By Terry Smagh, Senior Vice President & General Manager – Asia Pacific Japan, Infor
India’s manufacturing sector is at faced with a paradox – the country is planning to become a global manufacturing hub however, sizable challenges such as skills shortage, underinvestment in workforce development, and a widening gap between digital capabilities and workforce readiness threaten to hold back growth. According to the National Skill Development Corporation (NSDC) data there is a deficit of 29 million across sectors including manufacturing.
Manufacturing momentum meets a talent bottleneck
Digitalisation in Indian manufacturing is accelerating. Infor’s research notes that 80% of organisations across APAC plan to increase technology investment by 20% or more in the coming year. The focus is clear, digital transformation is a strategic priority. Yet, workforce readiness lags.
Powering digital with people
The same research highlights a clear productivity divide: industrial organisations with better access to skilled talent demonstrate a 22.7% greater ability to meet market demand than their less-prepared counterparts. This highlights that technology alone can’t deliver results – without skilled people, digital transformation risks falling apart.
India is currently facing a substantial skills shortfall, potentially impacting productivity and long-term growth.
In response, leading manufacturers such as are investing in workforce reskilling and structured training programmes. As digital transformation reshapes Indian manufacturing, aligning workforce capability with technology adoption will be essential to sustaining competitiveness and growth.
Bridging the “value void” through workforce transformation
Drawing from successful case studies within the Indian industrial sector, several strategies stand out in aligning human capability with technological progress:
Continuous learning and upskilling
With a growing number of experienced professionals retiring and younger employees often lacking job-ready skills, continuous learning has become non-negotiable. Using AI-driven learning platforms, many Indian companies are implementing modular, real-time training programs that personalise learning journeys.
Apprenticeship programmes
Manufacturing hubs in India are offering structured apprenticeship programs that not only build technical proficiency but also improve long-term retention and loyalty. These programs are critical to plugging the entry-level skills gap.
Collaboration with educational institutions
Initiatives encourage collaboration between academia and industry to build Smart Manufacturing capabilities. Companies like Bosch and Siemens are co-developing curricula with Indian technical institutes to ensure future talent aligns with real-world demands – especially in smart factories and Industry 4.0 environments.
Initiatives that encourage collaboration between academia and industry enable future talent to be equipped with knowledge that caters to real-world demands – especially in smart factories and Industry 4.0 environments. Many companies are now co-developing curricula with Indian technical institutes to encourage collaboration between two entities that often work in silos.
Embracing technology as a training tool
Virtual stimulations, AR/VR-based learning, and gamification are increasingly being used for vocational and technical training in India. Multiple platforms s are collaborating with enterprises to deliver scalable, tech-enabled upskilling that keeps pace with digital disruption.
With over 65% of its population under the age of 35, India holds the demographic dividend to become a global manufacturing powerhouse. But this will only materialise if the workforce is empowered with future-ready skills.
India’s industrial manufacturing base is confronting a moment of unprecedented change. Rising input costs, volatile global supply chains, and the pressing need for sustainability are reshaping the landscape. Yet, the path to resilience and growth lies in the synchronisation of technology adoption with workforce readiness.
The most successful Indian manufacturing organisations aren’t just investing in machines – they’re investing in people. And that’s the balance between man and machine that will define India’s industrial future.