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2015-07-07

1.5 cr skilled workforce required in Automobile sector by 2022:NSDC report

NSDC report states that Haryana leads in the production of passenger cars, motorcycles and tractors in India.

As per the report by National Skill Development Corporation (NSDC), by 2022, nearly 15 million (1.5 crore) people are expected to be employed in automobile sector directly in the industry. The report suggests that the state of Haryana leads in the production of passenger cars, motorcycles, tractors and accounts for 50 % of total passenger cars and two-wheelers production in India.

The key growthdrivers according to report are that India and other BRIC nations would emerge as major manufacturing hubs due to the availability of cheap labour and other favourable investing environment as more companies are looking at India as a manufacturing base and shifting their operations from Europe to India, and other south-east Asian countries. As many global auto component manufacturers have manufacturing presence in India either through joint ventures or otherwise, they are focusing on exports as excise duty is very less in complete knocked down (CKD) units.

Commenting on the report, Dilip Chenoy, Managing Director & CEO, National Skill Development Corporation (NSDC) said, “According to industry estimates the automobile industry accounts for 22-25 per cent of the country's manufacturing gross domestic product. FDI in the sector is allowed to 100% under the automatic route. Therefore, an addition of one manpower at the OEM would lead to generating eight jobs at the vendor’s end. So much is happening in the sector due to a push by the Government initiatives. To meet the incremental human resource requirement in the sector the entire ecosystem has been scaling up its training initiatives in this sector and aligning them to industry recognised national occupational standards”.

Industry growth, changing technology, growing economy, larger income at disposal and lowering first hand life-cycle of cars have triggered requirements for fresh skilling and up-skilling in the sector.

He further adds, “There is an urgent need to update the courses with the change in technology implemented at the plants.” Out of 7.6 million employed in manufacturing, 72 percent of the employees are working in component sub-sector. Even in auto component manufacturing companies, a majority of the workforce is employed in tier-III and raw material manufacturing companies.19.1 million peopleare employed in the automobile sector directly or indirectly. This includes manufacturing in OEM, Auto components, raw material factories,automobile dealers, service centres, and otherenabler sectors.

Presently, more than 70 percent of the auto component companies are SMEs. Further, the automotive sector has 56 percent of workforce which is second highest after telecom sector.

Some of the key points

To boost the growth of this sector many initiatives have been taken which will bridge the already existing gap in numbers and therefore a lot of jobs are expected in this domain. We need to emphasize on the promotion of small and medium scale enterprise as they have an immense potential of providing jobs at the entry level.

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