TeamLease Degree Apprenticeship is India’s pioneering and largest Degree Apprenticeship Program, established in 2014 as a 100% employer-funded Public-Private Partnership (PPP). The initiative aims to develop a qualified, robust, and sustainable workforce while enhancing the productivity of the human supply chain. Collaborating with stakeholders such as TeamLease Skills University, Schoolguru, CII, and the Ministry of Skill Development, the program has significantly contributed to creating a talent pipeline, reducing attrition rates, and improving productivity. To date, over 600,000 youth across 24 industries in 29 states have benefited from this initiative, learning through practical experience with more than 1,000 employers.
We are pleased to interview Mr. Dhriti Prasanna Mahanta, Vice President & Business Head, TeamLease Degree Apprenticeship, on the Strategic Role of Apprenticeship Programs in Sustaining Employment Growth and Driving Economic Development in India.
Amid the global economic upheaval, India’s significant employment growth of 6% for the fiscal year 2023-24 reflects the nation’s robust economic trajectory. Over the past decade, India’s GDP has consistently hovered around 6-8%, providing a solid foundation for this growth. In FY2024, the workforce surged by 4.67 crore to 64.33 crore, compared to 59.67 crore in FY2023. This positive trend is evident across various sectors, with manufacturing witnessing a 30-33% year-on-year hiring increase and the construction and real estate sectors experiencing an 80-85% rise in hiring between March 2023 and 2024. The expansion of Global Capability Centres (GCCs) in Tier I and Tier II cities, employing approximately 1.66 million people across 1600 GCCs, further underscores this growth. The resurgence of the IT sector and strategic budget allocations, such as the ₹2 lakh crore outlay and five employment incentive schemes in the 2024-2025 budget, have also significantly boosted job creation.
Several key factors have contributed to this positive employment trend. Government initiatives like Make in India have boosted domestic manufacturing, attracting foreign and domestic investments. The Production Linked Incentive (PLI) schemes have provided financial incentives to companies, promoting manufacturing and job creation in the electronics, pharmaceuticals, and automotive sectors. Extensive infrastructure development programs, including the National Infrastructure Pipeline (NIP) and Smart Cities Mission, have generated substantial employment opportunities. Additionally, digital transformation initiatives like Digital India have spurred the growth of the IT and technology sectors.
Furthermore, the rise of the gig economy and flexible work models have created new job opportunities. However, despite this promising outlook, addressing challenges such as the gap between education and employment, macroeconomic uncertainties, and the need for comprehensive workforce skilling is crucial. Apprenticeship programs and skilling initiatives are essential in bridging this gap, ensuring the workforce is equipped with industry-relevant skills and knowledge. By focusing on these areas, India can sustain its employment growth, enhance productivity, and solidify its position as a global economic leader in the 21st century.
With over 808 million youth below 35, India faces a critical reflection on the disparity between potential and realisation, ambition and support, and the correlation between employment and employability. The New Education Policy (NEP) 2020 emphasises a shift towards holistic, skill-based education, which is imperative for success. Despite this, the chasm between education and the employability of the youth is consistently rising. According to the Economic Survey, 2024, only 51.25% of the youth is deemed employable in India, with nearly one out of every two youth facing a skill deficit required by a modern growing economy. Only 4.69% of the workforce possesses vocational training. Even prestigious institutes like IIT struggle with placements, as 38% of students in the current batch are still seeking jobs. By 2030, one in every five working-age individuals globally will be Indian, necessitating the creation of 115 million jobs to absorb the underutilised and incoming labour force. The mismatch between academia and industry, where theoretical education outweighs practical skills, leaves graduates unprepared for real-world job demands. Emerging technologies, soft skills, and sectors such as AI/ML, semiconductor roles, smart manufacturing, fabrication, and design are experiencing increased demand. Specifically, there is a 15% rise in demand for AI/ML jobs, a projected skill gap of 250,000 to 300,000 in semiconductor roles, and significant growth in green jobs, potentially creating 35 million jobs by 2047. The green sector alone is expected to generate 3.26 million jobs in solar energy by 2050, 0.18 million in wind energy by 2030, 0.27 million in bioenergy, and 0.6 million in green hydrogen by 2030.
At TeamLease Degree Apprenticeship, we address these skill demands through robust apprenticeship programs that align education with industry needs. Recognising the shortcomings of an education system heavily skewed towards qualifications rather than skills, we have pioneered the integration of work-based learning with formal education. Our Degree Apprenticeships, Work Integrated Learning Programs (WILPs), and NAPS and NATS apprenticeship program administration ensure that youth are equipped with practical, real-world skills. Over the past decade, we have placed 10,00,000 apprentices across various sectors, achieving a remarkable 98% transition rate into formal employment, with 40% absorbed by the same organisations. By partnering with over 22 universities, 300 colleges, 150 field recruiters, and multiple government agencies, we leverage extensive sourcing channels to match talent with employer requirements. Our investment in in-house ATS and mobile apps enhances the efficiency of tracking apprentices’ life cycles, providing real-time information to applicants and employers. This comprehensive approach addresses current skill deficits and prepares India’s youth for future workforce challenges, ensuring they are well-equipped to contribute to the nation’s economic growth and sustainability goals.
Apprenticeships, or the practice of incorporating on-the-job training into academic degree programs or vocational studies, can significantly enhance the education, skills, and employment continuum. Degree Apprenticeship, which integrates apprenticeship with higher education, aligns with UGC guidelines as per the New Education Policy 2020 and is executed based on both the Apprentices Act and the UGC Act. Degree Apprenticeships make the concept of apprenticeship desirable for youth, preparing them for jobs by developing their functional and cognitive capabilities while providing them with education and livelihood. The collaboration between industry and academia ensures the curriculum aligns with industry job roles, thus preparing a talent pipeline for both present and future needs. The modularity and interlinked industry-academia collaboration in Degree Apprenticeships allow for pedagogical and curriculum updates in line with the changing nature of jobs and technology, addressing the job market’s dynamic needs. Additionally, promoting lifelong learning through apprenticeships ensures continuous skill development for individuals of all ages, making them relevant and adaptable to real-world demands.
Apprenticeships in India have seen remarkable expansion, growing at an average pace of 35%-40% annually. Over the past six years, the demand for apprenticeships has surged significantly, with over 28.54 lakh trainees engaged as apprentices. This exponential growth is underscored by the number of apprentices rising from a mere 35,000 in 2018-19 to a remarkable 9.26 lakhs in 2023-24. Key sectors like automotive, electronics, and ITES are the biggest employers of apprentices, with 2,58,000, 91,900, and 88,600 apprentices engaged, respectively, in FY 23-24, exhibiting substantial growth rates of 11.7X, 12.2X, and 12.5X since 2019-20. Apprenticeships are now also seen as a talent attraction strategy across all organisational levels, including white-collar domains like technical, sales, finance, and HR, with premium stipends sometimes exceeding ₹50,000 per month. The National Apprenticeship Training Scheme (NATS) provides Graduate, Diploma students, and Vocational certificate holders with practical, hands-on on-the-job training (OJT) opportunities, further scaling white-collar apprenticeships. Moreover, apprenticeships have emerged as a powerful vehicle for driving diversity in the workforce, particularly for women, whose participation has significantly increased from 7,228 in 2018-19 to an impressive 1,93,630 in 2023-24. Despite this growth, the current participation rate of apprentices in the Indian labor force remains disproportionately low at only 0.18%, compared to 3-4% in developed economies. To achieve its goal of becoming a developed nation, India needs to scale up its apprenticeship engagement to around 20 million apprentices.
Despite engaging nearly a million apprentices in 2023-24, aligning India’s demographic dividend with economic growth predictions requires replicating the engagement levels exhibited by developed economies. Facilitating stronger linkages between academia and industries would effectively bridge the gap between classroom learning and practical shop floor experience. This necessitates crucial reforms, including:
(i) Firstly, shifting from bilateral to tripartite engagement (student-academic-industry) and increasing Degree Apprenticeship programs. Recognised for aligning with policy goals and employer needs, these programs offer a strategic pathway for creating a specialised talent pool.
(ii) Secondly, enhancing skilling and workforce formalisation by increasing the apprenticeship quota in PLI-registered organisations from 15% to 30%, especially as the scheme extends to new sectors like toys, textiles and apparel, furniture, tourism, logistics, small retail, and media and entertainment.
(iii) Thirdly, scaling apprenticeships via MSMEs through government incentives for TPAs, overcoming budget constraints faced by SMEs.
(iv) Fourthly, extending the current apprenticeship tenure (currently capped at three years) to reflect the higher secondary education to PG education pathway is crucial, as this will enhance participation from rural communities and women, who have the potential to address our low formal employment rates.
(v) Fifthly, simplifying the current regulatory framework and streamlining technological interfaces to reduce procedural confusion, allowing energies to be focused on expanding the apprenticeship net.
Moreover, integrating an Apprenticeship Credit Framework in line with the NEP and the existing National Skills Qualifications Framework (NSQF) would enable seamless transitions for student trainees across different programs and levels of education. A system where apprentices can gain credits for lateral entry into higher education from the second year can significantly enhance flexibility and accessibility in learning pathways. By assigning weightage to educational institutions based on their NAAC accreditation, this model ensures equity in admissions, prioritising quality and fairness. Furthermore, apprenticeships articulate the multi-stakeholder demand for higher collaboration between employers, universities, and skill providers, incorporating elements from colleges, employment exchanges, and ITIs. Cultivating support and agency via the budget to make this a vehicle for realising our demographic potential is essential. Additional steps include intertwining apprenticeship with higher education through degree apprenticeships under the New Education Policy, establishing an apprenticeship credit framework for lateral entry to higher education, tailoring schemes for MSMEs to embrace apprenticeships, promoting adult apprenticeships for lifelong learning, and scaling up support mechanisms like TPAs (which handle 80% of apprentices) to significantly enhance the impact of apprenticeship programs in India.
At TeamLease Degree Apprenticeship, we are at the forefront of attracting and retaining young talent by implementing a comprehensive strategy focused on bridging the skills gap in both high-demand and emerging sectors. Our approach begins with developing industry-relevant education courses and partnering with sector skills councils to ensure that our apprenticeship programs are closely aligned with current job market demands. This collaboration guarantees that apprentices receive hands-on experience through on-the-job training (OJT) in high-growth fields, enhancing their job prospects. We attract talent by offering competitive stipends, which ensure financial independence while they learn. To retain young professionals, we provide robust career development support, including mentorship, skill development workshops, and networking opportunities with industry leaders. Additionally, we focus on blending theoretical learning with practical experience, adapting our curriculum to meet evolving industry needs. Highlighting our impressive success rates, including a 98% transition rate into full-time employment and a 40% retention rate within the same organisation, helps to improve the perception of apprenticeships. Our efforts to diversify into emerging sectors such as green energy and smart manufacturing, along with showcasing the career advancements of past apprentices, further underscore the value of our programs. This holistic approach not only makes apprenticeships more appealing but also plays a crucial role in building a skilled and future-ready workforce in India.
The collaboration between the private sector and the government is crucial for advancing skill development and employment rates in India. At TeamLease Degree Apprenticeship, we partner with the government and the NSDC to revolutionise the skill and apprenticeship ecosystem. We work closely with sector skills councils to develop courses that address specific industry requirements, ensuring apprentices acquire relevant skills. Additionally, we collaborate with industry leaders to discuss the growth and potential of apprenticeships beyond compliance, emphasising the ROI and practical training benefits. We also work with leading academic institutions to create programs that support technological disruptions, equipping the workforce with cutting-edge skills. Our future plans include enhancing partnerships with the private sector and educational institutions to provide a seamless blend of theoretical and practical learning, expanding outreach to underrepresented sectors and regions, and increasing the accessibility of our programs. By doing so, we aim to widen the talent pool, support technological advancements, and ensure more young people gain valuable work experience and financial independence while learning.
Strategic apprenticeship programs are not just an educational tool; they are a cornerstone of sustainable economic development. By aligning the objectives of education, industry, and government, these programs can create a resilient workforce, foster innovation, and propel India towards a future of sustained economic growth and prosperity.
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