Leveraging apprenticeship in infra-construction: ‘Need to equip MSMEs with skills, workforce to meet sector’s growing demands’

By Sankar Subrahmaniyam & Gaurishankar S

The 12th Five Year Plan (2011-15) in China highlighted the significance of apprenticeship with the motto, “One who gets trained gets a job, and one who has a job gets training.” This mantra prioritized the quality of economic growth over its pace, aiming to benefit a broader segment of the Chinese population. This strategy has allowed China to cultivate a high-quality human capital pool in the past decade, effectively addressing the shortage of skilled workers and professionals. As India strives to position itself as the world’s third-largest economy, the construction sector, anticipated to reach $1.4 trillion by 2025 and employing 71 million people, plays a crucial role. However, studies reveal that only 19% of the workforce is skilled, with 4.4 million being core skilled employees (engineers, technicians) and 6.9 million being vocationally trained.  

A recent study by Knight Frank and the Royal Institution of Chartered Surveyors (RICS) identified the pressing need for skill development in India, driven by both internal and external factors. Approximately 63% of the working-age population in India will actively seek employment, and there is a shortage of skilled workers globally due to an ageing population. This underscores the importance of bridging the domestic skill gap, as more skilled Indian employees are likely to migrate to meet overseas demands. Apprenticeship models emerge as a viable solution to address this need and create more opportunities.

The Role of Apprenticeship  

Apprenticeship, a form of work-integrated training, not only provides financial and employment opportunities but also prepares participants for the industry. Apprenticeship is the best way to develop youth through on-the-job training given the provision of stipends and increased chances of post-apprenticeship placements. There is also a rising usage of technology in Construction, such as the implementation of Building Information Modelling (BIM), and drones in infrastructure and construction projects. Hence students need to be exposed to new-age technologies in line with the industry, which can be promoted via apprenticeships in the industry-academia connect.  

A successful example of apprenticeship in India is the Indian Railways. Under Rail Vikas Kaushal Yojana, the Indian Railways have enrolled 23,181 candidates of which 15,665 candidates have completed their training successfully. Under this scheme, 14 industry-relevant technical trades such as electrician, welder, machinist, etc have been identified and trained across 94 locations.  

Challenges in India  

Despite the existence of the National Apprentices Act, 1961, and subsequent amendments, India has yet to fully capitalize on the benefits of apprenticeship programs, particularly in the construction industry. While developed economies have 3-4% of employment occupied by apprentices, India lags significantly at around 0.1%. In the construction sector, 75% of the market cap, is largely concentrated among ten companies, emphasizing the need to equip Micro, Small & Medium Enterprises (MSMEs) with the necessary skills and workforce to meet the sector’s growing demands.  

Linking Education and Apprenticeship  

With only 43.7% of enrolled engineering graduates securing placements, there is a growing demand for experienced professionals. Recognizing this, the National Educational Policy 2020 aims for at least 50% exposure to vocational education, aligning with SDG 4.4 on skill building. AICTE recommends making apprenticeship and vocational education mandatory for educational institutions. India has almost doubled the number of apprentices over the past five years, with this change driven majorly by the IT & Electronics sector on roles such as IOT professionals, AI engineers, data science professionals, cloud computing roles, etc. The construction sector, unlike developed economies, is yet to capitalise on this front. 

Gender bias persists in technical and construction sectors, with only 1.4% of women in technical roles and a 4:1 male-to-female ratio in construction courses. Stereotypes, educational barriers, and perceived safety concerns hinder female participation. In the male-dominated construction industry, apprenticeships play a pivotal role in fostering gender inclusivity as dual education models (apprenticeships are combined with education), allow for more entry of women into the professional stream. 

The Way Forward  

In India, over 90% of registered apprentices successfully complete their programs, achieving an impressive 81% placement rate within 12 months. This is identified as one of the most effective skill-building methods in India. Therefore, to address the demand for skilled engineers in construction, there is a need to encourage apprenticeship models. Formalizing apprenticeships in the MSME sector, which provides the largest share of informal skill-based employment, can be accomplished through cluster grouping and academia-industry collaborations. In India there are 5.5 lakh MSMEs and if each could employ one apprentice, that could be a major thrust.

Government interventions for addressing skill deficiencies and promoting apprenticeship models are already in place, although they may be fragmented and complex across multiple initiatives. The key lies in ensuring accessibility and making it appealing to employers and students by establishing stronger connections between academia and industry. These steps are crucial for India to achieve its economic aspirations and harness the demographic dividend of a young, skilled, and developed India.  

Sankar Subrahmaniyam is Co-Founder & Gaurishankar S is program co-ordinator at infra-construction industry improvement Ecosystem InCoBAN.

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