Act now to create a resilient, adaptable and skilled workforce for the future

Through collaborative effort and strategic foresight, we can ensure that India not only adapts to the changing nature of work, but emerges as a global leader in shaping the future of jobs.
Through collaborative effort and strategic foresight, we can ensure that India not only adapts to the changing nature of work, but emerges as a global leader in shaping the future of jobs.

Summary

  • India’s demographic dividend, combined with skills adapted for new opportunities, could give the country a competitive advantage globally. Worthy initiatives have begun, but we need to move fast on preparing for tomorrow.

The stark reality of India’s evolving job market is captured in a single striking statistic: While 83 million jobs globally face extinction in the next five years, 69 million new roles will emerge in their place. This transformation isn’t just a number. It represents a fundamental shift in how we think about work, skills and the future of India’s workforce.

As the world’s fastest-growing major economy, India faces a unique challenge. The Economic Survey of 2023-24 indicates that we need to generate approximately 7.85 million jobs annually in the non-farm sector until 2030 to harness our demographic dividend.

The FICCI-EY Future of Jobs 3.0 Report 2024 dives deep into this transformation across five critical sectors: Manufacturing, FMCGs, healthcare, energy and infrastructure, revealing challenges and unprecedented opportunities for India to lead the global digital economy.

The report synthesizes macroeconomic trends, global best practices and evolving labour-market dynamics to provide insights into the future of work and reveal how these forces are reshaping traditional industry paradigms. Examining how these trends will influence the job market and what this means for workers, employers and policymakers alike is crucial.

Also read: Post-youth dividend: Help the silver generation aid the economy

Consider manufacturing, where the factory floor of tomorrow will barely resemble today’s. We’re seeing the emergence of AI technicians who collaborate with robots, Internet-of-Things (IoT) specialists who orchestrate smart factory operations and digital supply-chain analysts who optimize operations in real-time.

In Howrah district of West Bengal, a predictive maintenance system powered by artificial intelligence (AI) and machine learning is helping Indian Railways to analyse real-time data to proactively identify and address potential issues in Vande Bharat railway services. The system has already resolved 22 faults to date.

The FMCG sector is also set for a compelling transformation. Traditional sales roles are evolving into data-driven decision-making positions. Companies like Hindustan Unilever are leveraging big data analytics to predict consumer behaviour accurately. The company’s AI-driven consumer connectivity model can run more than 13 billion computations per day.

While such industry-wide developments are creating new roles for digital strategists and consumer-insight analysts, the sector faces a critical challenge: we’re grappling with a severe shortage of qualified AI talent.

Healthcare, energized by lessons from the covid pandemic, is witnessing a surge in the use of data analytics and AI models to help diagnosis. For example, Apollo Hospital has developed a Clinician Decision Support System using AI to help diagnose and decide interventions.

Such developments have led to a surge in demand for tele-medicine specialists, healthcare data analysts and AI-driven diagnostic experts. The sector’s growth is further fuelled by India’s ageing population and increasing health consciousness among younger individuals.

The energy sector’s sustainability transition is creating entirely new career paths. Solar energy technicians, smart grid managers and carbon footprint analysts are becoming integral to the industry.

India’s commitment to achieving 500GW of renewable energy capacity by 2030 is expected to generate over 3.4 million clean-energy jobs.

But here’s the critical question: How do we prepare our workforce for these emerging opportunities? The answer lies in a three-pronged approach:

Also read: India’s demographic journey: Three dividends we mustn’t let go of

First, we need to revolutionize our education system. Traditional curricula, comprising education and vocational training, must evolve to incorporate skills in the fields of AI, automation and robotics, IoT, cybersecurity, critical thinking and adaptability as core competencies.

Second, government-industry collaboration must evolve into transformative partnerships that shape India’s future workforce. The Skill India Mission and National Apprenticeship Promotion Scheme have established robust foundations, aligning training programmes with the industry’s dynamic needs.

Flagship initiatives like the Pradhan Mantri Kaushal Vikas Yojana and PM Vishwakarma Yojana are empowering millions with industry-relevant skills, bridging traditional craftsmanship with modern technological demands.

The Dual System of Training and the recently launched Prime Minister Internship Scheme further strengthen this ecosystem by providing hands-on exposure to real-world business scenarios.

These strategic government-industry initiatives demonstrate the transformative power of collective action in driving innovation and positioning India as a global leader in skill creation. However, we must accelerate and scale these initiatives to meet our ambitious workforce development goals.

Third, we must facilitate international skill mobility. In an interconnected world, our workforce needs globally recognized certifications and qualifications.

The real challenge lies in execution. While automation and AI will displace certain jobs, they will create new opportunities. The key is to ensure our workforce stays ahead of this curve through continuous upskilling and reskilling initiatives.

As we navigate this transformation, one thing is clear: the future of jobs isn’t just about technology. It’s about creating a resilient, adaptable and skilled workforce that can turn global challenges into opportunities.

How effectively we prepare our workforce for this digital future will define India’s journey towards becoming a global economic powerhouse.

Also read: Budget 2024: How skilling initiatives will drive economy, bridge gender gap

The time to act is now. Through collaborative effort and strategic foresight, we can ensure that India not only adapts to the changing nature of work, but emerges as a global leader in shaping the future of jobs.

Our demographic dividend, combined with skills and opportunities, can become our competitive advantage in the global economy.

The author is director general, Federation of Indian Chambers of Commerce and Industry (FICCI)

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