India Must Reskill Workforce to Transition from Services to Manufacturing: G20 Sherpa Amitabh Kant

New Delhi, Oct 23 (KNN) Amitabh Kant, India's G20 Sherpa and former CEO of Niti Aayog, emphasised the urgent need for "reskilling" the workforce as India strives to transition from a service-dominated economy to a robust manufacturing powerhouse.

Kant argued that while the services sector currently accounts for a significant portion of India's GDP, this model is insufficient for sustainable growth.

"India can't grow only on the back of services. We need manufacturing," Kant stated, highlighting that manufacturing contributes only 17.5 per cent to India's GDP. He set an ambitious goal for this sector, aiming to elevate its contribution to 25 per cent.

Kant stressed that urbanisation is equally critical, as an estimated 500 million people are projected to migrate to urban areas over the next five decades. "We need to fire on all cylinders—manufacturing, services, urbanisation, and agriculture—and for that, reskilling is key," he explained.

Kant's vision aligns with India's ambitious economic targets, which aim to increase the nation's GDP from USD 4 trillion to a staggering USD 30 trillion, necessitating a ninefold growth.

"That's a challenge, and to overcome it, India needs to become a key part of the global value chain," he added. His call to action includes a significant boost in exports, underscoring the necessity for India to integrate more deeply into global supply networks.

One of the most pressing concerns raised by Kant was India's dependence on foreign semiconductor imports. He voiced apprehension about the implications of relying on international sources for critical technology.

"The government has taken decisive steps to position India as a semiconductor hub," he noted, referring to the approval of five semiconductor manufacturing units within the country.

Currently, construction is underway at two sites, with progress expected to commence soon at the remaining three, representing a collective investment of nearly Rs 1.5 lakh crore.

Moreover, Kant acknowledged the inevitable rise of Artificial Intelligence (AI) and its transformative potential for job creation. He urged that AI should be harnessed to foster societal development rather than solely focus on creating Large Language Models.

"India's stance has always been to deploy the internet and emerging technologies in a safe and trusted manner," he concluded, reinforcing the notion that technology must serve to enhance human development.

Kant's remarks underscore the critical junction at which India stands, where reskilling, manufacturing, and technological advancement will determine the nation's economic future.

As India navigates this transformative period, the call for a skilled workforce and strategic investments in key sectors remains paramount.

(KNN Bureau)