Skilling India’s Automobile Workforce for the Future

Syllabus: GS3/Economy

Context

• As automobile production expands and factories adopt electric, electronic and automated technologies, manufacturers face a shortage of workers with the skills needed for the changing shop floor.

Transition in Automobile Industry

• Expansion: The annual vehicle production could increase from about 30–35 million units in FY25 to 50–55 million by 2030. 
  • The auto-component industry is targeting a turnover of about $200 billion by 2030, compared with about $86 billion currently.
• New Technologies: Factories are adopting electric powertrains, electronics, automation, connected technologies and advanced manufacturing systems.
• Need for Skilled Workforce: Companies increasingly need people trained in areas such as electrical and electronics, mechatronics, robotics, battery systems and automated equipment.

Lack of Skilled Workforce

• Gaps in Technical Education: A 2025 National Council of Applied Economic Research (NCAER) study found gaps in the technical education of workers in the automotive sector.
  • 57.3% of workers in the manufacture of parts and accessories for motor vehicles had no technical education, while 35.2% had a diploma or certificate below graduate level in engineering or technology. 
  • In vehicle manufacturing, 53% had no technical education, while 21.9% had a technical degree in engineering or technology and 16.6% had a diploma or certificate below graduate level in engineering or technology. 
  • In vehicle repair and maintenance, 93.3% had no technical education.
• Lack of Practical Experience: Another study found that many candidates lacked practical experience with advanced machinery and digital systems.
  • Courses in areas such as battery technology, mechatronics, automation and robotics remained scarce, alongside a shortage of qualified trainers.

Government Initiatives

• Vocational training: Under NAPS (National Apprenticeship Promotion Scheme) 2.0, apprenticeship training is conducted in actual work environments using the training facilities available with participating establishments, enabling hands-on learning and industry exposure.
  • Under NAPS 2.0, 8.93 lakh apprentices were trained in the “Automotive” sector and 99,244 in the separately classified “Automobile” sector.
• Industrial Training Institutes (ITIs): The government is also upgrading Industrial Training Institutes (ITIs) through the Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) scheme. 
• PM-SETU Scheme: Aims to upgrade 1,000 government ITIs (200 Hub, 800 Spoke) under a Hub-and-Spoke model, targeting industry-aligned courses in emerging sectors and skilling 20 lakh youth over five years.
• Broadening ITI Networks: The number of ITIs increased from 9,642 in 2014 to 13,856 in 2026, while seating capacity increased from 17,42,986 in 2014-15 to 20,07,580.
• In 2026, the Directorate General of Training (DGT) signed a Flexi-MoU with Bajaj Auto Ltd to provide industry-aligned training at the company’s manufacturing facilities. 
  • The programme is designed to provide trainees with hands-on experience and exposure to industry technologies.

Conclusion

• India’s automobile industry is entering a technology-driven phase in which the availability of a skilled workforce will be as important as production capacity. 
• While NAPS 2.0, PM-SETU and industry partnerships are strengthening vocational training, the persistent gap in technical education and practical experience calls for greater industry–academia collaboration, modernised curricula and continuous upskilling. 
• Bridging this skill gap is essential to making India’s automotive growth more productive, competitive and employment-intensive.

Source: TH