What’s Driving The 10 Million Skill Gap In India’s Electronics Sector?

The electronics industry, also known as the electronics sector, is one of the fastest-growing industries in India. With ambitions to achieve $500 billion in output by 2030, the sector faces a critical challenge: a rising skills gap that threatens to hinder its progress. Various reports indicate that this shortfall in skilled workers could significantly impact the industry’s growth potential. Projected to become a $1 trillion digital economy by the financial year 2026, the industry will require 3 million professionals in direct roles and 9 million in indirect roles by 2027-28. However, there remains a concerning shortage of 10 million skilled workers to meet this demand. In this article, we explore the electronics sector, how it operates, and the urgent steps needed to bridge this growing skills gap and secure the future of this dynamic industry.

What Is The Electronics Sector?

The electronic sector is one of the growing sectors in India that produces, designs and manufacture electronic equipments and consumer electronics. They also develop electrical components for various products. The common products in this industry includes television, mobile, circuit boards, motors, medical monitors (dialysis machine), integrated circuits, etc. These components are mainly used in entertainment, aviation, telecommunications, healthcare, home appliances and transportation sectors. In recent years, the industry has expanded its scope beyond traditional audio and video products, incorporating advancements in information technology and telecommunications. This evolution drives economic growth and creates numerous job opportunities. Driven by innovation, the electronics sector invests heavily in research and development to design superior components, enhance products, and optimize manufacturing processes. This commitment to technological advancement continues to position the electronics industry as a critical contributor to India’s economic progress.

The electronics industry intersects with various sectors, creating new opportunities but also placing significant demands on workers involved in development and manufacturing. From engineering and design to sales, technology, and customer support, considerable effort goes into designing products, assembling them, marketing them, and achieving strong sales and profits. Success in this industry is often a collaborative effort, drawing on expertise from multiple fields. With the adoption of advanced technologies like AI, sustainability practices, and cutting-edge innovations, product development has reached new heights. However, this rapid evolution raises a critical question: is it contributing to a growing skills gap in the sector? Let’s find out below!

Why Does The 10 Million Skill Gap Persist?

The 10 million skill gap in India’s electronics sector can be attributed to several key factors. The sector is rapidly expanding, with ambitious goals such as achieving $500 billion in output by 2030 and becoming a $1 trillion digital economy by 2026. However, the development of a skilled workforce to meet the demand for specialized roles has not kept pace with this growth.

Technological advancements, including AI, automation, and IoT, are transforming the industry. Yet, not everyone entering the workforce comes from advanced educational backgrounds, resulting in a lack of the technical training and expertise needed for these emerging technologies. Even though India produces a large number of engineering graduates, the skills taught in universities and technical institutes often don’t match the practical, real-world needs of the electronics industry, leading to a disconnect between academic knowledge and industry requirements.

Limited collaboration between industry players and academic institutions has further contributed to the skills gap, leaving the workforce without the practical experience and specialized knowledge required in this fast-evolving sector. Additionally, there is an insufficient emphasis on vocational training programs that could provide workers with the specific skills needed for roles in manufacturing, assembly, and maintenance. Even when skilled workers are trained, many seek better opportunities abroad or in other industries, exacerbating the shortage.

A recent report titled ‘People, Supply Chain Innovation with ROI’ highlights the urgent need to address this 10 million deficit to sustain and accelerate growth in the electronics sector. It stresses that initiatives like Make in India and Digital India have propelled the electronics value chain forward, but realizing its full potential depends on addressing these skill gaps, especially in emerging fields like IoT and 5G, according to A. R. Ramesh, CEO of TeamLease Degree Apprenticeship.

The report also points out that many job seekers lack the necessary technical skills, practical experience, and alignment with industry needs, creating a bottleneck in an otherwise promising sector. Critical areas identified for specialized talent include communication electronics, consumer electronics, aerospace and defense electronics, semiconductor process engineering, and robotics.

The talent pool for this industry is expected to come largely from electrical and electronics engineering streams, with contributions from fields like AI, machine learning, and data science (5%), industrial training institutes (ITIs) (50%), and general streams (up to 40%).

Ways To Address The Skill Gap In The Electronics Sector:

To address the skill gap in the electronics sector, several strategies can be implemented at various levels—ranging from education to industry collaboration. Here are some effective ways to bridge the skill gap:

1. Industry-Academia Collaboration

• Curriculum Alignment: Universities and technical institutions should partner with industry leaders to update curricula, ensuring they align with the latest technologies and real-world industry demands.
• Internships and Apprenticeships: Offering hands-on experience through internships and apprenticeships will allow students to gain practical skills while still in school. Initiatives like TeamLease’s Degree Apprenticeship program can help in this regard.
• Guest Lectures and Workshops: Regular interactions with industry experts can help students understand industry trends, skills in demand, and the practical application of their knowledge.

2. Focused Vocational Training

• Skilling and Reskilling Programs: Launching specialized training programs for workers, particularly in emerging areas like IoT, robotics, and AI, can help meet the sector’s needs. Vocational training institutes should focus on practical, industry-specific skills.
• Certification Courses: Offering certifications in critical areas such as semiconductor process engineering, consumer electronics, and telecommunications will enhance job readiness and boost confidence in employees.

3. Government Initiatives and Policies

• Skill Development Schemes: Government-backed initiatives like Make in India and Digital India should include provisions for workforce skilling, with specific focus on emerging technologies such as 5G, IoT, and AI.
• Incentives for Industry Participation: The government can incentivize companies to invest in training and developing a skilled workforce through tax breaks, subsidies, or funding for educational programs.

4. Focus on Emerging Technologies

• Advanced Technical Skills: Since the electronics sector is evolving with technologies like AI, machine learning, and automation, there is a need for specialized training in these areas. Institutions should establish dedicated programs focused on these emerging fields.
• Cross-Disciplinary Learning: Encouraging students and professionals from diverse fields, such as industrial design, data science, and software engineering, to learn about electronics can help fill gaps in specialized roles.

5. Encourage On-the-Job Training and Mentorship

• Mentorship Programs: Pairing new employees with experienced mentors can help them acquire industry-specific skills more quickly and effectively.
• Continuous Learning: Encouraging a culture of lifelong learning, where employees constantly upgrade their skills through online courses, workshops, and seminars, can help keep the workforce updated with the latest technologies.

6. Upskilling and Reskilling of Existing Workers

• Incentivizing Upskilling: Companies should offer incentives for employees to take up upskilling programs, enabling them to transition to more advanced or specialized roles.
• Reskilling Programs for Displaced Workers: With automation and AI transforming the sector, reskilling workers who may be displaced by technology can help retain a talented workforce and reduce unemployment.

7. Promoting Research and Development (R&D)

• Investment in R&D: More focus on R&D in electronics and related fields will encourage innovation and provide opportunities for workers to develop skills in cutting-edge technologies.
• Collaborative R&D Programs: Companies, universities, and research institutions should collaborate on research projects that foster skill development and innovation, particularly in critical fields like semiconductors and robotics.

8. Global Talent Mobility

• Attracting Global Talent: Encouraging global talent to work in India’s electronics sector by offering competitive salaries, benefits, and opportunities for professional growth can help fill the skill gap.
• Expatriate Skill Transfer: Bringing in experts from other countries or regions with advanced skills can help train the local workforce and facilitate knowledge transfer.

By addressing these areas with a focused, multi-pronged approach, the skill gap in India’s electronics sector can be significantly reduced, ensuring the industry meets its ambitious growth targets and remains competitive on the global stage.

The immediate challenges linked to skill development and employability call for a curriculum that is aligned with market demands. Programs such as Apprenticeship Embedded Degree Programs (AEDP), envisioned under the new education policy, offer promising solutions by producing two million job-ready graduates annually. These programs will bridge the gap between academic learning and the skills required by the industry, making graduates more equipped to meet sector needs.

Additionally, the report highlights the need to reskill six million existing workers in the electronics sector and implement targeted upskilling programs for four million new entrants by the financial year 2027-28 (FY28). This comprehensive approach will help address both the current skill shortage and prepare the workforce for future demands.

In conclusion, by focusing on curriculum reforms, industry-academia collaboration, vocational training, and reskilling initiatives, India can develop a workforce capable of driving the growth of its electronics sector. The combination of these strategies will not only close the skill gap but also ensure the sector’s ability to meet its ambitious targets, contributing to India’s economic success and positioning it as a global leader in electronics innovation.