Richard Branson’s philosophy to “Train people well enough so they can leave, treat them well enough so they don’t want to” perfectly captures the essence of apprenticeship programs. Apprenticeships offer not just a solution to immediate skill gaps but also a long-term investment in growth and talent development for both employers and apprentices. Apprenticeship programs in India are a powerful tool for mutual progress, enabling businesses to shape skill sets specific to their needs while apprentices gain valuable, hands-on experience and career opportunities.
Global Apprenticeship Trends
Apprenticeship programs are increasingly being recognized for their effectiveness in skill development across the globe. According to the OECD’s Education at a Glance 2024 report, countries like Switzerland, Germany, and Austria continue to lead with robust apprenticeship systems. These systems not only offer theoretical learning but integrate it with practical, real-world experience. For instance, Switzerland has long been recognized for its apprenticeship model, with 95% of 25-year-olds having completed an apprenticeship or obtained a recognized vocational qualification.
Similarly, countries like Germany and Austria report that 50-70% of young people enter apprenticeships directly after secondary education, particularly in fields like manufacturing, commerce, and management. These models significantly contribute to reducing youth unemployment and fostering a skilled, adaptable workforce.
India’s Apprenticeship Landscape
India has seen notable progress in expanding apprenticeship opportunities. India’s National Apprenticeship Promotion Scheme (NAPS), launched in 2016, has been instrumental in improving access to apprenticeship opportunities. Recent data indicates that 82% of employers in India are planning to increase their apprentice intake, reflecting the growing recognition of the program’s benefits. The Net Apprenticeship Outlook (NAO) 2024 study highlighted a dramatic increase in degree apprenticeships, with participation rising from 12% in 2023 to 55% in 2024. Sectors leading this growth include aerospace and aviation, agriculture and agrochemicals, and repair and maintenance services.
The Economic Survey 2024-25 also revealed that the agriculture sector, which still employs about 46.1% of the workforce, has shown a 5% annual growth from FY17 to FY23. Apprenticeships, particularly in agritech, could provide valuable pathways to better skills and higher productivity in this critical sector.
Bridging the Informal Sector Gap
One of India’s biggest challenges remains integrating the informal sector into the formal apprenticeship framework. As per the Economic Survey 2024-25, 85% of firms operate in the informal sector, contributing 23% of the country’s total turnover. These sectors remain outside the formal regulatory environment, which limits opportunities for skill development and social security benefits. However, initiatives like the National Education Policy (NEP) 2020 and the National Credit Framework (NCrF) aim to bridge this gap by incorporating skills into the formal education system.
With 15% of firms operating within the formal sector, there is tremendous potential to formalize apprenticeship opportunities and upskill a significant portion of the workforce, especially in agriculture, manufacturing, and services. By making apprenticeships more accessible, India can ensure better job security, wages, and social benefits for workers in these sectors.
The Path Forward
Apprenticeship programs offer an ideal solution to two of India’s most pressing issues: the growing skill shortage and low employability rates among youth. These programs give employers the opportunity to tap into young talent early in their careers and tailor training to the specific needs of their industries. For apprentices, it provides a structured, paid route to acquiring practical skills and enhancing career prospects.
The 2024-25 Economic Survey forecasts that India’s economy will grow by 6.5%, a target that can be bolstered by expanding apprenticeship programs. By addressing skill gaps, apprenticeships can increase both worker productivity and economic competitiveness.
India must follow the lead of countries with established apprenticeship models, seeing them not only as a tool to fill short-term skills shortages but also as a long-term strategy to build a resilient, skilled workforce prepared for the challenges of the future.
A Call for Change and Innovation
As industries evolve and the job market becomes increasingly competitive, apprenticeships are emerging as a key solution for employers and workers alike. By embracing apprenticeships, businesses can shape a workforce that is not just ready for today’s challenges but also adaptable to the opportunities of tomorrow. For India, this is not just a pathway to addressing skill shortages; it’s an investment in the future—creating a workforce that is not only equipped with the skills of today but is also prepared for the innovations of tomorrow. It’s time for India’s employers to embrace the apprenticeship model as a fundamental strategy to build a thriving, competitive, and resilient economy.
