Skill Shortage in Indian Automotive Sector

Skill Shortage in Indian Automotive Sector neem scheme


Indian automotive sector is the second fastest growing automotive market in the world.That although sounds very promising, but the reality is that we are really lagging behind in terms of quality manpower which have the relevant skills to really fuel this growth-hungry sector. Lack of skilled manpower in this area is really hampering its growth.

Lack of skilled manpower coupled with the extremely slow pace of infrastructure development in this sector is really a cause for concern now. By the end of 2016, the automotive sector was supposed to generate close to 25 Million people. What has been achieved in this part is yet to be judged.At present, there is almost a shortage of 5 million skilled people for the sector. This is really a big lacuna for such a promising industry. (source: Ernst & Young).

As of now, the automotive industry provides employment to 13 million people directly and indirectly. This statement itself shows the potential and caliber of this particular sector in enhancing the economic condition of the country. One more point to be noted here is that, although India produces maximum numbers of engineers in the world, however only 20-30 percent of them are actually employable. This actually speaks volume about how grave the situation is. The automotive sector is facing skills shortage at almost every level. From the shop floor level skilled level to proper automotive engineers. There is a serious shortage of skill.

Now there are divergent views on the skills demand to forecast for this sector. A study from E&Y says that Indian automotive sector requires close to 30 million skilled people to fuel its growth. However, National Skills Development Corporation puts this number at 15 million. Whatever the case may be, one thing is clear for sure that this sector is surely promising in terms of generating employment.

So what are we doing about boosting the skills in the Indian automotive sector?

Well for starters the government of India is coming up with some really great initiatives for developing the skill sets of our workforce. One of them is called the NEEM Scheme

Now comes the vital question?

What are the benefits of NEEM Scheme for Automotive Sector?

Well here is the answer, NEEM Scheme is a joint effort between the government of India and AICTE. These two pioneering agencies have come up with an OJT module which will greatly benefit the automotive Industry.Firstly the automotive sector will get liability free and trainable man power. Secondly, they have an option of filtering the workforce as per their requirement with no additional monetary implications. What that means is, the sector can train and retain the workforce without the hassle of labor laws. Trainees coming in through this scheme are more disciplined and dedicated. They are regulated by a NEEM Agent hence the company need not worry much about nuisances of hiring the workforce. The skills can be developed as per the needs. This creates a win win situation for everyone. We are sure that such intiatives will surely put India at par with global competetion and see more happy faces domesticaly.


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