New-age technologies like artificial intelligence (AI) have reshaped the way we work. According to the World Economic Forum, around 85 million jobs are expected to be automated and 97 million new jobs will be created due to the growth of AI and other technologies. India, in 2023 is on the verge of accelerating the adoption of AI across industries, education, and public services.
As of August 2023, India has a talent base of 416K professionals, whereas the demand stands at around 629K. Anticipating a surge, the projected demand for AI professionals in India is expected to reach a remarkable 1 million by 2026.
Sharing India-specific data, Rahul Goyal, Managing Director, ADP India and South-East Asia says that the younger generation does not feel they are well equipped to advance their career, only 47% feel they have the right skills as compared to 70% of the older generation.
This calls for proactive measures to engage stakeholders, such as youth, policymakers, and the private sector, in discussions about relevant skills development.
A multifaceted strategy is essential
Niren Srivastava, CHRO, Motilal Oswal Financial Services (MOFSL), suggests a multi-pronged approach to engage stakeholders to augment skill development. “Building a robust digital presence on platforms like social media, online learning platforms, and interactive websites can reach and engage a wide audience, particularly the youth”
Niren also suggests leveraging CSR programs to fund and support skills development projects to foster community development and industry readiness. “Building industry connections across forums and conferences allows for the exchange of ideas and best practices, creating a collaborative environment for skills enhancement. Collaborating with educational institutions through partnerships can integrate relevant financial services skills into the curriculum, offer internships, and provide mentorship, ensuring a continuous pipeline of well-prepared talent.”
To discuss and strategise on bridging the skills gap is essential, and policymakers, private sector leaders, and educational experts can benefit from organising and participating in networking and roundtable events focused on skills development.
With over 808 million people under the age of 35, the emphasis on skill development is crucial for India. Sharing a similar sentiment, Ramesh Alluri Reddy, CEO, TeamLease Degree Apprenticeship, also believes that a multifaceted strategy is essential in engaging stakeholders such as youth, policymakers, and the private sector in discussions about relevant skills development.
“For youth, the focus should be on creating comprehensive career and academic roadmaps complemented by personalised counselling services. This approach ensures that young people are well-informed about their career options and the skills required for various paths. Integrating theoretical knowledge with practical skills through apprenticeships, particularly degree apprenticeships, can bridge the gap between education and employment,” says Ramesh Alluri Reddy.
Apprenticeships allow students to gain hands-on experience while pursuing their degrees, making them more employable upon graduation. Notably, India’s employable youth population has risen from 33.9% in 2014 to 50.3% in 2024, signaling substantial advancements in skilling initiatives. However, the Periodic Labour Force Survey 2022-23 highlights that 72.6% of workers aged 15-59 lack formal or informal vocational or technical training, underscoring the need for continued efforts in this area.
The CEO of TeamLease Degree Apprenticeship explains that productivity improvement and employee retention are critical. “Companies should be encouraged to invest in training programs and apprenticeships to build a sustainable talent supply chain. By collaborating with educational institutions, industries can ensure that the curriculum aligns with the current market needs, producing job-ready graduates.”
For policymakers, simplifying policies and making systems user-friendly is crucial. Establishing a tripartite framework involving the government, industry, and educational institutions can facilitate better coordination and implementation of skilling initiatives. Introducing a credit framework and providing incentives such as tax breaks or grants for MSMEs that invest in skill development and diversity can further drive engagement. By creating an ecosystem that supports continuous learning and skill enhancement, it can be ensured that India’s youth are equipped with the relevant skills to thrive in the evolving job market.
Strategic approach
Himanshu Priyadarshi, CSR Chief and Peoples Officer, Hindustan Coca-Cola Beverages (HCCB), recommends a structured and strategic approach to engage and collaborate with the stakeholders in effective skills development initiatives. “Begin by conducting a detailed stakeholder analysis to identify the skill gaps relevant to the industry and understand the diverse factors and influences within the group. Tailor execution-led programs that address those gaps and disseminate communication efforts to resonate with specific stakeholders—using dynamic digital content for the beneficiaries which empowers them and solution-led data-driven presentations for policymakers,” he says.
Next, the collaborative platforms Himanshu suggests should be created to facilitate open dialogue and co-creation with the partners, ensuring that every participant can contribute meaningfully. “Expand impact and relevance through dynamic partnerships, including state and central government-level skill development agencies across various sectors, integrating their unique insights and resources into the program.”
Paul Jacob, Happiness Evangelist & Senior Director – People Practice, Happiest Minds Technologies, suggests tailoring development programs to meet current and future market needs.
“We have partnerships with industry cohorts like NASSCOM ensuring that skills development is current and forward-looking,” says Jacob.
Industry-academia collaboration
Skilled and dynamic young workforce are the drivers of growth trajectory. Hence, S Gangadhar, Vice President, Volvo Group Trucks Operations, India emphasises partnering with academic institutions to bridge the gap between theoretical knowledge and real-world application. “We’re building these bridges—our recent MoUs with a few universities, pre-placement talks, the introduction of industry-specific subjects in the curriculum, and students taking up internships are testaments to that commitment.
But education is just the first piece of the puzzle, says Gangadhar. “Safety, problem-solving, and hands-on assembly and design skills are the cornerstones of a successful career in our fields. Internships, graduate apprenticeship training, plant tours, and pre-placement offered by us also support and empower students as they embark on their professional journeys. Mentorship further strengthens this foundation. By pairing experienced engineers with eager students, we cultivate a culture of knowledge transfer and build a generation of leaders from our plant.”
HR’s top priority is empowering youth and forging robust collaborations to drive impactful skills development. Academia, industry, and policymakers are key stakeholders in making this vision a reality. “Fostering a symbiotic relationship between companies, academia, and youth cultivates a pipeline of talent that is agile, innovative, and industry-ready,” says Arvind Raj, Chief Human Resources Officer, MINDSPRINT.
“On an organisational level, to effectively engage with youth, we create platforms for their voices to be heard, such as forums, hackathons, and mentorship programs. These initiatives empower young professionals to shape their learning paths, particularly in critical areas like AI, cloud computing, and data analytics skills. By collectively embracing these advancements across the ecosystem, organisations can empower the next generation to survive and thrive in an increasingly competitive global economy,” adds Arvind Raj.
Skill development investment is crucial
India, with the world’s largest youth population, is poised to drive the next wave of growth. The pace at which the world is evolving brings immense opportunities for the youth to grow, learn, and unlock their potential. Therefore, it is crucial to invest in their development as they prepare to build an inclusive and sustainable future.
It is a hyper-connected world where one can easily access and rally an entire ecosystem to collaborate. However, giving the youth their rightful voice and opportunities to play an active part in the ecosystem is most important to make any progress. “Engaging stakeholders should start with the youth, followed by the academia, the private sector, think tanks, and ultimately policymakers. Constant dialogues among these cohorts will help to bring out need gaps; we then need to prepare a roadmap that complements the development of human skills and new-age technology interventions such as automation and AI. Finally, implementing policies that incentivize continuous learning and upskilling can create a dynamic workforce ready for emerging challenges,” says Vidya Munirathnam, Vice President, HR, Lowe’s India.
To stay ahead in the fast-evolving Information Technology sector, Rohit Kishore, Global Delivery and Talent officer, Randstad Digital, calls for developing meaningful dialogues with key stakeholders, including youth, policymakers, and the private sector.
In response to AI’s significant impact on skills and market needs, challenges, and opportunities along with it, the younger generation and future leaders must be adaptable, eager to explore diverse opportunities, and open to continuous upskilling. They will continuously have to pursue upskilling and acquiring in-demand expertise in rapidly emerging technologies like data analytics, digital & product engineering, and cloud transformation programs.
“By understanding employer skill requirements and co-creating responsive training programs, organisations and agencies can cultivate a more agile and future-ready workforce equipped to navigate the evolving world of work and drive innovation and growth. A cross-stakeholder, collaborative approach is essential for unlocking shared prosperity and ensuring workforce preparedness for future challenges and opportunities,” says Rohit Kishore.
To foster a thriving and equitable society, Sapna Bhawnani, Vice President of Communications & CSR, Alstom Asia-Pacific, reiterates the importance of investing in skills development, particularly industry-relevant skills. For instance, Young Engineering Graduate Program, a key element of Alstom’s India hiring strategy since 2015, aimed at developing young engineers’ talent for Indian and global business needs.