International Journal of Training Research

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Skill development for accelerating the

manufacturing sector: the role of ‘new-age’ skills
for ‘Make in India’

Dilip Chenoy, Shobha Mishra Ghosh & Shiv Kumar Shukla

To cite this article: Dilip Chenoy, Shobha Mishra Ghosh & Shiv Kumar Shukla (2019)
Skill development for accelerating the manufacturing sector: the role of ‘new-age’ skills
for ‘Make in India’, International Journal of Training Research, 17:sup1, 112-130, DOI:
10.1080/14480220.2019.1639294

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INTERNATIONAL JOURNAL OF TRAINING RESEARCH
2019, VOL. 17, NO. S1, 112–130
https://doi.org/10.1080/14480220.2019.1639294

Skill development for accelerating the manufacturing sector:

the role of ‘new-age’ skills for ‘Make in India’
Dilip Chenoy, Shobha Mishra Ghosh and Shiv Kumar Shukla
Federation of Indian Chambers of Commerce & Industry (FICCI), New Delhi, India

ABSTRACT KEYWORDS
India is one of the fastest growing major economies and has a bur- Make in India; Skill India;
geoning young workforce. The average age in India will be 29 years by future ready workforce;
2020. Given the limitations of absorbing growing labor force– espe- Industry 4.0; poverty
alleviation
cially the unskilled and semi-skilled– in service sector, focus has to be
on spurring manufacturing growth to take advantage of this large
pool of manpower. The ‘Make in India’ has a grand vision of creat-
ing 100 million jobs by 2021. This ambitious program is designed to
turn the subcontinent into a‘global manufacturing hub’ and increase
jobs by providing afresh impetus to the economy. Running high on
this momentum, the government has initiated several policies such as
‘Skill India’ and ‘Digital India’ to complement ‘Make in India’.
Attempting to tap this aggressive policy push, stakeholders are focus-
ing on developing right skills to address the growing skill gap in
various manufacturing sectors in the context of changing industrial
landscape defined by new-age technologies. This chapter will present
India’s perspective on how country is working towards developing
a cohesive environment for ‘new-age’ manufacturing and ‘future
ready’ manpower.

Introduction
India is one of the fastest growing major economies in the world today with a year-on-year
(YOY) growth of 7.2% (Central Statistics Office [CSO], 2019). Foreign Direct Investment (FDI)
inflows stood at $12.75 billion during April–June 2018. India’s foreign exchange reserves
was $397.35 billion as of January 2019 (Reserve Bank of India, 2019). Giving a positive
outlook, the International Monetary Fund (IMF) reports, ‘India’s economy is picking up and
growth prospects look bright, partly due to the implementation of recent policies, such as
the nationwide goods and services tax. As one of the world’s fastest-growing economies,
accounting for about 15% of global growth, India’s economy has helped lift millions out of
poverty’ (International Monetary Fund (IMF), 2018). This positive outlook is echoed by other
major multilateral agencies, such as the World Bank (World Bank 2019a) and United Nations
Development Programme (UNDP), which show their confidence in the country’s major
economic drives and the expectation that India will lead global economic growth (Table 1).

CONTACT Dilip Chenoy dilip.chenoy@ficci.com Federation of Indian Chambers of Commerce & Industry
(FICCI), New Delhi, India
Special Open Access Supplement Issue: Emerging Labor Markets of the Future – Re-imagining Skills Development and
Training, Joint Editors: Sungsup Ra, Shanti Jagannathan and Rupert Maclean
© 2019 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.
This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/
by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
 INTERNATIONAL JOURNAL OF TRAINING RESEARCH 113

Table 1. Economy growth projections.

Expected GDP Growth Rate (% range)
Country/Region 2019 2020 2021
India 7.4–7.8 7.7–7.9 7.7
China, People’s Republic of 6.2–6.4 6.2–6.3 6.0
United States 2.5–2.7 1.8–1.9 1.7
European Union 2.0–2.1 1.8 1.7
GDP = gross domestic product.

By 2020, the average age in India will be 29 years with 65% of the population in the
working-age group (15–59 years of age). India’s burgeoning young workforce of
830 million can be an asset not just for India but for the aging developed world,
provided it is nurtured and prepared for the future. To take advantage of this large
pool of manpower and understand the limitations of the services sector to absorb the
unskilled and semiskilled labour force, the Government of India (GoI) focused on
spurring the growth of the manufacturing sector by launching the ‘Make in India’
campaign in September 2014, with a grand vision of creating 100 million jobs by
FY2021. This ambitious program was designed to turn the subcontinent into a ‘global
manufacturing hub’ and increase jobs by providing a fresh impetus to the economy.
However, inadequate infrastructure and lack of availability of appropriately skilled man-
power has been a challenge since the economic liberalization of the early 1990s. To
combat these challenges, the government initiated several programs in mission mode
that includes ‘Skill India’ to complement ‘Make in India’ (Table 2)
The advent of the Fourth Industrial Revolution (Industry 4.0) is impacting and changing
the industrial landscape, and with it, skill requirements, thereby forcing government,
industry, and academia to focus on developing twenty-first century skills (critical thinking,
design thinking, creativity, sustainability, etc.) among fresh recruits and the existing work-
force. Policy and implementation in a large country like India, where the central and state
governments could play important roles, could cut across various dimensions. This paper
presents an Indian perspective across some of the elements listed above on how the
country is working toward developing a cohesive environment for ‘manufacturing 4.0ʹ
and ‘future ready’ manpower.

Overview of manufacturing: Indian and global outlook

Creating a conducive environment and promoting the growth of the manufacturing
sector remains one of the main priorities of the Government of India. The significance of
manufacturing is displayed in Table 3, which shows its size in comparison with the
shares of various sectors in terms of Gross Value Added (GVA) during the last 3 years
(CSO, 2018).
Manufacturing has the potential to emerge as one of the high-growth sectors in India. It
can provide large-scale employment and thereby enable a significant section of the popula-
tion to move toward ‘gainful employment’. With this in mind, the Indian government has
adopted ‘Make in India’ as a core policy initiative to encourage and accelerate growth of the
country’s manufacturing sector. The government has set an ambitious target of increasing the
contribution of manufacturing output to 25% of gross domestic product (GDP) by FY2025.
 114

Table 2. Stakeholders, programs and skill development.

Stakeholders/ Attract Human Resource &
Interventions Start ups Investments Promote Manufacturing Adoption of Technology Skill Development Others
Central/Ministry – Start up policy – Sectoral policies: – Sectoral policies – AI policy & schemes to – Sector skill councils – Financial assistance
Entrepreneurship Electronics – Incentives for promote adoption of – Higher education
D. CHENOY ET AL.

Development Manufacturing manufacturing zones technology – Research & training

– FDI policy – Centers of excellence on new-age skills
– MSME policy
– Ease of Doing
Business
States – Start up policy – IoT policy – Industrial parks – Centers of excellence – State skill – Financial assistance
– Incubators – Industrial policy – Industrial clusters – Industry 4.0 parks development – Adoption of best practices
missions
National – Funding for start – Handholding – Product standards – Industry 4.0 centers – Skill gap reports – Research & development
Organizations ups resolution of – M2M standards – Occupation – Platform for collaborations
– Incubation centers issues standards (SSCs)
Industry Bodies – Incubators – Policy inputs – Policy inputs – Demonstration centers – Career centers – National & international
mentoring – B2B connect – Monitoring of schemes – Industrial visits – Assessments conferences
– Awards and output – Creating awareness – Skill development – Country-specific business
– Sharing of best practices centers delegations
– Skill gap reports
NGOs Creating conducive Policy inputs Sharing best practices Sharing best practices Skill development Creating sustainable linkages
environment
Industry – Investing in R&D – Policy inputs – Integrating into global – Handholding vendors – Skill development – Support MSMEs with
– Investing in – Joint ventures supply chains – Demonstration centers – Supporting SSCs infrastructure and facilities
startups – Setting up – Setting up state-of-the-art sharing technology apprenticeships sharing
subsidiaries manufacturing centers
– Sharing best
practices
Individuals Promote self- Build network of Cognitive and soft skill Promote digital literacy Training and skill Promote peer learning
learning & investors training development
exploration
 INTERNATIONAL JOURNAL OF TRAINING RESEARCH 115

Table 3. Share of sectors in gross value added at current prices (%).

Sector 2015–16 (2nd RE) 2016–17 (1st RE) 2017–18 (PE)
Agriculture, Forestry, & Fishing 17.7 17.9 17.1
Industry 29.8 29.3 29.1
Manufacturing 16.8 16.8 16.7
Services 52.5 52.8 53.9
PE = provisional estimates, RE = revised estimates.

According to the Global Manufacturing Competitiveness Index, this would be a 9% increase

from the current level of 16% (India Brand Equity Foundation [IBEF], 2018). Globally, India is
the sixth-largest manufacturing nation and was the biggest recipient of FDI in 2016–17, with
inflows touching $60 billion, the highest-ever annual inflow into the country. India is expected
to become the fifth largest manufacturing country in the world by the end of 2020. This
flagship program focuses on placing India on the world map as a manufacturing hub and
gaining global recognition for the Indian economy. The ‘Make in India’ initiative is built on four
pillars:

(1) Change in approach. The government has always been perceived as a regulator
and not a facilitator. This initiative intends to usher a paradigm shift in the way
the government interacts and engages with the industry. The focus has been to
develop partnerships and engage with the industry effectively to give the
required impetus to the economic development of the country.
(2) Focus sectors. ‘Make in India’ focuses on 25 sectors and facilitates detailed
information through an interactive web portal. The Department for Promotion
of Industry and Internal Trade (DPIIT) is entrusted with the task of formulating FDI
policy, monitoring the Ease of Doing Business reforms, and investment promotion
and facilitation activities. To make India a preferred destination for investment
into focused sectors, the government has put in place a comprehensive FDI policy
by bringing in more activities under the automatic route, increasing sectoral caps,
and easing conditionalities. Under the program, the government has allowed
100% FDI in railways, defense, and pharmaceutical sectors; and has removed
restrictions in the construction sector.
(3) Evolved ecosystem. A host of big bang reforms have been introduced recently by
the government, such as the implementation of Goods and Services Tax (GST),
enacting of Insolvency and Bankruptcy Code, the drive to digitize various aspects
of governance, and developing industrial corridors and smart cities with state-of-the-
art technology and high-speed communication. Innovation and research activities
are supported by a fast-paced registration system and improved infrastructure for
intellectual property rights registrations. Simultaneously, the training needs to pro-
vide for a skilled workforce is also being addressed. This is being done in a variety of
ways. First, the skill gaps are being identified; second, interventions at different levels
in the workforce – entry level, mid-level, and high end – are being identified and
proposed, such as, specialized universities, like Railway University, Defence University,
Skill Universities, etc., are being set up. Third, the training through apprenticeship
mode is being aligned to the industry needs.
(4) Ease of Doing Business. The government has introduced several reforms to
simplify, remove duplication, bring in transparency in the regulatory and licensing
116 D. CHENOY ET AL.

process and adoption of local content policy in public procurement processes.

Uniform tax rates and structures under GST across all States (Provinces) and Union
Territories are expected to reduce multiplicity of taxes and compliance costs. Best
practices followed by various state governments are being shared as guidance on
undertaking reforms. These reforms are also aligned with the World Bank’s ‘Ease
of Doing Business’ index to improve India’s ranking. This has yielded positive
results and India’s position has improved from 142nd in FY2014 to 77th in FY2018
(World Bank, 2019b).

Steady progress. The Federation of Indian Chambers of Commerce and Industry

(FICCI) and Pricewaterhouse Coopers (PWC) (FICCI & PWC, 2019) quotes DPIIT (2018)
reports showing that the Indian manufacturing sector has posted steady recovery since
2015, with the growth rate increasing from 2.8% in FY2016 to 4.4% and 4.6% in
FY2017 and FY2018, respectively (FDI in key manufacturing sectors, Figure 1). In the
first half of 2018–2019 (April–September), the share of the manufacturing sector in
GVA was 16.9%, higher compared to 16.5% in the first half of 2017–2018. The opera-
tional expansion of key major global corporations and entry of new manufacturing
firms are contributing to exports and strengthening the industrial ecosystem in the
country. New investments in sectors such as telecommunications, food processing, and
automobiles have also contributed to the industrial growth.
In recent years, in order to provide necessary impetus to the manufacturing sector,
the government has advanced the National Manufacturing Policy with the objective of
enhancing the share of manufacturing in GDP to 25% and creating 100 million jobs
over a decade. National Investment and Manufacturing Zones (NIMZs) are important
instruments of the policy. NIMZs have been conceived as large, integrated industrial
townships with state-of-the-art infrastructure, land use on the basis of zoning, clean
and energy-efficient technology, necessary social infrastructure, skill development
facilities, etc., to provide a conducive environment for manufacturing industries. So
far, 16 such NIMZs have been approved (FY2018).

Figure 1. Sector-wise FDI in India, 2008–2018 (US$b).

 INTERNATIONAL JOURNAL OF TRAINING RESEARCH 117

To promote the manufacture of electronics products, the government announced the

National Policy on Electronics. The Indian market in 2008–2009 was $45 billion and was
expected to reach $400 billion by FY2025. The strategies in the policy include the
following:

● provide incentives through the Modified Special Incentive Package Scheme;

● set up semiconductor wafer fabrication facilities;
● secure preferential market access to domestically manufactured electronic
products;
● provide incentives for setting up 200 electronic manufacturing clusters (EMCs)
including greenfield EMCs and upgrades of brownfield EMCs; and
● establish a stable tax regime and market India as a destination to attract
investment.

The global share of Indian electronics manufacturing in 2017–2018 was 26.7% with the
aim of increasing this to 32% in the current fiscal year of 2019–2020. The National Policy on
Electronics includes a scheme for increasing human resources to serve the needs of the
sector. This includes coopting the two Sector Skill Councils (Telecom and Electronics);
increasing the number of PhDs in electronics and information technology; and setting up
training academies to train faculty. Schemes on skill development in the Electronics System
Design and Manufacturing (ESDM) sector include a scheme for financial assistance to select
States (Provinces) and Union Territories for skill development in ESDM; and a scheme for skill
development in ESDM for the Digital India initiative of the government.
Action on the National Policy on Electronics since 2015 has resulted in India surpass-
ing Viet Nam to become the No. 2 mobile manufacturer in the world. As of
December 2018, the 268 manufacturing plants in India provided 0.65 million jobs.
Production in FY2018 had reached $31 billion, with 65 million chargers exported.
To build on that foundation and propel the growth of ESDM, the FY2019 National
Policy on Electronics (NEITY, 2019) aims to ‘position India as a global hub for ESDM with
a thrust on exports by encouraging and driving capabilities in the country for develop-
ing core components, including chipsets and creating an enabling environment for the
industry to compete globally’.
Make in India (Version 2) is supporting further growth in selected manufacturing
sectors. Globally, new-age technologies are reshaping manufacturing by changing the
drivers of growth and competitiveness. Innovation, flexibility, skilled workforce, and
adaptability to change are becoming the key ingredients of global success parameters.
In 2018, the World Economic Forum (WEF, 2018) report on ‘Rediness for the Future of
Production highlighted Global Manufacturing Index putting India in 30th position, five
places below the People’s Republic of China (PRC), which is continuously striving to
develop better avenues of manufacturing by boosting infrastructure.
Sharp swings in labor costs, energy costs, and currency exchange rates in recent years
have narrowed some of global differences in cost competitiveness. Such phenomena
have underscored the need for companies to take a fresh look at their global manu-
facturing strategies. The cost advantage that the US had enjoyed over Japan and several
European countries has recently narrowed, while the PRC’s cost competitiveness has
improved. Companies across the world are also working toward building an adaptive,
118 D. CHENOY ET AL.

highly skilled workforce. As factories adopt advanced manufacturing technologies and

trade regimes continue to shift, demand is growing for a highly skilled workforce that
can adapt to this fast-paced change.

Emerging trends in India: manufacturing 4.0

As Industry 4.0 gathers momentum, decision-makers from the public and private sectors are
confronted with a new set of uncertainties regarding the future of manufacturing. According
to a WEF (2017), rapidly emerging exponential technologies, such as robotics and additive
manufacturing triggered by artificial intelligence and deep machine learning; including the
Internet of Things (IoT), that is driving industrial automation, are all spurring the development
of new production techniques. These are leading to enhanced productivity and business
models facilitating greater interconnectivity, monitoring, and efficiencies of resources used
(Figure 2).
In the manufacturing sector, the deployment of mobile robotics worldwide is rising
fast. The International Federation of Robotics’ (IFR) World Robotics report forecasts that
the world annual supply of industrial robots would grow at 13% YOY to reach
0.41 million units by FY2020. In FY2017, the global average robot density in the
manufacturing industry was 85 robots per 10,000 employees (Interantional Federation
of Robotics, 2019). There are some key trends worth noting as to the direction of the
manufacturing sector worldwide:

● Global IoT spending is projected to reach $772 billion in FY2018 and surpass $1
trillion in FY2020.
● The number of connected IoT devices by FY2021 is projected to be $36.13 billion.
● IoT is projected to comprise $15 trillion of global GDP by FY2030.
● Sales of collaborative robots are projected to increase by 159% between FY2018
and FY2020.

A survey by FICCI, NASSCOM, & EY (2017) conducted in 2016–17 revealed that most
Indian auto companies are already deploying robots on the shop floor. While paint and
welding shops are expected to be completely automated by 2020, the use of robots in

Figure 2. Key technologies used in manufacturing.

 INTERNATIONAL JOURNAL OF TRAINING RESEARCH 119

the assembly line is limited to 20% across companies. Plant-level automation at most
original equipment manufacturers remains at 30%, while its level in the body shop is
beyond 95%. Auto companies are increasingly deploying smart robots with artificial
intelligence capabilities that are able to adapt, communicate, and interact with each
other and with humans.
Relying on India’s strength in information and communication technology (ICT) and
large pool of skilled workforce of ICT professionals, the transformative journey of
manufacturing through Industry 4.0 is very much evident in the country. Bosch,
a German auto component manufacturer, began implementation of smart manufactur-
ing at its 15 centers in India in FY2018. General Electric has invested $200 million in the
facility in its only multimodal factory in India where digitally interlinked supply chains,
distribution networks, and servicing units form part of this intelligent ecosystem.
The Indian government has created green energy corridors to bring in more renew-
able energies and make smart grids that will support the variable input of renewable
energies and create storage. India has committed over $1 billion toward this initiative
and has started projects in many States (Provinces), such as Andhra Pradesh, Gujarat,
Himachal Pradesh, Rajasthan, and Tamil Nadu. Major Indian states have also taken
initiatives to adapt to Industry 4.0-related manufacturing. Andhra Pradesh has approved
an IoT policy – the first of its kind – that aims to turn the state into an IoT Hub by FY2020
and tap close to 10% of smart-manufacturing needs in the country.
Various Indian companies are increasing their focus and partnering with global
companies for developing new IoT and Machine-to-Machine (M2M) solutions. The
Digital India initiative is expected to enhance this focus in domestic manufacturing
and other sectors. In this rapidly changing technological landscape, new-age skilling
and labor demands have become unpredictable and variable.

Industry 4.0 manufacturing ecosystem

In India, the adoption of Industry 4.0 is at a nascent stage. Widespread implementation
maybe years away due to challenges such as the need for high investment outlay,
inadequate know-how, lack of infrastructure, and a lack of adequate cybersecurity
norms. However, GoI has taken several steps to create robust manufacturing ecosystem
in the country. NIMZs have been created to support the reforms in manufacturing.
NIMZs are integrated industrial townships with state-of-the-art infrastructure, land use
on the basis of zoning, clean and energy-efficient technology; necessary social infra-
structure, new-age skill development facilities, etc., to provide a productive environment
for persons transitioning from the primary to the secondary and tertiary sectors.
The National Mission on Interdisciplinary Cyber-Physical Systems (CPS) was launched
in December 2018 to promote application development, human resource development
and skill enhancement, entrepreneurship, and start-up development in CPS and asso-
ciated technologies. This Mission aims to establish 15 technology innovation hubs, six
application innovation hubs, and four technology translation research parks. These will
connect to academia, industry, central ministries, and state governments in developing
solutions at reputed academic, research and development, and other organizations
across the country in a hub and spoke model.
120 D. CHENOY ET AL.

Several other initiatives support the goals of these developments. For example, The
Automotive Mission Plan 2016–26 (AMP 2026) aims to make India one of the top three
automotive manufacturers in the world and increase exports exponentially to reach
35–40% of overall output, increase its contribution to GDP to over 12% and generate
65 million new jobs. Similarly, the Ministry of Heavy Industries and Public Enterprises is
setting up of four centers in the country to facilitate skill needs for small and medium-
sized enterprises in implementation of Industry 4.0, while the DPIIT has notified the new
industrial policy with the aim to create new jobs, promote foreign technology transfer,
and attract $100 billion in FDI annually.
To further build a robust ecosystem of understanding and facilitating stakeholders in
adoption of Industry 4.0 related technologies, ‘Industry 4.0 Demonstration Centers’ are
being set up at various Industrial clusters and Universities in collaboration with
Department of Scientific and Industrial Research (DSIR), GoI. Many of the State
Governments have also taken initiatives to set-up Centre of Excellence on Industry 4.0.
India’s first smart factory is being set up at Bengaluru, which would be powered by
data exchange in manufacturing, and IoT. This Smart Factory is being developed at the
Indian Institute of Science’s (IISc) Centre for Product Design and Manufacturing (CPDM)
with the funding from The Boeing Company.
Government has also initiated setting up of multiple Technology Business Incubators
(TBI) under the programs like National Initiative for Developing and Harnessing
Innovation (NIDHI), Promoting and Accelerating Young and Aspiring Technology
Entrepreneurs (PRAYAS). Further a Fund of Funds for Start Ups of INR 10,000 crore
shall be released over two financial cycles by FY2025.

Skilling, Reskilling, and Upskilling Imperatives

There are numerous drivers impacting the manufacturing environment, which in turn are
driving the changing skill-set needs in the sector. See Figure 3, which presents manufacturing
trends in 2019 as gathered by Microsoft (Microsoft, 2019) and FICCI. Make in India is intended
to attract companies from across the globe and make India a high-end global manufacturing
hub. To meet this objective, the country needs a workforce with skills and educational
qualifications at par with international standards. Industry 4.0 implies that all repeat jobs
will get automated, and that the manufacturing sector will steadily shift toward new-age,
high-order, skill-intensive jobs.
With economic liberalization in FY1991, the share of agriculture in India’s GDP has
more than halved, and the share of industry and services has more than doubled.
However, the share of agriculture in employment has not come down drastically, with
the sector still accounting for almost 50% of the overall employment. The manufacturing
sector too has been a laggard in capturing the share of employment and has lost to the
services sector.
This skewed labor and output distribution has implications for India’s labor productivity.
Data from the Conference Board, which is a global business membership and research
association, shows that India had the highest labor productivity growth rate at an average
rate of 5.8% in terms of output per worker between 2010–2017. However, India’s overall
productivity still lags behind that of other developing Asian economies. The difference with
 INTERNATIONAL JOURNAL OF TRAINING RESEARCH 121

Figure 3. Drivers impacting manufacturing.

developed economies is even starker. For instance, the productivity levels in Germany and
the US are 5.1 and 6.8 times that of India, respectively (The Conference Board, n.d.).
Worryingly, the pace of productivity growth is also stagnating in India as per the Reserve
Bank of India’s KLEMS database [capital (K), labor (L), energy (E), materials (M), and Services
(S)]. It shows the average growth in labor productivity slipping to 5.8% in FY2011 from 7.4%
in the preceding years. Infact, with the exception of business services, the growth in labor
productivity in all other sectors has been negative. This essentially means that an under-
skilled or semi-skilled workforce was pulling India’s global competitiveness down.
Nevertheless, the impact of new-age technologies is evident in India’s two key
manufacturing sectors, the automotive and textile and apparel sectors. The automotive
sector will continue to hire at a rate of 2–2.5% YOY against the historical growth rate of
3–3.5% to reach 14.3 million in FY2022. Around 60–65% of the jobs in the sector will
require new skill sets by FY2022. Some of the key job roles and skills imperatives for the
sector as identified by FICCI, NASSCOM & EY (2017) can be seen in Figure 4. The textile
and apparel sector, which is the second largest employer in the country after agriculture,
employs approximately 80 million people, with approximately 30 million people directly
employed. While the weaving and garments subsector will continue to hire at a rate of
8–8.5% YOY against the historical growth rate of 9–9.5% to reach 40.7 million in FY2022,
45–55% of the jobs will require new skill sets. Some of the key job roles and skill
imperatives were identified by FICCI, NASSCOM & EY (2017) as being more highly skilled
than traditional textile and garment roles (see Figure 5).
122 D. CHENOY ET AL.

Figure 4. Emerging job roles in automotive sector in India.

Figure 5. Emerging job roles in textile & apparel sector in India.

 INTERNATIONAL JOURNAL OF TRAINING RESEARCH 123

The WEF (2016) has redefined the skill sets required to meet the needs of Industry 4.0. As
India moves toward Manufacturing 4.0, it will need to make generational transformation in
its schools, higher education, vocational education and skill development ecosystem to
deliver the required twenty-first-century skills identified in Table 4.
While countries such as Indonesia, Malaysia, and Thailand are implementing Industry 4.0
to move swiftly toward a higher base of economic benefits, large economies are also
increasing skills for innovation and competitiveness of their workforce. Japan launched its
‘Revitalization Strategy 2016ʹ to accelerate skilling activities and growth in advanced man-
ufacturing sectors. The policy aims to build on the country’s inherent strengths in manu-
facturing and technology while targeting the development of $1.3 trillion of new industries
and 4.7 million jobs by 2020. Similarly, Singapore, a hub for high-value manufacturing,
recently launched the ‘Singapore Smart Industry Readiness Index’ (Economic Board
Development of Singapore, 2019) to provide a common framework to motivate companies
to start, scale, and sustain Industry 4.0 efforts. The country has also initiated multiple skill
development activities on new-age technologies. People’s Republic of China (PRC), which
accounts for about 25% of the world’s manufacturing activity, is also seeking to close the
gap in manufacturing with Japan and Germany by embracing new technologies to enhance
competitiveness. Initiatives such as ‘Scientific Innovation 2030ʹ and ‘Made in China 2025ʹ are
further enabling manufacturers to reskill and upskill their workforce (Kennedy, 2015).

Government interventions to develop the skill ecosystem

Recognizing the need for skill development, Government of India initiated a National Skill
Development Policy in FY2009 and established the National Skill Development Fund
(NSDF) and the National Skill Development Corporation (NSDC) under the Ministry of
Finance, GoI. The National Skill Development Authority (NSDA) and The National Skills
Qualification Framework (NSQF) were established in FY2013. The role of the latter is to
organize all qualifications according to a series of levels of knowledge, skills, and aptitude.
After the fifth anniversary of notification in 2018, it was expected to be mandatory for all
training and educational programmes and courses as well as admission requirements to
be NSQF-compliant. However, due to complexities and diversities prevalent in the training
ecosystem, only few states have fully implemented it.
To better streamline, organize and implement the skill development initiatives with focus
on entrepreneurship development, Ministry of Skill Development and Entrepreneurship
(MSDE) was set up in FY2014. NSDC and Directorate General of Training (DGT) under

Table 4. New-age skill requirements.

In 2015 In 2020
Complex Problem Solving Complex Problem Solving
Coordinating with others Critical Thinking
People Management Creativity
Critical Thinking People Management
Negotiation Coordinating with others
Quality Control Emotional Intelligence
Service Orientation Judgement & Decision Making
Judgement & Decision Making Service Orientation
Active Listening Negotiation
Creativity Cognitive Flexibility
124 D. CHENOY ET AL.

Ministry of LAbour and Employment (MoLE), GoI that regulates Industrial Training Institutes
(ITIs) was brought under its fold. A new National Skill Development and Entrepreneurship
Policy was launched in FY2015 that supports the National Skill Development Mission. This
urges all States (Provinces) to set up the State Skill Development Missions (SSDMs) and
integrate the central as well as state-run schemes. SSDMs acts as the nodal agency to work
with NSDC, Sector Skill Councils (SSCs), training partners, different ministries, and other
stakeholders.
NSDC (2018) is a public–private partnership organization with the aim of providing
viability gap funding to the private sector in order to scale up the training capacity. FICCI
is a shareholder along with seven other industry association bodies. NSDC has over 130
approved training projects across sectors, which are monitored for their financial place-
ments and social targets. Figure 6 depicts the skill development ecosystem in India.
Currently, there are 37 SSCs (2008) with a mandate to have fair representation of
employers in terms of subsectors, size, and geography; and are expected to ensure
wider participation of employers and other stakeholders in the skill development
initiative. One of the key deliverables of SSCs is to develop National Occupational
Standards and Qualification Packs, apart from empanelment of training partners and
qualified assessment providers. With the availability of trainers being a major challenge
in scaling up capacity, SSCs are also expected to play a crucial role in getting right
industry support to facilitate training of trainers for their respective sectors. Following is
the list of SSCs in India per the Ministry of Skill Development (Figure 7).
Besides NSDC and SSCs, the National Council for Vocational Training (NCVT) conducts All
India Trade Tests for those who complete training in ITIs, and awards National Trade
Certificates to successful candidates. The State Council for Vocational Training at the state
levels and the subcommittees have been established to assist the National Council. To
further strengthen the Vocational Education & Training in India, in 2018, the Government
merged NSDA and NCVT into National Council for Vocational Education and Training

Figure 6. Skill development ecosystem in India.

 INTERNATIONAL JOURNAL OF TRAINING RESEARCH 125

Figure 7. Sector skill councils in India.

(NCVET) to form a integrated regulatory framework. The Quality Council of India promotes
the establishment of quality improvement and benchmarking.
Apart from creating the institutional framework for skill development, several national
programs have been launched. Some of the flagship initiatives of the government to
promote skill development activities in the country are the Pradhan Mantri Kaushal Vikas
Yojana (PMKVY), Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDUGKY), Pradhan
Mantri Kaushal Kendras (PMKK), and National Apprenticeship Promotion Scheme (NAPS). In
order to boost the Skill India Mission, two new schemes, namely, ‘Skills Acquisition and the
Knowledge Awareness for Livelihood Promotion’ and ‘Skill Strengthening for Industrial
Value Enhancement’, have been approved by the Cabinet Committee on Economic
Affairs, with an outlay of Rs 6,655 crore ($1.02 billion) supported by the World Bank.
MSDE initiated comprehensive reforms in the Apprenticeship Act in 2014 to make appren-
ticeship industry-friendly and, in 2018, launched operational guidelines on the roles and
responsibilities of stakeholders at the national and state level. The operational framework
also provides detailed information regarding the execution of NAPS, information to be
disseminated and incentives under the scheme to attract corporates across sectors to engage
apprentices.
FICCI works closely with MSDE, NSDC, and DGT to create awareness about Apprenticeship
and engage industry across India. MSDE, supported by FICCI has developed a comprehensive
360-degree communications strategy along with a targeted industry engagement plan. The
126 D. CHENOY ET AL.

program, if implemented effectively, can be the entry point of developing a ‘new-age’ work-
force with hands-on experience.
The entire skill ecosystem described in this section is to train the school graduate, school
drop outs, provide continuing skill development programs for the workforce and Recognition
of Prior Learning (RPL) for uncertified but skilled manpower trained on the job. As per the Skills
Stock Survey done by Centre for Monitoring Indian Economy (CMIE) and NSDC in FY 2018,
42% of the workforce is skilled out of which only 4% is formally certified and 5% are women.
Hence, there is an urgent need for RPL and increasing women in the workforce.
India started leveraging the World Skills Competitions since 2011 to make Vocational
Education and Skilling aspirational. In 2016 MSDE, GoI and NSDC launched India Skills
Competition, however, response from states were moderate. In 2017, a large contingent
of state governments and industry participated in WorldSkills, Abudhabi. This led to
a momentum and resulted in participation of 23 states in India Skills (2018), where
competitions were held in 46 skills and 10 demonstration skills (India Skills, 2018).

Preparedness for Industry 4.0 and related ‘new-age’ skills

To prepare twenty-first century new age skilled workforce, Government of India has initiated
several flagship interventions across the continuum of education. In FY2014, ‘Atal
Innovation Mission’ under NITI Aayog – the Government Think Tank, was initiated to set
up Atal Tinkering Labs (ATL) in Schools across the country. More than 5500 such labs have
already been set up untill December FY2018 to inculcate amongst young learners, the spirit
of innovation, design thinking, creativity, problem-solving, environment consciousness,
sustainability, etc., and provide training on new-age skills like AI, coding data anaytics, etc.
ATL is facilitating creation of over one million Neoteric Innovators by 2022.
FICCI is closely engaged with the government in developing a cohesive ecosystem for new-
age skill development in India. As the India Secretariat for the BRICS Business Council, in
FY2016, FICCI supported by BRICS countries and German consulting company, Rollend Berger,
published a research paper on ‘Industry 4.0 and Required Skill Development in BRICS
Countries’ (BRICS Skill Development Working Group, 2016). The report analyzed the level of
preparedness for adoption of Industry 4.0 in BRICS countries and compared it with adoption
levels in developed nations like Japan, the Republic of Korea, Germany, and the USA. Another
significant initiative by FICCI in FY 2017 was the publication of Future of Jobs in India – A 2022
Perspective (FICCI, NASSCOM, & EY, 2017) This report was the first indigenous research on the
future of jobs in five key sectors in India, namely, Information and Communication
Technology-Business Process Management (ICT-BPM), Retail, Textiles & Apparel, Automoti,
and Banking Financial Services and Insurance (BFSI). The findings were based on interactions
with 100+ Chief Executive Officers (CXOs) in India. These reports amongst several others
sparked discussions on Industry 4.0- related preparedness in India.
The white-collared skilled workforce supply for the manufacturing sector comes from
engineering colleges that falls under Ministry of Human Resource Development (MHRD),
GoI, State Education Departments and All India Council for Technical Education (AICTE) as
the regulator. Over the years, AICTE has undertaken several proactive steps for the growth of
engineering education, maintenance of standards, and to keep the curricula current and
relevant. In FY2018 AICTE, set up an Experts Working Group (FICCI was also a member) to
recommend the short-term and medium-term reforms in Engineering Education. One of the
 INTERNATIONAL JOURNAL OF TRAINING RESEARCH 127

key reforms recommended was introduction of undergraduate engineering programs

exclusively focused in AI, IoT, Blockchain, Robotics, Quantum Computing, Data Sciences,
Cyber Security, 3D Printing & Design, AR/VR (Indicative list), also to bring in a greater focus
on multi-disciplinary engineering courses, especially in computational biology, biotechnol-
ogy, biomedical, mechatronics, space, aerospace, agriculture, and environmental engineer-
ing. Atal Innovation Labs are also being set by several Universities and Higher Education
Institutions (HEIs) under Atal Innovation Mission. 19 Incubation Centers have been set up in
the first phase in FY 2017–2018. In the recently announced second phase, 80 more
Incubation Centers have been shortlisted for funding. To further develop convergence
between Education and Skill Development, MHRD, GoI launched the Scheme for Higher
Education Youth in Apprenticeship and Skills (SHREYAS) and to provide industry apprentice-
ship opportunities under Apprenticeship Act 2016. The program aims to enhance the
employability of Indian graduates of higher educational institutes by providing ‘on the
job work exposure’.
The grey and blue-collared workforce supply is from ITIs. Several of these ITIs are
adopted and mentored by large corporations like Larsen & Tubro, Maruti Suzuki, TATA
Sons, etc., for making the training relevant to industry needs. The findings from above
mentioned studies also triggered the development of National Occupational Standards
(NOSs) and Qualification Packs (QPs) by SSCs that led to introduction of short-term
‘Future Skills Courses’ by several ITIs, Training Providers, Universities and HEIs. There has
been greater convergence between MHRD, MSDE, and MoLE, GoI for better implemen-
tation of apprenticeship program. Alignment with Ministry of Micro Small and Medium
Enterprises (MSME) is being worked upon as 97% of industry is unorganized. Make in
India will be successful only if productivity and efficiency of SME sector improves with
better skilled workforce and use of technology.
India is a diverse country in terms of economic and socio-political development, one
of the key challenges is a lack of awareness and knowledge of new developments in
technology, their impacts on industry and associated opportunities for employment
growth. This makes the redundancy of human resource in India a huge challenge. To
address this, MoLE, GoI (under the National Career Service initiative) and FICCI have
partnered with Samsung to establish a Model Career Center (MCC) in National Capital
Region. Its aim is to focus exclusively on career counseling for employment and
entrepreneurship, policy design, and standardization of norms for career counseling. It
will also act as a catalyst in promoting and harmonizing young job seekers with twenty-
first-century skills. MoLE jointly with State Governments has also set up 100 model
Career Centers and plans to set up 200 more.
Another key FICCI led initiative is ‘FICCI Future-X’ program which provides a platform
to key stakeholders, to impart a better understanding of the changing nature of the
‘world of work’. FICCI has partnered with leading technology companies for this program
as well as Niti Aayog and AICTE. There are three key offerings under FICCI Future-X:

● Future Talk Series- Series of ‘Future Talks’ led by Senior Industry Leaders highlighting
the impact of exponential technologies and changing skill-sets requirement;
● Capacity Building- Faculty development programs to help support the academia to
deal with constantly changing technological advancements and be future ready;
128 D. CHENOY ET AL.

● Immersion Program- To orient and expose students and faculty to technological

evolution and opportunities to trigger and sustain start-ups and innovation ecosystem
in HEIs/Universities.

Conclusion
Industry 4.0 will accrue benefits such as cost reduction, higher efficiencies, safer factories, and
faster speed to market. It can also provide a country’s manufacturing sector with a much-
needed push to stay competitive in the global market. Government programs such as ‘Make
in India’, and policies such as the ‘National Policy for Advanced Manufacturing’, will aid
implementation of Industry 4.0 and will help in boosting the manufacturing sector’s share
in the country’s GDP to 25% by FY2022 from the current 17%. However, the success of Make in
India depends largely on the success of the Skill India Mission. Convergence of all the key
ministries – MSDE, MHRD, and MoLE – would help in better implementation of Programs like
Apprenticeship and RPL.
India’s demographic advantages can be realized only if the existing workforce is
reskilled and upskilled through lifelong learning initiatives, and new recruits are pre-
pared with twenty-first-century skill sets. It is a mammoth task for the government alone
to develop a skill-based workforce and drive the Make in India initiative. Therefore, it is
imperative that government and industry partner and take collective actions to develop
the skilled workforce.
The large and organized industry has its own induction and training processes
and programs in place to train human resources for their requirements. They also
engage and support Vocational Training Institutes & ITIs for developing skilled
labor pools in their respective sectors. However, it is the 97% of the unorganized
SME industry, that struggles in meeting these goals. As per the notified complaince
norms for SSCs by MSDE, GoI, in FY2019, SSCs will have to engage with Industry
Association Bodies for greater cooperation to get relevant labor market information
and understand the supply demand trends of skilled manpower. Large industries
can be incentivized to train surplus human resources in advanced technologies that
can be absorbed by SMEs.
While a number of initiatives have been launched, it is important to create a national
ecosystem that harmonizes and coordinates the efforts. This ecosystem would include:

● A fund to demystify and popularize Industry 4.0 – focused technologies and

provide required training in AI, machine learning, cybersecurity, data analytics,
etc., in higher and vocational educational institutions, and by international and
national experts from industry and academia.
● National incentives across sectors along the lines of ESDM to develop on-the-floor
skilling and reskilling in both public and private sectors.
● The creation of industry-specific curriculum in schools, colleges, and universities to
develop technological acumen and workforce through a robust model of industry
and education partnerships.
● Sector-specific, higher education PhD programs and Centers of Excellence to be
created in Universities/HEIs.
 INTERNATIONAL JOURNAL OF TRAINING RESEARCH 129

● A national database of future jobs must be compiled on the basis of projected

industry-based requirements by SSCs.
● Continued thrust on labor laws reforms to meet the changing needs of labor market.

Disclosure statement
No potential conflict of interest was reported by the authors.

Notes on contributors
Dilip Chenoy is currently Secretary General at FICCI. His last full-time assignment was with National
Skill Development Corporation (NSDC) as Managing Director & CEO. He is a member of the Board
of Governors, IILM, New Delhi, of the Board of studies, All India Management Association (AIMA).
He also served as the Chairman of Sant Longowal Institute of Engineering & Technology (SLIET)
a fully government funded integrated skill development and degree-awarding institution. He was
awarded the Indian Achievers Award in 2018; The Game Changer Award in 2015 and the Rashtriya
Media Ratan Award in 2013. Prior to NSDC, Mr Chenoy hold senior positions with Society of Indian
Automobile Manufacturers (SIAM) and Confederation of Indian Industry (CII).
Shobha Mishra Ghosh, ASG, FICCI heads the social sectors (Education, Skill Development, Health)
including Health Insurance and Medical Technology. She has more than 30 years of experience of
being associated with organizations like The Energy & Resource Institute (TERI) Schumacher Centre
Delhi (SCD) - Indian partner of IDG (India Development Group) in London, U.K, amongst others. She
is on Boards of NABET & NABH, under Quality Counci of India (QCI), PRIA and Delhi Public School,
Bopal. She has been recognized for her contribution to Education Sector by FHFI Inc, USA and
Dr KCG Verghese Excellence Awards. By qualification she is a trained Architect from Sir J J College of
Architecture, Mumbai and Post Graduate Diploma in Urban Planning from Institute of Housing and
Development Studies (IHS), Rotterdam, The Netherlands. She is also trained in Higher Education
Leadership and Management from United States Department of State and Illinois University of
Urbana Champagne, USA.
Shiv Kumar Shukla, Senior Assistant Director, FICCI is a skill-full professional with multifaceted
competencies and vast cross functional experience in managing various projects related to
Education and Skill Development sectors. In his current assignment as Senior Assistant Director
with FICCI, Shiv has extensively worked on various high impact research and policy advocacy
related projects like- Future of Jobs, Employability for the Future, Employer led models of job
creation, Education 4.0 and its preparedness etc. Prior to joining FICCI, he was associated with
Planning Commission of India, The Economist Intelligence Unit and Royal Education Council
Project, Bhutan. He holds an advance degree in Developmental Economics from Delhi University.

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