The Growth of Manufacturing Industry in India and Hiring Trends
India has seen a significant increase of investments in India, leading to a growing manufacturing industry as the automobile sector is expected to rise by 30 percent and Electronics building their plants making it one of thriving sectors; for leveraged returns – As commercial Real estate market are concentrated on central location close proximity vector offering units supporting small industries growth. These sectors are emerging as frontrunners in propelling Indian manufacturing growth.
Important initiatives on the part of the government, including “Make in India,” have aided a favorable business climate to open up investment and domestic production. With the following steps, regulatory processes have been integrated into transaction processes to help businesses function with ease. PLI scheme implementation has also given a big push to many manufacturing sectors. Other initiatives, such as the Bharatmala Pariyojana Project and proposed DESH Bill have increased opportunities in industrial space combined with Skill Development Initiatives; Infrastructure Development including recent Ease of Doing Business Reforms & National Logistics Policy. Projections place the sector at about 21 percent of GDP – almost double current figures from around 17 per cent.
Government Initiatives for The Growth Of Manufacturing Industry in India
Make in India (2014): As in 2014, it is an initiative to give a friendly investment environment to both national and international investment communities for manufacturing through 25 important sectors like automobiles, electronics, textile and pharmaceuticals. The “Make in India” program also received great international attention with investment in global industries across every sector.
India continues to attract a lot of FDI into the country, at $25.53 billion in FY 2023-24, thus supporting the same level of growth in GDP, as projected to run at 6% to 6.8% in 2023-24. Climbing from 142nd to 63rd in the Ease of Doing Business Ranking 2020 and to the 40th position in the Global Innovation Index, India portrays an enabling business environment. With exports touching $770.18 billion, the government claims to have set a target of achieving $5 trillion economic growth by 2025, led by a swelling population expected to touch 152.2 crore by 2036, where it now stands as the world’s second-largest mobile phone producer.
It is developing infrastructure with industrial corridors and 21 new industrial cities with the help of investments from Japan. The country has initiatives like the Smart Cities Mission and Sagar Mala-with an aim to modernize infrastructures. Even while doing that, opening up the defense sector, civil aviation, as well as the pharmaceutical sector for increased foreign investment, in general, reflects that India is still open for showing innovation and development.
Production Linked Incentive Scheme (PLI Scheme, 2021): Introduced in the year 2021, the PLI scheme includes 14 sectors: telecommunications, white goods, textiles, manufacturing of medical devices, automobiles, speciality steel, food products, high efficiency Solar PV modules, advanced chemistry cell batteries, drones, and pharmaceuticals with an allocation of Rs 1.97 lakh crore. As of November 2023, PLI schemes have attracted investments in excess of Rs 1.03 lakh crore, with production/sales amounting to Rs 8.61 lakh crore and exceeding over 6.78 lakh jobs. Thus, with 746 approved applications, it has gathered investments totalling 1.07 lakh crore. The PLI scheme will thus be the catalyst that will propel companies to enhance their manufacturing capabilities and then introduce the most innovative technologies in order to make the investment worthwhile. This further supports the global push toward automation and smart manufacturing, where the main contention lies in the exchange of data and interconnected systems.
Such an allocation of 70-80% of the scheme towards environmentally friendly initiatives is, therefore, likely to induce green investments in India. This includes areas such as fuel cell technology, electric vehicles, solar photovoltaic (PV) systems, and ACC batteries. The incentive to the capital expenditure ratio for different sectors is not the same and gets tuned according to sector-specific costs.
According to the Indian Staffing Federation, this massive boost in production due to the PLI scheme has the potential to double the existing workforce across sectors.
Infrastructure Development: Many Infrastructural Development initiatives by the government are fueling the manufacturing Industry growth in India, some of which are:
Ease of Doing Business Reforms: The government is leading initiatives to improve the business environment by simplifying processes, reducing compliance burdens, and implementing key reforms like GST introduction, corporate tax reduction, labor code enactment, FDI policy reforms, and measures to boost domestic manufacturing. These efforts aim to create a favorable business and economic environment.
Hiring for Manufacturing Industry in India
INDIA is on the threshold of a revolutionary break, wherein it promises to raise the share of its GDP to 25% by 2025. Hiring for the manufacturing industry is on an increase in an assortment of positions coupled with high-growth areas like automobiles, electronics, and textiles, driven both by domestic demand and export opportunities. Technological developments, especially in terms of automation and artificial intelligence, will be happening in this sector that require an efficient workforce in modern manufacturing techniques. TeamLease Employment Outlook Report H2FY24 relates that 74% of the employers expected incremental workforce growth and 69% incremental new hiring in manufacturing, with Chennai, Bangalore, Hyderabad, and Coimbatore emerging as the top cities for hiring in the sector.
Building a combination of technical and soft skills is always required for the individuals aspiring to have a successful career in the manufacturing sector. Although knowledge in automation and robotics enables one to increase efficiency and production, it is essential to have the ability to analyse and comprehend the data generated by sensors and machines, enabling one to optimise the process and make crucial decisions. In the same way, understanding CAD and CAM software and technical troubleshooting skills is important so as to produce it without hassle.
Skill Gap Overcoming
The high speed of Industry 4.0-related technology adoption, including AI (Artificial Intelligence), ML (Machine Learning), and automation, causes a skill gap within the manufacturing sector. As per one study, 74% of the executives in the manufacturing sector reported to face problems in finding suitable candidates who possess the required qualifications for roles in specialised areas.
This requires collaboration between educational institutions and industry players to bridge the demand-supply gap with special skills training programs and certification regimes tailored to address the need of the hour, that is, bridging the gap between the available talent pool and the needs of the industries.
Programs under the National Apprenticeship Promotion Scheme (NAPS), Pradhan Mantri Kaushal Vikas Yojana (PMKVY), Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY), and Pradhan Mantri Yuva Udyamita Vikas Abhiyan (PM-YUVA) find their impetus through initiatives pioneered by the Government of India. These programs, in turn, are intended to provide opportunities for apprenticeship training and skill upgradation for youth across the country. They also aim to fill skill gaps and meet the demand for skills in industry contexts.
Best Practices To Overcome Challenges In Talent Acquisition
Pioneering Partnerships with Educational Institutions:
Mastery through Upskilling & Reskilling Initiatives
Companies must invest in continuous learning programs to keep their workforce abreast of the latest advancements.
Upskilling involves enhancing existing skills, while reskilling focuses on acquiring entirely new skill sets.
By providing employees with opportunities for professional development, manufacturers not only ensure a skilled and adaptable workforce but also foster a culture of innovation and continuous improvement.
Crafting an Irresistible Employer Brand
A positive employer brand attracts top talent and retains skilled employees. Manufacturers are increasingly focusing on creating a workplace culture that emphasises innovation, collaboration, and employee well-being.
Communicating these values through various channels, such as social media, company websites, and industry awards, helps establish a positive image in the eyes of potential candidates.
A robust employer brand not only aids in attracting skilled professionals but also contributes to employee satisfaction and loyalty.
India’s factories are growing fast, thanks to government plans like Make in India and the Production Linked Incentive (PLI) Scheme, along with new roads, ports, and other large projects. This growth has led companies to hire more people in sectors like automobiles, electronics, and textiles, driven by consumer demand within India and international import needs. However, finding workers with the right skills remains a challenge, even with initiatives like NAPS and PMKVY. With Truetym and everyone working together, India can become a bigger player in global manufacturing and significantly boost its economy.
