India’s electronics manufacturing sector, a key pillar of the Make-in-India initiative, is experiencing a significant workforce shortage, affecting both blue-collar workers and skilled engineers. This shortage is especially critical in the rapidly evolving smartphone manufacturing industry, which is increasingly adopting artificial intelligence (AI) and robotics technologies.
TeamLease projects that the broader electronics sector—including semiconductors, components, consumer electronics, and mobile phones—will require approximately 12 million workers by FY27-28, up from 6 million in FY25. However, around 10 million of these positions are expected to face a skill gap.
This talent gap is emerging at a time when companies are leveraging AI and robotics to enhance global competitiveness. With the five-year Production Linked Incentive (PLI) scheme set to conclude soon, manufacturers are under pressure to maintain profitability while adopting new technologies that demand a more skilled workforce.
Only about 30% of technical graduates are currently deemed industry-ready for advanced manufacturing roles. Atul B Lall, Managing Director of Dixon Technologies, emphasized the need for scalable collaborations with educational institutions and global partners to address this issue.
The adoption of new technologies has created gaps in both complex roles, such as development and automation, and simpler positions like technicians. In the mobile phone manufacturing sector alone, up to 350,000 people are currently employed, with capacities doubling annually, further widening the skill gap.
Approximately 20% of new roles now require advanced technical skills, double the demand from the previous year. The industry also competes with other sectors, such as technology and healthcare, which may offer higher salaries and better working conditions.
To bridge this gap, scaling apprenticeship programs and enhancing industry-academia partnerships are crucial. The Electronics Sector Skills Council of India (ESSCI) has been actively offering over 35 apprenticeship courses under the National Apprenticeship Promotion Scheme (NAPS) to address skill shortages at various levels. The number of apprenticeships in the electronics industry has surged from 7,517 in 2019-20 to 91,948 in 2023-24, marking a significant increase.
Addressing this workforce shortage is imperative for India to sustain and amplify its growth in the electronics sector, especially as it aims to become a global leader in electronics manufacturing.
