India’s apprenticeship ecosystem has reached an unprecedented milestone, with the Net Apprenticeship Outlook (NAO) soaring to 76% for Q1 2024-25, marking an 8% increase from the previous quarter, according to the latest TeamLease Degree Apprenticeship Report.
Sunrise industries at the forefront of apprenticeship expansion
The rise in apprenticeship adoption is being fueled by high-growth industries that are reshaping workforce development. The Drone industry leads the charge with a record 86% NAO, reflecting its aggressive push toward specialised skilling, according to the report.
The Electric Vehicle (EV) and Mobility sector follows closely with a robust 75% NAO, reinforcing the industry’s commitment to sustainability-driven talent development. Additionally, Global Capability Centers (GCCs), which have recorded a 79% NAO, are leveraging apprenticeships to enhance operational efficiency and strengthen talent pipelines for global business operations.
India’s emerging apprenticeship hubs: Cities leading the charge
Beyond industry-driven growth, several cities are emerging as apprenticeship powerhouses, bolstered by business-friendly policies and economic expansion. Hyderabad, Nagpur, Chennai, Indore, Pune and Bengaluru have established themselves as the frontrunners in apprenticeship adoption. Bengaluru, Chennai and Pune—India’s IT and automotive strongholds—continue to attract top-tier apprenticeship talent, while Hyderabad is experiencing an apprenticeship boom due to its thriving technology ecosystem, the report mentioned.
Nagpur, fueled by investments in green energy, mobility, and manufacturing, has seen its NAO skyrocket to 91%, up from 76% in the previous quarter, indicating strong employer sentiment. Indore has also witnessed a sharp rise, with NAO increasing to 81%, driven by infrastructure development and investor-friendly policies. These cities are not just economic growth centers but are evolving into key players in India’s skilled workforce development landscape.
A major catalyst behind this rapid expansion is the growing adoption of third-party aggregators (TPAs), which have become indispensable for apprenticeship management. The TeamLease Degree Apprenticeship Report highlights a 9% increase in TPA adoption, with the share of employers not leveraging TPAs plummeting from 70% in HY2 2023-24 to just 23% in Jan-Mar 2024-25. Concurrently, 57% of employers are now actively exploring TPA partnerships to streamline implementation, regulatory compliance, and operational efficiency, as per the report.
Apprenticeships: A stepping stone to permanent employment
One of the most transformative trends emerging from the report is the role of apprenticeships as a direct pathway to full-time employment. An impressive 75% of organisations are now consistently absorbing apprentices into permanent roles post-training, recognizing the effectiveness of structured skilling programs in cultivating job-ready talent. Employers are prioritising learning agility (79%) as the most critical factor for retention, followed by enhanced on-the-job training (66%), stronger industry-academia collaboration (51%), and structured mentorship programs (49%).