India is doing a factory reset on the jobs scene to increase Employment Opportunities.
Manufacturing is seeing a turnaround in India and the government’s budget boost for factory jobs might just be the catalyst to turn a swell into a wave.
India’s manufacturing sector has seen a significant job growth over the past two years, surpassing the services sector. This turnaround is driven by govt incentives, increased domestic demand, and companies expanding capacities.
The manufacturing sector is projected to create millions of jobs by 2024, contributing to the nation’s target of becoming a global manufacturing hub.
The pace of job growth in manufacturing has overtaken that of the services sector, the biggest employer for several decades since the IT boom of the early 2000s, according to an exclusive study by Teamlease Degree Apprenticeship. The growth pace for jobs in manufacturing witnessed a 200% expansion over the past two years (2022 to 2024) compared with a drop of 35% in the services sector.
To be sure, the services sector, including IT and non-IT industries, continues to do the heavy lifting, accounting for the greater number of jobs created in India. Growth in the manufacturing industry has picked up pace, mostly in the last two years, with the introduction of production-linked incentive (PLI) schemes and as companies increase manpower amid capacity expansion plans. Meanwhile, the tech industry has been hit by global economic uncertainty.
As India becomes the manufacturing hub for the world, which is where you would like it to be with the government’s Make in India goal, that’s what is going to drive a much greater focus on manufacturing.
Govt Incentives are leading to many domestic and foreign enterprises establishing production facilities. The expanding domestic market, propelled by a burgeoning middle class with increased disposable income, generates significant demand for high-quality manufactured goods,” said Sumit Kumar, chief strategy officer, TeamLease Degree Apprenticeship. “Additionally, ELI (employment-linked incentive) schemes (with a Rs 10,000 crore budget allocation) may generate another 8 million jobs in the next three years. The programme aims to skill 10 million youths over the next five years..
Key opportunities are emerging in renewable energy, electric vehicles, and strengthening supply chains. The growth in manufacturing jobs is primarily due to economic recovery, increased investments, and global supply chain shifts favouring India as a manufacturing hub. These trends will continue to bolster job creation in the sector.
