India faces skilled worker shortage, needs to bridge demand-supply gap: Study

A study conducted by the National Skill Development Corporation (NSDC) has revealed a significant gap between the demand and supply of skilled workers in India. The study pegged the demand for skilled workers at an astonishing 103 million, while the current supply stands at just 74 million. This imbalance underscores a pressing need for focused efforts in skilling and training across various sectors in the country.
A major reason for this shortfall is the changing profile of the Indian economy. Sectors such as healthcare, semiconductor manufacturing, green jobs and sustainability, waste management, the circular economy, food processing, drone technology, and artificial intelligence (AI) are emerging as key growth areas. These sectors are not only expanding at a rapid pace but also demand a workforce equipped with specialised skills and knowledge — attributes that are currently in short supply.
India’s leading human resources and skill development leaders convened a brainstorming session in Delhi on Friday to tackle the persistent jobs and talent crisis affecting the country.
This collaboration aims to bridge the skill gap and enhance employability, thus preparing India’s workforce to be future-ready and globally competitive. The National Skill Development Corporation (NSDC), under the Ministry of Skill Development and Entrepreneurship, has joined forces with the Society for Human Resource Management (SHRM) India to develop actionable frameworks for future-ready skilling and employability in a rapidly evolving world.
The event gathered industry leaders and senior HR professionals to deliberate on strategies for reskilling and upskilling the corporate and industrial workforce. This was in response to the rapidly changing employment landscape influenced by technological advancements and the evolving nature of work post-pandemic.
Ved Mani Tiwari, CEO of NSDC and Managing Director of NSDC International (NSDCI), articulated his views on this landmark partnership, stating, “NSDC and SHRM are both purpose-driven organizations. This collaboration aims at aligning India’s skilling efforts with the Prime Minister’s vision. As HR manages the entire talent pipeline, it is crucial to assist in reskilling and upskilling employees to address skill gaps. Unlocking value at the employee, company, and industry levels will serve the larger skilling needs of the country.”
Tiwari further added, “To transform India into a $5 trillion economy by 2025, we must accelerate the pace of skilling. With every fourth worker in the global workforce being Indian, equipping our youth with the right skills is essential. It’s not just about growth; it’s about ensuring every Indian benefits from this demographic advantage.”
Achal Khanna, CEO, SHRM India APAC and MENA, emphasised the significance of this initiative, saying, “I am immensely proud to collaborate with NSDC. The HR Leadership Council Connect bridges the gap between the corporate world and the skilling ecosystem. Through India’s first CHRO Council for HR Leaders’ ‘Future-ready Workforce Initiative,’ we aim to create a skilling eco-system that is adaptable and addresses current and future workforce needs. We are proud to contribute to the Kaushal Bharat and Viksit Bharat agendas”.
The discussion today, the first in a series of such deliberations, helped bring out insights which would enable the building of frameworks to bridge skill gaps and enhance the competitiveness of our workforce by leveraging the expertise of the HR community.