India faces a shortage of skilled workers and needs to bridge the gap between demand and supply: a study

A study conducted by the National Skill Development Corporation (NSDC) has revealed a significant gap between the demand and supply of skilled workers in India. The study found that the demand for skilled workers is an astonishing 103 million, while the current supply is only 74 million. This imbalance highlights the urgent need for concentrated skilling and training efforts across sectors of the country.

The main reason for this shortage is the changing profile of the Indian economy. Sectors such as healthcare, semiconductor manufacturing, green jobs and sustainability, waste management, circular economy, food processing, drone technology and artificial intelligence (AI) are emerging as key growth areas. These sectors are not only growing at a rapid pace, but also require a workforce with specialized skills and knowledge that are currently in short supply.

India’s leading human resources and skill development leaders convened a brainstorming session in Delhi on Friday to tackle the persistent employment and talent crisis afflicting the country.

The aim of this collaboration is to bridge the skills gap and increase employability, thereby preparing the Indian workforce to be future-ready and globally competitive. The National Skill Development Corporation (NSDC), under the Ministry of Skill Development and Entrepreneurship, has joined forces with the Society for Human Resource Management (SHRM) India to develop a practical framework for future skills and employability in a rapidly developing world.

The event brought together industry leaders and senior HR professionals to reflect on strategies to reskill and upskill corporate and industrial workers. This was in response to the rapidly changing employment landscape influenced by technological advances and the evolving nature of work post-pandemic.

Ved Mani Tiwari, CEO, NSDC and Managing Director, NSDC International (NSDCI), expressed his views on this landmark partnership, stating, “Both NSDC and SHRM are purpose-driven organizations. The aim of this collaboration is to align India’s skills efforts with the Prime Minister’s vision. Since HR manages the entire talent acquisition process, it is critical to support employees in reskilling and upskilling to eliminate skill gaps. “Unlocking value at the employee, company and industry levels will serve the country’s greater skills needs.”

Tiwari further added, “To transform India into a $5 trillion economy by 2025, we need to accelerate the pace of skill acquisition. With one in four workers in the world being Indian, equipping our youth with the right skills is essential. It’s not just about growth; the idea is that every Indian can benefit from this demographic advantage.”

Achal Khanna, CEO, SHRM India APAC and MENA, highlighted the importance of this initiative, saying, “I am extremely proud to partner with NSDC. HR Leadership Council Connect bridges the gap between the corporate world and the skills ecosystem. Through India’s first CHRO Council for HR Leaders, the ‘Future-Ready Workforce Initiative’, we aim to create an adaptable skills ecosystem that meets current and future workforce needs. We are proud to contribute to the Kaushal Bharat and Viksit Bharat programmes.”

Today’s discussion, the first in a series of such discussions, helped to draw lessons that would enable us to build a framework to bridge skills gaps and increase the competitiveness of our workforce by leveraging the expertise of the HR community.