India's electronics industry is witnessing unprecedented growth, inspired by Prime Minister Narendra Modi's vision of transforming the nation into a $500 billion electronics manufacturing hub by 2030. TeamLease Degree Apprenticeship, the largest privately-owned degree apprenticeship program under TeamLease Services, has published a pivotal report highlighting a substantial skills gap in the sector, which could hinder its growth.
With the industry advancing at a robust CAGR of 25–30 per cent, it is projected to generate 12 million jobs, comprising 3 million direct and 9 million indirect roles. However, a critical shortage of 10 million trained professionals poses a significant challenge to sustaining and amplifying India's progress in the electronics sector.
As the industry diversifies into areas such as communication and broadcast electronics, consumer electronics, industrial electronics, and aerospace and defence electronics, the demand for specialised skills has soared. The need for components like semiconductors and electromechanical parts further exacerbates this challenge. Despite the government's substantial support through initiatives such as the Production Linked Incentive (PLI) Scheme, SPECS, EMC 2.0, the Electronics Development Fund (EDF), and programs under 'Make in India' and 'Digital India,' the talent pool remains underprepared. Many job seekers lack the technical skills, practical experience, and industry alignment required by employers, creating a bottleneck in this promising sector.
In FY2023, India's electronics production value reached USD 101 billion, including USD 86 billion in finished goods and USD 15 billion in components. Addressing the skills gap is essential to maintaining this growth trajectory and enhancing global competitiveness.
India has made significant strides towards self-reliance in electro-mechanical and passive components. However, challenges persist, particularly in dependence on imported semiconductors and PCBs, which increases costs and exposes supply chains to global risks. With fierce competition from countries such as China and a growing domestic skills deficit, India's ambitions to become a global electronics leader face potential obstacles. Strengthening the domestic ecosystem, reducing import reliance, and investing in workforce development are crucial to overcoming these hurdles.
A.R. Ramesh, CEO of TeamLease Degree Apprenticeship, commented, "India stands on the brink of global leadership in electronics manufacturing, with production reaching $101 billion in FY2023. Yet the industry faces a severe workforce shortage. By FY2028, the demand for 12 million professionals, including 3 million direct and 9 million indirect roles, will leave a 10 million skills gap. Bridging this gap requires robust skill development initiatives that blend classroom learning with hands-on training through apprenticeships. By doubling the apprenticeship ecosystem and fostering industry-academia collaboration, India can address these challenges while accelerating its transition into advanced technologies such as AI, IoT, and Industry 4.0."
Sumit Kumar, Chief Strategy Officer at TeamLease Degree Apprenticeship, added, "The electronics sector is at a turning point, driven by transformative policies and rising global demand. However, the 10 million skills gap must be urgently addressed to realise its potential. A multi-pronged strategy encompassing scaling apprenticeships, reskilling and upskilling over 50 per cent of the workforce, and aligning academic curricula with industry needs is imperative. Through these efforts, India can unlock the full potential of its electronics industry and achieve sustainable growth."
