co-deliver sessions, conduct guest lectures, and offer career guidance.
- Monitor Placement & Employability Outcomes
Regularly track and publish placement metrics, employer feedback, and student progression to evaluate alignment with market demand.
Use data from assessments like India Skills Report to benchmark skill gaps and revise curriculum accordingly.
“By integrating these strategies, institutions not only boost student employability but also position themselves as strategic talent partners to India’s manufacturing ecosystem—critical in driving both domestic industrial growth and global skills mobility.”
The report touches upon India’s potential to lead in transformative industries like AI, digital transformation, and renewable energy. How can the manufacturing sector effectively integrate these advanced technologies and leverage India’s youthful workforce to drive innovation and efficiency within its operations?
India’s manufacturing sector is at the approaching a new golden age of technology. With the advent of Industry 4.0 and the push for sustainability, the integration of advanced technologies like Artificial Intelligence, Machine Learning, Blockchain, and Renewable Energy Systems is no longer optional, it is imperative.
To leverage this shift:
- Young professionals must be upskilled in digital fluency, data interpretation, and system automation. Government and private partnerships should roll out massive re-skilling drives, targeting both blue-collar and engineering roles.
- Manufacturing firms need to invest in smart factories, equipped with real-time data systems, autonomous equipment, and energy-efficient processes. These are ideal training grounds for tech-savvy Indian youth to gain global best practices.
- AI and predictive analytics can revolutionize maintenance, reduce downtime, and optimize supply chains. Integrating such tools will not only increase efficiency but enable a culture of continuous innovation.
Ultimately, India’s youthful workforce, when equipped with the right tools and mindset, can reinvent manufacturing as a digitally intelligent and globally admired sector.
The Global Employability Test (GET) is a cornerstone of the India Skills Report. Could you explain the methodology behind GET and how its findings are translated into practical insights for both job seekers and manufacturing companies looking to assess and develop their workforce?
The Global Employability Test (GET), a key component of the India Skills Report, is a scientifically designed, adaptive online assessment developed by ETS Assessment Services. Aimed at evaluating fresh graduates with 0–3 years of experience, GET measures employability across six core domains: English communication, numerical and data interpretation, problem-solving, digital skills, behavioral competencies, and cognitive abilities such as memory and attention to detail. The test adapts in real-time to a candidate’s performance—adjusting the difficulty level based on responses—which allows for a more accurate assessment in fewer questions. Upon completion, candidates receive a detailed report highlighting strengths and areas for improvement, along with percentile-based benchmarks against peers from similar educational backgrounds.
The Future Skills Framework is a national roadmap designed to equip India’s workforce with the skills needed to thrive in a rapidly evolving digital economy. It focuses on a blend of technical, cognitive, and behavioral competencies—ranging from AI, data analytics, and cybersecurity to critical thinking, communication, and emotional intelligence. Developed through collaborations between government bodies like NASSCOM, NSDC, and AICTE, the framework aligns with the demands of Industry 4.0 and the broader vision of Digital India. It serves as a guiding tool for educational institutions, employers, and job seekers to identify and develop skills that are not only relevant today but future-proof for emerging roles.
For job seekers, particularly from engineering and vocational streams, GET serves as both a diagnostic and branding tool—providing clarity on skill gaps and offering a recognized certificate that strengthens their marketability. For manufacturing companies, the insights from GET help in benchmarking talent, designing targeted workforce development programs, and aligning recruitment with evolving skill needs such as digital readiness and problem-solving in Industry 4.0 environments. Educational institutions also benefit by using aggregate GET data to identify curriculum gaps, introduce focused skill-building modules, and better align training with industry requirements. Overall, GET plays a transformative role in shaping a job-ready talent pool, bridging the gap between academic learning and workplace expectations, and supporting India’s broader vision of becoming a global hub for skilled professionals.
The report emphasizes ‘strategic recommendations for industries and policy stakeholders’. What are the top 2-3 policy changes or governmental initiatives that would most significantly accelerate skill development and talent mobility within the Indian manufacturing ecosystem?
To truly unlock the potential of India’s workforce, we need to look at policy not just as regulation, but as a tool for acceleration. There are three policy directions I believe can have an outsized impact on both the quality and mobility of talent.
First, we need to reward companies that invest in their people. Skill-linked incentivization whether in the form of tax breaks, co-funding, or credits can motivate more employers to treat upskilling as a core business strategy rather than a compliance activity. This is especially critical in future-focused areas like automation, robotics, green manufacturing, and digital production. If we want our workforce to be ready for Industry 4.0, we need to make it economically attractive for businesses to build that capability from within.
Second, we must make skills portable. Imagine if every skilled worker in India had a digitally verifiable skill passport recognized across industries, states, and even countries. It would give our youth the freedom to move where opportunities exist, while giving employers greater confidence in whom they’re hiring. This kind of national credentialing system would also align us better with global standards and position India as a reliable source of skilled talent for the world.
Finally, we need to reimagine apprenticeships, especially for MSMEs. Smaller manufacturers often want to train and hire fresh talent but get bogged down in red tape. Simplifying compliance norms, offering stronger financial support, and introducing hybrid apprenticeship models (where learning can happen both virtually and on the factory floor) can make a real difference. It’s a high-impact, low-investment way to ensure young people gain real-world exposure and develop job-ready skills.
Together, these reforms don’t just add up to a better skilling ecosystem they help India export skills, not just products, and that’s a game-changer for our economic future.
With economic realignments and shifting workforce dynamics, how is the India Skills Report 2025 addressing the growing importance of ‘soft skills’ or ‘21st-century skills’ alongside technical competencies for employability in the manufacturing sector?
India Skills Report 2025 recognizes that in today’s dynamic manufacturing landscape, technical know-how must be complemented by robust soft skills or 21st-century skills to drive employability and organizational success. The report underscores a clear shift: employers are now equally, if not more, focused on attributes like communication, teamwork, adaptability, critical thinking, emotional intelligence (EI), and leadership—skills deemed essential in Industry 4.0 environments.
This trend is supported by data: for instance, LinkedIn found that creativity, problem-solving, and strategic thinking have surged in demand across roles—not just in IT, but also in finance, consulting, and manufacturing. The World Economic Forum’s Future of Jobs report identified resilience, flexibility, analytical and creative thinking as top priorities, leading to inclusion of such competencies in national initiatives like the Skill India Digital Hub.
In practical terms, the India Skills Report 2025 highlights how institutions and training programs are embedding soft skills into technical education—through integrated modules, experiential learning, and simulation-based training—particularly in vocational and engineering program.
For manufacturing, this means graduates are not only proficient with machinery, automation, and digital tools, but also effective communicators and agile problem solvers within team-based production settings.
Specific actions include:
- Curriculum redesign with modules on communication, teamwork, time management, and conflict resolution—mirroring the top ten soft skills employers seek.
- Simulated project-based learning, where students experience real-world scenarios requiring collaborative decision-making, adaptability, and critical thinking aligned with modern shop-floor challenges.
- Industry–academia engagements, including internships and professorial stints in manufacturing plants, that reinforce the importance of interpersonal skills alongside technical training.
By weaving these soft skills into technical tracks, India is ensuring a holistic approach to workforce readiness. This blended skilling strategy equips graduates not only to operate advanced manufacturing systems, but also to thrive in collaborative, customer-facing, and fast-changing environments—ultimately meeting both domestic and global industry needs for a future-ready manufacturing workforce.
