India, home to a massive workforce of over 500 million, faces a paradox of strong GDP growth alongside persistent unemployment challenges.
According to the Centre for Monitoring the Indian Economy (CMIE), India’s unemployment rate in December 2024 stood at 8.3%, up from 8% in the previous month.
At the same time, the country is at a crucial juncture in its employment landscape. The expanding digital economy, green economy, and thriving gig economy are adding vibrancy to the workforce.
Sectors such as semiconductors, electric vehicle (EV) manufacturing, healthcare and pharmaceuticals, and tourism and hospitality have been identified as key drivers of large-scale employment in the future.
However, India faces critical challenges in ensuring that its large, youthful workforce is equipped with the skills necessary to meet industry demands.
Invezz spoke with Kamakshi Pant, Chief Business Officer at Taggd, a leading digital recruitment platform in India, to understand how prepared the country is to service emerging sectors like EV manufacturing and semiconductor production, as well as the trends likely to shape hiring in the years ahead.
Edited excerpts from an emailed conversation:
Invezz: For self-sufficiency in semiconductor manufacturing, skilled engineering talent is a key requirement. How does India compare to global leaders in this regard?
India has a significant natural advantage when it comes to talent, thanks to its large, youthful workforce and the substantial number of STEM graduates produced annually.
According to the India Decoding Jobs Report 2025, India is well-positioned to capitalize on this advantage.
The semiconductor industry is projected to create 1.2 million job openings by 2032, including 275,000 positions in chip design alone.
Challenges in meeting the demand for skilled talent
This presents a tremendous opportunity. However, India faces challenges in meeting the immediate demand for skilled talent.
While 1.5 million engineers graduate every year, only 20–30% are truly job-ready for core engineering roles.
Moreover, just 10–25% of electronics graduates possess the specialized skills needed for areas like VLSI design and semiconductor manufacturing.
Looking at global benchmarks, countries like Taiwan have a more stable talent pool. For example, job vacancies in Taiwan’s semiconductor sector dropped from 35,000 in 2022 to 22,000 in 2023.
South Korea is projected to face a shortage of 54,000 workers by 2031, and the US will need an additional 146,000 engineers by 2029 to meet its domestic chip production needs.
India has laid out a promising roadmap with initiatives like the India Semiconductor Mission (ISM), PLI schemes, and partnerships with over 300 academic institutions to boost semiconductor-specific education.
However, with the Electronics System Design and Manufacturing (ESDM) market expected to reach $300 billion by 2025 and 1.2 million jobs projected by 2032, there is an urgent need to accelerate efforts in upskilling, training, and industry-academia collaboration.
To truly become a global player in semiconductor manufacturing, India must address this talent gap more rapidly, ensuring its engineering workforce is equipped with the specialized skills needed.
The potential is immense, but the speed and scale of India’s skill development efforts will ultimately determine whether it can compete with global semiconductor leaders.
Invezz: India needs to add 30,000 workers to the EV workforce each year to achieve localization in the industry by 2030. What trends are you observing in the development of EV talent?
India’s electric vehicle (EV) market is experiencing rapid growth, with sales surpassing 1.3 million units in FY24, reflecting a 158% increase from the previous year.
This surge, largely driven by the rise of two-wheelers, is driving the demand for skilled professionals in manufacturing, testing, and R&D across various engineering fields.
Pune, Chennai, and Bengaluru leading talent acquisition in the EV sector
By 2030, the industry will need 200,000 skilled workers to meet the government’s target of 30% EV adoption.
Key automotive hubs like Pune, Chennai, and Bengaluru are at the forefront of talent acquisition while emerging cities like Coimbatore and Visakhapatnam are also contributing.
The EV sector is attracting professionals from related industries, with increasing demand for experts in software, data analytics, and cybersecurity.
To address skill gaps, companies are embracing vocational education programs, such as the Indo-German Chamber’s VET system, which provides hands-on industry training.
The workforce, primarily composed of millennials and Gen Z, is driving a shift toward flexible work environments and more meaningful roles, prompting companies to adapt.
With government initiatives like the FAME II and PLI schemes supporting domestic manufacturing, the EV industry is on track to create 1 million direct jobs by 2030.
This will require specialized skills in areas such as battery technology, power electronics, and motor design.
How to bridge the gap between high GDP growth and low employment levels?
Invezz: India is currently facing a paradox with one of the highest GDP growth rates, yet low employment levels. Can manufacturing be the key to addressing this gap? What strategies are needed?
India’s paradox of high GDP growth and low employment can be resolved by unlocking the potential of the manufacturing sector.
While manufacturing contributes 17% to GDP, it employs only 12% of the workforce.
Key strategies to address this gap include:
Leveraging PLI schemes: The government’s Production Linked Incentive (PLI) schemes are expected to create 6 million jobs in sectors such as electronics, textiles, and electric vehicles (EVs) by 2030.
Addressing skill gaps: There is a 20–25% shortage of skilled workers in areas like robotics and AI-driven manufacturing. Targeted training programs and stronger industry-academia collaborations are essential to bridge this gap.
Promoting gender inclusion: Initiatives like L&T’s Women of Mettle and Tata Steel’s training programs are driving gender diversity in the workforce, to increase female participation.
Fostering indirect job creation: Manufacturing generates 2.5 times the number of indirect jobs in related sectors like logistics and retail, further boosting employment across the economy.
By scaling up skill development, promoting gender inclusion, and capitalizing on PLI schemes, manufacturing can transform India’s growth into widespread job creation.
AI tools reduce time-to-hire and increase retention
Invezz: What are some of the key trends in HR and employment that will shape hiring in the coming years?
Several key trends are expected to shape hiring in India in the coming years.
With 65% of the population under 35, India’s youthful workforce is poised to drive job creation, with over 50 million new jobs expected by 2030.
The National Education Policy (NEP) 2020 emphasizes STEM and vocational training, but there remains a 20–25% skill gap in emerging technologies like AI, IoT, and cybersecurity.
The green economy will also see significant growth, with 3.3 million jobs projected in sectors such as renewable energy and electric vehicles (EVs) by 2030.
As AI and automation continue to advance, the IT sector is expected to add over 1.2 million jobs by 2026.
Additionally, AI tools are streamlining recruitment processes, reducing time-to-hire by 40%, and increasing retention rates by 30%.
Women’s participation in the workforce is set to rise, with 30-35% expected in STEM and manufacturing roles by 2030.
Finally, remote and hybrid work is becoming the norm, with 65% of organizations offering flexible work arrangements, transforming hiring practices and work dynamics.
These trends indicate a future driven by technology, sustainability, and greater inclusion.
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