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“Empower the youth with skills today, and they will build a better world tomorrow."- Anonymous.
India’s vision to become a $5 trillion economy by 2030 hinges on one critical factor: the transformation of India’s 450 million blue-collar workers into a skilled, adaptable labour force capable of meeting the demands of the evolving global economic landscape. In the Union Budget 2024, the government announced more job creation in the manufacturing industry as one of its key priorities, pivoting the country from a service-based economy to a manufacturing powerhouse. As per the Economic Survey 2024, close to 50 per cent of India’s population is unemployable, hence the light on nationwide skilling initiatives is imperative.
Agrarian Economy to Manufacturing Hub: The Shift
Following Independence, India’s economic trajectory witnessed a major shift from an agrarian economy to one dominated by services- driven by advances in technology and communication. The 1991 economic reforms opened the country to global trade, attracting international businesses and investments. The 21st century's tech revolution further boosted job opportunities. Now, as India aims to become the world’s third-largest economy by 2031, there is a significant shift towards manufacturing, fueled by initiatives like 'Make in India' and 'Atmanirbhar Bharat,' inspired by Gandhi's swadeshi movement. Per the Ministry of Commerce and Industry, the ‘Make in India’ initiative has consecutively reached record FDI inflows for eight years. Despite these promising numbers, a number of significant challenges looms. With tectonic shifts in jobs and the evolving workforce, it is imperative that skill sets are built and strengthened, in turn making the youth job ready and there is employment-based skilling.
The Blueprint for Workforce Evolution: Upskilling
Post Independence, India saw a push for industrialisation, leading to a gradual transition to manufacturing jobs, a trend that has continued throughout the 20th century. The government in its budget 2024 allocated INR 1.48 lakh crore for education, skilling and employment to benefit 4.1 crore youth. To meet the specific needs of the manufacturing sector the upskilling approach should include tailored vocational training programmes that align with industry requirements. The government should foster collaborations between academic institutions and private enterprises to ensure the same. Additionally, new skill development centers should be established across the country, equipping the youth with cutting-edge training programmes that leverage the latest technologies. Unlocking the potential of India’s demographic dividend is essential.
Impact on Small Cities and Low-Wage Workers
As manufacturing capabilities spread beyond traditional industrial hubs, smaller urban centres are experiencing increased economic activity. This shift is creating new employment opportunities closer to home for many workers, reducing the need for migration. For low-wage workers, the emphasis on upskilling opens doors to better-paying jobs and career advancement.
Focusing on last-mile workers is key to this transformation. Advances in technology are also crucial in democratising skill access. E-learning platforms and mobile apps enable workers in remote areas to access quality training, while improved infrastructure has brought most of India online, making education accessible to the majority of the youth. Targeted training and upskilling programs can reshape income distribution, making it more equitable. The National Skill Development Corporation (NSDC) has played a vital role, partnering with over 11,000 training centers to upskill more than 2.5 crore people, many from economically weaker sections.
The Road to 2030: A Paradigm Shift in Employment
As we enter into a new phase of the Indian economy, new opportunities come with new skill requirements. To meet this demand, upskilling programmes must target both students and young professionals. The New Education Policy 2020 emphasises the integration of vocational education into mainstream education, aiming to expose at least 50 per cent of learners to vocational education by 2025.
The journey towards a USD 5 trillion economy by 2030 is as much about transforming India's workforce as it is about economic policies and investments. By focusing on upskilling blue-collar workers, particularly in regions outside the traditional manufacturing hubs, India can create a more equitable economic landscape that will drive prosperity for decades to come.
