Overview
Despite having a significant number of STEM graduates, India lacks top talent to lead in emerging technologies. The country ranks 7th in AI, with the US and China dominating the field. India's tech industry contributes 7.5% to GDP, but a skills gap poses a risk to growth.
Skill Shortages and Economic Impact
- A 2023 PwC report highlights that 77% of Indian CEOs see skill shortages as a growth barrier, up from 64% in 2019.
- Traditional workforce skills need upgrading to compete in the digital economy; however, many workers remain underprepared.
Studies and Reports
- Hero Skills of the Future — Vision 2030: 77% of Indian professionals feel inadequately skilled in essential technologies.
- Nasscom 2022 Report: Indicates 50% of the workforce will need reskilling or upskilling by 2025.
- AlphaBeta-Amazon Web Services (AWS) Study: Projects a need for 3.9 million cloud professionals by 2025, but currently, there are fewer than 1.5 million.
Challenges
- Lack of standardised frameworks and skills taxonomy hampers talent management and upskilling efforts.
- The rapid evolution of technology makes some skills obsolete quickly.
- WEF's Future of Jobs Report predicts 83 million jobs will be displaced by automation, creating 70 million new roles.
Sector-Specific Insights
The BFSI sector's digital transformation increases demand for cybersecurity and data analysis professionals. Currently, there is a shortage of skilled professionals, with only 3 lakh available against a requirement for 1 million by 2027.
Recommendations
- Assess skills gaps: Utilize AI-powered tools to identify and address skills deficits.
- Invest in continuous L&D: Encourage learning and development across all sectors, leveraging initiatives like PMKVY.
- Develop a skills taxonomy: Create a universal framework for skills categorization, similar to the European Qualifications Framework.
- Align education with industry needs: Collaborations between academia and industry to improve skill relevance.
- Track impact: Employ real-time skills-tracking tools to measure training effectiveness.