India’s push to build manufacturing capabilities in sunrise sectors such as semiconductors, electronics, renewable energy and electric mobility is running into a shortage of skilled, industry-ready employees.
The problem has become more pronounced as the country seeks to expand domestic manufacturing following the global chip shortage of 2020-21. While the workforce has expanded, employers say the availability of people with the right technical skills and hands-on experience remains limited.
According to TeamLease EdTech, India’s semiconductor manufacturing sector could face a shortage of 2.5 lakh-3 lakh professionals by 2027, particularly in chip design, manufacturing, R&D and advanced packaging.
“The issue is therefore less about the overall availability of workers and more about whether they have the technical depth, practical exposure and production readiness required by these industries,” said Shantanu Rooj, Founder and CEO, TeamLease EdTech.
India’s electronics manufacturing industry employs more than 1.4 million professionals and has added nearly 2.5 million jobs over the past decade. However, only around 3% of this talent pool has advanced AI and digital capabilities, according to Aditya Narayan Mishra, MD and CEO, CIEL HR.
“As manufacturing becomes increasingly software-defined and automated, the demand for engineers who can work across embedded systems, industrial AI, automation and digital manufacturing is growing much faster than the supply,” Mishra said.
The shortage is particularly acute in mid- and senior-level technical roles requiring industry experience. At the entry level, the talent pool is larger, but many candidates need sector-specific training before becoming job-ready, said Peush Saproo, Associate Director and Head of Sales – Permanent Recruitment, Adecco India.
The challenge is also evident in electric mobility, where technology is evolving faster than the workforce. Fresh Bus Founder and CEO Sudhakar Chirra said employers need people with hands-on skills in EV systems, battery technology, diagnostics, electrical systems and charging infrastructure, apart from operational expertise in fleet and energy management.
The solar manufacturing industry is another major source of potential employment. Its workforce is expected to rise to around 3 lakh from 1.8 lakh two years ago, further increasing demand for skilled manpower.
Industry experts said companies are increasingly relying on on-the-job training, reskilling and internal talent development to bridge the gap.