Industry Odisha Bureau, Jul 15: When India is reportedly on its all-out efforts to establish itself as an important manufacturing hub globally, study made by experts have reportedly revealed that such a dream is paradoxically getting dashed due to workforce deficiency/labour or manpower shortage.
The study has reportedly found out that, “The workforce deficiency or shortage of labour includes both the categories of skilled and low-skilled manpower/workforce.”
Surveys have reportedly revealed that, “There is a need for 10-12 million additional skilled workers over the next five years, while there is 40-45 per cent of shortage in talents.”
Surveys have also reportedly revealed that, “While India’s Gross Enrolment Ratio in higher education has increased from 23.7 per cent in 2014–15 to 30 per cent in 2023–24, the skilled young Indians are shying away from the factory-floor jobs by preferring to the Services sector, IT, AI or office jobs.”
The reportedly startling revelation stumbled upon by the surveys is that of “low wages being allegedly paid and the allegedly insignificant financial gains in the manufacturing sector jobs are being complained to be the stumbling block for which a majority of young talents are preferring the Services sector, IT, AI or office jobs these days.”
Surveys have also reportedly found out that, “No real wage growth has been recorded over the last one decade despite inflation and other conditions. Even Indian manufacturing wages remain lower than neighboring China’s. While India’s manufacturing wage per hour in 2025 is claimed to be $3.45, China’s stands at $5.83 comparatively. Even India’s productivity gap with China has also widened by over $30,000 per worker since 2000.”
Surveys have also reportedly found out that, “Despite the hullaballoo over the issues of migrant workers, it is a fact that most of those workers prefer jobs closer to home instead of struggling hard with low wages, uncertainties and insecurities far away from home.”
In this context, the World Bank data has also reportedly revealed that, “Only 12% of Indian migrant workers move across state borders”.
Thus, the study concludes that, “It is a paradox for a country like India which is now world’s most populated country. There is no dearth of workforce, both skilled and low-skilled, but young talented and industrious Indians are shying away from the manufacturing sector owing to the factors like low wages, limited productivity growth, difficult migration conditions, changing educational trends, and above all their lucrative career choices.”
