The current decade has witnessed rapid growth in India’s manufacturing sector, driven by policy initiatives like Atmanirbhar Bharat and the Production Linked Incentive (PLI) scheme, alongside technological advancements and global supply chain shifts. This expansion is positioning India as a critical player in global manufacturing. However, the sector is grappling with a significant demand-supply gap in skilled labour, potentially hindering its growth trajectory.
With the manufacturing sector expected to create 90 million non-agricultural jobs by 2030, India faces the pressing challenge of filling these roles with adequately trained workers. As of 2023, the sector employed approximately 35.6 million people—falling short of projected growth and indicating a widening gap between demand and supply.
The demand-supply imbalance has led to high attrition rates, as workers have multiple avenues and opportunities within the industry. This further emphasises the need for a robust training model that can scale to meet the growing needs of the workforce. New hires, especially those deployed to shop floors, must receive adequate training tailored to the specific machines or operations they will handle before starting their jobs. This foundational training is critical not just for productivity but also for ensuring safety and long-term employee retention. Many newly hired workers may lack the requisite skills to operate sophisticated machinery or meet quality standards. Hence, the training infrastructure needs to be capable of rapidly upskilling employees to meet the demands of this fast-evolving industry. This is crucial as effective training directly impacts shop-floor productivity and overall operational efficiency.
Key components of effective training
Defining a skill matrix: A well-defined skill matrix is fundamental to building a robust training programme. This matrix should identify the key technical skills required for each machine and operation. For example, machine operators may need to master troubleshooting techniques, while maintenance staff should focus on preventive maintenance protocols.
Skill assessments: Regularly assess employees against the skill matrix to keep track of proficiency across tasks and machines. This dynamic skill matrix should be updated as employees complete training modules or advance in their skill levels. This helps in creating personalised and targeted training plans for employees. New joiners can also be trained in alignment with this matrix, ensuring they are prepared for their specific roles from the outset.
On-the-job training: (OJT) Hands-on experience is often the most effective way for employees to learn. Real-time learning under the supervision of experienced mentors ensures that employees acquire practical skills crucial for their roles. This method is especially effective in environments where hands-on experience with equipment is crucial. Pairing less experienced workers with skilled mentors fosters teamwork and helps build both technical and soft skills.
E-learning and simulations: A blended approach to training, incorporating both e-learning and in-person sessions, can be highly effective. E-learning modules provide foundational knowledge that employees can access at their own pace. Simulations allow them to interact with digital versions of machinery and troubleshoot real-world scenarios virtually.
Multi-skilling the workforce: Training employees in multiple tasks or machines increases workforce flexibility and resilience. A multi-skilled workforce allows for more efficient shift rotations and reduces dependence on a limited number of highly skilled workers. During unplanned leave, absenteeism, attrition, or high-demand seasons, line managers can effectively redeploy resources internally without impacting performance.
OEM training programmes: When new machinery or technology is introduced, partnering with Original Equipment Manufacturers (OEMs) for specialised technical training is essential. OEMs can provide the expertise needed for workers to master complex equipment, ensuring smoother operations.
Engage employees: Since much of the learning highlighted here is technical, it is best delivered by employees themselves. Experienced workers or supervisors with in-depth knowledge of shop floor operations, technical expertise in the relevant machinery or processes, and good communication skills can lead classroom training. Workers who are highly proficient in certain skills can play the role of on-the-job mentors, teaching and guiding their colleagues.
Incentives for learning: Recognising and rewarding employees who complete additional training or achieve certifications can motivate them to continuously improve their skills. This not only enhances individual performance but also boosts overall morale and productivity.
Over time, various manufacturing industries can also partner with engineering colleges and Industrial Training Institutes (ITIs) to provide students with practical training modules.
Conclusion
As India’s manufacturing sector continues to grow, addressing the skills gap through effective training is crucial. By investing in well-structured training programmes—grounded in practical experience, supported by modern e-learning solutions, and reinforced through mentorship—the sector can bridge the skills gap, reduce attrition, and enhance productivity. This holistic approach to training will play a key role in ensuring that India remains competitive on the global stage while also creating a highly skilled and adaptable workforce.